• “Cooperation is a form of organization where the
persons voluntarily associate together as human
beings on the basis of equality, for the promotion
of economic interests of themselves” – E. H.
• “A co-operative society is an autonomous
association of persons united voluntarily to meet
their common economic, social and cultural needs
and aspirations through a jointly-owned and
• “A cooperative is an autonomous association of
people who voluntarily cooperate for their mutual
social, economic, and cultural benefit.”
• “A society, which has as its objects the promotion
of the economic interests or general welfare of its
members, or of the public, in accordance with co-
operative principles”. – Sec 4 of Cooperative
• “An association or corporation established for the
purpose of providing services on a nonprofit
basis to its shareholders or members who own
and control it.”
• “A jointly owned enterprise engaging in the
production or distribution of goods or the
supplying of services, operated by its members
for their mutual benefit, typically organized by
consumers or farmers.”
A cooperative (or co-op) is a business operated and democratically controlled by its
membership of owners to meet their common needs and aspirations. Co-ops are guided
by the seven principles.
• Voluntary, Open Ownership: Open to all without gender, social, racial, political, or
religious discrimination. You may shop, you may join, and you may leave the co-op at
• Democratic Owner Control: One Owner, one vote. Your voice will be heard.
• Owner Economic Participation: Owners contribute equitably to, and democratically
control, the capital of the cooperative. The economic benefits of a cooperative
operation are returned to the Owners, reinvested in the co-op, or used to provide
Owner services. You control the capital.
• Autonomy and Independence: Cooperatives are autonomous, self-help
organizations controlled by their Owners. Together, you are autonomous.
• Education, Training and Information: Cooperatives provide education and training
for Owners so they can contribute effectively to the development of their cooperatives.
They inform the general public about the nature and benefits of cooperation. You can
develop yourself into the consumer you want to be.
• Cooperation among Cooperatives: Cooperatives serve their Owners most
effectively and strengthen the cooperative movement by working together through
local, regional, national and international structures. You are more successful when
you cooperate with others who know how to cooperate.
• Concern for the Community: While focusing on Owner needs, cooperatives work for
the sustainable development of their communities through policies accepted by their
Owners. You can do something for the community even as you keep succeeding.
1. Voluntary Membership
2. Legal Status
3. Limited Liability
5. Service Motive
6. Equal Voting Right
7. Democratic Control
8. Return of Capital
9. Surplus Profit
10. No Transferability of shares
11. Cash Transactions
1. Easy formation
2. Democratic Management
3. Open Membership
4. Limited Liability
5. Perpetual Succession
6. Relief by Govt.
7. Low cost of Management
8. Low Price
9. Service Motive
1. Lacks of Capital
2. Inefficient Management
3. Lacks of Business Secrecy
4. Lacks of Motivation
5. Political Interference
6. Lacks of Public Confidence
7. Limited Scope for Expansion
8. Heavy Govt. Control
• The first Step is to get 10 Individuals together who are desirous of forming a
• A Provisional Committee should be formed and a chief Promoter should be
elected from amongst them.
• A Name for the Society has to be selected.
• An Application has to be made to the Registration Authority for reservation of
Name and a letter to that effect has to be obtained confirming the reservation of
Name. The name once reserved is valid for 3 Months.
• The entrance fees and share capital has to be collected from the prospective
• A Bank account has to be opened in the name of the proposed society as per
the directions of the registration Authority. The entrance fees and share money
has to be deposited in the bank account and the certificate from the bank has to
be obtained in that respect.
• The registration fees have to be deposited with the Reserve Bank of India and
receipted 1challan thereof is to be obtained.
• The application for registration of the society should be submitted to the
Registrar of Societies of the concerned municipal ward. The documents to be
submitted for registration are as follows:
• Form No. A in quadruplicate signed by 90% of the promoter members
• List of promoter members
• Bank Certificate
• Detailed explanation of working of the society.
• 4 copies of proposed bye-laws of the society.
• Proof of payment of registration charges.
• Other documents like affidavits, indemnity bonds, any documents specified by
the Registrar also have to be submitted.
• The Registrar will enter the particulars in register of application maintained in
Form “B” and give serial number and issue receipt in acknowledgment of the
• On registration, the Registrar will notify the registration of the Society in the
Official Gazette and issue Registration Certificate.
• Robert Owen (1771–1858) is considered as the
father of the cooperative movement. A
Welshman who made his fortune in the cotton
trade, Owen believed in putting his workers in a
good environment with access to education for
themselves and their children. "villages of co-
• 1844: The Rochdale Society of Equitable Pioneers was a
group of 28, around half were weavers in Rochdale,
• 1889: ‘Anyonya Sahakari Mandali’ Baroda
• 1904: The Government passed the Cooperatives
Societies Act to combat poverty, famine and rural
indebtedness in India.
• 1912: A comprehensive act was brought in to cover the
formation, management and regulation of cooperative
societies, thus widening their scope beyond offering
• 1914: Sir Edward Maclagan Committee recommended
guidelines to societies
• 1946: AMUL
1. Consumer Co-operative Society
2. Industrial/Producer Cooperative Society
3. Marketing Cooperative Society
4. Credit Cooperative Society
5. Farming Cooperative Society
6. Housing Cooperative Society