The document discusses cooperative societies, which are organizations formed by voluntary members to pursue common economic and social goals. Key features include voluntary membership, separate legal identity, limited member liability, democratic governance through elected committees, and a service-focused motive. The document outlines merits like equality of voting rights, stable existence, and government support. It also notes potential limitations such as limited financing and management inefficiencies. Various types of cooperatives are described focusing on consumers, producers, marketing, farming, and credit. The success of large French cooperatives is attributed to supportive laws, social/environmental focus, cooperative tradition, collective ownership, and access to financing.

1. COOPERATIVE
SOCIETY
Utkarsh Mishra​ 2429

2. INTRODUCTION
• An organization of voluntary people working for a common purpose
with an aim to protect economic and social interests of the members.
It must be registered under the Cooperative Societies Act, 1912.
• Feature-
a) Voluntary membership: Any individual irrespective of caste, gender,
religion with common interest is free to join or leave a cooperative
society as and when he/she desires.
b) Legal status: Cooperative society has separate identity status distinct
from its members, and the registration of such society is also
mandatory.
c) Limited liability: Members have liability limited to their capital
contribution.
d) Control: All the decision making power is in the hands of an elected
managing committee which are chosen by members with one man
one vote concept.
e) Service motive: Society is formed with the motive of providing mutual
help to team members.
Cooperative Society 2

3. • Equality in voting status: Each member has equal right to vote
and elect members of the managing committee.
• Limited liability: The liability of members is limited to their
capital contribution.
• Stable existence: Cooperative societies keep on going
irrespective of situations of death, bankruptcy or insanity of its
members.
• Economy in operations: The members of the society work
voluntarily which helps in reducing costs.
• Support from government: Government provides support to
societies in the form of lower taxes, interest rates and
subsidies.
• Ease of formation: No legal formalities are involved in
formation of societies.
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MERITS

4. AREAS OF FOCUS
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• Limited resources: Capital contribution by the member is the only
source of finance, and low dividend also discourages members for
the provision of finance to the society.
• Inefficiency in management: Members working on voluntary basis
may lack necessary expertise and skills, leading to inefficiency in
operations and management.
• Lack of secrecy: Difficult to maintain secrecy as members disclose all
information related to work of the society in the meeting.
• Government control: Societies need to follow rules and regulations as
stated by the government and submit audited financial reports of the
society. However, such government intervention affects the freedom
of work for such societies.
• Differences of opinion: Difference of opinion as a result of individual
interest over the welfare may lead to conflicts amongst members.

5. TYPES OF COOPERATIVE SOCIETIES
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• Consumer’s cooperative societies: Societies formed for providing good
quality services and products at a reasonable rate, to protect the interest of
consumers.
• Producer’s cooperative societies: Societies formed for providing good quality
and low priced raw materials and other inputs, to protect the interest of
producers.
• Marketing cooperative societies: Societies for providing services related to
marketing of products by small producers.
• Farmer’s cooperative societies: Societies formed for providing farmers with
better inputs at reasonable rates to improve productivity.
• Credit cooperative societies: Societies established to provide financial
assistance to its members at very reasonable terms.
• Cooperative housing societies: Societies formed for constructing houses for
its members at reasonable cost.

6. COOPERATIVE SUCCESS IN FRANCE
• France has 4 of the top 10 wealthiest cooperative societies of the world. Some of the largest cooperatives of
France are
a) Groupe Cooperatif Maïsadour: This is a large agricultural cooperative group based in southwestern France, with
activities in farming, food processing, and distribution. It has more than 7,000 members and 4,500 employees.
b) Système U: This is a retail cooperative group that operates more than 1,500 supermarkets and hypermarkets
throughout France. It has over 900 member cooperatives and more than 81,000 employees.
c) Crédit Agricole: This is a cooperative bank that provides a wide range of financial services, including banking,
insurance, and asset management. It has over 21 million customers and more than 70,000 employees in France.
• Here are the reasons for success of cooperatives in France
1. Supportive legal framework: Provides recognition, tax incentives, and government support to cooperatives.
2. Social and environmental focus: Prioritizes sustainable development and social justice.
3. Strong cooperative tradition: Long history and culture of cooperation and mutual aid.
4. Collective ownership and democratic decision-making: Members own and control cooperatives with democratic
decision-making process.
5. Access to diverse financing options:Government loans, cooperative banks, credit unions.