Features of Cooperative Society
Cooperative society was originated from the word of co-operating which indicates assistance. Society means association or collection of a group of people. Earning profit is not the main goal of cooperative society, rather prosperity of the members, ensuring the rights and dignity, develop, the worse situation, change the fate, believes, honesty, economic as well as increase the aides are the main goals of this society.
It is a legal organization which has extra-ordinary acceptance to the general people. According to L. Darling, “It is more than principles, a power, and thinking engine of a fresh mind.” So it has various kinds of features which are given below:
Nature of formation: A few people form it under ongoing Cooperative Society Act. That’s why they collect registration born the register office by paying required fees and accessory documents. After getting permission, this society can conduct its activities.
Objectives: The main objective of the society is financial development and welfare of the members. Assurance of prosperity and financial improvement among the members is the goal of the cooperative society.
Distribution of profit: All the profit of cooperative society is not distributed among the members. Because cooperative society must keep at least 15% in reserve fund and 5% to keep in cooperative development fund then rest of profit distributed among shareholders.
Democratic management: In the cooperative society, the democratic management system must be – maintained both managerial and operational levels. Board of directors is formed through the direct voting process of members.
Liability of members: The liability of cooperative society is limited. Every member of the cooperative society is liable on the basis of their share. Their personal property will not be affected in the cooperative society.
Equal voting right: According to the Cooperative Society Act-2001, section 36(1), every member has equal voting right through anyone purchase more than one shares.
Government involvement: Government can control all the business activities of a cooperative society. Sometimes government conducts meetings, program, and participate in decision making, operations, and book-keeping of the cooperative business. Besides this government take initiative to provide training to the members of financial and non-financial assistance.
Following principles: Collective unity, assistance, honesty, equality, friendship above all service is the main criteria to success this kind of organization. This society must folios, these principles for improving the socio-economic condition of the members.
From above discussion, we can say that cooperative society is a registered, separate entity, limited liabilities; democratic management based voluntary business organization. Financial solvency is the main objective of the members of cooperative society.