Features of Co-operation

A co-operative organisation is set apart from other forms of business — such as a sole proprietorship, a partnership, or a joint stock company — by a distinctive set of features. These features flow directly from co-operation's basic idea of 'self-help through mutual help'.

1. Voluntary Association — Membership of a co-operative society is completely voluntary. No one is forced to join, and any member is free to leave the society (after giving proper notice and following the rules). People join only because they share a common economic need.

2. Open Membership — Membership is open to all eligible persons, without any discrimination on the basis of caste, religion, gender, or economic or social status. Anyone who has a common interest and is willing to accept the responsibilities of membership can become a member.

3. Democratic Management — A co-operative is managed democratically on the principle of 'one member, one vote', regardless of how many shares a member holds. This is a key difference from a joint stock company, where voting power depends on the number of shares held. The members elect a managing committee to run the society on their behalf.

4. Service Motive (not Profit Motive) — The main aim of a co-operative is to serve its members, not to earn maximum profit for a few owners. Any surplus that arises is a means to serve members better, not the primary goal.

5. Separate Legal Entity — A co-operative society must be registered under the co-operative law, and on registration it becomes a separate legal entity distinct from its members. It can own property, enter into contracts, and sue or be sued in its own name, and it enjoys perpetual succession (its existence is not affected by the death or exit of members).

6. Equality — All members are treated as equals. This is reflected in the 'one member, one vote' rule and in the equal treatment of every member, whatever their contribution of capital.

7. State Control / Regulation — Because co-operatives serve public interest and receive various concessions and help from the government, they are regulated and supervised by the government through the Registrar of Co-operative Societies. Their registration, working, and accounts are subject to government control and audit. …