Q.What is a co-operative society? State any four of its features.

A co-operative society is formed not to make profit but to help its members through mutual and self-help, on the principle 'Each for all and all for each.'

Definition: A co-operative society is a voluntary association of persons who join together on the basis of equality to promote their common economic and social interests through mutual help and self-help. In Maharashtra it is registered and governed under the Maharashtra Co-operative Societies Act, 1960. Its guiding motto is 'Each for all and all for each.'

Features:

1. Voluntary and open membership — any person with a common need may join or leave freely, without discrimination of caste, creed, religion or gender. A minimum of 10 members is needed to form a society.
2. Democratic management — the society is run by a managing committee elected by the members on the principle of 'one member, one vote', so control does not depend on capital held.
3. Service motive — the primary aim is to serve the members and society, not to earn maximum profit.
4. Compulsory registration and separate legal status — once registered with the Registrar, the society becomes a separate legal body with perpetual succession.
5. Limited liability — members' liability is normally limited to the capital they contribute. …

A common error is to say a co-operative works 'for profit' — its motive is SERVICE. Another is to state 'one share, one vote' (that is a company); a co-operative works on 'one member, …