Q.Define the Co-operative Society. Explain its features.

A co-operative society is a voluntary association of persons who come together to serve their common economic interests through mutual help, not profit maximisation. Its key features are voluntary and open membership, democratic control (one member–one vote), service motive, separate legal entity on registration, limited liability, and distribution of surplus as dividend/bonus.

Meaning

The word 'co-operation' means working together. A co-operative society is a voluntary association of persons (minimum 10 adults) who join together on a basis of equality to promote their common economic interests through self-help and mutual help. Its motto is 'each for all and all for each.' It is registered under the Co-operative Societies Act, and is studied as a distinct form of organisation in the AP Intermediate 1st-year Commerce course (aligned with the NCERT/CBSE commerce curriculum).

Features of a Co-operative Society

1. Voluntary association — membership is open and voluntary; any person can join or leave at will, irrespective of caste, creed, religion or gender.
2. Separate legal entity — on registration the society becomes a body corporate with its own name, common seal, perpetual succession and the right to own property and sue.
3. Democratic management — it is managed by an elected managing committee on the principle of 'one member, one vote', regardless of the number of shares held.
4. Service motive — the primary aim is service to members and society, not profit maximisation.
5. Limited liability — the liability of members is limited to the amount of capital contributed. …