Meaning: -A Co-operative society is a voluntary association of people who come together on the basis of unity and equality to protect and promote their common economic interest.
Definition: -“It is an association of the weak who gather together for a common economic need and try to lift themselves from weaknesses into strength through business organization” [Talmaki]
Following is the features of co-operatives:
1. Service motive
2. Limited Liability
4. Voluntary associations
5. Equal voting rights
6. Open Membership
7. Lack of Secrecy
1. Service motive: The main aim of a co-operative society organization is to render service to the people. It is a service-oriented organization. It is mainly formed for promotion of welfare of the society.
2. Limited Liability: In a co-operative society, the liability of each member is limited. The liability of the member is limited to the face value of shares purchased by them.
3. Stability: The co-operative society enjoys a stable life. There is continued existence. The society survives even if some members resign or leave the society. as it is a corporate body.
4. Voluntary associations: co-operative society is a voluntary association of people who come together on the basis of unity and equality to protect and promote their common economic interest. The individual joins the cooperative society on his free will.
5. Equal voting rights: - All members are treated equal. Equal voting rights are given to all. Every members has one voting rights only, as the society follows the principal of “one man one vote”. Voting by proxy is not allowed.
6. Open Membership: - Normally, membership is open to all those who are willing to join the co-operative. There is no restriction of caste, creed, race, religion, etc. At Least 10 Members are required to form a Co-operative Society.
7. Lack of Secrecy: - The co-operative Lacks secrecy. This is because, the account are made available to the members and others. It is difficult to maintain business secrecy in a cooperative organization.