Cooperative Society


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History of Cooperative Legislation in India

 Rochadale Society of Equitable Pioneers, which was world’s first successful cooperative society in 1844, was registered under the Friendly Societies Act as there was no separate Law under which Co-operative societies could be registered. It was only in 1852 a separate law was enacted in Britain for co-operatives in the form of Industrial and Provident Societies Act. Need was felt for a separate Law for Co-operatives as the Companies Law does not facilitated the working of co-operative Societies because this Law is basically framed for facilitating capital creation and profit maximization. Co-operatives, on the other hand, are member centered organizations and aim at maximizing services to members. Co-operatives are generally organizations of the poorer and deprived ones hence, the Law has to be simple and easily understandable. The first Law enacted on the subject in the India was the Co-operative Credit Societies Act (CCSA) of 1904. The salient features of CCSA 1904 are as unde...
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Objectives of Cooperation Every cooperative institution comes into existence for the fulfilment of certain specific objectives. Short term objective of cooperative institution may differ but the longtem objectives ofthem are the same. They are analyzed as follows: 1.Elimination of Intermediaries: The primary objective of a cooperative society is to remove the middlemen or intermediaries present indifferent fields of economic activity. These middlemen use to take away a major portion of the gainswhichshould have reached the beneficiaries. Consumer cooperative societies have been able toeliminate many wholesalers and retailers who came in between the producers and the consumers.Marketing cooperatives have saved the farmers from the long chain of middlemen who were exploitingthem with very low prices for their produce at all times. 2.Raising the Economic Status of the Weaker Sections: The basic obje...
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Characteristics of Cooperative Enterprise Chief characteristics of the cooperative enterprise may be as follows 1. An Association of Person:  A cooperative society is an association of several persons like a joint stock company. The persons whoassociate together contribute capital in the shape of shares. In Cooperatives, it is man that counts much,not money 2. A Business Enterprise: A cooperative society is not a charitable enterprise. It is a form of business organisation coupled withprofit and risk. The members or share-holders in the society posses a common interest and havecommon need to satisfy. 3.A Voluntary Enterprise: The element of coercion is absent in a cooperative enterprise. Admission and retirement of a member inthe society is completely voluntary. 4. A Democratic Enterprise: A cooperative society is managed democratically. Every member has one and only one vote to exerciseirrespective of the number of shares he...
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