features of co operative society

Features of co operatives society :-

There are many characteristics and features of cooperatives society.

Open membership :-

The membership of society is open for people having good character. The membership remains open throughout life of society. There is need of 10 members to run the society. The maximum  number increase or decrease due to incoming and outgoing members.

Voluntary retirement :-

The members can leave society when they like. A person cannot transfer his capital to others. He has right to withdraw his shares.

Elected management :-

The membership of society is elected by members from among themselves. The rule of one man one vote is applicable. A member with one vote becomes head of society.

Voting rights :-

In a co operative society every member has equal voting rights. The members are given to power of one vote each.it is a spirit of democracy that members are counted but not weighted.

Limited liability :-

The liability of members is limited. The word limited must be used after the name of society. It is a common feature that co operative societies are registered with limited liability.

Cash trading :-

The co operative societies deal on cash basis. Cash trading is very helpful to work with minimum capital resources.

Services motive :-

The prime importance is given to service out normal profit is needed to meet expenses. The real purpose of co operative society is services of all the members.

Return on capital :-

The rate of return is 6.25 percent per annul for consumers, producers and housing society. The resources or general society can pay 7.50 present.

Surplus profits :-

The remaining profit may be transferred as twenty five percent to reserve fund in case of resource or general society and ten percent of the net profit in case of any other society.

Legal status :-

A co operative is usually registered under co operative societies act 1925. The registration is desirable and not compulsory. After registration the society is given legal status.

Local area of operation :-

The society is made by poor person  living in particular area.the area of operation is limited. It is suitable for small size business.

Limited finance :-

The capital of co operative society is contributed by member through purchase of shares. The members are poor and weak so capital collected may be small.

Nature is business :-

A co operative society is a form of business. It is not charity show. The profit is distributed among members. The losses are shared by members is an agreed ratio.

Management training :-

The idea of co operation is simple in theory and difficult in practice. An expert management is key to success in business. The government can import training to managers for successful working.