Explain the features of cooperative organization. |
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| Ans : The common features of cooperative organization are as follows:
i) Voluntary Association:- A cooperative society is voluntary association of persons having common economic and social interest and motive. Persons having common interest can join the association by investing limited capital. There is no restriction to anyone to join and leave the society.
ii) Open membership:- The membership of cooperative society is open for all people with common interest and motive. There is no restriction for membership irrespective of gender, caste, religion, culture or financial status.
iii) Mutual relation:- It is formed by the people having limited means to meet common objectives. It helps to develop their joint effort. “Unity is strength” is the main motto of cooperative society. Unity among the members close to each other and helps to develop industrious relationship among them.
iv) Service motive:- The main motive of the society is to provide service to the members in minimum price. It is not profit motive. It provides all kinds of facility and services to the members by remaining with its limited scope of business.
v) Cash transaction:- In cooperative organization transactions are done true cash. Credit transaction is avoided because it creates the problem of bad debts, doubtful debts and credit collection expenses.
vi) Democratic management:- It is managed by Management Committee or board of directors. The members of board of director are detected by all the members at the annual General meeting. It follows the principle of one vote for one member.
vii) Separate legal status:- A cooperative society has separate legal entity distinct from its member. It can hold prosperity, borrow loans and enters into contract in its own name. It is created by law and can be dissolved only by the law.
viii) Distribution of profit:- At least one-fourth off the net surplus of any year of the society is transferred to the reserve fund. All the remaining funds may be used for distribution of dividend or bonus within the limit specified by bye-laws.
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