What are the objectives of cooperative societies?

What are the objectives of cooperative societies?

Objectives of Cooperative Society

• To provide support and services to the members of the society and not to earn the profit.
• To help each other mutually and not to have competition.
• To practice fair and transparent business activities.
• To deliver the quality goods and produce to the end customers.

What is the main motive of cooperative society?

The basic motive of forming a cooperative society is providing service to its members through its activities rather than earning profit from these activities. If the society earns profit, it is distributed among the members as dividend in conformity with the bye-laws of the society.

How is a Cooperative Society formed?

A co-operative society can be created by a minimum of 10 adult members. The members are willing to build a society which needs to have a common interest and bond between them. They may be the citizens of similar locality or operators of some organisation.

What is the objective of a cooperative manager?

A cooperative manager is the gatekeeper or liaison between the board of directors and the employee group. The manager communicates the board’s strategic goals to the employee group and communicates employee concerns and needs to the board. The cooperative manager both receives and disseminates information.

How cooperative society is unique form of organization?

Features of a Cooperative Society As it is a voluntary association, the membership is also voluntary. There is limited liability of the members of co-operative society. Liability is limited to the extent of the amount contributed by members as capital. An elected managing committee has the powers to take decisions.

Why cooperative forms of Organisation are formed explain various types of cooperative societies?

Cooperatives are formed by relatively poorer sections of society; share capital is usually very limited. Since it is a part of govt. policy to encourage cooperatives, a cooperative society can increase its capital by taking loans from the State and Central Cooperative Banks.

What was basic purpose of formation of Coop concept in India?

A co-operative society is a voluntary association of individuals having common needs who join hands for the achievement of common economic interest. Its aim is to serve the interest of the poorer sections of society through the principle of self-help and mutual help.

How is a cooperative society formed in India?

Application for registration of Coop: Society may be addressed to the Registering Authority* signed by at least 10 promoters above the age of 18 years detailing the name, address, objectives and area of operation of the proposed society along with promoters’ contact details.

What are the aims and objectives of a cooperative society?

The objective of the society is to improve economic condition of its members and for this purpose it aims to provide facilities for better farming, better business and better living as well as carry out work of common economic interest and benefit to the members.

What is the main objective of cooperative society in agriculture?

However, agricultural cooperatives do not aim at profit maximization in the first place. Instead, their primary goal is to provide services to the members, ensuring their business and economic needs are met.

What is the purpose of cooperative?

The purpose of a cooperative is to realize the economic, cultural and social needs of the organization’s members and its surrounding community. Cooperatives often have a strong commitment to their community and a focus on strengthening the community they exist in or serve.

How is the formation of a cooperative society?

The working of a cooperative society is governed by the Cooperative Societies Act, 1912. Easy Formation: The process of setting up a cooperative society is simple. A voluntary consent of at least ten adult persons is required to form a cooperative society. The capital of a society is raised from its members through the issue of shares.

What is the purpose of Co-operative Society in India?

A group of people that decide to form a co-operative society in India must register under the Cooperative Society Act, 1912. The purpose behind a cooperative society is to provide goods and services to the consumers at a reasonable cost with the aim to encourage them towards productivity, savings, investments and equal distribution of surplus.

What are the objectives of an agricultural cooperative society?

Agricultural cooperative society – The main objective of an agricultural cooperative society is to promote and process farm products and for optimum purchase and production of the products. Co-operative society targets small and medium-sized businesses.

What is the legal status of a cooperative society?

Legal Status: The setting up and working of a cooperative society is governed by the Cooperative Societies Act, 1912. Registration of a cooperative society is compulsory. Hence a cooperative society has a separate identity and it is distinct from its members.