Co-operative

Societies.
presentation by: group 6
roll nos. 51 to 64
Guided by: Adv. Mrs. Vaishali Bapat
Introduction
A cooperative society is not a new To protect the interest of weaker
concept. It prevails in all the sections, the co-operative society is
countries, this is almost a universal formed. It is a voluntary association
concept. The cooperative society is of persons, whose motive is the
active in all countries worldwide and welfare of the members.
is represented in all the sectors
including agriculture, food, finance,
healthcare, etc.

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Features of a Co-
operative Society

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“
As it is a voluntary association, the
membership is also voluntary. A person
is free to join a cooperative society, and
can also leave anytime as per his desire.
Irrespective of their religion, gender &
caste, membership is open to all.
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◈ It is compulsory for the co-operative society to get registration. The co-
operative society is a separate legal identity to the society.
◈ It does not get affected by the entry or exit of its members.
◈ 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. Members
have the right to vote, by which they elect the members who will constitute the
managing committee.
◈ The cooperative society works on the principle of mutual help & welfare.
Hence, the principal of service dominates it’s working. If any surplus is
generated, it is distributed amongst the members as a dividend in conformity
with the bye-laws of the society.

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Types of Co-
operative Society
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1] Producer Cooperative
To protect the interest of small
producers, these societies are
set up. The co-operative society
members may be farmers,
landowners, owners of the
fishing operations. To increase
the marketing possibilities and
production efficiency,
producers decide to work
together or as separate entities.
They perform several activities
like processing, marketing &
distributing their own products.
This helps in lower costs and
strains in each area with a
mutual benefit to each
producer.
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2] Consumer Cooperative
These businesses are owned and governed by
consumers of a particular area for their mutual
benefit. Their view is to provide daily necessary
commodities at an optimum price. Rather than
earning a pecuniary profit, their aim is towards
providing service to the consumers.

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3] Credit Unions
Credit unions are generally member-owned financial
cooperatives. Their principle is of people helping people.
They provide credit and financial services to the members
at competitive prices. Each and every depositor has the
right to become a member. Members attend the annual
meeting and are given rights to elect a board of directors.

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4] Marketing Cooperative Society

With an aim of helping small producers in

selling their products, these societies are
established. The producers who wish to obtain
reasonable prices for their output are the
members of this society.

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Characteristics of Cooperative Society

Voluntary Association-
◈ Membership of a cooperative society is voluntary in nature, i.e it is as per
the choice of people.
◈ Any individual can join the cooperative society and can also exit the
membership as per his/her desire.
◈ The member needs to serve a notice before deciding to end the association
with the society.

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Open Membership–
Open to all irrespective of caste, gender or religion.

Democratic Character–
Cooperative society forms a managing committee and elected
members have the power to vote and choose among themselves.
The managing committee is formed so as to take important
decisions regarding the operations of the society.
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Under State Control –
◈ In order to safeguard the interests of society members,
the cooperative society is under the control and
supervision of the state government.
◈ The society has to maintain accounts, which will be
audited by an independent auditor.

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Advantages of Cooperative Society
◈ The products that are sold in the cooperative societies are
cheaper than the market.
◈ More Profit for Producer & Consumers - Procurement of
products is done directly from the producers, which
removes the middlemen.
◈ Members of the cooperative society can get quick loans.
◈ No black marketing involved.
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Disadvantages of Cooperative Society
◈ Due to the association of members of low income
groups, the scope of raising capital is limited.
◈ It suffers from inefficiencies in management.
◈ Lack of Competition
◈ Cash Trading

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 List of Co-operative societies 

1. Amul
2. Horticultural Producers’ Cooperative Marketing and
Processing Society (HOPCOMS)
3. Indian Coffee House
4. Indian Farmers Fertilizer Cooperative Limited (IFFCO)
5. Kerala Dinesh Beedi workers’ Central Co-op Society
6. Karnataka Milk Federation(KMF)
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THANKS!!!