What are cooperative societies?

The cooperative society is a voluntary association of persons, who join together with the motive of the welfare of the members. They are driven by the need to protect their economic interests in the face of possible exploitation at the hands of middlemen obsessed with the desire to earn greater profits. 

The cooperative society is compulsorily required to be registered under the Cooperative Societies Act 1912. The process of setting up a cooperative society is simple enough and at the most what is required is the consent of at least ten adult persons to form a society. The capital of a society is raised from its members through the issue of shares. The society acquires a distinct legal identity after its registration

Further Reading:

• Cooperative Housing Movement in India
• Indian Polity Notes For UPSC