Explain any four advantages of consumer cooperative societies
Explain any four advantages of consumer cooperative societies
The advantages of consumer cooperative societies are as follows :
1. Equality in voting right : A cooperative society is governed by the principle of 'one man one vote'. Each member has equal voting right irrespective of his capital contribution in the society.
2. Ease of formation : Minimum ten members are required to form a cooperative society. The procedure for the registration of the society is very simple and involves a few legal formalities.
3. Limited liability : The members have limited liability to the extent of the capital contributed by them. Therefore, they cannot be held personally liable for the payment of debts.
4. Support from government : The government provides subsidy to these societies and charges a very low rate of interest on loans given to them. The rate of taxes is also very low.
The advantages of consumer cooperative societies are as follows :
1. Equality in voting right : A cooperative society is governed by the principle of 'one man one vote'. Each member has equal voting right irrespective of his capital contribution in the society.
2. Ease of formation : Minimum ten members are required to form a cooperative society. The procedure for the registration of the society is very simple and involves a few legal formalities.
3. Limited liability : The members have limited liability to the extent of the capital contributed by them. Therefore, they cannot be held personally liable for the payment of debts.
4. Support from government : The government provides subsidy to these societies and charges a very low rate of interest on loans given to them. The rate of taxes is also very low.
