Question

Write short notes on the following.
Features of a co-operative society.

Answer 1

The features of the co-operative society are:

1. Voluntary membership: A person is free to join and leave the society as per his will. There is no compulsion to remain a member.

2. Legal status: The compulsory registration of a co-operative society under the Co-operative societies Act 1912, makes it a separate legal entity.

3. Limited liability: The members of the society have the liability limited to the extent of the capital contribution made by them.

4. Control: The control vests in the hands of the managing committee elected by the members.

5. Service motive: It is established with a purpose to serve the members by eliminating the middlemen.