Introduction: Cooperative society is a popular name in the modern world. Generally For Poor peoples and weaker peoples in society are made in a cooperative society. The philosophy of the cooperative society is “ all for each and each for all”. It means helping each other. A cooperative society is one kind of voluntary association. Its main aim members’ service. Same class peoples for the promotion of their target join their hands in this business. Poor peoples and weakly peoples do economically strong in the society of cooperative society is the main work. Actual cooperative society every member helps each other and economically strong of weakly peoples and the main aim is profitless gets the goods of each member.
Cooperative society: A cooperative means co-operative, co-op, or coop. It is all of his members such as owned and operated. It is a voluntary association. Here every member is a shareholder in a cooperative society. Main decorate is all for each and each for all. Poor and weakly peoples are economically strong is main works. It is a nonprofit organization. a cooperative society is represented in agriculture, food, finance, healthcare, sectors, etc. In 2012 Worldwatch institute reports nearly one billion peoples had a member at least one cooperative in 96 countries. The largest three hundred cooperatives turnover reached $2.2 trillion. The cooperative has social goals and the aim is trading profit by investment for its members. In 2013 before tax profits invested 6.9% in a retail cooperative in the UK.
Types of Cooperative Societies : Various types of cooperative societies. It is depend nature of activities, purposes, objective etc.
Cooperative society are main types
- Consumers’ Cooperatives.
- Credit Cooperatives.
- Cooperative Farming Societies.
- Cooperative Better Farming Societies.
- Cooperative Joint Farming Societies.
- Tenant & Joint Farming Societies.
- Collective Farming Societies.
1.) This Cooperatives system no middlemen’s. It makes whole sellers or manufacturers a direct relationship with these societies. Societies member get good service and cheaper rate goods. They purchase bulk goods from whole sellers or manufacturers directly and in small quantities sell to society members. Many times these societies buy big area land and sell it to all members of society. Again many times societies make a home for their societies members and payment systems are long-term with installment.
2.) Credit Cooperatives: Credit cooperative societies are arranged for finance to the poor members or poor farmers or poor businessmen at the lowest interest rate of the society. This system society is collected loans from state cooperative banks. Many times they have collected deposits from general peoples. Again many times this society collected deposit form of the share capital of this society members. These collected funds are used for society members like a loan. By this system, financing peoples save them from high-interest money lenders. Two types are Credit cooperative societies one is agriculture credit cooperatives and another is non-agriculture credit cooperatives. Productive and non-productive systems of the rural area people for credit arrange by agricultural credit cooperative society. On the other hand short term finance for urban peoples by non-agricultural society.
3.) Cooperative Farming Societies: Various types of farmers their piece of land when jointly create big size farm or many farmers their pond jointly do farming and fishing. They are purchase equipment for farming jointly and market the crop jointly. Then earn profit divided by same. This kind of societies cell Cooperative Farming. Here every member gave one vote for proper work. This Societies ownership of the land has with the respective members and withdrew from societies when they can want.
4.) Cooperative Better Farming Societies: This society farmers are cultivating farm of own land, they do not jointly cultivate every farmer land. But they purchase equipment for farming (seeds, fertilizers, insecticides, services of machinery) with jointly and jointly market the crop on a cooperative basis. Carrying on these activities of this for financial assistance arrange by a cooperative better farming society.
5.) Cooperative Joint Farming Societies: Cooperative farming society represents the comprehensive types. It presents all member’s land pre-sowing to marketing besides the cultivation of the land on a cooperative basis.
6.) Tenant & Joint Farming Societies: When cooperative members purchase land or land for leases from the government or any private persons. Members of cooperative pay the rent of land on their share basis and distributed earn profit among their members by rules. It says tenant & joint farming societies.
7.) Collective Farming Societies: This type of society’s members are not withdrawing their land from this society. They can transfer land to another person and next time this person will be substitute members of the society. It is a Permanent basis land society. It is similar to is Cooperative joint farming society. Wages and profit distributed by their members
History: Financial service and credit service to farmers in rural cooperatives activity. It is financial cooperatives history. Cooperative society had established to members available for products and service. Such as housing, healthcare, insurance, grocery, etc. For society, members arrange to live in apartment complexes by cooperative of housing. By the board of directors, a financial cooperative can arrange structure and provide in the organization. For “Economically weak” people create by cooperative society to eradicate capitalist exploitation and eliminate middlemen. The cooperative movement is commenced among the poor deprived laborers and low-middle class people of the society in the post-industrial revolution. The post-industrial revolution brings the cooperative movement of the society poor and low-middle class people. In Britain first, start in 1844 by 28 weavers in cooperative Society. Next time different times and different nations this organization revealed.
Cooperative Society Characteristics :
Advantages of Cooperative Society :
1. Formation of easy
A cooperative society creates to easy than a joint-stock company. It is a simple process. Ten or more members are written application then make registrar by laws.
- Membership is open: The work of cooperative societies principle is open membership. Membership can become anyone.
- Management is democratic: Cooperative societies rules is“ One member one vote”.By all member selected boards for activity cooperative societies.
- Continuity & Stability: If any member of Cooperative societies death, lunacy, or insolvency that activity is not stopped. It will continue. New members may come and the old members may go. But it is not affected by Cooperative societies.
- Liability is limited: Generally, member of Cooperative societies his limited liability to face value of shares until. Low Prices
- Advantage of social: Cooperative societies are using profit for social advantage. For this, they make school, college, hospital, etc. By this benefits social welfare. A cooperative society’s principle is to control exploitation and service. A good cooperative society is the distribution of profit and discourages the monopoly.
- Low Prices: A cooperative society is for the purchase of big volume goods avoid the middlemen and sell of goods with low profit for society members.
- Government support: Cooperative societies get more privileges and concessions from Government. Because this organization promotes education values, moral, social of the peoples and help the economics.
- Mutual Help: Cooperative society’s main aim is mutual help. Some of the members go to work on an honorable basis. By this management expenses are reduced.
- Mobilization of Saving: Cooperative society work is weakly small parts of society do jointly work. Saving amount of Members in society money amount jointly use any construction projects.
- Cash trading: “Cash and carry “ is the main Principle of a Cooperative society. As result members of society enjoy various discounts and a good habit for saving among the members.
- Capitalism defects are removed: Cooperative society removes the middlemen, monopoly, black marketing, workers, and consumers. It removes the defects of capitalism.
Disadvantages of Cooperative Society :
1.Capital is a limitation: Most of the Cooperative society’s members are poor class and local peoples. They have not enough money. So all time Cooperative society’s capital is limited.
2.State Control: By the government control record, audited returns, and inspection which is the state control. A cooperative society is control by the Cooperative society Act or law.
3.Business secrecy is absence : Every business of the cooperative society is open. Every members to known everything. Annual account and annual report is compulsory to advertise in newspaper.
4.Management is inefficient: Generally most of the cooperative society members coming from poor or low class level. They are not more educated and they have not enough knowledge for operate the cooperative society. For lack of management they are not interest of the society for working.
5.Lack of Motivation: Dividends rate also in 15% that peoples do not interest from joining a cooperative society. The management and staff members are no relation among rewards and efforts, for this motivation is lack.
6.Political Interference: Cooperative society principal is the end when political activity is involved. In Election time it uses as like in Political platforms. Money in society leads to corruption of power between the members of society results in disputes and quarrels.
7.Limited Scope: Cooperative system cannot affect the whole economic system. It is limited capacity so it cannot enter the economic system. Cooperative societies cannot convert to big enterprises.
8. Lack of public Confidence: Peoples do not believe in Cooperative societies because many cooperatives are failed and peoples do not interest in members.
9.Economics scale is inactive: Cooperative society does not have any technical resources, financial, managerial. As a result cooperative societies are not Convert to joint-stock companies.
10. Number of restrictions: Minimum of 10 adult peoples are made Cooperative society. Less 10 peoples are not possible by rules of Cooperative society.
Conclusion: Most of the western countries are Cooperative society is popular. Because Cooperative society stands on honest, truthfulness. Every member will work selflessly and jointly. Cooperative society provides in European peoples 5.4 million jobs. But third world countries are not successful in Cooperative society. Because here lack of honesty, belief, truthfulness.