Co-operative Societies

A Complete Slideshow Of Co-operative Societies. :)

1. Nishant R. NairNishant R. Nair
Class - 9-2
Roll No. - 28

3. ‘‘Co-operation’Co-operation’
Derived from the Latin word ‘Derived from the Latin word ‘co-co-
operarioperari’’
‘‘coco’ means ‘with’ and ‘’ means ‘with’ and ‘operarioperari’ ’ means means
‘to work’‘to work’
‘‘Co-operationCo-operation’ means working together’ means working together

4. ‘‘Co-operative SocietyCo-operative Society’’
A A voluntaryvoluntary association association of persons;of persons;
working together with working together with common economic common economic
objectiveobjective;;
providing providing supportsupport to the members; to the members;
self-helpself-help and and mutual helpmutual help;;
non-profitnon-profit motive; motive;
pooling pooling individual resourcesindividual resources for for group group
welfare;welfare;
for for common benefitcommon benefit. .

5. OBJECTIVES
Render service, not for profit;
Mutual help, not competition;
Self help, not dependence;

7. Open membership
Membership open to all with common
interest;
Minimum of ten members;
No restriction on the maximum number;
Members may specify the maximum
number for their Society

8. Voluntary Association
•Members coming together voluntarily;
•by choice, not by force;
•Continues for as long as he likes;
•May leave at his will.

9. State controlState control
Registration compulsory;
Statutes, Rules and Bye Laws to protect the
interest of members;
Has to maintain books and records;
Subject to statutory audit of books by
qualified Chartered Accountants;
Functions under the regulatory supervision of
Registrar of Co-operative Societies

10. Sources of FinanceSources of Finance
Capital contributed by all the members;Capital contributed by all the members;
May raise loans and secure grants from May raise loans and secure grants from
government;government;
 after its registration.after its registration.

11. Democratic ManagementDemocratic Management
Governed by a ‘Managing Committee’ or
‘Board of Directors’ elected by the members
of the society;
Managed on democratic lines;
One member one vote, irrespective of no. of
shares held;

12. Service motive
Co-operatives not to maximize profit but to
provide service to its members;
A Consumer Co-operative Store sells quality
goods to members at a reasonable price
retaining a small margin of profit;
In a Housing Co-Operative, members reside
by sharing expenses on maintenance and
repairs.

13. SeparateLegalEntity

Separate legal entity;
Limited liability of its members;
Continuity of existence;
Death, insolvency or lunacy of a member not
to affect the existence of a society
Can enter into agreements;
Can purchase or sell properties in its
own name;
Can sue and be sued.

14. Distribution of SurplusDistribution of Surplus
Distributes Profits earned among Members Distributes Profits earned among Members
on the basis of members’ participation in on the basis of members’ participation in
the business of the society; the business of the society;
Profits generated are not at the cost of its Profits generated are not at the cost of its
members;members;
Example:
–in a Consumer Society, profit generated by sale
of goods to general public is paid as purchase
bonus to members on the basis of goods
purchased by them from the society.

15. Self-help through mutual Self-help through mutual
cooperationcooperation
•Co-operative Societies thrive on the principle of
mutual help;
•They are the organizations of financially weaker
sections of society;
•converts Weakness to strength by ‘self-help
through mutual co-operation’;
•Fights exploitation and secure a place in society
through “Each for all and all for each”.

17. Governed by the Co-operative Societies Act,
1912;
Minimum of 10 persons having the capacity
to enter into a contract with common
economic objectives;
A joint application along with the bye-laws of
the society containing the details about the
society and its members to the Registrar of
Co-operative Societies of the concerned
state;
After scrutiny, the registrar issues a
Certificate of Registration
Formation of a Society

18. Requirements for Registration
Application with the signature of all
members
Bye-laws of the society containing:
Name, address and aims and objectives of the
society
Names, addresses and occupations of
members
Mode of admitting new members
Share capital and its division

20.  Easy Formation
 Open Membership
 Democratic Control
 Limited Liability
 Elimination of Middlemen’s
. Profit
 State Assistance
 Stable Life

21. Easy FormationEasy Formation
Formation easy compared to a joint Formation easy compared to a joint
stock company;stock company;
Any ten adults with common intent;Any ten adults with common intent;
voluntarily forming an association;voluntarily forming an association;
Registered with the Registrar of Co-Registered with the Registrar of Co-
operative Societies.operative Societies.

22. Open MembershipOpen Membership
Persons with common interestPersons with common interest
voluntarily coming togethervoluntarily coming together
may become a member of the may become a member of the
society at his willsociety at his will
And leave the Society at will.And leave the Society at will.

23. Democratic ControlDemocratic Control
controlled in a democratic manner;controlled in a democratic manner;
Elects representatives to govern the Elects representatives to govern the
affairs of the Society;affairs of the Society;
One member, one vote;One member, one vote;
Governing Council/ Committee Governing Council/ Committee
accountable to members and the accountable to members and the
Regulators.Regulators.

24. Limited LiabilityLimited Liability
liability of members limited to the
extent of the capital contributed by
them to the Society;
No personal liability to members for
the liability of the Society

25. Elimination of Middlemen’s
Profit
Combined strength of members;
to derive economies of scale;
for direct access to –
manufactures and producers;
goods and services;
to markets and distribution
channels;
Eliminates middlemen’s profit

26. State AssistanceState Assistance
Central and State assistance;Central and State assistance;
–in the form of capital contribution;
–loans at low rates of interest;
–exemption in tax;
–subsidies in repayment of loans, etc.
*
*Graph showing Government
assistance to TDCC – Tribal
Development cooperation
corporation

27. Stable Life
fairly stable life;
continuous existence;
existence not affected by death, insolvency,
lunacy or resignation of members.

29. Limited CapitalLimited Capital
Source of capital limited, by limiting membership Source of capital limited, by limiting membership
to a particular section of the society;to a particular section of the society;
No incentive to members to contribute more to No incentive to members to contribute more to
the capital due to low rate of return;the capital due to low rate of return;
Government’s assistance often inadequate for Government’s assistance often inadequate for
most Co-operativesmost Co-operatives

30. Problems in
Management
•lack of managerial talent due to –
•elected representatives lacking in managerial
experience and expertise;
•limited resources hampering outsourcing of
professional managerial talent;

31. Lack of Motivation
Lack of motivation owing to –
Societies being service oriented not
profit oriented;
Extra efforts by any particular
member not getting extra reward;
Being aloof and not involved does not
result in denial of rewards.

32. Lack of Co-operation
Societies often suffer from –
Personality differences;
Ego clashes;
Selfish attitudes;
Lack motivation;
Ignorance of or irreverence to principles of
co-operation

33. Dependence on Government
Societies ften tend to be dependent on
government patronage and support in
terms of grants, loans subsidies,
etc., owing to –
 inadequacy of capital;
Limited access to raw materials;
Lack of market and distribution of channels for
products;
Vagaries of nature leading to financial burden on
members, etc.

35. Consumers’ Co-operative SocietyConsumers’ Co-operative Society
For protecting interest of general consumers;For protecting interest of general consumers;
by making consumer goods available at a by making consumer goods available at a
reasonable price;reasonable price;
Source goods directly from the producers or Source goods directly from the producers or
manufacturers;manufacturers;
eliminates middlemen in the distribution eliminates middlemen in the distribution
process. process.
Some examples:
-Kendriya Bhandar,
-Apna Bazar
-Sahkari Bhandar
-Employees consumer co-
operative societies; Etc.

36. Producers’ Co-operative Society
•to protect interest of small producers;
•By making available raw materials, tools
and equipments, machinery, etc.;
•Arranging Marketing & Distribution
channels, etc.
•Examples:
•Amul
•APPCO,
•Bayanika,
•Haryana Handloom,
•Co-optex

37. Co-operative Marketing Society
Society of small producers and manufacturers;
collects the products from members
makes available better marketing & distribution
channels economically;
sells in the market.
Examples:
Anand Milk Union Ltd., (Amul);
Co-optex
UP Handloom

38. Co-operative Credit SocietyCo-operative Credit Society
formed to provide financial
support to members
accepts deposits from members;
grants loans to members at
reasonable rates of interest
Examples:
Village Service Co-operative Credit Societies,
Employees co-operative credit societies, etc.

39. Co-operative BanksCo-operative Banks
 formed to provide banking facilities to members;
 accepts deposits;
 grants loans at reasonable rates of interest
 Examples:

40. Co-operative Farming Society
formed by small farmers;
to pool small holdings and work
to benefits of large-scale
farming;
Examples:
Lift-irrigation Cooperative Societies;
pani-panchayats

41. Housing Co-operative Society
provide residential accommodation to
members
Constructs houses or apartments for
members;
Provides amenities;
Takes care of maintenance and repairs.

42. IFFCO –IFFCO –
Giant of a Co-operativeGiant of a Co-operative

43. Co-operatives’ Share in Fertilizer Co-operatives’ Share in Fertilizer
ProductionProduction

44. BibliographyBibliography
Various Internet sitesVarious Internet sites
Acknowledgement: www.google.com

- Nishant R. Nair- Nishant R. Nair