Definition of Voluntary Association :-
It is a voluntary association of people where there are no restrictions for its members. Anyone can become a member of society and can leave at any time by giving the company.
1. Equality :
The company's share capital is divided generally into a number of shares of equal value. considered in this type of organization of all members the same rights to property and the same voice in the management of the cooperative enterprise.
2. Honesty :
Its members may not dishonest and selfish. All activities must be conducted honestly and fairly.
3. General cash :
In general, products are delivered to members on a cash basis. To deal of credit is strictly prohibited. This trend creates the habit of saving among members and the cooperative keeps bad debts and keep the members of the unnecessary losses.
4. Services :
All administrative and commercial activities are carried out by the members themselves. People are also paid employees, but have no voice in management.
5. Distribution of surpluses :
In principle, cooperatives are not distributing its benefits in the form of capital held by shareholders.
However, the surplus is a cooperative contribution to this sector.
(A) first a modest return on the capital provided to the individual members.
(B) A portion of the surplus for social activities and welfare of members distributed.
(C) A certain amount of the reserve fund for the strengthening of the institution will be transferred.
(D) Another portion of the surplus is used to pay bonuses to employees.
(E) In the case of consumers of the cooperative, the surplus to members based on purchases can be spread by them.
6. Democracy :
It is a form of democratic organization in which every member is allowed in the management of the company is involved. to A member, one vote is the fundamental principle of organization and cooperation of the Management Committee not to search for a section of members.
7. Economy :
All company activities must be made on waste charges and unnecessary and should be avoided.
8. To sacrifice :
Cooperative must be founded on the principle of everything for everyone for all. It should be a spirit of cooperation and mutual assistance among members.
9. The theme of the service :
Is this a form of home business with no profit motive as the leader, but with the main objective to provide maximum benefits for their members.
10. Solidarity :
There must be trust among the members for the smooth functioning of society. The members must be united, together with any decision relating to certain topics.