Co-operative Society :-
A co-operative society is an association of individuals who voluntarily pool their resources and carry on the business for their own welfare and not for a profit seeking business. It is democratic form of organization in which the consumers are the owners of the business. From manager to clerk all are the owners of the business and all the management is in their hands. In this organization capitalist is not involved.
Principles of Cooperative Society
1. Voluntary Membership :-
Any person can become the member of the society and can leave it any time.
2. Equal Rights :-
Each member of the society has an equal right to vote and ownership. Each shareholder has one vote.
3. Democracy :-
The principle of democracy is adopted while making the decisions. The decision of the majority is honored.
4. Honesty :-
It is the basic principle of this society. Its members should be honest. Selfish people can not run the business of cooperative society.
5. Mutual Confidence :-
Cooperative society foundation it is laid down on mutual confidence. Members of the society should trust each other and work like a team.
6. Welfare Main Objective :-
Its main objective is to provide goods and services to its members at lower price.
7. Cash Payment :-
Credit team is prohibited and goods are supplied to its members on cash payment.
8. Economy :-
The member of the society should act upon the principle of economy. They should not misuse capital of the society and always keep in view best interest of the society.
9. Distribution of Profit :-
The profit can be distributed among the members according the cooperative act. One fourth (1/4) of the profit can be kept in reserve. Then (10%) of the profit can be used for providing facilities to the members.
10. Self Service :-
All the business activities are conducted by the members themselves. All are the owner and all are the consumers. So self service rule is employed in the organization.
11. Spirit of Love and Cooperation :-
There should be spirit of love, sacrifice and cooperation among the members to achieve the objectives.