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1. INTRODUCTION: A co-operative Society is a body corporate with perpetual succession. It can acquire, hold and dispose off properties, enter into contracts and it can sue and it can be used. In the state of Maharashtra a society is formed, regulated and governed and controlled by the Maharashtra Co-operative Societies Act, 1960. (Section 36 of M.C.S. Act, 1960). All the Co-operative Societies have to maintain the records as per the Maharashtra Cooperative Societies Act, 1960, M.C.S. Rules, 1961 and the Byelaws of the Society.
2. MEANING: The term co-operation is derived from the Latin word co-operari, where the word co means „with‟ and Operari means „to work‟. Thus, co-operation means working together. So those who want to work together with some common economic objective can form a society which is termed as “co-operative society”. It is a voluntary association of persons who work together to promote their economic interest. It works on the principle of self-help as well as mutual help. The main objective is to provide to the . Nobody s a cooperative society to earn profit. People come forward as a group, pool their individual resources, utilise them in the best possible manner, and derive some common benefit out of it.
3. DEFINITION: Co operative society: Under section 2(27) "society" means a co-operative society ed, or deemed to be ed, under this Act;
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Working capital: 1) "working capital"means funds at the disposal of a society inclusive of paid up share capital, funds built out of profits, and money raised by borrowing and by other means.
4. HISTORY: Around the world modern cooperatives have developed for over 200 years. Co-operative institutions exist all over the world providing essential services which would otherwise be unattainable. In many countries, co-operatives such as credit unions and agricultural organizations have been very successful in helping people to provide for themselves where private and other corporate capitals do not see high profitability . Development of Indian Co- operative Movement (Period wise) 1] Beginning Period of Co-operative Movement in India (1904 - 1912):-Started on 25th march 1904 Objectives : - Establishment of co-operative societies Legal Existence Control of registrar Loans to Concession to society Development of Indian Co- operative Movement (Period wise) 2]Period Of Harried Expansion (1912-1918):- The Govt. ed another act in 1912. Features:- Permission to start non-credit supplying societies. Classification as per their responsibility Utilization of profit Special right to societies Concession to co-operative societies. Development of Indian Co- operative Movement (Period wise) 3] Unplanned Rapid Developement (1919- 1929):-By ing this in 1919 the Co-operative Movement Boosted up. Co-operative Movement was Defines as „ Unplanned Developement‟ by Ramdas Pantalu.
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Development of Indian Co- operative Movement (Period wise) 4] Period of Consolidation and Re-organization (1929 – 1939):-World wide financial depression in 1929.In 1935 RBI was formed and suggest that co-operative societies should be given priority. Development of Indian Co- operative Movement (Period wise) 5] Period of Recovery (1939 – 1947):-During this period financial depression was removed.The Co-operative Movement was again on path of its development. Development of Indian Co- operative Movement (Period wise) 6] The Sixth Stage (1947 -1970)7] The Seventh Stage (1970 – 2000)8] The Eighth Stage (2000 Onwards).
5. Research methodology: This project was manage only with the help of secondary data the information has been collected with the help of newspaper,journal,reference books and internet.
6. Objectives:
Inculcate good habits of savings in the cooperative
Focus on poor, low income and deprived people of the community, especially women who have no accessibility to any financial institutions
Provide opportunities to people to organize services collectively by pooling their resources without depending upon the government or other agencies
Seek active participation of all without any kind of social, racial, political, gender or religious discrimination 3
Provide education, training and information to develop their as well as their staff
Enhance women‟s participation and decision in policy making-processes at all levels
NON-PROFIT ORGANISATIONS: There are certain institutions whose main aim is not to earn profit. They are established to provide services and their sole motto is to render services, e.g., schools, libraries, sports clubs, hospitals and professionals like, doctors, lawyers, chartered ants, company secretaries and co-operative housing societies, etc. Though the main aim of these bodies is not to earn profit but still they are interested in knowing whether their current income is more than the current expenses or not. They are also keen in knowing the financial position of their concern. Co-operative Societies are not charitable societies. They carry on Economic Activities. The profit is not the motive but the proper s need to be maintained and presented before the for their approval in the Annual General Body meeting. The same need to be properly audited as per the provisions of the Act.
CO-OPERATIVE YEAR: Earlier the ing year for Societies was a year ending on 30th June or other day fixed by a particular society with the Approval of the Registrar. However, with the amendment made in 1993, the Co-operative year has been compulsorily made to end on 31st day of March . Co-operative movement in our country shall not only stay but also grow in times to come. In spite of the drawbacks experienced in the working and istration of the cooperative societies, they have positively contributed to the growth and development of the 4
national economy. Promotion of thrift, self-help and mutual aid are the fundamental principles of co-operation. The orientations of commercial organization and co-operative organizations are basically different. In a commercial organization, earning and maximizing the profits is the sole motive; whereas in a co-operative organization profit cannot be the sole motive. The prime objectives, in addition to the three fundamentals of co-operation mentioned above are to make available the goods and services in required quantity, of better quality and at a reasonable price to its . It does not mean that a Co-operative Society is a charitable organization. It should, therefore, conduct itself in a business like manner in attaining its objectives efficiently. Broadly speaking there are three sectors operating in the Union of India. 1. PUBLIC SECTOR: wherein the State i.e. The Union of India and the respective State Government undertake developments projects which are wholly owned by either the Central Government or the State Government. 2. PRIVATE SECTOR: which is a sector where private enterprises are permitted in certain fields of economic activities. 3. CO-OPERATIVE SECTOR: which is beautifully blended in between a public sector and the private sector. It has benefits of both the sectors and disadvantages of neither of them.
7. Advantages Of Co–Operative Society: A Co-operative form of business organization has the following advantages: 1. Easy Formation: Formation of a co-operative society is very easy compared to a t stock company. Any ten adults can voluntarily form an association and get it ed with the Registrar of Co-operative Societies.
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2. Open hip: Persons having common interest can form a co-operative society. Any competent person can become a member at any time he/she likes and can leave the society at will. 3. Democratic Control: A co-operative society is controlled in a democratic manner. The cast their vote to elect their representatives to form a committee that looks after the day-to-day istration. This committee is able to all the of the society. 4. Limited Liability: The liability of of a co-operative society is limited to the extent of capital contributed by them. Unlike sole proprietors and partners the personal properties of of the co-operative societies are free from any kind of risk because of business liabilities. 5. Elimination of Middlemen’s Profit: Through co-operatives the or consumers control their own supplies and thus, middlemen‟s profit is eliminated. 6. State Assistance: Both Central and State governments provide all kinds of help to the societies. Such help may be provided in the form of capital contribution, loans at low rates of interest, exemption in tax, subsidies in repayment of loans, etc. 7. Stable Life: A co-operative society has a fairly stable life and it continues to exist for a long period of time. Its existence is not affected by the death, insolvency, lunacy or resignation of any of its .
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Disadvantages Of Co–Operative Society : 1. Limited Capital: The amount of capital that a cooperative society can raise from its member is very limited because the hip is generally confined to a particular section of the society. Again due to low rate of return the do not invest more capital. Government‟s assistance is often inadequate for most of the co-operative societies. 2. Problems in Management: Generally it is seen that co-operative societies do not function efficiently due to lack of managerial talent. The or their elected representatives are not experienced enough to manage the society. Again, because of limited capital they are not able to get the benefits of professional management. 3. Lack of Motivation: Every co-operative society is formed to render service to its rather than to earn profit. This does not provide enough motivation to the to put in their best effort and manage the society efficiently. 4. Lack of Co-operation: The co-operative societies are formed with the idea of mutual cooperation. But it is often seen that there is a lot of friction between the because of personality differences, ego clash, etc. The selfish attitude of may sometimes bring an end to the society. 5. Dependence on Government: The inadequacy of capital and various other limitations make cooperative societies dependant on the government for and patronage in of grants, loans subsidies, etc. Due to this, the government sometimes directly interferes in the management of the society and also audits their annual s.
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8. Types of Co-operative Societies: Although all types of cooperative societies work on the same principle, they differ with regard to the nature of activities they perform. Followings are different types of co-operative societies that exist in our country. 1. Consumers’ Co-operative Society:These societies are formed to protect the interest of general consumers by making consumer goods available at a reasonable price. They buy goods directly from the producers or manufacturers and thereby eliminate the middlemen in the process of distribution. Kendriya Bhandar, Apna Bazar and Sahkari Bhandar are examples of consumers‟ co-operative society. 2. Producers’ Co-operative Society:These societies are formed to protect the inter- est of small producers by making available items of their need for production like raw materials, tools and equipments, machinery, etc. Handloom societies like APPCO, Bayanika, Haryana Handloom, etc., are examples of producers‟ co-operative society. 3. Co-operative Marketing Society: These societies are formed by small producers and manufacturers who find it difficult to sell their products individually. The society collects the products from the individual and takes the responsibility of selling those products in the market. Gujarat Co-operative Milk Marketing Federation that sells AMUL milk products is an example of marketing co-operative society. 4. Co-operative Credit Society: These societies are formed to provide financial to the . The society accepts deposits from and grants them loans at reasonable rates of interest in times of need. Village Service Co-operative Society and Urban Cooperative Banks are examples of co-operative credit society.
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5. Co-operative Farming Society:These societies are formed by small farmers to work tly and thereby enjoy the benefits of large-scale farming. Lift-irrigation co-operative societies and pani-panchayats are some of the examples of co-operative farming society. 6. Housing Co-operative Society: These societies are formed to provide residential houses to . They purchase land, develop it and construct houses or flats and allot the same to . Some societies also provide loans at low rate of interest to to construct their own houses. The Employees‟ Housing Societies and Metropolitan Housing Cooperative Society are examples of housing co-operative society. Cooperative societies are of various types depending upon their objects and natureof work. Some of the cooperatives have been formed to help consumers and other have been established to help producers. There are some societies which help the farmers in providing credit for the purchase of fertilizers and seeds etc. and some help them in the promotion of trade.Some of the important types of cooperative societies are as under.1
7. Farming Cooperative Societies: These solicits are formed by the by the small agriculturalist to get the benefits of larges scale forming. These societies provide help to the farmer for the improve methodof cultivations by providing large scale forming tools such as tractors, threshers andharvesters etc.etc. 8. Insurance Cooperative Societies: These societies make contract with insurance companies for the purchase of different insurance policies for its member at lower . This society may take agroup insurance policy for its . The main object of the society is to minimizethe risk of its member.
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9. Transport Cooperative Societies: These societies are formed to provide the services of transport to its atlower rates. Welfare bus scheme is an example of this type of society. A is handedover to the member for traveling on approved routes. 10. Storage Cooperative Societies: These societies are formed for the provision of storage facilities to its member for perishable and non perishable goods at lower rates. These societies also provide gradingand distribution services to its . 11. Labour Cooperative Societies: These societies are formed by unskilled labour for selling their services at reasonable wage rate. This type of society makes a contract with different firm for the provision of labour to them. 12. Miscellaneous Societies: Some other important societies, in addition to the major form of societies discussed above are, Processing cooperative societies, Fisheries cooperatives societies,Forestry and poultry forming etc.
9. PRINCIPLES OF CO-OPERATIVE SECTOR: 1. LEGAL STATUS : A co-operative Society is a body corporate ed under the applicable state Act with perpetual succession having a common seal. It can acquire, hold and dispose of properties, enter into contracts and it can sue and it can be sued. 2. VOLUNTARY ASSOCIATION : Co-operative Society is essentially an organization or an association of persons who have come together for the common purpose of economic development or for mutual help. 3. SELF HELP AND MUTUAL HELP : The Co-operative societies office bearers/executive committee is elected as per democratic election procedure. The Co-
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operative Society function under the principle of self help and mutual help which means each will help for themselves and all will help others. 4. DEMOCRATIC CONTROLS : The Control of a Co-operative enterprise in not in the hands of capitalists who can corner the share capital and control the interest in any undertaking which would be a private undertaking. 5. EQUALITY : In co-operative Sector, the principle of “ One man one Vote “ is provided in the statute so as to ensure that the capital does not dominate the istration of cooperative Society. 6. OPEN HIP : Any person can apply for the hip of the Society without any discrimination. The hip is open for all. 7. SOCIAL APPROACH / NO PROFIT MOTIVE : As the Society is working on democratic principle and the office bearers of the Society will be functioning like a trustees for the better management of the society and there is no separate benefits to the executive committee . Service is the main motto and the profit is not the main concern in cooperative societies. 8. PROFITS AND RETURNS TO THE : Co-operative Society is an association of and certain percentage profits earned by the society, as decided in the meeting of the General body will be distributed in the form of dividend to the . 9. LIMITED INTEREST ON SHARES : Irrespective of the shareholding, each member has only one vote in the decision-making in the General body meeting or at the time of election of the committee for management. The shares are not traded in the stock exchange. The State Co-op. Act also prescribes the maximum amount, which a member can hold as a share capital in any society.
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10. PERSONAL PARTICIPATION : The shareholders have to personally attend the meeting or for voting. They are not allowed to appoint proxies for attending the general body or for voting in the resolution to be ed. 11. EDUCATIONS AND CO-OPERATION : Every society has to contribute towards the education fund maintained and looked after by the district co-operative education Board as per the notification issued from time to time for educating the or the office bearers of the Society. 12. CO-OPERATION AMONGST CO-OPERATIVE INSTITUTIONS : The funds generated or mobilized through the co-operative societies have to be deposited/ invested in the Co-operative Sector only.
10. Characteristics of Co-operative Society: A co-operative society is a special type of business organisation different from other forms of organsation you have learnt earlier. Let us discuss its characteristics. i. Open hip: The hip of a Co-operative Society is open to all those who have a common interest. A minimum of ten are required to form a co- operative society. The Co–operative societies Act does not specify the maximum number of for any co-operative society. However, after the formation of the society, the member may specify the maximum number of . ii. Voluntary Association: the co-operative society voluntarily, that is, by choice. A member can the society as and when he likes, continue for as long as he likes, and leave the society at will.
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iii. State control:To protect the interest of , co-operative societies are placed under state control through registration. While getting ed, a society has to submit details about the and the business it is to undertake. It has to maintain books of s, which are to be audited by government auditors. iv. Sources of Finance: A co-operative society capital is contributed by all the .However, it can easily raise loans and secure grants from government after its registration. v. Democratic Management: Co-operative societies are managed on democratic lines. The society is managed by a group known as “Board of Directors”. The of the board of directors are the elected representatives of the society. Each member has a single vote, irrespective of the number of shares held. For example, in a village credit society the small farmer having one share has equal voting right as that of a landlord having 20 shares. vi. Service motive: Co-operatives are not formed to maximise profit like other forms of business organisation. The main purpose of a Co-operative Society is to provide service to its . For example, in a Consumer Co-operative Store, goods are sold to its at a reasonable price by retaining a small margin of profit. It also provides better quality goods to its and the general public. vii. Separate Legal Entity: A Co-operative Society is ed under the Co-operative Societies Act. After registration a society becomes a separate legal entity, with limited liability of its . Death, insolvency or lunacy of a member does not affect the existence of a society. It can enter into agreements with others and can purchase or sell properties in its own name.
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11. Formation of a Co-operative Society: A Co-operative Society can be formed as per the provisions of the Co-operative Societies Act, 1912. At least ten persons having the capacity to enter into a contract with common economic objectives, like farming, weaving, consuming, etc. can form a Co-operative Society. A t application along with the bye-laws of the society containing the details about the society and its , has to be submitted to the Registrar of Co-operative Societies of the concerned state. After scrutiny of the appliation and the bye–laws, the registrar issues a Certificate of Registration.
12. Requirements for Registration: 1. Application with the signature of all 2. Bye-laws of the society containing: (a) Name, address and aims and objectives of the society; (b) Names, addresses and occupations of ; (c) Mode of itting new ; (d) Share capital and its division.
13. ACT & RULES APPLICABLE: A Co-operative Society functions as per the provisions of 1. Co-operative Societies Act under which the same is ed. 2. Co-operative Societies rules made there under 3. Bye-laws approved by the registrar at the time of registration and amendments made from time to time and approved by the registrar. 14
4. Notification and Orders Co-operative Societies Act: We have a number of Co-operative Societies Acts functional in different states like - Maharastra Co-operative Societies Act, 1960, - Pondicherry Co-operative Societies Act, 1972, - Karnataka Co-operative Societies Act, 1959, - Delhi Co-operative Societies Act, 1972, - Kerala Co-operative Societies Act etc.
2. Co-operative Societies Rules A set of rules is also framed under the respective State Co-operative Act for procedural aspects. 3. Bye-laws Each society also ed with the bye-laws for internal management of the societies duly approved by the registrar at the time of registration of the society. The bye-laws of a society constitute a contract between a member and the society and it provide for the management of the society. The bye-laws are framed within the provisions of the Act and the rules made there under. Bye-laws include the objects of the society and completely define and restrict the society‟s activities, but the rights and liabilities of are determined by the Act and Rules and not by the bye-laws as such. 4. Notification and Orders issued from time to time by the Government, or any other Authority as prescribed under the Act, Rules there under by them.
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14.
PROVISIONS
FOR
REGISTRATION
OF
CO-OPERATIVE
SOCIETIES: There are different types of Co-operative Societies, which can be ed under the Maharashtra Cooperative Societies Act, which were explained earlier. In all these types of societies, the procedure to be followed for formulation of registration proposals slightly differs. The requirements in respect of each type of co-operative society‟s needs to be properly understood by every promoter, or the professional charged with the responsibility of getting the society ed (chief promoter). PROVISIONS UNDER THE M.C.S. ACT, 1960 Sections 3 to 11of the Act, provide for registration of Societies and the conditions for the same. Section 4 provides for a nature of an organization, which can be ed as a Society. Section 6 lays down the conditions for registration of the Society. Section 8 provides for application for registration bye-laws and the registration fees. Section 9 provides for time bound registration of the Society and the bye-laws.
JURISDICITION Each Society based on its area of operation has to be ed by the Registrar appointed by the Government for the particular jurisdiction. For the purpose of registration of the Societies the City of Mumbai has been divided as per the Municipal Wards. There is a Deputy or Assistant Registrar of Co-operative Societies for each Ward who is the Registration Authority for the Co-operative Societies in that Ward. Normally the office of such ing Authority (RA) is situated within the limits of such Ward. However if no space is available for the office of the RA in any ward the office of RA of such Ward is at the office 16
of Deputy Registrar Co-operative Societies India House 6th floor opposite GPO Mumbai. Other places in each Taluka one Deputy/Assistant Registrar, s & Supervises the Societies. SOCIETIES, WHICH MAY BE ED As per section 4, a society, which has as its objects the promotion of the economic interests or general welfare of its or of the public, in accordance with co-operative principles or a society established with the object of facilitating the operations of any such society, may be ed under this Act: Provided that, no society shall be ed if it is likely to be economically unsound, or the registration of which may have an adverse effect on development of the co-operative movement, or the registration of which may be contrary to the policy directives, which the State Government may, from time to time, issue. REGISTRATION WITH LIMITED OR UNLIMITED LAIBILITY: As per section 5, a Society may be ed with limited or unlimited liability. As per section 2[28] “society with limited liability” means a society having the liability of its limited by its bye-laws; As per section 2[29] “society with unlimited liability” means a society, the of which are, in the event of its being wound up, tly and severally liable for and in respect of its obligations and to contribute to any deficiency in the assets of the society; CONDITIONS OF REGISTRATION As per section 6(1) No society, other than a federal society, shall be ed under this Act, unless it consists of at least ten persons [or such higher number of persons as the Registrar may, having regard to the objects and economic viability of a society and development of the
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co-operative movement, determine from time to time for a class of societies](each of such persons being a member of a different family), who are qualified to be under this Act, and who reside in the area of operation of society : [Provided that, a lift irrigation society consisting of less than ten but of five or more such persons may be ed under this Act.] (2) No society with a limited liability shall be ed, unless all persons forming the society reside in the same town or village, or in the same group of villages. [(2-A) No crop protection society shall be ed, unless the Registrar is satisfied, after such inquiry as he thinks necessary, that a draft of the proposal made by the society for protecting crops, structures, machinery agricultural implements and other equipment such as those used for pumping water on the land, was duly published for inviting all owners of land likely to be affected by the proposal and all other persons likely to be interested in the said lands to the proposal or to send their objections or suggestions and that the objections and suggestions received , if any, have been duly considered by the society and that the owners in possession of not less than 66 percent in the aggregate of lands included in the proposal have given their consenting writing to the making of the proposal and that the proposal made is feasible. For this purpose, the society shall submit to the Registrar: (a) a plan showing the area covered by the proposal and the surrounding land as shown in the map or maps of the village or villages affected; (b) an extract from the record of rights duly certified showing the names of the owners of lands and the areas of the lands included in the proposal; (c) Statements of such of the owners of the lands as consented to the making of the proposal signed by owners before two witnesses;
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(d) a detailed estimate of the cost of implementing the proposal; (e) a detailed statement showing how the cost is proposed to be met. When such society is ed, the cost of implementing the proposal shall be met wholly or in part by contribution to be levied by the society from each owner of the land included in the proposal, including any such owner who may have refused to become a member of the society. The owner of every land included in the proposal shall also be primarily liable for the payment of the contribution liable from time to time in respect of such land]. (3) No federal society shall be ed unless it has at least five societies as its . (4) Nothing in this Act shall be deemed to affect the registration of any society made before the commencement of this Act. (5) The word “limited” or “unlimited” shall be the last word in the name of every society with limited or unlimited liability, as the case may be which is ed or deemed to be ed under this Act. Explanation: For the purpose of this section and section 8, the expression “ member of family” means wife, husband, father, mother, [son, or unmarried daughter] POWER TO EXEMPT SOCIETIES [OR CLASS OF SOCIETIES] FROM CONDITIONS AS TO REGISTRATION As per section 7, notwithstanding anything contained in this Act, the State Government may, by general or special order, exempt any society or class of societies from any of the requirements of this Act as to registration, subject to such conditions (if any) as it may impose.
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15. APPLICATION FOR REGISTRATION As per section 8(1) For the purpose of registration, an application shall be made to the Registrar in the prescribed form and shall be accompanied by four copies of the proposed bye-laws of the society and such registration fee as may prescribed in this behalf. Different registration fees may be prescribed for different class of societies, regard being had to the service involved in processing an application for registration. The person by whom, or on whose behalf, such application is made, shall furnish such information in regard to the society, as the Registrar may require. (2) The application may be signeda) in case of a society other than a federal society by at least ten persons (each of such person being a member of different family), who are qualified under this Act, and, b) in the case of a federal society, by at least five societies. No signature to any application on behalf of a society shall be valid, unless the person g is a member of the committee of such a society and is authorized by the committee by resolution to sign on its behalf the application for registration of the society and its byelaws; and a copy of such resolution is appended to the application.
REGISTRATION As per section 9(1) If the Registrar is satisfied that a proposed society has complied with the provisions of this Act and the Rules, [or any other law for the time being in force, or policy directives issued by the State Government under section 4], and that its proposed bye-laws are not contrary to this Act or to the rules, he [shall, within two months], from the date of receipt of application the society and its bye-laws.
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(2) Where there is a failure on the part of the Registrar to dispose off such application within the period aforesaid, the Registrar shall, within a period of fifteen days from the date of expiration of that period refer the application to the next higher officer and where the Registrar is himself the ing officer, to the State Government, who are which, as the case may be, shall dispose of the application within two months from the date of its receipt and on the failure of such higher officer or the State Government, as the case may be, to dispose of the application within that period, the society and its bye-laws shall be deemed to have been ed.[and thereafter the Registrar shall issue a certificate of registration under his seal and signature within a period of fifteen days. (3) Where the registrar refuses to a proposed society, he shall forthwith communicate his decision, with reasons therefore, to the person making the application and if there be more than one to the person who has signed first therein. (4) The Registrar shall maintain a registrar of all societies ed or deemed to be ed, under the Act.
16. Procedure For Registration Of Co Operative Societies: The procedure for registration of society can be explained as the following steps: 1. APPOINTMENT OF CHIEF PROMOTER The first step to a Society is that minimum 10 adult individuals from independent families desiring to form a Society should gather and hold a meeting to (a) select a provisional committee and elect a Chief Promoter for formation of a society and (b) select a name for such Society with three alternatives and to appropriate resolutions in that behalf. 21
c) To collect the entrance fee and share capital from the prospective . d) To open the Bank in the name of chief promoter e) To decide about area of operation of the Society and f) To decide about the ed office of the Society g) To authorize chief promoter to submit the proposal for registration and to do any other thing to get the society ed.
2. NAME RESERVATION The second step would be to apply to the registration authority (RA) for reservation of name for the society and obtain letter from the RA in that connection. The resolutions ed at the promoters meeting as above should accompany such application for reservation of name as aforesaid. The letter reserving the name of the society shall be valid for 3 months. The validity of the name is normally extended on an application for 1 or 2 further of 3 months each.
3. BANK AND DEPOSITS The third step would be to (a) open a bank in the name of the proposed Society as per the RA‟s directions in that behalf that shall contain in the letter reserving the name and (b) deposit therein the entrance fee share money and the amount recovered for preliminary expenses from the promoters and obtain the certificate from such bank in respect of such deposits. Normally the directions of the RA are to open with a proximate branch of the District Central Co-operative Bank or any Maharashtra State Co-operative Bank or any other urban Co-operative bank.
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4. REGISTRATION FEE The fourth step is to deposit the registration fee with the Reserve Bank of India and to obtain the receipted challan in that behalf. The registration fee for Housing Society is Rs.2,500/- and for general Society is Rs.1250/-. 5. REGISTRATION PROPOSAL The fifth and final step is to prepare and to submit to RA the proposal for registration of the society. Under Rule 4 of Maharashtra Co-operative Societies Rules the chief promoter should submit the following documents for registration a) Application for registration - Form A An application for registration of a society should be made in form. The specimen of Form The application for registration in quadruplicate should be signed by at least 60% of the promoter‟s and Chief Promoter should attest their signatures. b) Four copies of the proposed bye-laws of the society c) A list of promoter‟s , such as the name age occupation current residential a address of the promoter member the cost of share amount etc. d) A certificate from the Bank or Banks stating the credit balance therein in favour of the proposed society; e) A scheme showing the details explaining how the working of the society will be economically sound and where the scheme envisages the holding of immovable property by the society, the description of such property proposed to be purchased, acquired or transferred to the society. f) Such other documents as may be specified in the model bye-laws, if any, framed by the Registrar.
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g) The registration fees at the applicable rates. h) Other documents like affidavit, indemnity bonds, copy of ration cards, public notice in newspaper etc., as may applicable for different types of society as per the notification issued from time to time.
BOOKS OF S TO BE MAITAINED
An is formal presentation of the transactions pertaining to an item or person or an income or expense. An is generally prepared in T form wherein the left hand side is called the debit side and the right hand side the credit side. All s (except the cash or bank), which are maintained in cashbook, are maintained in ledger.
ING YEAR The erotically speaking a business may adopt any period of 12 months as its ing year except for first ing year which may be less or more than a period of 12 months. Under income tax act however every person is required (W.E.F 1.4.1989) to adopt a uniform ing year i.e. financial year, commencing on 1st April and ending on 31st march next year. Accordingly, since 1993, the co-operative year also has been changed to Financial Year.
Provisions under Rule 65 of M.C.S. Rules 1961: In accordance with Rule 65 of the M.C.S. Rules, 1961 following books relating to s of the Society are prescribed in general: a) Cash Book 24
b) General Ledger and personal ledger c) Stock d) Property e) of Audit objections and rectifications, and f) Such other books of as may be prescribed from time to time by the Government. Books of s maintained should be proper and systematic and depict clear and true affairs of the Society. GUIDELINES ABOUT MAINTAINING THE STATUTORY S It is considered necessary to give in brief Guidelines for maintenance of the important books and s. The Guidelines are as under:
of : (a) A co-operative society is constituted of persons who are of the Society. It, therefore, follows that the society should have the record to show as to who are its . The society has to enter into correspondence with its during the course of its business. It is therefore, necessary to have the full address of every member. In case of a cooperative housing society, stay in the building of the society. There is, therefore, no difficulty of recording the address of all the . However, cases are not wanting, where some member of co-operative housing societies transfer their flats without informing the societies and without leaving their new addresses with the societies. In such circumstances, the societies find it very difficult to make any communications with such . The form of application for hip also contains the business address of the
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member. However, it was noticed that who unauthorized transferred their flats, changed their business addresses also, without informing the societies. It should, therefore, be the practice of societies to get the business addresses of their confirmed as frequently as possible but at least once in a year. There are changes in the hip. Some of the existing of the society Leave the society either as a result of transfer of shares, resignations, death or expulsion and new come in their places. It is, therefore, necessary to maintain a complete record of such changes in hip and the addresses. Therefore, it has been made obligatory on every society to maintain u/s Section 38 of the M.C.S. Act, 1960. (b) The form „l‟ has prescribed under Rule 32 of the M.C.S. Rules, 1961, in which every co-operative society has to maintain a of . This member is available with the federation on payment. (c) It is noticed by the federation that some of the co-operative housing societies did not maintain the or did not record the changes in hip. It may be pointed out here that the entry in the is the prima facie evidence of the date on which a person was itted to the hip of the Society and the date on which he ceased to be the member of the Society (Vide Section 38(4) of the M.C.S. Act, 1960). Non-maintenance of the ‟ correctly and up-to-date, may present several legal problems apart from confusion about hip. All co-operative housing societies should, therefore, make it a point to maintain this important and keep it quite up todate for all the time. (d) It was further noticed that some co-operative housing societies did not know how to begin with maintenance of this . It is, therefore, necessary to explain the procedure of
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maintenance of this . The following paragraphs will enable the secretary to know the procedure. (i) The section 2(19) (a) of the M.C.S. Act, 1960 defines a member as a person ing in the application for registration of a co-operative society which is subsequently ed or a person duly itted to hip of a co-operative society after it is ed. According to this definition of a member, the persons who have signed the application for registration are the original of the society after its registration. The work of maintaining the requisite records of the society actually starts after the provisional Managing Committee is elected as per the bye-law No. 91 (ii) The Hon. Secretary of the Society should, therefore enter the names of the persons from the application for registration, a copy of which is supplied to the society along with a copy of the bye-laws by the ing Authority. All other details as required by the „l‟ Form are available in the application for registration and the application for hip, Similar entries of persons itted to hip after the registration of the society should be made in the . (iii) Some societies had enquired of the Federation as to what date be entered in the column for date of ission to hip in case of a newly ed society. It is clarified here that the persons who had signed the application for registration become , of the society on its registration and the date of registration of the society should, therefore, be entered in the said column of date of ission to hip of the society. (iv) In certain cases, there is t or Associate hip. The names of persons who become t or Associated on registration of the society or who are itted as
27
such after registration of the society should also be entered in the below the name of the member whose name stands first in application for registration .It may not be necessary to enter other details in the in respect of a t Associate . (v) There is another class of called Nominal . Such are not required to hold any shares and there cannot be any transfers of shares in their cases. The question of making entries regarding the Shares held and the shares transferred, therefore, does not arise in their cases.
17. PRIMARY ING RECORDS RAISING OF BILLS: The Managing Committee as per the decision of the General body has to recover various charges towards the outgoing of the society from the . The contribution towards various funds is also fixed in the general body, as provided in the bye - laws of the Society. The Managing Committee has to accordingly raise the bill on every member, on monthly or quarterly basis, and recover the contribution from the . RECEIPTS On making the payment by the towards outgoing of the society receipt should be issued to the member by office bearers authorised by the Committee. When the Society receives any payment from the or from outsiders on sale of any material or services, receipt has to be issued by the Society for having received the money with the details. Receipts could be for monthly/quarterly. maintenance charges, Property tax Sinking Fund 28
Repair Fund Entrance Fees Transfer Fees Transfer Donations etc Sale of scrap Refund of deposits etc
18. ASSETS, LIABILITIES EXPLAINED BALANCE SHEET Balance sheet is prepared to ascertain the true financial position of a Housing Society at the end of the year. It is a statement showing the state of affairs of a Housing Society as on a specified date. The state of affairs includes what the Society owns and what the society owes. It displays the properties, assets and other rights owned by the Society on the right hand side, whereas the liabilities to outsiders and amount invested by the as capital on the left hand side. ASSETS Asset means right of ownership over anything valuable. Anything, which will enable the Society to get cash or a benefit in future, is an asset. This refers to properties that can be expressed in of money, e.g. plant & machinery, vehicles, stock, cash etc. It also includes money due to the Housing Society from debtors for goods and services or for money lent. Rights available to a Society such as patent or copyrights, goodwill etc. are also included in assets. LIABILITIES This represents financial obligations of a Housing Society other than Funds. It is the amount owing to the creditors for goods or services received or for moneys borrowed. Liabilities = Assets - Capital. Liabilities can be divided into two
29
categories: (a) Current Liabilities: These are usually paid within a period of one year and are paid out of current assets e.g. Creditors, Bills payable, bank overdraft etc. (b) Long term Liabilities or Fixed Liabilities: These do not become due for payment in one year and do not require current assets for their payment e.g. long-term loans, issue of debentures etc., CAPITAL This is the amount invested by the in the Co-operative Housing Society. It also includes the Surplus/ Profit of the business also, to the extent they are not withdrawn by the for their personal purposes. However, any losses/ Deficit/ deferred revenue expenditures, which may have been shown on asset side of balance sheet, will have to be deducted from capital of the Society to ascertain true amount of the Capital. DEBTORS (S RECEIVABLE) It represents the indebtedness of , customers for merchandise or services supplied to them. It is the right of the Society to receive the moneys against supplies of goods or services. CREDITORS (S PAYABLE) It represents indebtedness of business to its suppliers for merchandise or services supplied by them to the Society. It is the obligation of Society to pay for any goods or services received by it.
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19. How Is The Net Surplus Of A Co-operative Allocated And Distributed? Generally, the distribution of a co-operatives surplus is determined by-laws. Surplus is determined at the close of a co-ops fiscal year or as prescribe by its by-laws. A co-operatives surplus is not profit in the usual sense of the word. As far as the co-op is concerned, this excess payment or surplus is considered as having been returned to the if the surplus is distributed in the following manner. First priority goes generally to the reserve fund at least 10 percent of the net surplus. The reserve fund is meant to stabilize co-op operations and may be used only for investments allowed by the code. Second priority goes to Education and Training, which is generally not more than 10 percent of net surplus. Third priority is an optional fund, a land and building fund, community development fund and any other necessary funds. After all these have been allocated, the remainder is available to the general hip in the form of interest on his investment and patronage refund. Nevertheless, interest in share capital should exceed normal rate of return on investment.
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Statutory formats of final s: Fig.Of Revious Year --
Liabilities
Share capital
Amt Fig.Of Revious Year ---
Assets
Amt.
Cash balance
--
Authorized issued & paid
On hand
up
At bank
Purchased by the government
--
Purchased by co-operative
Government
societies
securities
Purchase by individuals
Shares in co
Shares in advance
operative
Less-calls in arrears
Fixed deposits
Add:calls in advance
with banks.
Subscription/deposits
--
towards shares
--
Investments
Reserve fund and other
Provident fund
--
--
investment
--
--
Loans &
fund
advances
Reserve fund
-loans
Building fund
-cash credit
Development fund
-dues from the
Reserve for doubtful debts
Managing
--
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Depreciation fund
committees
Dividend fund
-dues from
Bonus equalization fund
employees
Other equalization fund Sundry debtors --
--for credit sale
Staff provident fund -Debentures
-for advances --
Cash credit Overdrafts
Current assets --
--
Loans
Tools and
Government loans
equipments
Other secured loans
Closing stock Work in progress
Unsecured loans -From banks
Fixed assets --
--
--
From gov.
Land and building
Bills payable
Plant and
Others
machinery Livestock
Deposits
Deadstock
Fixed deposit
Vehicles
--Saving deposit Recurring deposit
Other expenses --
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Others
& losses Preliminary exp. Advances
Current liabilities & --
Payment of taxes
provisions -Sundry liabilities
Goodwill
Outstanding salaries, etc
Deferred revenue
Advances
exp.
Unclaimed dividend --
Other debtors --
--
--
-Advance paid
Interest due but not paid --
Int.accrued but
Other liabilities --
-not received
P&l appropriation --
-opening balance
Other dues
Add:current year profit Losses --
-Add:current loss
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CONCLUSION: I conclude based upon the data in my project I have learned what is cooperative society and there are many advantages and disadvantages in cooperative society. Though the main aim of these cooperative society is not to earn profit but still they are interested in knowing whether their current income is more than the current expenses or not. They are also keen in knowing the financial position of their concern. Co-operative Societies are not charitable societies. They carry on Economic Activities. The profit is not the motive but the proper s need to be maintained and presented before the for their approval in the Annual General Body meeting. While doing this project I learn how to the cooperative society, step involve while ing a society. All types of cooperative societies are formed for the welfare of the people, either these are produce‟s cooperative, consumer cooperative, farming cooperatives. The main object of all these types of societies is not to earn profit but the welfare of its . It was knowledgeable experience for me.
BIBLOGRAPHY: Books: (financial ing) dr.varsha m. ainapure Websites: www.google.com http://ingexplained.com wikisource.org/wiki/Consumers_Cooperative_Societies wiki.answers.com http://my.safaribooksonline.com/book/business/ 35
SUMMARY
A co-operative society is a voluntary association of individuals having common needs
who hands for the achievement of common economic interest. Its aim is to serve the interest of the poorer sections of society through mutual help.
hip of co-operative societies is voluntary and open to all. It is democratically
managed and it has a separate legal existence . The main motive is to provide service to the . It works on the principle of self help through mutual cooperation of .
A co-operative society can be formed under the Co-operative Societies Act, 1912,
with a minimum of ten . For registration, an application along with bye-law of the society has to be submitted to the Registrar of Co-operative Societies.
Co-operative societies may be classified as follows: 1) Consumers‟ co-operative society - formed to eliminate the role of middlemen and
supply high quality goods and services at reasonable price to consumers. 2) Producers‟ co-operative society - formed to help producers to procure raw material, tools, equipment etc. 3) Co-operative marketing society - formed to ensure a favourable market for small producers
to sell the output and get a good return on sale.
4) Co-operative credit society - formed to provide financial help to through loans at low interest rates. They encourage saving habit among .
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2. MEANING: The term co-operation is derived from the Latin word co-operari, where the word co means „with‟ and Operari means „to work‟. Thus, co-operation means working together. So those who want to work together with some common economic objective can form a society which is termed as “co-operative society”. It is a voluntary association of persons who work together to promote their economic interest. It works on the principle of self-help as well as mutual help. The main objective is to provide to the . Nobody s a cooperative society to earn profit. People come forward as a group, pool their individual resources, utilise them in the best possible manner, and derive some common benefit out of it.
3. DEFINITION: Co operative society: Under section 2(27) "society" means a co-operative society ed, or deemed to be ed, under this Act;
1
Working capital: 1) "working capital"means funds at the disposal of a society inclusive of paid up share capital, funds built out of profits, and money raised by borrowing and by other means.
4. HISTORY: Around the world modern cooperatives have developed for over 200 years. Co-operative institutions exist all over the world providing essential services which would otherwise be unattainable. In many countries, co-operatives such as credit unions and agricultural organizations have been very successful in helping people to provide for themselves where private and other corporate capitals do not see high profitability . Development of Indian Co- operative Movement (Period wise) 1] Beginning Period of Co-operative Movement in India (1904 - 1912):-Started on 25th march 1904 Objectives : - Establishment of co-operative societies Legal Existence Control of registrar Loans to Concession to society Development of Indian Co- operative Movement (Period wise) 2]Period Of Harried Expansion (1912-1918):- The Govt. ed another act in 1912. Features:- Permission to start non-credit supplying societies. Classification as per their responsibility Utilization of profit Special right to societies Concession to co-operative societies. Development of Indian Co- operative Movement (Period wise) 3] Unplanned Rapid Developement (1919- 1929):-By ing this in 1919 the Co-operative Movement Boosted up. Co-operative Movement was Defines as „ Unplanned Developement‟ by Ramdas Pantalu.
2
Development of Indian Co- operative Movement (Period wise) 4] Period of Consolidation and Re-organization (1929 – 1939):-World wide financial depression in 1929.In 1935 RBI was formed and suggest that co-operative societies should be given priority. Development of Indian Co- operative Movement (Period wise) 5] Period of Recovery (1939 – 1947):-During this period financial depression was removed.The Co-operative Movement was again on path of its development. Development of Indian Co- operative Movement (Period wise) 6] The Sixth Stage (1947 -1970)7] The Seventh Stage (1970 – 2000)8] The Eighth Stage (2000 Onwards).
5. Research methodology: This project was manage only with the help of secondary data the information has been collected with the help of newspaper,journal,reference books and internet.
6. Objectives:
Inculcate good habits of savings in the cooperative
Focus on poor, low income and deprived people of the community, especially women who have no accessibility to any financial institutions
Provide opportunities to people to organize services collectively by pooling their resources without depending upon the government or other agencies
Seek active participation of all without any kind of social, racial, political, gender or religious discrimination 3
Provide education, training and information to develop their as well as their staff
Enhance women‟s participation and decision in policy making-processes at all levels
NON-PROFIT ORGANISATIONS: There are certain institutions whose main aim is not to earn profit. They are established to provide services and their sole motto is to render services, e.g., schools, libraries, sports clubs, hospitals and professionals like, doctors, lawyers, chartered ants, company secretaries and co-operative housing societies, etc. Though the main aim of these bodies is not to earn profit but still they are interested in knowing whether their current income is more than the current expenses or not. They are also keen in knowing the financial position of their concern. Co-operative Societies are not charitable societies. They carry on Economic Activities. The profit is not the motive but the proper s need to be maintained and presented before the for their approval in the Annual General Body meeting. The same need to be properly audited as per the provisions of the Act.
CO-OPERATIVE YEAR: Earlier the ing year for Societies was a year ending on 30th June or other day fixed by a particular society with the Approval of the Registrar. However, with the amendment made in 1993, the Co-operative year has been compulsorily made to end on 31st day of March . Co-operative movement in our country shall not only stay but also grow in times to come. In spite of the drawbacks experienced in the working and istration of the cooperative societies, they have positively contributed to the growth and development of the 4
national economy. Promotion of thrift, self-help and mutual aid are the fundamental principles of co-operation. The orientations of commercial organization and co-operative organizations are basically different. In a commercial organization, earning and maximizing the profits is the sole motive; whereas in a co-operative organization profit cannot be the sole motive. The prime objectives, in addition to the three fundamentals of co-operation mentioned above are to make available the goods and services in required quantity, of better quality and at a reasonable price to its . It does not mean that a Co-operative Society is a charitable organization. It should, therefore, conduct itself in a business like manner in attaining its objectives efficiently. Broadly speaking there are three sectors operating in the Union of India. 1. PUBLIC SECTOR: wherein the State i.e. The Union of India and the respective State Government undertake developments projects which are wholly owned by either the Central Government or the State Government. 2. PRIVATE SECTOR: which is a sector where private enterprises are permitted in certain fields of economic activities. 3. CO-OPERATIVE SECTOR: which is beautifully blended in between a public sector and the private sector. It has benefits of both the sectors and disadvantages of neither of them.
7. Advantages Of Co–Operative Society: A Co-operative form of business organization has the following advantages: 1. Easy Formation: Formation of a co-operative society is very easy compared to a t stock company. Any ten adults can voluntarily form an association and get it ed with the Registrar of Co-operative Societies.
5
2. Open hip: Persons having common interest can form a co-operative society. Any competent person can become a member at any time he/she likes and can leave the society at will. 3. Democratic Control: A co-operative society is controlled in a democratic manner. The cast their vote to elect their representatives to form a committee that looks after the day-to-day istration. This committee is able to all the of the society. 4. Limited Liability: The liability of of a co-operative society is limited to the extent of capital contributed by them. Unlike sole proprietors and partners the personal properties of of the co-operative societies are free from any kind of risk because of business liabilities. 5. Elimination of Middlemen’s Profit: Through co-operatives the or consumers control their own supplies and thus, middlemen‟s profit is eliminated. 6. State Assistance: Both Central and State governments provide all kinds of help to the societies. Such help may be provided in the form of capital contribution, loans at low rates of interest, exemption in tax, subsidies in repayment of loans, etc. 7. Stable Life: A co-operative society has a fairly stable life and it continues to exist for a long period of time. Its existence is not affected by the death, insolvency, lunacy or resignation of any of its .
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Disadvantages Of Co–Operative Society : 1. Limited Capital: The amount of capital that a cooperative society can raise from its member is very limited because the hip is generally confined to a particular section of the society. Again due to low rate of return the do not invest more capital. Government‟s assistance is often inadequate for most of the co-operative societies. 2. Problems in Management: Generally it is seen that co-operative societies do not function efficiently due to lack of managerial talent. The or their elected representatives are not experienced enough to manage the society. Again, because of limited capital they are not able to get the benefits of professional management. 3. Lack of Motivation: Every co-operative society is formed to render service to its rather than to earn profit. This does not provide enough motivation to the to put in their best effort and manage the society efficiently. 4. Lack of Co-operation: The co-operative societies are formed with the idea of mutual cooperation. But it is often seen that there is a lot of friction between the because of personality differences, ego clash, etc. The selfish attitude of may sometimes bring an end to the society. 5. Dependence on Government: The inadequacy of capital and various other limitations make cooperative societies dependant on the government for and patronage in of grants, loans subsidies, etc. Due to this, the government sometimes directly interferes in the management of the society and also audits their annual s.
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8. Types of Co-operative Societies: Although all types of cooperative societies work on the same principle, they differ with regard to the nature of activities they perform. Followings are different types of co-operative societies that exist in our country. 1. Consumers’ Co-operative Society:These societies are formed to protect the interest of general consumers by making consumer goods available at a reasonable price. They buy goods directly from the producers or manufacturers and thereby eliminate the middlemen in the process of distribution. Kendriya Bhandar, Apna Bazar and Sahkari Bhandar are examples of consumers‟ co-operative society. 2. Producers’ Co-operative Society:These societies are formed to protect the inter- est of small producers by making available items of their need for production like raw materials, tools and equipments, machinery, etc. Handloom societies like APPCO, Bayanika, Haryana Handloom, etc., are examples of producers‟ co-operative society. 3. Co-operative Marketing Society: These societies are formed by small producers and manufacturers who find it difficult to sell their products individually. The society collects the products from the individual and takes the responsibility of selling those products in the market. Gujarat Co-operative Milk Marketing Federation that sells AMUL milk products is an example of marketing co-operative society. 4. Co-operative Credit Society: These societies are formed to provide financial to the . The society accepts deposits from and grants them loans at reasonable rates of interest in times of need. Village Service Co-operative Society and Urban Cooperative Banks are examples of co-operative credit society.
8
5. Co-operative Farming Society:These societies are formed by small farmers to work tly and thereby enjoy the benefits of large-scale farming. Lift-irrigation co-operative societies and pani-panchayats are some of the examples of co-operative farming society. 6. Housing Co-operative Society: These societies are formed to provide residential houses to . They purchase land, develop it and construct houses or flats and allot the same to . Some societies also provide loans at low rate of interest to to construct their own houses. The Employees‟ Housing Societies and Metropolitan Housing Cooperative Society are examples of housing co-operative society. Cooperative societies are of various types depending upon their objects and natureof work. Some of the cooperatives have been formed to help consumers and other have been established to help producers. There are some societies which help the farmers in providing credit for the purchase of fertilizers and seeds etc. and some help them in the promotion of trade.Some of the important types of cooperative societies are as under.1
7. Farming Cooperative Societies: These solicits are formed by the by the small agriculturalist to get the benefits of larges scale forming. These societies provide help to the farmer for the improve methodof cultivations by providing large scale forming tools such as tractors, threshers andharvesters etc.etc. 8. Insurance Cooperative Societies: These societies make contract with insurance companies for the purchase of different insurance policies for its member at lower . This society may take agroup insurance policy for its . The main object of the society is to minimizethe risk of its member.
9
9. Transport Cooperative Societies: These societies are formed to provide the services of transport to its atlower rates. Welfare bus scheme is an example of this type of society. A is handedover to the member for traveling on approved routes. 10. Storage Cooperative Societies: These societies are formed for the provision of storage facilities to its member for perishable and non perishable goods at lower rates. These societies also provide gradingand distribution services to its . 11. Labour Cooperative Societies: These societies are formed by unskilled labour for selling their services at reasonable wage rate. This type of society makes a contract with different firm for the provision of labour to them. 12. Miscellaneous Societies: Some other important societies, in addition to the major form of societies discussed above are, Processing cooperative societies, Fisheries cooperatives societies,Forestry and poultry forming etc.
9. PRINCIPLES OF CO-OPERATIVE SECTOR: 1. LEGAL STATUS : A co-operative Society is a body corporate ed under the applicable state Act with perpetual succession having a common seal. It can acquire, hold and dispose of properties, enter into contracts and it can sue and it can be sued. 2. VOLUNTARY ASSOCIATION : Co-operative Society is essentially an organization or an association of persons who have come together for the common purpose of economic development or for mutual help. 3. SELF HELP AND MUTUAL HELP : The Co-operative societies office bearers/executive committee is elected as per democratic election procedure. The Co-
10
operative Society function under the principle of self help and mutual help which means each will help for themselves and all will help others. 4. DEMOCRATIC CONTROLS : The Control of a Co-operative enterprise in not in the hands of capitalists who can corner the share capital and control the interest in any undertaking which would be a private undertaking. 5. EQUALITY : In co-operative Sector, the principle of “ One man one Vote “ is provided in the statute so as to ensure that the capital does not dominate the istration of cooperative Society. 6. OPEN HIP : Any person can apply for the hip of the Society without any discrimination. The hip is open for all. 7. SOCIAL APPROACH / NO PROFIT MOTIVE : As the Society is working on democratic principle and the office bearers of the Society will be functioning like a trustees for the better management of the society and there is no separate benefits to the executive committee . Service is the main motto and the profit is not the main concern in cooperative societies. 8. PROFITS AND RETURNS TO THE : Co-operative Society is an association of and certain percentage profits earned by the society, as decided in the meeting of the General body will be distributed in the form of dividend to the . 9. LIMITED INTEREST ON SHARES : Irrespective of the shareholding, each member has only one vote in the decision-making in the General body meeting or at the time of election of the committee for management. The shares are not traded in the stock exchange. The State Co-op. Act also prescribes the maximum amount, which a member can hold as a share capital in any society.
11
10. PERSONAL PARTICIPATION : The shareholders have to personally attend the meeting or for voting. They are not allowed to appoint proxies for attending the general body or for voting in the resolution to be ed. 11. EDUCATIONS AND CO-OPERATION : Every society has to contribute towards the education fund maintained and looked after by the district co-operative education Board as per the notification issued from time to time for educating the or the office bearers of the Society. 12. CO-OPERATION AMONGST CO-OPERATIVE INSTITUTIONS : The funds generated or mobilized through the co-operative societies have to be deposited/ invested in the Co-operative Sector only.
10. Characteristics of Co-operative Society: A co-operative society is a special type of business organisation different from other forms of organsation you have learnt earlier. Let us discuss its characteristics. i. Open hip: The hip of a Co-operative Society is open to all those who have a common interest. A minimum of ten are required to form a co- operative society. The Co–operative societies Act does not specify the maximum number of for any co-operative society. However, after the formation of the society, the member may specify the maximum number of . ii. Voluntary Association: the co-operative society voluntarily, that is, by choice. A member can the society as and when he likes, continue for as long as he likes, and leave the society at will.
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iii. State control:To protect the interest of , co-operative societies are placed under state control through registration. While getting ed, a society has to submit details about the and the business it is to undertake. It has to maintain books of s, which are to be audited by government auditors. iv. Sources of Finance: A co-operative society capital is contributed by all the .However, it can easily raise loans and secure grants from government after its registration. v. Democratic Management: Co-operative societies are managed on democratic lines. The society is managed by a group known as “Board of Directors”. The of the board of directors are the elected representatives of the society. Each member has a single vote, irrespective of the number of shares held. For example, in a village credit society the small farmer having one share has equal voting right as that of a landlord having 20 shares. vi. Service motive: Co-operatives are not formed to maximise profit like other forms of business organisation. The main purpose of a Co-operative Society is to provide service to its . For example, in a Consumer Co-operative Store, goods are sold to its at a reasonable price by retaining a small margin of profit. It also provides better quality goods to its and the general public. vii. Separate Legal Entity: A Co-operative Society is ed under the Co-operative Societies Act. After registration a society becomes a separate legal entity, with limited liability of its . Death, insolvency or lunacy of a member does not affect the existence of a society. It can enter into agreements with others and can purchase or sell properties in its own name.
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11. Formation of a Co-operative Society: A Co-operative Society can be formed as per the provisions of the Co-operative Societies Act, 1912. At least ten persons having the capacity to enter into a contract with common economic objectives, like farming, weaving, consuming, etc. can form a Co-operative Society. A t application along with the bye-laws of the society containing the details about the society and its , has to be submitted to the Registrar of Co-operative Societies of the concerned state. After scrutiny of the appliation and the bye–laws, the registrar issues a Certificate of Registration.
12. Requirements for Registration: 1. Application with the signature of all 2. Bye-laws of the society containing: (a) Name, address and aims and objectives of the society; (b) Names, addresses and occupations of ; (c) Mode of itting new ; (d) Share capital and its division.
13. ACT & RULES APPLICABLE: A Co-operative Society functions as per the provisions of 1. Co-operative Societies Act under which the same is ed. 2. Co-operative Societies rules made there under 3. Bye-laws approved by the registrar at the time of registration and amendments made from time to time and approved by the registrar. 14
4. Notification and Orders Co-operative Societies Act: We have a number of Co-operative Societies Acts functional in different states like - Maharastra Co-operative Societies Act, 1960, - Pondicherry Co-operative Societies Act, 1972, - Karnataka Co-operative Societies Act, 1959, - Delhi Co-operative Societies Act, 1972, - Kerala Co-operative Societies Act etc.
2. Co-operative Societies Rules A set of rules is also framed under the respective State Co-operative Act for procedural aspects. 3. Bye-laws Each society also ed with the bye-laws for internal management of the societies duly approved by the registrar at the time of registration of the society. The bye-laws of a society constitute a contract between a member and the society and it provide for the management of the society. The bye-laws are framed within the provisions of the Act and the rules made there under. Bye-laws include the objects of the society and completely define and restrict the society‟s activities, but the rights and liabilities of are determined by the Act and Rules and not by the bye-laws as such. 4. Notification and Orders issued from time to time by the Government, or any other Authority as prescribed under the Act, Rules there under by them.
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14.
PROVISIONS
FOR
REGISTRATION
OF
CO-OPERATIVE
SOCIETIES: There are different types of Co-operative Societies, which can be ed under the Maharashtra Cooperative Societies Act, which were explained earlier. In all these types of societies, the procedure to be followed for formulation of registration proposals slightly differs. The requirements in respect of each type of co-operative society‟s needs to be properly understood by every promoter, or the professional charged with the responsibility of getting the society ed (chief promoter). PROVISIONS UNDER THE M.C.S. ACT, 1960 Sections 3 to 11of the Act, provide for registration of Societies and the conditions for the same. Section 4 provides for a nature of an organization, which can be ed as a Society. Section 6 lays down the conditions for registration of the Society. Section 8 provides for application for registration bye-laws and the registration fees. Section 9 provides for time bound registration of the Society and the bye-laws.
JURISDICITION Each Society based on its area of operation has to be ed by the Registrar appointed by the Government for the particular jurisdiction. For the purpose of registration of the Societies the City of Mumbai has been divided as per the Municipal Wards. There is a Deputy or Assistant Registrar of Co-operative Societies for each Ward who is the Registration Authority for the Co-operative Societies in that Ward. Normally the office of such ing Authority (RA) is situated within the limits of such Ward. However if no space is available for the office of the RA in any ward the office of RA of such Ward is at the office 16
of Deputy Registrar Co-operative Societies India House 6th floor opposite GPO Mumbai. Other places in each Taluka one Deputy/Assistant Registrar, s & Supervises the Societies. SOCIETIES, WHICH MAY BE ED As per section 4, a society, which has as its objects the promotion of the economic interests or general welfare of its or of the public, in accordance with co-operative principles or a society established with the object of facilitating the operations of any such society, may be ed under this Act: Provided that, no society shall be ed if it is likely to be economically unsound, or the registration of which may have an adverse effect on development of the co-operative movement, or the registration of which may be contrary to the policy directives, which the State Government may, from time to time, issue. REGISTRATION WITH LIMITED OR UNLIMITED LAIBILITY: As per section 5, a Society may be ed with limited or unlimited liability. As per section 2[28] “society with limited liability” means a society having the liability of its limited by its bye-laws; As per section 2[29] “society with unlimited liability” means a society, the of which are, in the event of its being wound up, tly and severally liable for and in respect of its obligations and to contribute to any deficiency in the assets of the society; CONDITIONS OF REGISTRATION As per section 6(1) No society, other than a federal society, shall be ed under this Act, unless it consists of at least ten persons [or such higher number of persons as the Registrar may, having regard to the objects and economic viability of a society and development of the
17
co-operative movement, determine from time to time for a class of societies](each of such persons being a member of a different family), who are qualified to be under this Act, and who reside in the area of operation of society : [Provided that, a lift irrigation society consisting of less than ten but of five or more such persons may be ed under this Act.] (2) No society with a limited liability shall be ed, unless all persons forming the society reside in the same town or village, or in the same group of villages. [(2-A) No crop protection society shall be ed, unless the Registrar is satisfied, after such inquiry as he thinks necessary, that a draft of the proposal made by the society for protecting crops, structures, machinery agricultural implements and other equipment such as those used for pumping water on the land, was duly published for inviting all owners of land likely to be affected by the proposal and all other persons likely to be interested in the said lands to the proposal or to send their objections or suggestions and that the objections and suggestions received , if any, have been duly considered by the society and that the owners in possession of not less than 66 percent in the aggregate of lands included in the proposal have given their consenting writing to the making of the proposal and that the proposal made is feasible. For this purpose, the society shall submit to the Registrar: (a) a plan showing the area covered by the proposal and the surrounding land as shown in the map or maps of the village or villages affected; (b) an extract from the record of rights duly certified showing the names of the owners of lands and the areas of the lands included in the proposal; (c) Statements of such of the owners of the lands as consented to the making of the proposal signed by owners before two witnesses;
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(d) a detailed estimate of the cost of implementing the proposal; (e) a detailed statement showing how the cost is proposed to be met. When such society is ed, the cost of implementing the proposal shall be met wholly or in part by contribution to be levied by the society from each owner of the land included in the proposal, including any such owner who may have refused to become a member of the society. The owner of every land included in the proposal shall also be primarily liable for the payment of the contribution liable from time to time in respect of such land]. (3) No federal society shall be ed unless it has at least five societies as its . (4) Nothing in this Act shall be deemed to affect the registration of any society made before the commencement of this Act. (5) The word “limited” or “unlimited” shall be the last word in the name of every society with limited or unlimited liability, as the case may be which is ed or deemed to be ed under this Act. Explanation: For the purpose of this section and section 8, the expression “ member of family” means wife, husband, father, mother, [son, or unmarried daughter] POWER TO EXEMPT SOCIETIES [OR CLASS OF SOCIETIES] FROM CONDITIONS AS TO REGISTRATION As per section 7, notwithstanding anything contained in this Act, the State Government may, by general or special order, exempt any society or class of societies from any of the requirements of this Act as to registration, subject to such conditions (if any) as it may impose.
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15. APPLICATION FOR REGISTRATION As per section 8(1) For the purpose of registration, an application shall be made to the Registrar in the prescribed form and shall be accompanied by four copies of the proposed bye-laws of the society and such registration fee as may prescribed in this behalf. Different registration fees may be prescribed for different class of societies, regard being had to the service involved in processing an application for registration. The person by whom, or on whose behalf, such application is made, shall furnish such information in regard to the society, as the Registrar may require. (2) The application may be signeda) in case of a society other than a federal society by at least ten persons (each of such person being a member of different family), who are qualified under this Act, and, b) in the case of a federal society, by at least five societies. No signature to any application on behalf of a society shall be valid, unless the person g is a member of the committee of such a society and is authorized by the committee by resolution to sign on its behalf the application for registration of the society and its byelaws; and a copy of such resolution is appended to the application.
REGISTRATION As per section 9(1) If the Registrar is satisfied that a proposed society has complied with the provisions of this Act and the Rules, [or any other law for the time being in force, or policy directives issued by the State Government under section 4], and that its proposed bye-laws are not contrary to this Act or to the rules, he [shall, within two months], from the date of receipt of application the society and its bye-laws.
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(2) Where there is a failure on the part of the Registrar to dispose off such application within the period aforesaid, the Registrar shall, within a period of fifteen days from the date of expiration of that period refer the application to the next higher officer and where the Registrar is himself the ing officer, to the State Government, who are which, as the case may be, shall dispose of the application within two months from the date of its receipt and on the failure of such higher officer or the State Government, as the case may be, to dispose of the application within that period, the society and its bye-laws shall be deemed to have been ed.[and thereafter the Registrar shall issue a certificate of registration under his seal and signature within a period of fifteen days. (3) Where the registrar refuses to a proposed society, he shall forthwith communicate his decision, with reasons therefore, to the person making the application and if there be more than one to the person who has signed first therein. (4) The Registrar shall maintain a registrar of all societies ed or deemed to be ed, under the Act.
16. Procedure For Registration Of Co Operative Societies: The procedure for registration of society can be explained as the following steps: 1. APPOINTMENT OF CHIEF PROMOTER The first step to a Society is that minimum 10 adult individuals from independent families desiring to form a Society should gather and hold a meeting to (a) select a provisional committee and elect a Chief Promoter for formation of a society and (b) select a name for such Society with three alternatives and to appropriate resolutions in that behalf. 21
c) To collect the entrance fee and share capital from the prospective . d) To open the Bank in the name of chief promoter e) To decide about area of operation of the Society and f) To decide about the ed office of the Society g) To authorize chief promoter to submit the proposal for registration and to do any other thing to get the society ed.
2. NAME RESERVATION The second step would be to apply to the registration authority (RA) for reservation of name for the society and obtain letter from the RA in that connection. The resolutions ed at the promoters meeting as above should accompany such application for reservation of name as aforesaid. The letter reserving the name of the society shall be valid for 3 months. The validity of the name is normally extended on an application for 1 or 2 further of 3 months each.
3. BANK AND DEPOSITS The third step would be to (a) open a bank in the name of the proposed Society as per the RA‟s directions in that behalf that shall contain in the letter reserving the name and (b) deposit therein the entrance fee share money and the amount recovered for preliminary expenses from the promoters and obtain the certificate from such bank in respect of such deposits. Normally the directions of the RA are to open with a proximate branch of the District Central Co-operative Bank or any Maharashtra State Co-operative Bank or any other urban Co-operative bank.
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4. REGISTRATION FEE The fourth step is to deposit the registration fee with the Reserve Bank of India and to obtain the receipted challan in that behalf. The registration fee for Housing Society is Rs.2,500/- and for general Society is Rs.1250/-. 5. REGISTRATION PROPOSAL The fifth and final step is to prepare and to submit to RA the proposal for registration of the society. Under Rule 4 of Maharashtra Co-operative Societies Rules the chief promoter should submit the following documents for registration a) Application for registration - Form A An application for registration of a society should be made in form. The specimen of Form The application for registration in quadruplicate should be signed by at least 60% of the promoter‟s and Chief Promoter should attest their signatures. b) Four copies of the proposed bye-laws of the society c) A list of promoter‟s , such as the name age occupation current residential a address of the promoter member the cost of share amount etc. d) A certificate from the Bank or Banks stating the credit balance therein in favour of the proposed society; e) A scheme showing the details explaining how the working of the society will be economically sound and where the scheme envisages the holding of immovable property by the society, the description of such property proposed to be purchased, acquired or transferred to the society. f) Such other documents as may be specified in the model bye-laws, if any, framed by the Registrar.
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g) The registration fees at the applicable rates. h) Other documents like affidavit, indemnity bonds, copy of ration cards, public notice in newspaper etc., as may applicable for different types of society as per the notification issued from time to time.
BOOKS OF S TO BE MAITAINED
An is formal presentation of the transactions pertaining to an item or person or an income or expense. An is generally prepared in T form wherein the left hand side is called the debit side and the right hand side the credit side. All s (except the cash or bank), which are maintained in cashbook, are maintained in ledger.
ING YEAR The erotically speaking a business may adopt any period of 12 months as its ing year except for first ing year which may be less or more than a period of 12 months. Under income tax act however every person is required (W.E.F 1.4.1989) to adopt a uniform ing year i.e. financial year, commencing on 1st April and ending on 31st march next year. Accordingly, since 1993, the co-operative year also has been changed to Financial Year.
Provisions under Rule 65 of M.C.S. Rules 1961: In accordance with Rule 65 of the M.C.S. Rules, 1961 following books relating to s of the Society are prescribed in general: a) Cash Book 24
b) General Ledger and personal ledger c) Stock d) Property e) of Audit objections and rectifications, and f) Such other books of as may be prescribed from time to time by the Government. Books of s maintained should be proper and systematic and depict clear and true affairs of the Society. GUIDELINES ABOUT MAINTAINING THE STATUTORY S It is considered necessary to give in brief Guidelines for maintenance of the important books and s. The Guidelines are as under:
of : (a) A co-operative society is constituted of persons who are of the Society. It, therefore, follows that the society should have the record to show as to who are its . The society has to enter into correspondence with its during the course of its business. It is therefore, necessary to have the full address of every member. In case of a cooperative housing society, stay in the building of the society. There is, therefore, no difficulty of recording the address of all the . However, cases are not wanting, where some member of co-operative housing societies transfer their flats without informing the societies and without leaving their new addresses with the societies. In such circumstances, the societies find it very difficult to make any communications with such . The form of application for hip also contains the business address of the
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member. However, it was noticed that who unauthorized transferred their flats, changed their business addresses also, without informing the societies. It should, therefore, be the practice of societies to get the business addresses of their confirmed as frequently as possible but at least once in a year. There are changes in the hip. Some of the existing of the society Leave the society either as a result of transfer of shares, resignations, death or expulsion and new come in their places. It is, therefore, necessary to maintain a complete record of such changes in hip and the addresses. Therefore, it has been made obligatory on every society to maintain u/s Section 38 of the M.C.S. Act, 1960. (b) The form „l‟ has prescribed under Rule 32 of the M.C.S. Rules, 1961, in which every co-operative society has to maintain a of . This member is available with the federation on payment. (c) It is noticed by the federation that some of the co-operative housing societies did not maintain the or did not record the changes in hip. It may be pointed out here that the entry in the is the prima facie evidence of the date on which a person was itted to the hip of the Society and the date on which he ceased to be the member of the Society (Vide Section 38(4) of the M.C.S. Act, 1960). Non-maintenance of the ‟ correctly and up-to-date, may present several legal problems apart from confusion about hip. All co-operative housing societies should, therefore, make it a point to maintain this important and keep it quite up todate for all the time. (d) It was further noticed that some co-operative housing societies did not know how to begin with maintenance of this . It is, therefore, necessary to explain the procedure of
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maintenance of this . The following paragraphs will enable the secretary to know the procedure. (i) The section 2(19) (a) of the M.C.S. Act, 1960 defines a member as a person ing in the application for registration of a co-operative society which is subsequently ed or a person duly itted to hip of a co-operative society after it is ed. According to this definition of a member, the persons who have signed the application for registration are the original of the society after its registration. The work of maintaining the requisite records of the society actually starts after the provisional Managing Committee is elected as per the bye-law No. 91 (ii) The Hon. Secretary of the Society should, therefore enter the names of the persons from the application for registration, a copy of which is supplied to the society along with a copy of the bye-laws by the ing Authority. All other details as required by the „l‟ Form are available in the application for registration and the application for hip, Similar entries of persons itted to hip after the registration of the society should be made in the . (iii) Some societies had enquired of the Federation as to what date be entered in the column for date of ission to hip in case of a newly ed society. It is clarified here that the persons who had signed the application for registration become , of the society on its registration and the date of registration of the society should, therefore, be entered in the said column of date of ission to hip of the society. (iv) In certain cases, there is t or Associate hip. The names of persons who become t or Associated on registration of the society or who are itted as
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such after registration of the society should also be entered in the below the name of the member whose name stands first in application for registration .It may not be necessary to enter other details in the in respect of a t Associate . (v) There is another class of called Nominal . Such are not required to hold any shares and there cannot be any transfers of shares in their cases. The question of making entries regarding the Shares held and the shares transferred, therefore, does not arise in their cases.
17. PRIMARY ING RECORDS RAISING OF BILLS: The Managing Committee as per the decision of the General body has to recover various charges towards the outgoing of the society from the . The contribution towards various funds is also fixed in the general body, as provided in the bye - laws of the Society. The Managing Committee has to accordingly raise the bill on every member, on monthly or quarterly basis, and recover the contribution from the . RECEIPTS On making the payment by the towards outgoing of the society receipt should be issued to the member by office bearers authorised by the Committee. When the Society receives any payment from the or from outsiders on sale of any material or services, receipt has to be issued by the Society for having received the money with the details. Receipts could be for monthly/quarterly. maintenance charges, Property tax Sinking Fund 28
Repair Fund Entrance Fees Transfer Fees Transfer Donations etc Sale of scrap Refund of deposits etc
18. ASSETS, LIABILITIES EXPLAINED BALANCE SHEET Balance sheet is prepared to ascertain the true financial position of a Housing Society at the end of the year. It is a statement showing the state of affairs of a Housing Society as on a specified date. The state of affairs includes what the Society owns and what the society owes. It displays the properties, assets and other rights owned by the Society on the right hand side, whereas the liabilities to outsiders and amount invested by the as capital on the left hand side. ASSETS Asset means right of ownership over anything valuable. Anything, which will enable the Society to get cash or a benefit in future, is an asset. This refers to properties that can be expressed in of money, e.g. plant & machinery, vehicles, stock, cash etc. It also includes money due to the Housing Society from debtors for goods and services or for money lent. Rights available to a Society such as patent or copyrights, goodwill etc. are also included in assets. LIABILITIES This represents financial obligations of a Housing Society other than Funds. It is the amount owing to the creditors for goods or services received or for moneys borrowed. Liabilities = Assets - Capital. Liabilities can be divided into two
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categories: (a) Current Liabilities: These are usually paid within a period of one year and are paid out of current assets e.g. Creditors, Bills payable, bank overdraft etc. (b) Long term Liabilities or Fixed Liabilities: These do not become due for payment in one year and do not require current assets for their payment e.g. long-term loans, issue of debentures etc., CAPITAL This is the amount invested by the in the Co-operative Housing Society. It also includes the Surplus/ Profit of the business also, to the extent they are not withdrawn by the for their personal purposes. However, any losses/ Deficit/ deferred revenue expenditures, which may have been shown on asset side of balance sheet, will have to be deducted from capital of the Society to ascertain true amount of the Capital. DEBTORS (S RECEIVABLE) It represents the indebtedness of , customers for merchandise or services supplied to them. It is the right of the Society to receive the moneys against supplies of goods or services. CREDITORS (S PAYABLE) It represents indebtedness of business to its suppliers for merchandise or services supplied by them to the Society. It is the obligation of Society to pay for any goods or services received by it.
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19. How Is The Net Surplus Of A Co-operative Allocated And Distributed? Generally, the distribution of a co-operatives surplus is determined by-laws. Surplus is determined at the close of a co-ops fiscal year or as prescribe by its by-laws. A co-operatives surplus is not profit in the usual sense of the word. As far as the co-op is concerned, this excess payment or surplus is considered as having been returned to the if the surplus is distributed in the following manner. First priority goes generally to the reserve fund at least 10 percent of the net surplus. The reserve fund is meant to stabilize co-op operations and may be used only for investments allowed by the code. Second priority goes to Education and Training, which is generally not more than 10 percent of net surplus. Third priority is an optional fund, a land and building fund, community development fund and any other necessary funds. After all these have been allocated, the remainder is available to the general hip in the form of interest on his investment and patronage refund. Nevertheless, interest in share capital should exceed normal rate of return on investment.
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Statutory formats of final s: Fig.Of Revious Year --
Liabilities
Share capital
Amt Fig.Of Revious Year ---
Assets
Amt.
Cash balance
--
Authorized issued & paid
On hand
up
At bank
Purchased by the government
--
Purchased by co-operative
Government
societies
securities
Purchase by individuals
Shares in co
Shares in advance
operative
Less-calls in arrears
Fixed deposits
Add:calls in advance
with banks.
Subscription/deposits
--
towards shares
--
Investments
Reserve fund and other
Provident fund
--
--
investment
--
--
Loans &
fund
advances
Reserve fund
-loans
Building fund
-cash credit
Development fund
-dues from the
Reserve for doubtful debts
Managing
--
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Depreciation fund
committees
Dividend fund
-dues from
Bonus equalization fund
employees
Other equalization fund Sundry debtors --
--for credit sale
Staff provident fund -Debentures
-for advances --
Cash credit Overdrafts
Current assets --
--
Loans
Tools and
Government loans
equipments
Other secured loans
Closing stock Work in progress
Unsecured loans -From banks
Fixed assets --
--
--
From gov.
Land and building
Bills payable
Plant and
Others
machinery Livestock
Deposits
Deadstock
Fixed deposit
Vehicles
--Saving deposit Recurring deposit
Other expenses --
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Others
& losses Preliminary exp. Advances
Current liabilities & --
Payment of taxes
provisions -Sundry liabilities
Goodwill
Outstanding salaries, etc
Deferred revenue
Advances
exp.
Unclaimed dividend --
Other debtors --
--
--
-Advance paid
Interest due but not paid --
Int.accrued but
Other liabilities --
-not received
P&l appropriation --
-opening balance
Other dues
Add:current year profit Losses --
-Add:current loss
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CONCLUSION: I conclude based upon the data in my project I have learned what is cooperative society and there are many advantages and disadvantages in cooperative society. Though the main aim of these cooperative society is not to earn profit but still they are interested in knowing whether their current income is more than the current expenses or not. They are also keen in knowing the financial position of their concern. Co-operative Societies are not charitable societies. They carry on Economic Activities. The profit is not the motive but the proper s need to be maintained and presented before the for their approval in the Annual General Body meeting. While doing this project I learn how to the cooperative society, step involve while ing a society. All types of cooperative societies are formed for the welfare of the people, either these are produce‟s cooperative, consumer cooperative, farming cooperatives. The main object of all these types of societies is not to earn profit but the welfare of its . It was knowledgeable experience for me.
BIBLOGRAPHY: Books: (financial ing) dr.varsha m. ainapure Websites: www.google.com http://ingexplained.com wikisource.org/wiki/Consumers_Cooperative_Societies wiki.answers.com http://my.safaribooksonline.com/book/business/ 35
SUMMARY
A co-operative society is a voluntary association of individuals having common needs
who hands for the achievement of common economic interest. Its aim is to serve the interest of the poorer sections of society through mutual help.
hip of co-operative societies is voluntary and open to all. It is democratically
managed and it has a separate legal existence . The main motive is to provide service to the . It works on the principle of self help through mutual cooperation of .
A co-operative society can be formed under the Co-operative Societies Act, 1912,
with a minimum of ten . For registration, an application along with bye-law of the society has to be submitted to the Registrar of Co-operative Societies.
Co-operative societies may be classified as follows: 1) Consumers‟ co-operative society - formed to eliminate the role of middlemen and
supply high quality goods and services at reasonable price to consumers. 2) Producers‟ co-operative society - formed to help producers to procure raw material, tools, equipment etc. 3) Co-operative marketing society - formed to ensure a favourable market for small producers
to sell the output and get a good return on sale.
4) Co-operative credit society - formed to provide financial help to through loans at low interest rates. They encourage saving habit among .
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