‘COOPERATIVE SOCIETIES [A Cooperative s an organization which is owned and operated by members with common Interest who contribute capital with the main aim of furthering their economic welfare by providing thern with goods and services Characteristics ‘© Governed by a Board of Management/Committee of Management © Members have unlit © Aseparate legal entity from its owners + Shares cannot be transferred Membership ceases when all investments have been withdrawn ‘© They are tax exempted ‘© Must be registered under the Cooperative Societies Act ples of @ Cooperative ‘© Open Membership © Democratic Control ‘+ Patronage refund ‘© Limited interest on capital ‘© Continuous education Types of Cooperatives, ‘+ Service Cooperatives eg, Financial cooperative ‘+ Producers or Worker Cooperatives eg agricultural or craft vendors cooperative Committees ‘Board of Management # Financial Committee Ways of raising capital + Members’ investments 4 Reinvestment of part oF all of surplus