CO-OPERATIVE

ORGANISATION

BY SNEHAL CHAVAN
DEFINATION

A corporation is defined as a legal

entity or structure created under the
authority of the laws of a state, consisting of
a person or group of persons who become
shareholders. The entity's existence is
considered separate and distinct from that
of its members. 
FORMATION OF CO-OPERATIVE
ORGANISATION
 In India we have a special legislation governing
the registration, working and management of
co-operative organizations.
 In each state, we have registrar of Co-operative
societies who is in charge of all Co-operatives.
Sometimes they are called Bramha (creator),
Vishnu (preserver), and Mahesh (destroyer) of
co-operative societies.
 Registration of every co-operative society is
necessary.
PROCEDURE FOR REGISTRATION

 Atleast 10 adult person to form a co-operative

society.
 Application for registration must provide all
essential information, eg- name, address, aims,
goals, particulars of share capital
 Application shall be dully dated and signed by
at least 10 members
 Along with application duplicate copies of
byelaws should be enclosed.
 The registrar after the scrutiny of
application, if satisfied ,may issue under
his seal and signature a certificate of
registration so that society becomes a
separate legal entity like a company.
 The society must have its own Common
seal which act as its signature.
 Once society is duly registered it can
admit new members and also issue its
shares .
MANAGEMENT OF CO-
OPERATIVE ORGANISATION
 It has a governing council or board on
which members elect their representatives
every year.
 One man one vote is the rule.
 For looking after routine management,
there is a working committee consisting of
few members of the governing council.
 The office bearers are President, Vice-
president, Secretary and Treasurer.
 The governing council may have monthly
meetings, while working committee may
have weekly meetings.
 The office bearers are in charge of
conducting the business of the society
as per order and instructions of the
working committee.
CO-OPERATIVE VERSES
COMPANIES
FORMATION:
 CO-OPERATIVE  COMPANY
1. Under co-op. soci. 1. Under companies
Act. act.
2. Min. members 10 2. Min. members 2/7.
3. Local membership. 3. Wide spread
4. Regi. Procedure membership.
simple 4. Elaborate
procedure.
 Fundamental
principle:
1. Spirit of co-operation. 1. Spirit of competition
2. Service before self. 2. Self before service.
3. Joint enterprise. 3. Individualism.
4. Unity of purpose. 4. No need for unity.
5. Socialist bias. 5. Capitalist bias.
 Person interested:
1. Essentially ideal 1. Only for persons
organization for poor having savings for
people. income.
2. Reply to evils of 2. Symbol of
capitalism. capitalism.
3. Appeals to masses. 3. Appeals to classes
 Role of capital;
1. Capital-primary role.
1. Capital-secondary role.
2. It is the king and
2. Persons are associated
as human beings. ruler.
3. Persons are
3. Profit sharing and
votings are not linked. associated as
capitalist.
4. 1 member 1 vote
4. 1 share 1 vote.
 Priveleges ;
1. Govt. gives special 1. No such priveleges,
privelages to on the other hand
encourage co- strict legal control.
operative
movement.
 Management:
1. Democratic 1. Oligarchic
2. Equal voting rights. 2. Unequal voting rights.

 Method of voting:
1. Show of hands.
1. Poll possible.
2. Ballot box 2. Proxy allowed.
3. No proxy. 3. Capitalist.
4. Democratic.
Advantages of co-
operatives;
1. A way of raising capital.
2. Easy ownership transferable.
3. Limited liability.
4. Continues until terminated.
Disadvantages of co-
operatives.
1. Incorporation cost legal fees.
2. Business secrecy cannot be
maintained.
THANK YOU