Features of Cooperatives
The following are some of the important
principles of co-operative societies.
Voluntary
Membership
Any person can become the member of the
society and can leave it any time.
Equal
Rights
Each member of the
society has an
equal right to vote and ownership. Each shareholder has one vote.
Democracy
The principle of democracy is adopted
while making the decisions. The decision of the majority is honored.
Honesty
It is the basic principle of this
society. Its members should be honest. Selfish people can not run the business
of cooperative society.
Mutual
Confidence
The foundation of Cooperative society is
laid on mutual confidence. Members of the society should trust each other and
work like a team.
Welfare
Main Objective
Its main objective is to provide goods
and services to its members at lower price.
Cash
Payment
Credit team is prohibited and goods are
supplied to its members on cash payment.
Economy
The member of the society should act
upon the principle of economy. They should not misuse capital of the society
and always keep in view best interest of the society.
Distribution
of profit
The profit can be distributed among the
members according the cooperative act. One fourth (1/4) of the profit can be
kept in reserve. Then (10%) of the profit can be used for providing facilities
to the members.
Self
Service
All the business activities are
conducted by the members themselves. All are the owner and all are the
consumers. So self service rule is employed in the organization.
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