Features of Cooperatives
The following are some of the important principles of co-operative societies.
Any person can become the member of the society and can leave it any time.
Each member of the society has an equal right to vote and ownership. Each shareholder has one vote.
The principle of democracy is adopted while making the decisions. The decision of the majority is honored.
It is the basic principle of this society. Its members should be honest. Selfish people can not run the business of cooperative society.
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.
Credit team is prohibited and goods are supplied to its members on cash payment.
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.
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.