Merits Of
Cooperative Society
The cooperative society is the only form of
business organisation which gives utmost importance to its members rather than
maximising its own profits. After studying its characteristics and different
types, we may now study the merits of this form of business organisation
(a) Easy to
Form: Any ten adult members can voluntarily form an association get
it registered with the Registrar of Cooperative Societies. The
registration is very simple and it does not require much legal formalities.
(b) Limited
Liability: The liability of the members of the cooperative
societies is limited upto their capital contribution. They are not
personally liable for the debt of the society.
(c) Open
Membership: Any competent like-minded person can join the
cooperative society any time he likes. There is no restriction on the
grounds of caste, creed, gender, colour etc. The time of entry and exit is also
generally kept open.
(d) Stable
Life: The cooperative society enjoys the benefit of perpetual
succession. The death, resignation, insolvency of any member does not
affect the existence of the society because of its separate legal entity.
(e) Tax
Concession: To encourage people to form co-operative societies
the government generally provides tax concessions and exemptions, which
keep on changing from time to time.
(f) Democratic
Management: The cooperative societies are managed by the
Managing Committee, which is elected by the members. The members decide
their own rules and regulations within the limits set by the law.
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