One can find various types of organization in the society which primarily depend on the type of activities the organization going to initiate. A cooperative society can be stated to be completely dissimilar to all other kinds of business organization. It looks after the interests and growth of the deprived sections present in society. It makes a voluntary association of individuals joined together based on the concept of equality for meeting their business and economic interests. Below are discussed a few benefits of co-operative society:
Advantages of cooperative society
Any person can get membership in a cooperative society because it is open for all to join. Any individual having a common interest is in a position to become a member. The fee structure is usually low with the intention that every person will be in the capacity to join and derive benefit associated with cooperative societies. As well it is possible for any member to quit the membership of the society at any time. There are no exit or enter windows so get cooperative society registration in India with ease.
Simple to form
Cooperative societies are capable of forming with ease as opposed to any company. Any ten persons or members who are in the majority are in the capacity to come together for jointly forming a cooperative society just following easy legal procedures so go for new cooperative society registration.
A cooperative society does work on the rule of ‘one man one vote.’ This means that all members possess the same rights in dealing with the matters of society. Members with huge money are not in the capacity to control the management by purchasing majority shares.
Impartial distribution of surplus
The surplus produced by the cooperative societies happens to be shared out equally amid its members. Hence all the members relating to the cooperative society get equally benefitted. In addition, the society as well derives benefit since an amount, not more than ten percent pertaining to the surplus will be used for the welfare of the area wherein the cooperative is situated.
The liability of any member found in the cooperative society happens to be restricted to the point relating to their capital contribution. They will not be held legally responsible for the debts incurred by the society.
A cooperative society has the proviso of the separate legal entity that is dissimilar to its members. Hence, its continuation does not get affected in any manner by the death, insolvency, or insanity of its members. A member can enjoy continual existence.
Meant for one and all
Cooperative societies can be formed and work on the principle of mutual help and self- help. So members put in their efforts to extend their common interests.
The great identity of interests
It functions within a limited geographical zone, and there happens to be the great identity of interests amid members. Members are able to interact with one another without hindrance. They are in a position to collaborate and handle the activities relating to society very effectively.