Maharashtra Board Class 11 Cooperation Chapter 4 Formation of Co operative society PDF Download

Formation Of Co-operative Society

4.1 Introduction

In Post-independence Era, due to large development in co-operative sector co-operative societies were established in various fields. The co-operative societies were spread in rural as well as urban areas. Initially co-operative societies were formed and limited upto agricultural credit societies and other supplementary services related to this sector. The forms and functions are different for such various types of co-operative societies. It is quite important to learn and understand the registration procedures of the formation of a co-operative society to figure out as to by whom and in which manner the co-operative society is formed.

The people having a common objective of fulfillment of their common needs comes together and form a co-operative society. On account of this, people from across all sections of the society feel the need for formation of a co-operative society. The formation of a co-operative society matters on both legal and technical procedure.

The procedure for registration of co-operative societies is mentioned under Maharashtra Co-operative Societies Act 1960. As per this act, a co-operative societies are registered. In this chapter we are going to study about the formation, registration procedures and functions of promoter.

Teacher's Note

Co-operative societies help poor farmers and workers come together to help each other. In India, many dairy societies help farmers sell milk at good prices.

Exam Trick

Remember: Co-operative = people together. Just like your class works together in a group project, co-operative is many people working together for one goal.

Points to Remember

Co-operative societies are registered under Maharashtra Co-operative Societies Act 1960.
People with common needs start a co-operative society.
Registration needs both legal and technical steps.
Formation of co-operative needs proper planning.

4.2 Formation Of Co-operative Society

From a legal aspect, it is mandatory for a co-operative society to get registered under Maharashtra Co-operative Societies Act 1960. The formation of co-operative society goes through two stages being Promotion stage and Registration stage.

Teacher's Note

Just like you need to follow steps to build anything, forming a co-operative also needs two stages. First you plan, then you register officially.

Exam Trick

Remember: Two stages = Promotion first, then Registration. Promotion is before registration, Registration is after promotion. Think: Plan first, then official approval.

Points to Remember

There are two stages in formation of co-operative.
Promotion stage comes first before registration.
Registration stage is the legal stage.
Co-operative needs registration to be legal.

4.2.1 Promotion Stage

Prior to formation of co-operative society, the various steps which it has go through is collectively known as "Promotion Stage". It requires completion of various formalities before the society is registered. The Procedure starts from the promotion stage. The stage in which the idea of formation of co-operative society emerges in the mind and practically shaping up the formation of society is known as promotion stage or pre-registration stage. The aim of the co-operative society needs to be fixed and according to this aim, all necessary formalities needs to be completed. All the stages involved in the promotion stage are very important from the societies futuristic point of view.

Following are the steps in promotion stage:

1. Imagination of Idea: The idea of formation of co-operative society emerges in the mind of an individual or group of individuals. Such individual or group of individuals are known as "PROMOTER". The idea of formation of co-operative society comes in the mind of those individuals who possess leadership qualities and they are interested in development of weaker section of the society.

2. Detail investigation of idea: It is essential to investigate the idea of formation of the proposed co-operative society. First of all, it needs to be checked whether the idea is realistic. Through this investigation the ways for raising the required capital and financial capability of the proposed co-operative society is to be determined. The registrar registers the co-operative society which are economically viable and refuse registration for those who are not economically viable.

Teacher's Note

In your village, if farmers want to start a dairy society, they first imagine the idea, then check if it can work with their money and effort.

Exam Trick

Remember: Imagination + Investigation = First two steps of promotion. Think: First dream it, then check if you can do it.

Points to Remember

Promotion stage is before official registration.
Imagination of idea is the first step.
Investigation checks if the idea is real and possible.
Promoter is the person who starts the idea.
Promotion stage is informal in nature.

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