Maharashtra Board Class 12 Cooperation Chapter 1 Organisation of a Co operative Society PDF Download

Organization Of A Co-Operative Society

Introduction

Co-operation is one of the forms of business organization. It is different from other forms of business organizations. All other business organizations are formed with the profit motive but in Co-operation, service motive has been given priority rather than making only profit. Co-operative societies run their business on low margin. In Co-operation, person is given more importance rather than the capital. But in Joint Stock Company capital is an important factor. Co-operative society are conducting business on minimum profit. In this chapter we will study the organizational structure of co-operative society.

Teacher's Note

Co-operative societies help poor people buy things together at cheap prices. For example, a milk co-operative society in villages helps farmers sell milk at good prices.

Exam Trick

Remember: In Co-operative society, people are more important than money. In Joint Stock Company, money is more important. This is the main difference!

Points to Remember

Co-operative societies focus on service, not just profit.
Members are more important than capital in co-operatives.
Business is done on very low profit margin.
Co-operatives help common people meet their needs.

Organizational Structure Of A Co-Operative Society

Organizational or management structure of a co-operative society is as follows:

Members

Managing Committee / Board of Directors

Office Bearers

Chairman, Vice-Chairman, Secretary, Treasurer

Member

Meaning:

A Co-operative society is formed by the promoters for the benefit of common needs of persons. The people with common objectives come together and decide to form a co-operative society. Those who have signed an application form as promoter can get the membership as and when the society is registered. They are the founder members of the co-operative society. After the registration of co-operative society, the interested eligible persons can apply in the prescribed form along with entrance fees and amount of share capital to get the membership. If the society has accepted the proposal, he/she become the member of a co-operative society. But the co-operative society must take the decision of membership within three months from the date of receipt of an application form. The decision of membership should be communicated within fifteen days from the date of decision taken by the managing committee.

The Active members are the real owners of the society. They enjoy certain privileges as the owners of the society. A member can contest the election of managing committee. A member has various right like right to attend the meetings, to discuss and to vote in the general body meetings, etc.

Definition:

As per the Maharashtra Co-operative Societies Act, 1960 sub-section 2(19)(a), "Member means a person joining in with an application for the registration of a co-operative society which subsequently registered, or a person duly admitted to membership of a society after registration, and includes a nominal member, associate member and depositor or consumer of primary agriculture credit co-operative society."

Eligibility Of Members:

The following persons and legal entities are eligible to become a member of a co-operative society.

1. Major Person: Any major (adult) person can become member of co-operative society. An individual who has attained the age of 18 years and mentally sound is eligible for membership. An individual must be competent to enter into contract as per the Indian Contract Act.

2. Resident Of Working Area: A person interested in becoming member of co-operative society must be resident of working area of co-operative society and he must pay entrance fees and amount of atleast one share of co-operative society.

3. Student Member: In case of Student's co-operative society which is formed by the students of School, College and University, the student of the institution can become a member. In such case, completion of an age of majority is not taken into consideration. Students below 18 years are also eligible for membership of such co-operative society.

4. Registered Institution: An Institution registered under the society Registration Act can become a member of a co-operative society. E.g. educational institutions, sports club, cultural association etc.

5. Partnership Firm: A Partnership firm constituted under the Indian Partnership Act, 1932 is eligible to get the membership of a co-operative society. The business conducted by partnership must be situated in working area of co-operative society.

6. Company: A company registered under the 'Indian Companies Act, 2013' can become a member of a co-operative society. The head office of the company must be situated in the working area of co-operative society and the aims and objectives of company must not be similar to aims and objective of co-operative society.

7. Public Trust: Any public trust registered under Bombay Public Trust Act, 1860 for providing particular services to the society can become the member of the co-operative society.

Teacher's Note

Many types of people and organizations can join a co-operative. For example, a school can join a farming co-operative society to buy vegetables at good prices.

Exam Trick

Remember: To become a member, you must be 18 years old and live in the working area. Students below 18 can join student co-operatives only!

Points to Remember

Major persons aged 18 years can become members.
Members must live in the working area of the co-operative.
Students below 18 can join student co-operatives.
Even companies and institutions can become members.
Members must pay entrance fees and buy shares.

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