8 important Characteristics of Co-operatives Societies


1. Voluntary association:

A Co-operative Society is formed by persons who join it on their own. A person can join or leave the society whenever he wishes. But a member cannot transfer his membership to another.

2. Open membership: –


Membership is open to all irrespective of religion, caste, colour, creed or status of a person. There is no maximum limit for the number of members.

3. Democratic management:

All the members, usually, will be taking part in the management of their society. Equality is the fundamental principle of a Co-operative Society.

4. Equal voting rights:


In a Co-operative Society every member has only one vote even if a person holds more number of shares. Co­operation is considered as ‘Democracy of Men’ with “One man- One vote” as the underlying principle.

5. State control:

Co-operative Organisations are subject to control of the concerned state. In India, the co-operative societies are registered under the Co-operative Society Act, 1912.

6. Service motto: Its primary Motto is to offer services to its members to the maximum extent possible. It does not aim at profit maximisation.


7. Cash transactions:

Generally, Co-operatives transact business on cash basis only to protect the interest of the members against loss due to bad debts.

8. Disposal of surplus:

Surplus is distributed among members not on the basis of shares held by them but on the basis of their transactions with them.


According to the Co-operative Society Act, the following provisions are to be followed

(i) Only 9% of the profits distributed as dividends.

(ii) 25% of profits transferred to reserve fund.

(iii) 10% of profits are to be used for general social welfare activities.


(iv) The rest used to give bonus to members or rebate on the sales affected by them.

Web Analytics Made Easy -
Kata Mutiara Kata Kata Mutiara Kata Kata Lucu Kata Mutiara Makanan Sehat Resep Masakan Kata Motivasi obat perangsang wanita