By Harshvardhan, the Subject Matter Expert at Edumarz
Solution: The cooperative society is a voluntary association of persons, who join together with the motive of the welfare of the members. They are driven by the
need to protect their economic interests in the face of possible exploitation at the hands of middlemen obsessed with the desire to earn greater profits. The word cooperative means working together and with others for a common purpose.
The cooperative society is compulsorily required to be registered under the Cooperative Societies Act,1912. The process of setting up a cooperative society is simple enough and at the most what is required is the consent of at least ten adult persons to form a society. The capital of a society is raised from its members through the issue of shares. Society acquires a distinct legal identity after its registration.
The cooperative society exemplifies the idea of democracy and hence finds support from the Government in the form of low taxes, subsidies, and low-interest rates on loans. It exemplifies democracy by the Principle of “one man – one vote” and Secularism by the Society having no restriction on the qualification or caste, creed, sex etc. of the incoming members. It is also promoted in the Constitution and gets Support from Government.