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What is a Cooperative Society?

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Sreya Ray
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Co-operative Society

A co-operative society as the name suggest, is formed by a group of people and they operate together to achieve a common goal. The society is formed under the purview of the Co-operative Societies Act, 1912.

It requires that at least 10 persons are needed to form a society and they should be above 18 years of age and eligible to enter into a contract. Though the Act was formed by the Centre, yet most of the states in India, have their own Co-operative Society Acts and the rules and regulations varies from state to state.

Types of Societies

There are different types of co-operative society. The common ones are as follows:

  • Consumer co-operative society.
  • Producers co-operative society.
  • Credit co-operative society.
  • Agriculture co-operative society.
  • House Building co-operative society.
  • Insurance co-operative society.
  • Miscellaneous Societies.

The societies work on the principle “each one for every one”. They believe in “self help by mutual help”. They bring together their resources and skills and endeavour to achieve their common goal. The limitations of their limited resources and expertise are eradicated by accumulating the resources of each one in the group. The leakage of income to middlemen are also minimised and optimal return from resources are achieved.

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1 COMMENT

  1. Co-operative societies are a boon to man in many ways. The mottos of these society are very noble but its directions are changed midways. ”Each one for every one” becomes each one for only one. The famous Amul Milk Co-operative society is a good example of the unselfish cause.

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