co-operativesocieties-100219033410-phpapp01
learning co-operative movement for educational purposes
co-operativesocieties-100219033410-phpapp01
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Presentation Transcript
Nishant R. Nair Nishant R. Nair Class - 9-2 Roll No. - 28
‘ ‘Co-operation’ Co-operation’ Derived from the Latin word ‘ Derived from the Latin word ‘co- operari operari’ ’ co- ‘ ‘co co’ means ‘with’ and ‘ ’ means ‘with’ and ‘operari ‘to work’ ‘to work’ operari’ ’ means means ‘ ‘Co-operation Co-operation’ means working together ’ means working together
‘ ‘Co-operative Society Co-operative Society’ ’ A A voluntary voluntary association working together with working together with common economic objective objective; ; providing providing support support to the members; to the members; self-help self-help and and mutual help mutual help; ; non-profit non-profit motive; motive; pooling pooling individual resources individual resources for welfare; welfare; for for common benefit common benefit. . association of persons; common economic of persons; for group group
OBJECTIVES Render service, not for profit; Mutual help, not competition; Self help, not dependence;
Open membership Membership open to all with common interest; Minimum of ten members; No restriction on the maximum number; Members may specify the maximum number for their Society
Voluntary Association • Members coming together voluntarily; • by choice, not by force; • Continues for as long as he likes; • May leave at his will.
State control State control Registration compulsory; Statutes, Rules and Bye Laws to protect the interest of members; Has to maintain books and records; Subject to statutory audit of books by qualified Chartered Accountants; Functions under the regulatory supervision of Registrar of Co-operative Societies
Sources of Finance Sources of Finance Capital contributed by all the members; Capital contributed by all the members; May raise loans and secure grants from May raise loans and secure grants from government; government; after its registration. after its registration.
Democratic Management Democratic Management Governed by a ‘Managing Committee’ or ‘Board of Directors’ elected by the members of the society; Managed on democratic lines; One member one vote, irrespective of no. of shares held;
Service motive Co-operatives not to maximize profit but to provide service to its members; A Consumer Co-operative Store sells quality goods to members at a reasonable price retaining a small margin of profit; In a Housing Co-Operative, members reside by sharing expenses on maintenance and repairs.
Separate Legal Entity Separate legal entity; Limited liability of its members; Continuity of existence; Death, insolvency or lunacy of a member not to affect the existence of a society Can enter into agreements; Can purchase or sell properties in its own name; Can sue and be sued.
Distribution of Surplus Distribution of Surplus Distributes Profits earned among Members Distributes Profits earned among Members on the basis of members’ participation in on the basis of members’ participation in the business of the society; the business of the society; Profits generated are not at the cost of its Profits generated are not at the cost of its members; members; Example: – in a Consumer Society, profit generated by sale of goods to general public is paid as purchase bonus to members on the basis of goods purchased by them from the society.
Self-help through mutual Self-help through mutual cooperation cooperation • Co-operative Societies thrive on the principle of mutual help; • They are the organizations of financially weaker sections of society; • converts Weakness to strength by ‘self-help through mutual co-operation’; • Fights exploitation and secure a place in society through “Each for all and all for each”.
Formation of a Society Governed by the Co-operative Societies Act, 1912; Minimum of 10 persons having the capacity to enter into a contract with common economic objectives; A joint application along with the bye-laws of the society containing the details about the society and its members to the Registrar of Co-operative Societies of the concerned state; After scrutiny, the registrar issues a Certificate of Registration
Requirements for Registration Application with the signature of all members Bye-laws of the society containing: Name, address and aims and objectives of the society Names, addresses and occupations of members Mode of admitting new members Share capital and its division
Easy Formation Open Membership Democratic Control Limited Liability Elimination of Middlemen’s . Profit State Assistance Stable Life
Easy Formation Easy Formation Formation easy compared to a joint Formation easy compared to a joint stock company; stock company; Any ten adults with common intent; Any ten adults with common intent; voluntarily forming an association; voluntarily forming an association; Registered with the Registrar of Co- Registered with the Registrar of Co- operative Societies. operative Societies.
Open Membership Open Membership Persons with common interest Persons with common interest Persons with common interest Persons with common interest voluntarily coming together voluntarily coming together voluntarily coming together voluntarily coming together may become a member of the may become a member of the may become a member of the may become a member of the society at his will society at his will society at his will society at his will And leave the Society at will. And leave the Society at will. And leave the Society at will. And leave the Society at will.
Democratic Control Democratic Control controlled in a democratic manner; controlled in a democratic manner; Elects representatives to govern the Elects representatives to govern the affairs of the Society; affairs of the Society; One member, one vote; One member, one vote; Governing Council/ Committee Governing Council/ Committee accountable to members and the accountable to members and the Regulators. Regulators.
Limited Liability Limited Liability liability of members limited to the extent of the capital contributed by them to the Society; No personal liability to members for the liability of the Society
Elimination of Middlemen’s Profit Combined strength of members; to derive economies of scale; for direct access to – manufactures and producers; goods and services; to markets and distribution channels; Eliminates middlemen’s profit
State Assistance State Assistance Central and State assistance; Central and State assistance; – in the form of capital contribution; – loans at low rates of interest; – exemption in tax; – subsidies in repayment of loans, etc. * *Graph showing Government assistance to TDCC – Tribal Development cooperation corporation
Stable Life fairly stable life; continuous existence; existence not affected by death, insolvency, lunacy or resignation of members.
Limited Capital Limited Capital Source of capital limited, by limiting membership Source of capital limited, by limiting membership to a particular section of the society; to a particular section of the society; No incentive to members to contribute more to No incentive to members to contribute more to the capital due to low rate of return; the capital due to low rate of return; Government’s assistance often inadequate for Government’s assistance often inadequate for most Co-operatives most Co-operatives
Problems in Problems in Management Management • lack of managerial talent due to – • elected representatives lacking in managerial experience and expertise; • limited resources hampering outsourcing of professional managerial talent;
Lack of Motivation Lack of motivation owing to – Societies being service oriented not profit oriented; Extra efforts by any particular member not getting extra reward; Being aloof and not involved does not result in denial of rewards.
Lack of Co-operation Societies often suffer from – Personality differences; Ego clashes; Selfish attitudes; Lack motivation; Ignorance of or irreverence to principles of co-operation
Dependence on Government Societies ften tend to be dependent on government patronage and support in terms of grants, loans subsidies, etc., owing to – inadequacy of capital; Limited access to raw materials; Lack of market and distribution of channels for products; Vagaries of nature leading to financial burden on members, etc.
Consumers’ Co-operative Society Consumers’ Co-operative Society For protecting interest of general consumers; For protecting interest of general consumers; by making consumer goods available at a reasonable price; reasonable price; Source goods directly from the producers or manufacturers; manufacturers; eliminates middlemen in the distribution process. process. by making consumer goods available at a Source goods directly from the producers or eliminates middlemen in the distribution Some examples: Kendriya Bhandar, Apna Bazar Sahkari Bhandar Employees consumer co- operative societies; Etc. - - - -
Producers’ Co-operative Society • to protect interest of small producers; • By making available raw materials, tools and equipments, machinery, etc.; • Arranging Marketing & Distribution channels, etc. • Examples: • Amul • APPCO, • Bayanika, • Haryana Handloom, • Co-optex
Co-operative Marketing Society Society of small producers and manufacturers; collects the products from members makes available better marketing & distribution channels economically; sells in the market. Examples: Anand Milk Union Ltd., (Amul); Co-optex UP Handloom
Co-operative Credit Society Co-operative Credit Society formed to provide financial support to members accepts deposits from members; grants loans to members at reasonable rates of interest Examples: Village Service Co-operative Credit Societies, Employees co-operative credit societies, etc.
Co-operative Banks Co-operative Banks formed to provide banking facilities to members; accepts deposits; grants loans at reasonable rates of interest Examples:
Co-operative Farming Society formed by small farmers; to pool small holdings and work to benefits of large-scale farming; Examples: Lift-irrigation Cooperative Societies; pani-panchayats
Housing Co-operative Society provide residential accommodation to members Constructs houses or apartments for members; Provides amenities; Takes care of maintenance and repairs.
IFFCO – IFFCO – Giant of a Co-operative Giant of a Co-operative
Co-operatives’ Share in Fertilizer Co-operatives’ Share in Fertilizer Production Production
Bibliography Bibliography Various Internet sites Various Internet sites Acknowledgement: www.google.com - Nishant R. Nair - Nishant R. Nair
