Write short notes on the following. Merits of Co-operative society.

ANSWER:

Merits of a co-operative society:

i. Ease of formation: The formation of a co-operative society is quite easy, as it requires the induction of only 10 adult members. Its registration process is also simple.

ii. Continued existence: A co-operative society is a stable form of organisation, as its existence remains unaffected by the death, insolvency or insanity of its members.

iii. Equal voting rights: There is equality in voting rights, as it follows the policy of “one member, one vote”.

iv. Limited liability: The degree of liability of a member is limited to the amount of capital contributed by him or her.

v. Open membership: Membership of a co-operative society is open to all persons; caste, creed, religion or sex is no bar to membership.

vi. Democratic management: The management of a co-operative society is democratic in nature, as it is managed and controlled by a managing committee formed by its members.