Cooperative forn of Business ( Cooperative Organisation)

Date : 17.April.2020
Sub  : Entrepreneurship
Day  : 3
Time : 10am -10:45
Period : 4

Learning Outcomes

• Definition of Cooperative organisation
• Meaning of Cooperative organisation
• Characteristics of Cooperative organisation
• Reason for not choosing cooperative structure by an entrepreneur

A   very good morning students.

We are going to learn the last form of a business

Yesterday we had sone Joint stock Company which is a corporate form of Business

Today we will be learning the last form of corporate form of business which is the cooperative organisation.

Indian Cooperative Societies act 1912 defines cooperative society in section 4 as, ' Society which has its objectives as the promotion of economic interest of its members in accordance with cooperative principle'

If we speak in lay terms it is a society where people have voluntaraly joined to form an organisation so that they can help each other.

Next we will be learning the Features or Characteristics of Cooperative Organisation

They have been explained very well in the video link that is given below.

1. Registration: 

• It must be registered under the cooperative Societies Act ,1912 under State cooperative Societies Act.
• Need 10 adult members are required to form the society
• On Registration the society becomes a corporate body having seperate legal entity ,perpetual succession and limited liabilities of its members

      2  Voluntary association: 

• Cooperative organisation is a voluntary assosiation of person.      
• Anyone having a common interest is free to join a cooperative society irrespective of caste, creed , religion, or Political affiliation.
• A member can leave the socity whenever he wishes after giving proper notice and he will get back his capital according to the rules of the society
• No member can transfer his shares to other members.

       3  Minimum and Maximum member : I will give this in the difference between Joint Stock Company and Cooperative Society

       4  Service Motive : Main aim of a cooperative S ociety is providing service or benefits to its members and even to general public by fighting against some social evil

       5  Government Control : It works under the regulation of the Government.

       6  Limited Liability : How much capital a member has contributed he is only liable upto that amount that he has contributed if the society decides to close.

       7  Capital and Thereon : The capital ( money) of a cooperative society is raised from its members through issue of shares.A member can subscribe to 20% of the total share capital or Rs 1000whichever is higher.Financial institutions also extend help to such institutions on easy terms.

REASONS FOR NOT CHOOSING COOPERATIVE STRUCTURE BY AN ENTREPRENEUR

1. Quest for execellence
2. Drive for Independence
3. Tendancy to be project champion
4. Strong desire to succeed and earn profits
5. Creative and Innovative nature
6. Must be own Boss attitude
7. Love for being Leader in the field
8. Zeal to capture major market share.

If he has a desire for any of the above he should not be thinking of Cooperative society 

  I now invite you to watch the video link.Please make sure you start watching the video from 5minutes 39 seconds because the part before that we have already done.                             

       https://www.youtube.com/watch?v=_zWxM0yJqQg&t=226s  

I hope the video was useful .

For your assignment i would like you to write down the Features of Cooperative Organisation and explain them in your own words.