Society

A group of people formed as a separate organization and which has as a stated purpose some charitable or benevolent purpose either in regards to the public at-large or in regards to the common interests of the members, and which operates as nearly as possible at cost.

Features of Society

It's a group of persons
For some common interest or purpose
United by a common vow
Follows the same trade or profession

Benefits of Society

Easy to form
No obstruction for membership
Limited liability
Service motive
Democratic management
Stability and continuity
Economic operations
Surplus shared by the members
State patronage

Limitations of Society

Limited resources
Inefficient management
Lack of secrecy
Cash trading
Excessive Government interference
Absence of motivation
Disputes and differences

Suitability

Any group of persons can form a cooperative society of their own if they so like to act jointly for the common benefit of each other. But that is not the legal way of formation the cooperative society. All societies must be formed under the Cooperative Societies Act, 1912 or under the relevant state cooperative laws.

Formation of Society

For formation of a cooperative society at least 10 persons are required. They must have the common objective to serve each other by forming a society. They have to contribute capital in form of share capital and decide to take up any one or more activities. They form a managing committee from and among the members who looks after the management of the society and implements the decisions of the members. As our Constitution is wedded to a socialistic pattern of society, it is a part of the Government policy to promote and encourage establishment of cooperative societies.

Therefore, co-operative societies enjoy several benefits provided by the Government from time to time. But in order to avail those benefits the society must have to register under the Cooperative Societies Act. The procedure for registration are as follow :

Apply for registration of the association as cooperative society in a prescribed proforma available with the Registrar of Cooperative Societies with requisite information like -