LEGAL FORMS OF ORGANISATION

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CO-OPERATIVE ORGANISATION

According to international labour office , a cooperative organisation is ‘An association of persons , usually of limited means , who have voluntarily joined together to achieve a common economic end, through the formation of a democratically controlled business organisation, making equitable contributions to the capital required and accepting a fair share of risks and benefits of the undertakings’ .

A CO-OPERATIVE ORGANISATION IS A VOLUNTARY ASSOCIATION OF INDIVIDUALS, GENERALLY BELONGING TO ONE HOMOGENEOUS GROUP, WHO ASSOCIATE TOGETHER TO PROMOTE THEIR COMMON INTERESTS .

The objects of a co-operative organisation are economic in character. it is generally formed and registered under the

Cooperative societies act, 1912 by individuals of moderate means to protect their economic interests.T his form of organisation can be applied to every conceivable form of economic activity. Thus, the scope of a cooperative form of organisation is as wide as the economic life of the members of a community. Today there are a large number of credit societies, retail stores, building societies, marketing societies and producers societies which are formed and run on the basis of -operation.

THE co-operative organisation, being different in its rationale and philosophy possess certain features or characteristics which are briefly explained as follows.

1.volutary association: A cooperative organisation is a voluntary association of individuals belonging to homogeneous groups. People join it voluntarily for the betterment of their economic interests through collective efforts. They can become the members of the co-operative society on their own and can leave it whenever they feel like, by giving notice to the society. However, a member cannot transfer his the society to another person. A cooperative as a voluntary association conveys that members from themselves into a co-operative society without any coercion or intimidation.

2.open membership: There is not a limitation on the number of members of a co-operative society. Its membership is open to all persons having a certain common interest.

3.service motive: A co-operative organisation is established primarily with a view to rendering service to its members in particular and to the society in general. This, however, does not mean that such an organisation will not work for profit. There are several co-operative organisations which are making reasonably good profits. What are reiterate here is the emphasis on service and not on profit.

4.capitals: The capital of the co-operative organisation is procured from which its members in the form of share capital. However, the share capital constitutes only a limited source of business finance.

5.return of capital: The return on capital subscribed by the members is in form of a fixed rate of dividend which is a charge on the trading surplus of the organisation.

6.democractic functioning: The management of co-operative organisation vests in a managing committee elected by the members on the basis of one member.It is the general body of the members which lays down the broad framework of policy within which the managing committee has to function.

The biggest example in co-operative business is the milk and milk products selling organisation AMUL- THE TASTE OF INDIA.