The formation of co-operative is simple as compare to the formation of Joint Stock Company. There are no special legal formalities required to form a co-operative society. There are minimum 10 members needed to form a co-operative society.
Life of the co-operative society is not affected by the life of its members. In case of death or retirement of any member, other members will continue the operation. It is the voluntary association of persons. Any person can become the member of the society by fulfilling the requirements and any member can leave it at any time.
Co-operative society is formed to reduce the monopoly. It creates competition and provides goods to its members on fewer rates. Similarly co-operative society sold goods directly to its members and reduces the margin of middleman. So the goods are available at lower cost. Members of the co-operative society can do some business activity for the common interest. Purpose of this society is to serve its members. The structure of this form of business organization is based on democratic principles. One person one vote is the basic principle of this society. Members of co-operative society have a spirit of sacrifice. The principle of one for all and all for one is applied.
Life of the co-operative society is not affected by the life of its members. In case of death or retirement of any member, other members will continue the operation. It is the voluntary association of persons. Any person can become the member of the society by fulfilling the requirements and any member can leave it at any time.
Co-operative society is formed to reduce the monopoly. It creates competition and provides goods to its members on fewer rates. Similarly co-operative society sold goods directly to its members and reduces the margin of middleman. So the goods are available at lower cost. Members of the co-operative society can do some business activity for the common interest. Purpose of this society is to serve its members. The structure of this form of business organization is based on democratic principles. One person one vote is the basic principle of this society. Members of co-operative society have a spirit of sacrifice. The principle of one for all and all for one is applied.
