Class 11 Chapter 7 Cooperative organisation
What is a Cooperative Organization?
A cooperative organization is a voluntary group of people who come together to achieve their common economic, social, or cultural needs. It is formed mainly to provide service to its members rather than earning maximum profit. Members join freely, contribute capital, and work together with the motive of mutual help and cooperation. A cooperative runs democratically, where every member has one vote, and decisions are made collectively.
After registration, a cooperative becomes a separate legal entity, meaning it can own property, enter into contracts, and conduct business in its own name. Any profit earned is distributed fairly among members according to their participation in the cooperative. In simple words, a cooperative is an organization where people help each other to solve common problems and improve their economic condition through teamwork and equality.
Features of Cooperative Organization
1. Voluntary Association:
A cooperative is formed by people who join willingly. No one is forced to become a member, and members can leave the cooperative whenever they want. It is open to all who share common objectives.
2. Open Membership:
Membership is open to all individuals regardless of caste, religion, gender, or economic status. Anyone who accepts the rules of the cooperative can join.
3. Mutual Relationship:
Cooperatives work on mutual trust and cooperation. Members support each other to achieve common economic and social goals.
4. Service Motive:
The main aim of a cooperative is to provide service, not to maximize profit. It works to benefit its members by offering goods and services at fair prices.
5. Cash Transaction:
Most transactions in a cooperative are done in cash to maintain transparency, reduce risks, and keep records clear and simple.
6. Democratic Management:
A cooperative follows the principle of 'one member, one vote.' Every member has equal voting rights, and decisions are made collectively in a democratic way.
7. Separate Legal Status:
Once registered, a cooperative becomes a separate legal entity. It can own property, enter into contracts, sue or be sued in its own name, and carry out business independently.
8. Distribution of Profit:
Profit is not the primary goal, but if earned, it is distributed fairly among members based on their participation in the cooperative, not on the amount of capital invested.
9. Equality:
All members enjoy equal rights and responsibilities. Everyone gets equal opportunities to participate in decision-making.
10. Fulfillment of Community Motive:
Cooperatives also work for the welfare of the community. They help in local development, support weaker sections, create employment, and promote social upliftment.
Forms of Cooperative Organizations
A cooperative organization is a voluntary association of people who come together to achieve their common economic, social or cultural needs. Cooperatives work with the motive of service, not profit. They follow the principles of mutual help, equality, democracy and fairness. Members contribute capital, participate in management and share the benefits.
Cooperative organizations can be of various types based on their working area, nature of members, and objectives. The major forms of cooperative organizations are explained below:
1. Producers’ Cooperative Society
This cooperative is formed by small producers such as farmers, weavers, carpenters, and craftsmen who want to produce and sell their goods collectively. Individually, they cannot get good prices for their products due to lack of resources and bargaining power. By forming a cooperative, they pool their resources, produce together, avoid middlemen and sell their products at better prices. This helps them to secure fair income and stable livelihood.
2. Industrial Cooperative
Industrial cooperatives are formed by small industrial workers or small-scale manufacturers. These cooperatives provide raw materials, tools, and technical support to members. They also help in producing and marketing the finished goods. Their main aim is to support small industries that cannot compete with large industrial firms. These cooperatives help in promoting rural industries, employment generation, and balanced economic development.
3. Consumers’ Cooperative Society
Consumers’ cooperatives are formed by consumers to purchase essential goods at reasonable prices. They buy products in bulk directly from producers or wholesalers and sell them to members at low profit margins. This protects consumers from high market prices, adulteration, and unfair practices of shopkeepers. These societies ensure regular supply of quality goods at affordable rates.
4. Cooperative Credit Society
A cooperative credit society is formed to provide financial assistance to its members. Members save money regularly and the cooperative uses these funds to provide loans at low interest rates. It protects members from moneylenders who charge high interest. These cooperatives encourage saving habits, provide easy credit, and support small businesses and farming activities.
5. Cooperative Marketing Society
Cooperative marketing societies are formed by farmers and small producers to market their products collectively. They help in activities such as grading, packaging, storing, transporting, and selling the products. By marketing jointly, members get proper value, avoid exploitation by traders and enjoy better bargaining power. These cooperatives also provide market information and help in obtaining fair and stable prices.
6. Cooperative Farming Society
Cooperative farming societies are formed by small farmers who have limited land and cannot use modern agricultural tools individually. They pool their land and cultivate it jointly. This allows them to use modern technology, irrigation, tractors, fertilizers and other inputs efficiently. Cooperative farming helps in increasing agricultural productivity and reducing cost.
7. Cooperative Housing Society
These cooperatives are formed by people who need affordable housing. The society purchases land, develops plots, constructs houses and provides them to members at reasonable prices. This helps lower-income people to own houses on easy installments. Cooperative housing societies promote safe, planned and affordable living.
8. Multipurpose Cooperative Society
A multipurpose cooperative provides several services at the same time. It may offer savings and credit facilities, supply fertilizers and seeds, purchase members’ products, run consumer stores, and support agricultural and business activities. This type of cooperative is very common in rural areas where people need many types of services from a single organization.
9. Cooperative Milk Society
Cooperative milk societies are formed by milk producers. Members supply milk to the cooperative, which collects, processes and sells it. The cooperative ensures fair price and regular payment to milk producers. It also provides veterinary services, cattle feed, and training to improve milk production.
10. Miscellaneous Cooperatives
Some cooperatives are formed for special purposes such as transport cooperatives, health cooperatives, handloom cooperatives, poultry cooperatives, and savings groups. These cooperatives help members in their specific needs and support local economic development.
Conclusion
Cooperative organizations play an important role in promoting equality, helping weaker sections, and reducing exploitation in the market. They provide employment, improve living standards and support balanced economic growth. Because of their service motive, democratic structure and member-centered approach, cooperatives are considered an effective form of business organization, especially in developing countries like Nepal.
Registration of Cooperative in Nepal
To start any cooperative in Nepal, the law requires a few important steps. These steps make sure that the cooperative is formed properly, with a clear purpose and responsible members.
1. Preliminary Consultation and Meeting
This is the first step. A group of people come together and discuss their idea. They decide why they want to open the cooperative, what services it will provide, who will be the members, and how much capital they will collect. They also form a preliminary committee to prepare necessary documents.
2. Application for Registration
After the first meeting, the group prepares and submits an application to the District Cooperative Office (DCO). They submit the cooperative name, objectives, area of work, bylaws, member details, meeting minutes, and capital plan. This application formally requests registration.
3. Investigation of the Application
The District Cooperative Office checks all submitted documents. They verify the cooperative name, rules, member qualifications, financial plan, and whether the cooperative benefits the community. They may ask for clarification or additional documents.
4. Certificate of Registration
If everything is correct, the government issues a Certificate of Registration. After receiving this certificate, the cooperative becomes a legal organization. It can open a bank account, provide services, hire employees, and start operations.
Conclusion:
The registration process includes four steps: preliminary meeting, application, investigation, and certificate. These steps ensure proper, lawful, and transparent formation of cooperatives in Nepal.
Comments
Post a Comment