State the merits of co-operative societies.
Answers
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▶Protection from exploitation: One of the most obvious advantages of a co-operative society is the fact that the members are protected from exploitation from middlemen. This is one of the most prominent objectives of all co-operative societies.
▶Very easy to form: It is very easy to form a co-operative society unlike the formation of some other types of business organizations like companies and partnerships which can be very complicated to form. With co-operative societies, the formation procedure is very simple. Any group of ten people or more can come together and pool their resources together to form a co-operative. All they need to do is register it. The legalities involved in registering and starting a co-operative society is like a walk in the park.
▶A place of true democracy: A co-operative society is a highly democratic society since all members have equal rights and each member is entitled to a single vote. No member has more authority than another. It doesn’t matter the volume of shares a member owns in the co-operative he or she is still the same as the person with a single share.
▶Joining a co-operative society is open to everybody: There is no restriction to join a co-operative society. Anybody can join a co-operative society anytime he or she likes
▶Leaving is also easy: Just like joining is easy, leaving is also easy. A member can leave a co-operative society anytime he or she feels like doing so. There is nothing that can prevent a person from leaving the society.
▶Death cannot bring an end to a co-operative society: The death of any member of a co-operative society does not mean the end of the organization. The organization still carries on despite the death or departure of a member.
▶Profit is also made from a co-operative society: Not only does a co-operative society fight for the welfare of its members, but it also enables members to earn profit. Profit is shared among members of the organization based on the volume of shares each member has.
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