State the need and functions of salary earners co-operatives.
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Answer:
Features of a Cooperative Society
As it is a voluntary association, the membership is also voluntary. A person is free to join a cooperative society, and can also leave anytime as per his desire. Irrespective of their religion, gender & caste, membership is open to all.
It is compulsory for the co-operative society to get registration. The co-operative society is a separate legal identity to the society.
It does not get affected by the entry or exit of its members.
There is limited liability of the members of co-operative society. Liability is limited to the extent of the amount contributed by members as capital.
An elected managing committee has the powers to take decisions. Members have the right to vote, by which they elect the members who will constitute the managing committee.
The cooperative society works on the principle of mutual help & welfare. Hence, the principal of service dominates it’s working. If any surplus is generated, it is distributed amongst the members as a dividend in conformity with the bye-laws of the society.