Co-operative society:

• A co-operative society is a voluntary form of business where in individuals intending to set-up a business get associated for economic interests but on the basis of equality i.e. to provide equal right and opportunity to all the members.
• Thus, people with common interests voluntarily get associated to fulfill economic interest of members through co-operation among members but, by treating all members equally. In other words to uplift economically weaker sections of society. The co-operative societies are set-up by weaker sections of society to protect its members from the clutches of profit hungry businessman.
• Amul is one of the best examples of a co-operative society.

Advantages of a co-operative society:
1. Easy establishment:
It does not require lengthy legal procedure to set-up a co-operative society. Ten persons can simply come together voluntarily and form a co-operative society. If they wish they can even easily register it.

2. Perpetual existence:

• As soon as a co-operative society gets registered it becomes a separate legal entity i.e. members and society are considered two separate entities.
• The existence of the society than does not get affected by the exit, death or insolvency of the member.
• Hence, a co-operative society enjoys a long and also in many cases a perpetual life.

3. Open membership:
The membership is open to all who have a common interest. Anyone can become a member irrespective of religion, caste, sex or economic condition.

4. Limited liability of the members:
The liability of each member is limited only to the number of shares he purchases.

5. Government aid:
Government provides financial assistance to the society for conducting activities to uplift the members and serve the society. The assistance can be in the form of loan, grant or subsidy.

6. Democratic management:

• The business of co-operative society is managed by the committee elected by the members. Each member has a right to caste only one vote irrespective of the number of shares he holds.
• The decisions of the society are taken on the basis of majority.
• Every member can contest the election, cast vote and participate in meetings and elect the representatives of the society.

7. Lesser administrative expenses:

• The co-operative society works on the principle of thrift i.e. wisely managing money and other resources.
• Members provide honorary services for managing the society. Moreover, management is done on an economical way without spending or spending very less on advertisements and marketing of the products.
• These things together reduces overall administrative expenses of the society.

8. A specific class of customers:
Mostly the members are customers too. Members are specific and goods are sold to them.

9. Strong competitor against trading firms:
Sometimes business firms in order to earn more profit may involve in unfair practices like adulteration, cheating, profit-maximization, black marketing, etc. -» A co-operative society can stand strongly against such firms because it does not involve in unfair trade particles and aims at providing goods at reasonable prices. Also its administrative expenses are lesser and so it can provide a good competition to business firms.

10. Welfare activities for the society (public):

• Co-operative societies from their profits and reserve conduct various types of welfare activities for the society.
  They arrange activities like setting-up medical camps free of charge or at very nominal rates, develop schools, dispensaries, gardens, etc.
• These activities are advantages to general public of the country.

11. Training school for democracy:

• A co-operative society works purely on a democratic way. It gives importance to humans and not money or power.
• In this sense the co-operative society works as a training school democracy where ideals of democracy can be thoroughly learnt.