Cooperative Societies feature, advantage, disadvantage.

We know that business is a universal function that is performed to fulfill the need, desire, demand of customer's & enhance their living standard.

There are a number of forms of business present in the world. These are sole proprietorship, partnership, cooperative society, joint hindu family, joint stock company & so on.

Every form of business has its own merit, demerit, application and so on. Among all cooperative society is one of the best form because it is supported by government. Cooperative society is a voluntary association of people joined together on the basis of equality for fulfillment of their economic and business interest.

* Feature of Cooperative Society.- 

  There are a number of features of cooperative societies. These features are as below-

1. Voluntary association- It is the first feature of cooperative societies. It is a voluntary association of people. The people who have common interest they can form or join cooperative societies.
2.  Less rules regulation- It is supported by government so there is less rules regulation to form cooperative societies.
3.  Registration- It is formed according to concern government rules regulation so registration is essential. In India it is registered under the cooperative societies act.
4.  Common seal- It is a legal form of business so it has a common seal.
5.  Supportive Legal Entry- It has separate legal entity form its member. It has its own assets, bank account, liabilities and so on.
6.  Democratic Organization- It is a democratic organization voting is done to select office bearers every year. Every member has equal voting right.
7.  Service Oriented- It is a service oriented organization. It is established to provide world class service to people at minimum price.
8.  Government control- It is a legal organization and established according to rules regulation of concern government so it is controlled by government.
9.  Distribution of surplus- After completing the financial year dividend and bonus are divided among members.

* Advantages of cooperative societies-

     There are many advantages of cooperative societies. These advantages are as below-

1.  It is easy to form. There are less rules regulation to establish it.
2.  Limited liability- It is second advantage of cooperative societies other form of business like sole proprietorship, partnership has unlimited liability where as cooperative societies has limited liability.
3.  Easy joining- Any person who has common interest they may join cooperative societies.
4.  Financial aids- It is a legal form of business so central government state government provides financial aids to it.
5.  Stability- It has perpetual succession there is no impact of due to death or insolvency of members. Every year membership is driven so new member join it.
6.  Low price- It is a service motivated organization so it provides product/service at low price.
7.  Mutual Benefit- The principle of cooperative societies is best on cooperative societies act 1912. So it provides mutual benefits to one another.
8.  Remove middle man- It establish a direct relationship producers to customers so it removes middle man that earn profit on behalf of their function.
9. Equal vote- There is no distinctiom among members on any basis like caste, colour, gender, religion, income etc. Every member has equal right to vote.

* Limitation of Cooperative Societies-  

There are a number of limitation of cooperative societies. These are as below.

1. Limited resource- It is the first limitation of Cooperative societies. It has limited resources. It generates resource to its members. The membership charge is low so it collects limited resources.
2.  Less professionalism- It is managed by its members that is selected on vote so office beares have no professionalism.
3.  Less secrecy- It does not maintain secrecy where as business requires more secrecy to success. Every decision is taken in open meeting so secrecy is not possible.