The Cooperative Society –

A cooperative society is often a non-profit organization created by the poor or weaker parts of society. A free and voluntary organization such as this exists to improve its members’ lives. This type of body comprises like-minded people who share common aims.

Candidates must be familiar with the intricacies of this topic in order to prepare for the next IAS test. Because Cooperative Society is a scoring topic for UPSC Prelims, applicants should memorize all accessible facts.

A Cooperative Society has the following features:

The UPSC Prelims frequently ask questions about the qualities of a cooperative society. To summarize, the following are the fundamental characteristics of a cooperative society:

  • A cooperative society binds no member in its choice of connection with itself. Anyone regardless of caste or creed, who wishes to join such an organization voluntarily is welcome to do so. They can only cease their relationship with the mentioned group by filing a notice of termination.
  • Second, any member of society, regardless of caste, creed, or religion, can join a cooperative society; the organization does not discriminate based on social or religious background.
  • Society establishes a controlling body by voting among its members to function smoothly and toward a shared purpose. It is hence democratic.
  • Though it operates freely, the cooperative society is always subject to the authority of the state government. This implies that it must keep all records and be liable for its operations in the event of an audit.

The benefits and drawbacks include:

The UPSC Syllabus on cooperative societies discusses the benefits and drawbacks of having such a group or organization. A few examples are as follows:

Benefits of a Cooperative Society:

  • These civilizations are inextricably linked to the producers. It eliminates the possibility of individuals working in the middle, resulting in maximum profit for manufacturers and customers; consequently, items are offered at low prices here.
  • Members of these cooperative organizations can get loans quickly and easily.

The drawbacks of a cooperative society are as follows:

  • Because these organizations engage with the economically disadvantaged and backward segments of society, their possibilities of acquiring monetary resources are slim.
  • Because participation in such organizations is mainly voluntary, there is potential for and evidence of mismanagement and turmoil.

The Cooperative Society Act states:

The Cooperative Society Act of 1950 is essential to UPSC 2022 preparation. Among the rules discussed in this statute are:

  • It gives particular definitions to the vocabulary used to describe this conduct. Laws, committees, members, officers, and registered societies are only a few examples. It further specifies that the state government can appoint a registrar to oversee a cooperative society’s operations and designate personnel to assist the registrar. Any society that intends to operate for the benefit of its members who have a shared vested interest must register under this legislation.
  • A society will be registered under this legislation only if it has more than ten members who have reached the age of 18. The society’s goal is to raise finances for its members. The term “limited” must appear in the name of such cooperative organizations. Any membership questions, such as whether the society was formed for agricultural or non-agricultural reasons, whether a member’s domicile will be a town or village, and so on, will be handled by the registrar and declared definitive.