Attempt the following
1) Explain various types of Co-operative Society.
Types of Co-Operative Society are as, follows.
(I) Consumer Co-operative Societies:
A consumer co-operative Is a business owned by Its customers. They purchase in large quantities from wholesalers and supply in small quantities to customers. Goods are provided to buyers at reasonable prices and also provide services to them. Members get a share In the profit. The consumer society Is formed to eliminate middlemen from distribution process e.g.-Agana Bazar, Sahakarl Bhandar.
(II) Credit Co-operative Societies:
Members pool their savings together with the aim of obtaining loans from their pooled resources for productive purposes and non-productive purposes. They may be established in rural areas by agriculturist or artisans called as a Rural Credit Society. They may be established by salary earners or industrial areas called as Urban Banks, Salary Earners Society or Workers Society.
(III) Producer, Co-operatives:
Producer’s Co-operatives are voluntary associations of small producers and artisans who come together to face competition and Increase production. These societies are of two types:
(a) industrial Service Co-operatives:
This society supply raw materials, tools and machinery to the members. The producers work Independently and sell their industrial output to the co-operative society. The output of members Is marketed by the society.
(b) Manufacturing Co-operatives:
in this type, producer members are treated as employees of the society and are paid wages for their work. The society provides raw material and equipment to every member. The members produce goods at a common place or In their houses. The society sells the output In the market and Its profits Is distributed among the members.
(IV) Marketing Co-operatives Societies:
These co-operatives find better markets for members produce. They also provide credit and other Inputs to Increase members production levels. They perform marketing functions such as standardising, grading, branding, packing, advertising etc. The proceeds are then distributed among members depending on the quantities sold.
(V) Co-operative Farming Societies:
Farmers voluntarily come together and pool their land. The agricultural operations are carried out Jointly. They make use of scientific method of cultivation.
(VI) Housing Co-operative Societies:
Housing Co-operatives are owned by residents. The society purchases land and develops It. Houses are constructed for residential purpose on ownership basis. They aim at establishing houses at fair and reasonable rents to members. For construction purposes loans are made available from Governmental or Non-governmental sources. The society also looks after the maintenance of Its buildings.
2) Explain the features of Joint Stock Company.
The features of Joint Stock Company are as follow:
(I) Common Seal:
A company being an artificial person cannot sign on its own. The law requires every company to have a seal and have Its name engraved on It. Common seal is a symbol of company’s Incorporate existence. As common seal is signature of the company, A seal is affixed on all important documents of the company but the document must be signed by a company secretary and by minimum two directors..
Registration is compulsory according to the Companies Act, 2013. An application in prescribed format must be submitted to the Registrar of Company. Necessary registration fees are paid by the promoters. ‘A Certificate of Registration.’ (Incorporation Certificate) is issued to the company after registration. A private limited company can immediately start its business after getting Incorporation Certificate. A public limited company must obtain ‘Certificate of Commencement of Business’ (Trading Certificate) to start its business.
(III) Artificial Legal Parson:
A company is an artificial person created by law. It has an Independent legal status. It has a separate name. It can enter Into contracts, buy and sell property in its name. The company Is distinct from Its members.
In Public limited company minimum number of members are seven there is no limit for maximum number of members. In private limited company, minimum number of persons are two and maximum are 200 as per Companies Act 2013. Every shareholder is co-owner of joint stock company. (V) Perpetual Succession:
It has a separate legal existence. Its existence does not depend upon its members. The death, retirement, insanity insolvency of any member or employee does not affect the existence of the company. So, joint stock company enjoys perpetual succession.
(VI) Separation of Ownership and Management :
Shareholders are the owners of joint stock company. They elect their representatives to look after day to day business These representatives are called as ‘Directors’. The directors appoint professional managers and other employees for the day to day working of the company. These employees work on salary basis. Therefore, the ownership of Joint Stock Company is with shareholder and the management is in the hands of directors. So there is separation of ownership and management.
(VII) Registered Office :
The address of registered office of company is mentioned in Memorandum of Association. All the important document of a company are kept in the registered office. e.g. Register of shareholders, Annual Reports, Minutes Book, Memorandum and Articles of Association, Prospectus, Statutory Report.
(IX) Limited Liability :
The liability of all shareholders is limited up to the extent of unpaid face value of shares held by them. Therefore, private property of shareholders is not used for the payment of company’s.
3. Describe the features of Co-operative
(I) Voluntary Association and Open Membership :
Any person can become the member of co-operative society. There is no discrimination on the basis of caste, religion, gender etc. for membership.
(II) Democratic Principle :
The management of co-operative society is based on democracy. All the decisions are taken on majority basis. ‘One Member One Vote’ is the rule for voting. According to the rules and regulations of Co-operative Society Act, meetings are arranged by the Society.
(III) Management :
The management of co-operative society is in the hands of Managing Committee of They are elected representatives of shareholders. All the important business decisions are taken by managing committee members. The committee members look after day-to-day administration of society.
(IV) Registration :
Registration of co-operative society is compulsory. Every co-operative society must follow rules and regulations of Indian Co-operative Society’s Act 1912 and the respective State Co-operative Society’s Act. Minimum 10 members are required for registration of co-operative society. There are number of legal documents required for registration.
(V) Separate Legal Status :
After registration, every co-operative society is considered as a separate legal entity before the Therefore it can enter into the contract, purchase property, open a bank account in it’s name etc. The shareholders and managing committee members are not responsible for the transactions of co-operative society. But they are answerable to the court on behalf of the society.
(VI) Limited Liability :
The shareholders of co-operative society have limited liability. It is limited upto the unpaid value of the share purchased by them. Therefore, their private property is not used for payment of society’s Liability.
(VII) Number of Members :
Minimum 10 members are required for the formation of co-operative society. There is no limit for maximum number of members as per Co-operative Society’s Act.
(VIII) Equal Voting Rights :
Every member gets equal rights in co-operative society as a shareholder. In co-operative society membership is open to all. All members have equal voting rights irrespective of number of shares held by them
(IX) Service Motive :
A Co-operative society provides various services to its members. Its main objective is to provide services to the Goods are available at lowest rates for its members. In a co-operative bank, loan and overdraft facility is available at the lowest interest rates for its shareholders only.