Cooperative Society Video Lecture | Business Studies (BST) Class 11 - Commerce

A cooperative society in commerce is a type of organization where individuals voluntarily come together to meet their common economic, social, and cultural needs and aspirations. It is formed to promote mutual assistance and cooperation among its members, who are both the users and owners of the society.

A cooperative society differs from other forms of business organizations in several ways. Firstly, it is owned and controlled by its members, who have an equal say in decision-making regardless of their investment or capital contribution. Secondly, the primary objective of a cooperative society is to provide benefits to its members rather than maximizing profits for external shareholders. Lastly, the distribution of surplus or profit is based on the principle of equitable distribution among members rather than proportionate to their capital investment.

Joining a cooperative society in commerce can offer various benefits to its members. Firstly, it provides access to goods and services at a reasonable cost, as the society aims to eliminate the middlemen and directly serve its members. Secondly, it allows members to have a voice in decision-making, ensuring that their needs and concerns are taken into account. Additionally, it promotes self-help and self-reliance among members by encouraging mutual assistance and cooperation. Lastly, members may also receive dividends or patronage refunds based on their participation and usage of the cooperative's services.

The process of becoming a member of a cooperative society in commerce typically involves the following steps. Firstly, an individual interested in joining needs to approach the society and express their intention. They may need to fill out an application form and provide any required documents or identification. Secondly, the application is reviewed by the society's management or committee, who assess the applicant's eligibility and suitability. Once approved, the applicant may need to pay an entrance fee and purchase shares or contribute capital as per the society's bylaws. Upon completion of these steps, the individual becomes a member of the cooperative society.

Yes, a cooperative society in commerce can be dissolved or closed down under certain circumstances. The process of dissolution usually involves following the legal provisions and procedures outlined in the cooperative society's bylaws and the relevant cooperative laws of the country. Reasons for dissolution may include the achievement of the society's objectives, bankruptcy, inability to carry out operations, violation of cooperative principles, or a decision made by the members through voting. The assets and liabilities of the cooperative society are typically settled and distributed among the members according to the dissolution process outlined in the bylaws.