The cooperative is founded to support and financially support the members. The company makes the loan available to members who desperately need it, and the interest rate is also relatively low as private banks and non-bank financial corporations. The loan is granted from the deposits of the members. Village Service Co-operative Society and Urban Cooperative Banks are examples of a cooperative credit society. Therefore, the formation of a cooperative would be a good option that wants to enter and leave the company effortlessly, but before leaving or joining the company, the person must fulfill all the obligations imposed on him and imposed on him by the cooperative. Individuals with a common interest can come together and form a cooperative. The minimum number of persons required for the establishment of a cooperative is 10 persons, and the maximum number of persons is not specified in the Law on Cooperatives. However, after the creation of a cooperative, participants can limit the number of people by prescribing them when registering the cooperative. The Indian Cooperative Societies Act, 1912 defines a cooperative under section 4 as “a corporation the purpose of which is to promote the economic interests of its members in accordance with cooperative principles.” In a cooperative, the capital is contributed by all the members. However, it can easily take out loans and receive grants from the government after it is registered. So if people have a common goal and interest, they can come together and start a cooperative.
The number of participants in society would also not be a problem, as the highest could be decided by each other. Eber, C. (2000). Let them be in the middle, Lord: women, weaving and cultural survival in the highlands of Chiapas, Mexico. In Artisans and cooperatives: Developing alternative trade for the global economy, Grimes, K. & Milgram, B.L., ed. Tucson, Arizona: The University of Arizona Press. pp.
45-64. In addition to providing services to its members as part of its business activities, the cooperative also generates profits. Profits are not made at the expense of its members. The profit made is distributed on the basis of the member`s participation in the affairs of the company and not on the basis of the number of shares held by each member (as in the form of a company). For example, in a consumer cooperative, most of the profit is paid as a purchase bonus and distributed among the members who buy the company`s property, and only a small portion of the profit is distributed as a dividend on their shares to the remaining members. So, if the parties want to secure their investment and exploit everything, then the creation of a cooperative would be a good option, because the company will fall under the control of the state, which will contribute to the transparency and efficient functioning of the company. Each member of the cooperative usually has a voice and a role in the day-to-day operation of the cooperative. The principles of cooperation attach great importance to democratic processes such as majority decision-making systems, the participation of all members in decision-making and the equal distribution of work and services. Before discussing the reasons for the creation of a cooperative, it is important to discuss the types of cooperatives that exist in our country: the company is formed according to the motto or principle of self-help through mutual cooperation. These are the organizations of the financially weaker parts of society.
It transforms the weakness of its members into strength by accumulating resources and using them for the benefit of its members. Only if members work together according to the principle of “Everyone for all and all for all” will they be able to fight exploitation and secure a place in society. Cooperatives do not operate in isolation from their communities, but are integrated into society. Some offer different types of educational opportunities for non-members; Others support local projects that benefit their communities. As individuals, members engage in groups outside of cooperatives and are seen as “people of action in their communities and beyond,” according to anthropologist Christine Eber. The values and principles of the cooperative are intended to support the structure of the cooperative, which in turn supports the structure of the company. This company consists of small producers and manufacturers who have difficulty selling their products individually. It would be the duty of the company to collect all the member`s products and sell them on the market. The Gujarat Co-operative Milk Marketing Federation, which sells AMUL dairy products, is an example of a marketing cooperative. Cooperatives are organizations of people who have the same needs. Most scholars recognize the affairs of the English pioneers of Rochdale as the first cooperative.
In 1844, this group of 28 men (weavers and skilled workers in other professions) formed a cooperative. They created business principles to guide their work and opened a store where they could sell their products. The increased pressure of the evolution of the market system was a driving force in their decision to move towards cooperation. Therefore, if an association of people wants to get a better return at lower risk, creating a co-op would be a good option, because it would be better than investing in stocks where the risk is comparatively high. Cooperatives seek to balance the needs of the individual with those of the community as a whole by promoting individual empowerment within the group`s membership and responsibility structure. In a 1997 article in the ICA Review, J. Langmore that cooperatives “promote the material conditions and well-being of members through their common action; Members [have] a greater say in their lives through their voluntary association in organizations that are freely and democratically controlled by their members. The motive behind the creation of a cooperative is not the maximization of profit as with any other form of commercial organization.
The main purpose of the society is to provide services to its members. For example, in a consumer co-op store, goods are sold to its members at a reasonable price while maintaining a small profit margin. It also provides better quality products to its members and the general public. These companies are founded by small farmers to work together and thus reap the benefits of large-scale agriculture. Elevator irrigation cooperatives and panchayats are some examples of the cooperative agricultural society. It is a voluntary association of people where the person can voluntarily join as and when he wants, can continue as long as he wants and can leave society at will. The prerequisite for withdrawal is that the co-op receives notice. A person who joins a cooperative should assume full responsibility for membership, without gender, social, political or religious discrimination. It will be really difficult for any person to get a loan for themselves as they can only store collateral/mortgages/guarantees. As a result, they can come together and integrate into society, thus easily raising funds for themselves. The global rise of cooperatives is partly due to the work of the International Co-operative Alliance (ICA). The ICA was founded in 1895 by E.V.
Neale de Rochdale and Edward Owen Greening, a proponent of workers` cooperation, to “put an end to the present deplorable war between capital and labor and to organize workers` peace on the basis of workers` co-partnership. [and] promote the formation of central institutions that help people establish and maintain self-managed workshops,” writes Johnston Birchall in The International Co-operative Movement. The seven principles of the ICA of cooperatives are interpreted differently, but generally followed in one way or another in most cooperative organizations. Trying to solve common problems through joint action is the basis of cooperatives, but empowerment, shared ownership and democratic control are also key concepts of cooperative ideology. Members are bound by values and principles as well as by their common experiences in the cooperative. When registering a cooperative, it is placed under the control of the state, with all the details about the members and the company to be taken back submitted. The accounts must be kept by the cooperative, which must be submitted regularly and audited by the auditors appointed by the government agency. They are usually trained to protect the interests of small producers by providing items of their needs for production such as raw materials, tools and equipment, machinery, etc. This company helps negotiate the price of the items, as they would be able to do the same if they ordered the items in bulk.
Loom companies such as APPCO, Bayanika, Haryana Handloom, etc. are examples of producer cooperatives. So, if the association of people does not want unlimited liability, then the creation of a cooperative is a good option.