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Assignment On Co-Operative Society

This document provides an overview of cooperative societies in Bangladesh, including different types (consumer, marketing, producer, farming, credit, housing), characteristics (state control, voluntary association, democratic management, sources of finance, service motive, separate legal entity), formation requirements (minimum of 10 members), and advantages and disadvantages. The key types discussed are consumer, marketing, producer, farming, and credit cooperatives.

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Nayeem Siddique
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75 views4 pages

Assignment On Co-Operative Society

This document provides an overview of cooperative societies in Bangladesh, including different types (consumer, marketing, producer, farming, credit, housing), characteristics (state control, voluntary association, democratic management, sources of finance, service motive, separate legal entity), formation requirements (minimum of 10 members), and advantages and disadvantages. The key types discussed are consumer, marketing, producer, farming, and credit cooperatives.

Uploaded by

Nayeem Siddique
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Introduction to Business (BUSI-1101)

(Assignment on Co-operative Society)

Prepared by

Abu Nur Muhammad Siddiqun Nayeem


Metric ID: B193015
Program: BBA
Semester: Autumn-2019
Section: A

Prepared for

Mohammad Toufiqur Rahman


Assistant Professor
Department of Business Administration
International Islamic University Chittagong

Department of Business Administration


Faculty of Business Studies

International Islamic University Chittagong

Page 1 of 4
Types of co-operative societies
Although all types of co-operative societies work on the same principle, they differ with regard to the nature
of activities they perform. Followings are different types of co-operative societies that exists in our country.

• Consumer’s co-operative society: These societies are formed to protect the interest of general
consumers by making consumer goods available at a reasonable price.

• Co-operative marketing society: these societies are formed by small producers and manufactures
who find it difficult to sell their products individually.

• Producer’s co-operative society: these societies are formed to protect the interest of small producers
by making available tools.

• Co-operative farming societies: These societies are formed by small farmers to work jointly and
thereby enjoy the benefits of large-scale farming.

• Co-operative credit society: These societies are formed to provide financial support to the members.

• Open membership: The membership of a co-operative society is open to all those who have a
common interest. A minimum of ten members are required to form a co-operative society.

• Housing co-operative society: these societies are formed to provide residential houses to members.

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Characteristics of co-operative society

A cooperative society is a special type of business organization different from other forms of origination you
have learnt earlier. Let us discuss its characteristics.

• Sate control: To protect the interest of members, co-operative societies are placed under state control
through registration. While getting registered, a society has to submit details about the members and
the business it is to undertake. It has to maintain books, which are to be audited by govt. Auditors.

• Voluntary Association: Members join the co-operative society voluntarily, that is, by choice. A
member can join the society as and when he likes, continue for as long as he likes and leave the
society at will.

• Democratic Management: co-operative societies are managed on democratic lines. The society is
managed by a group known as “Board of directors”.

• Sources of finance: in a co-operative society capital is contributed by all the members.

• Service motive: Co-operatives are not formed to maximize profit like other forms of business
organization.

• Separate legal entity: A co-operative society is registered under the co-operative societies act.

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Formation of a co-operative society
A co-operative society can be formed as per formed as per the provisions of the co-operative societies act * At
least ten persons having the capacity to enter into a contract with common economic objectives, like farming,
weaving, consuming, etc. can from a co-operative society. The cooperative society law that was formulated in
20001 and was later amended in 2002. March 21 2011 – the daft of the cooperative society 2011 has been
approved by cabinet meeting.

Advantages of co-operative society

• Easy Formation: Formation of a co-operative society is very easy compared to a joint stock
company.

• Open Membership: persons having common interest can form a co-operative society.

• Democratic control: A co-operative society is controlled in a democratic manner.

• Elimination of middlemen’s profit: through co-operatives the members or consumers control their
own supplies and thus, middlemen’s profit is eliminated.

Dis advantages of co-operative society

• Limited capital: the amount of capital that a cooperative society can raise its member is very limited.

• Problems in management: Generally, it is seen that co-operative societies do not function efficiently
due to lack of manage the society.

• Lack of motivation: Every co-operative society is formed to render service to its members rather
than to earn profit

• Dependence on govt.: the inadequacy of CapitaLand various other limitation makes cooperative
societies dependent on the govt. For support and patronage in terms of grants, loans subsidies etc.

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