Define a cooperative society and explain its features

Cooperative organisation is a society which has its objectives for the promotion of economic interest of its members in accordance with cooperative principles’. The Indian Cooperative Societies Act 1912. In other words, a society is a voluntary association of persons who join together with the motive of welfare of the members. The features of a cooperative society are listed below :
(a)Registeration: Cooperative societies are registered under the cooperative societies Act 1912. All the t activites of the organisation are run according to the provision of this Act. After registeration a cooperative society acquires a seperate legal entity.
(b)Voluntary membership : It is a voluntary association of persons who are atlest 18 years of age and have a common interest. The membership of society is open to all irrespective of religion, caste amd gender of person. A person can join and leave the cooperative society at any time according to their free will.
©Democratic management : In case of cooperative society 'one person, one vote is followed irrespective of number of shares held by him. So there is complete democratic setup in the management and all the decisions are taken by the members of the society on the basis of majority.
(d)Service motive : Main motive of a cooperative society is provide service to its members. Surplus if generated is distributed as dividend among members according to the bye laws of society. -
(e)Limited Liability : Liability of members is limited to the amount contributed by them as capital in society. Their personal assets can’t be used to pay off the debts of society.