What Is A Co-Operative Society?

Cooperative societies are one kind of business organization among many others. The goal of cooperative societies is to provide assistance to their members. This kind of business organization is mostly founded by the less fortunate segments of society to guard against any kind of exploitation by the more affluent segments of the community.

To operate as a legal body, cooperative societies must be registered in accordance with the Cooperative Societies Act, 1912. Individuals within the society generate their own capital.

What Is Housing Society?

Housing society is a residential complex that typically consists of multiple buildings, each housing a specific number of apartments. 

In a housing society, homes and property are owned by an organization or body and subsequently sold to inhabitants as shares. This is an alternate type of property ownership. The housing society develops and builds houses on the site, which is owned by the entity, before distributing them to its members. 

What Are The Types Of Housing Society?

1. Tenant ownership housing cooperatives

2. Tenant co-partnership housing cooperatives

3. House building societies

4. Housing mortgage societies

What Are The Characteristics Of Cooperative Society?

The following traits characterize cooperative societies.

1. Voluntary Association: People choose to join cooperative societies voluntarily, according to their own preferences. Anyone is welcome to become a member of the cooperative organization and to leave at any time. Before choosing to sever ties with the society, the member must serve a notice.

2. Open Membership: Participation in a cooperative society is free for everyone, regardless of caste, creed, or religion.

3. Registration: To be regarded as a legal organization, a cooperative society must register. It can sign contracts and buy property in its name after registering.

4. Limited liability: In a cooperative society, the liability of its members is restricted. The member's capital contribution is the maximum amount of liability.

5. Democratic Character: Elected members of a cooperative organization elect officers to serve on the governing committee and have the authority to make decisions among themselves. The governing committee was established to make crucial choices about how the society is run.

6. Service Motive: The goal of establishing a cooperative society is to promote the wellbeing of the community's underprivileged groups. Any profits made by the cooperative society will be distributed as dividends to its members.

7. Under state control: The cooperative society is governed and overseen by the state government to protect the interests of its members.

What Are The Objectives Of Housing Cooperative Society?

Listed below are a few benefits of cooperative societies:

1. Compared to the market, the goods sold in cooperative organizations are less expensive.

2. Purchasing goods directly from producers eliminates intermediaries and increases profits for both producers and customers.

3. Quick loans are available to cooperative society members.

4. There's no illicit marketing going on.

What Are The Disadvantages Of Cooperative Society?

The following are a few drawbacks of cooperative societies:

1. The potential for obtaining cash is constrained because of the affiliation of members of low-income groups.

2. It experiences management inefficiencies.

Also, take a look at the Examples Of Housing Cooperative Society In India for better understanding.