Co-Operatives 4th Sem
-
Upload
mayurrawool -
Category
Documents
-
view
215 -
download
0
Transcript of Co-Operatives 4th Sem
-
7/30/2019 Co-Operatives 4th Sem
1/11
Co-operatives Management
-
7/30/2019 Co-Operatives 4th Sem
2/11
Definition
An association of persons usually of limited means, who have voluntarily joined together, to
achieve a common end, through the formation of a democratically controlled business
organization, making equitable contribution to the capital required and accepting a fair share
of the risks and the benefits of the undertaking
Rules of democracy are applicable to cooperatives
Intend to serve both its members and the community as a whole
First emerged in the 19th
century to eliminate ills of both - public & private sectorbusiness enterprises
-
7/30/2019 Co-Operatives 4th Sem
3/11
Characteristics of Co-operatives
1. Association of persons and not capital (unlike Ltd company)
2. Not a charitable association. It is an enterprise. Members share risks, gains, costs etc3. Voluntary in nature
4. Democratic Management. Every member gets only 1 vote irrespective of his monetary
contribution
5. Equality. No discrimination of any kind
6. Gains distributed on basis of business done & not contribution to capital
7. All Co-ops are a part of socio-economic movement that can bring about a radical change
8. Effective instrument to secure rapid economic growth
-
7/30/2019 Co-Operatives 4th Sem
4/11
Principles of Co-operatives
1. Voluntary & Open membership
2. Democratic control
3. Limited interest on capital
4. Distribution of surplus in proportion to their transaction
5. Political & Religious neutrality
6. Promotion of education
-
7/30/2019 Co-Operatives 4th Sem
5/11
Role of Leadership in Co-operative Management
A cooperative is a democratic unit. Leadership is what makes democracy dynamic.
Leaders in a cooperative shows the way ahead to his fellow co-operator. (Convincing-guiding-cultivating
confidence & loyalty)
Through subordination of individual interests, leaders take the owners & employees to higher levels of
achievements
Qualities of a leader:
1. Necessary courage & conviction but guided by judgment
2. Building up relations with fellow members
3. Clear understanding of real nature of co-op (principles & philosophy)
4. Must understand the difference between administration & management
5. Wide vision needed, else leadership gets stagnant
6. Must have a clear idea of the social & economic environment in which they are operating. It is
dynamic
-
7/30/2019 Co-Operatives 4th Sem
6/11
Dairy Co-operatives
One of the most successful co-operative movements in India
Village dairy co-op soc
District/Taluka Co-op union
Dairy Federation
Collection centers, arrange for pasteurization before
distribution
Collection centres, extension services
R&D, marketing, distribution, pricing, promotion, reach for new markets.
-
7/30/2019 Co-Operatives 4th Sem
7/11
Co-operative Societies Act, 1912 Areas covered:
Registration of all types of co-op
Provision for creation of Reserve fund
Dividend on share
Investment of surplus fund
Dispute settlement
Statutory enquiry, inspection, audit
Provision for appointment of a registrar
Division as limited & unlimited liability
Liquidation of the cooperative society
Legislation influencing Co-operatives
-
7/30/2019 Co-Operatives 4th Sem
8/11
Rights To Information Act, 2005
- replaces Freedom of Information Act, 2002
Freedom to every citizen to secure access to information under the control of public
authorities, consistent with public interest, in order to promote openness, transparency &
accountability in admin & related matters
Legislation influencing Co-operatives
-
7/30/2019 Co-Operatives 4th Sem
9/11
Salient Features of RTI, 2005
Entitles every citizen to the RTI
Information means material of almost all types and in any form
Include inspection of documents & records, taking extracts, obtaining certified copy in
physical or in electronic form
Applies to all public authorities owned, controlled, financed by central or state government
Every public authority is obliged to publish & disseminate information in writing or in
electronic mode
Legislation influencing Co-operatives
-
7/30/2019 Co-Operatives 4th Sem
10/11
Salient Features of RTI, 2005
Certain information are exempt from disclosure
Information to be provided within specified time
Certain restrictions have been placed with respect to information disclosure relating to third
party
Supervising Authority Central informationCommission, State information Commission is
established in each state to overlook smooth implementation of RTI
Provides for penalties for non-compliances of certain provisions or obligations
Legislation influencing Co-operatives
-
7/30/2019 Co-Operatives 4th Sem
11/11
Problems faced by rural credit co-operatives
Low resource base (Low money reserve to forward loans)
High dependence on external sources of funding
Excessive governmental control
Huge and accumulated losses over a period of time due to non recovery of loans granted
Poor business diversification (areas in which firms are given loans; hence risk is not spead
over different sectors)
Low recovery
Hence, does not inspire confidence among their existing and potential members, depositors,
borrowers and lenders.
Credit Co-operatives in India