Pakistan study notes for Matric, Intermediate, B.A, B.COM BSC, M.A, BCS. Free Pakistani Urdu educational school, colleges and University notes.

Characteristics of co-operate society

Q8: What are the characteristics of co-operate society?          (2007)

                                           CO-OPERATIVE SOCIETIES


‘’Co-operative society as a form of business organization is an economic enterprise normally set up by economically wealthy individuals to combat with the capitalistic monopolies and to bring the consumer and producer immediately together’’.


Co-operative societies may, according to their nature of function, be divided into following categories:

a) Agricultural credit societies

b) Agricultural non-credit societies

c) Nonagricultural credit societies

d) Nonagricultural non-credit societies


Characteristics of co-operative societies are as under:-

1) This is formed on mutual cooperation.

2) Every member is required to pay on annual fee.

3) Society may be registered making the liabilities of the members limited.

4) Members must pay service charges.

5) It is run on no profit, no loss business.

6) The profit, if made, is distributed to the members, or invested back for expenses.

7) Societies are formed in the field of banking, Housing, Forming, and Fishing, Credit and others.

8) Like joint stock Company, it enjoys continually and its life is not affected by the change in membership or the death of a member.


Advantages of cooperative society are as under:

  1.         i.            The consumer controls their own supplies and eliminates middlemost profit.
  2.       ii.            There is no speculative buying in cooperative system.
  3.     iii.            Some of the expenses of management are saved by the voluntary services of the controlling committee.
  4.    iv.            A cooperative society has its fixed area of customers.
  5.      v.            There is no profit for special classes of investors.
  6.    vi.            The cooperative societies are also the institution where individuals are provided a should of self-government for a class that has difficulty in training elsewhere.



Disadvantages of cooperative societies are as under:

  1.         i.            The hug organization may become a serious menace to success.
  2.       ii.            Its market is more or less guaranteed.
  3.     iii.            The committee is also sometimes incompetent and is influenced by considerations other than efficient services.

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