Robert Owen is the founder of the cooperative society who established
it in 1844 in England. The concept reached the subcontinent of India and Pakistan in 1904 where societies were formed under Cooperative Societies Act 1904, which in the curly stages, only allowed agricultural credit. Later n 1912, the act was amended and allowed for non-credit and non agricultural credit societies. In Pakistan all the societies come into being under the Act 1912.
Definition Of Cooperative Societies
The Cooperative society is the group of persons or institutions that come into existence to offer various services to its members. One who cannot benefit in his individual capacity can gain as a member of cooperative society, since it purchases in bulk quantities resulting in economies a part of which is shifted to its member. Thus the members can buy at prices less than the market.
The ownership of the society is in the hands of members. The society may be registered under the act or can be run without It. its main objective is to run the business on no profit, no loss basis. The liability of members is limited only if the society is registered otherwise it is unlimited. Every member must pay a stipulated amount of fee annually which is used to finance day to day expenses in the operation of business. The members must also pay a certain amount of service charges.
In case the society makes a profit, it is divided back to the members or used for the expansion of its business.