Q. With reference to cooperative societies, consider the following statements:
1. A Cooperative society is a voluntary association of persons.
2. Cooperative societies are not driven by economic interests.
3. Cooperatives in all states in India are solely formed under the Co-operative Societies Act, 1912. 4. To form a cooperative society, at least ten persons are required.
How many statements given above are correct?
Exp) Option b is the correct answer.
Statement 1 is correct. A cooperative society is a voluntary association of persons, who join together with the motive of welfare of the members. The membership of a cooperative society is voluntary. A person is free to join a cooperative society, and can also leave anytime as per his desire. There cannot be any compulsion for him to join or quit a society. Although procedurally a member is required to serve a notice before leaving the society, there is no compulsion to remain a member. Membership is open to all, irrespective of their religion, caste, and gender.
Statement 2 is incorrect. Cooperative societies are driven by the need to protect their economic interests.
Statement 3 is incorrect. A Co-operative Society cannot be solely formed as per the provisions of the Co-operative Societies Act, 1912. Though the Act is still in force, it has been specifically repealed in almost all the States and those States have their own Cooperative Societies Act. And the Cooperatives in states in India are usually formed under their respective Co-operative Societies Act.
Statement 4 is correct. The membership of a Co-operative Society is open to all those who have a common interest. A minimum of ten members are required to form a cooperative society. The Cooperative societies Act do not specify the maximum number of members for any cooperative society. However, after the formation of the society, the member may specify the maximum number of members.
