MOC Module 1

8/9/2019 MOC Module 1

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Management of Cooperatives


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Philosophical andTheoretical Foundation

of Co-operatives


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Equ

Ow

Em

nt

E

Pric


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ccording to !nited "tates #epartment of g

$!"#%&

Cooperative is'

(!ser-owned and !ser-controlled )usine

distri)utes )ene*ts on the )asis of use+.


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ccording to The ,nternational Co-operative

$,C%&Cooperative is'

(utonomous association of people united vo

to meet their common economic& social or

needs and aspirations through a ointly-owdemocratically-controlledenterprise+.


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!niqueness of Cooperativ

Ownership.Cooperatives are owned and democratically c

their members-the people who use the co-ops services or bnot by outside investors; Co-op members elect their boardfrom within the membership.

#ividends.Return surplus revenues (income over exinvestment to members proportionate to their use of thenot proportionate to their (investment" or ownership sha

"ocial ,mpact.#re motivated not )y pro*t! but by servtheir mem)ers/ needsor a$ordable and high %uality goods

Mutual 0elp.&ay taxes on income 'ept within the co-op foand reserves. urplus revenues from the co-op are returned members who pay taxes on that income.


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Cooperative in #i1erent "ectors Prime O

3etail consumer coops. "afe goods at fair prices

Farmers/ cooperatives. 4uality farm inputs at fair prices' To

produce to achieve a sta)le mar5et and the )est returns from the

6or5ers/ Cooperative. Employment on terms accepta)le to the

involvement in decision-ma'ing*

0ousing cooperative. 4uality housing at a reasona)le cost'

Credit !nion. Facilities for saving and )orrowing at fair rates o

assistance in managing personal *nancial a1airs

Community cooperative. Provide services to mem)ers of a speci*

#airy cooperative. Timely services and mar5et to mil5 produ


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607 COOPE3T,8E" F,9 O3 T03,8

3easons for Failure of Cooperatives

&oor selection of directors! especially those who fail to s

cooperative;

+embers who ,oin but never use their cooperative and by

small gain elsewhere;

+embers who use cooperatives but fail to ta'e responsibili ach member must be ready to accept responsibility wh

as the need arises.

very member should have an e%ual opportunity to be pre

cooperative;

+embers who never as' %uestions and who let a few peolic


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3easons for Failure of Cooperatives

irectors who fail to attend /oard meeting and ta'

decisions;

0ac' of consistent membership education about tcooperative faces;

1ot supporting the cooperative with enough money )ris'

the ,ob done;

0ow-cost management 2 it is the most expensive item for

3igh priced management is usually the least expensive ite rrors in 4nancial policy! such as over-extension of cre

capital;

&oor accounting records! delayed #udit Reports! non-c

reports;

0ac' of 4nancially sound! systematic programme for reim


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6hy Cooperatives Thrive

&rovide goods and services needed by members;

5here members provide ris' capital and transact busincash terms;

6se all ma,or 4xed assets at the 789 level! or more;

3ave members who do the ma,ority of their business w

cooperatives;

:eep administration and overhead costs low; $er more individuali


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6hy Cooperatives needed:

6or5ing model of socialism

3ural #evelopment

Patriotism in entrepreneurship

Ethical ;usiness Practice ,nclusive #evelopment 8s< =rowth

"ocio-economic #evelopment of ,nd


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> P3,?C,P9E" Of COOPE3T,8E

@< 8oluntary nd Open Mem)ership

A< #emocratic Mem)er Control

B< Mem)ers Economic Participation

D< utonomy nd ,ndependence

< Education& Training nd ,nformatio

< Cooperation mong Cooperatives

>< Concern For Community


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Outreach of Cooperatives worldwide

=here are more than @ )illion mem)ers of co-o

worldwide.

Employ over @GG million people 2 that AGH m

multinational enterprises.

Co-operatives worldwide have a turnover of I@


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E8O9!T,O? OF COOPE3T,8E" ,? 0egacy of moneylenders

&ooling resources for solving common problems (informal co

#gitation at &oona and #hmednagar against moneylenders

eccan #griculture Relief #ct (@A7B! 0and ?mprovement 0oa

and #griculturists 0oan #ct (@AAD

?n @ABE! Frederic' 1icholsons =ermanvisit! GRai$eissen Rep

Cooperative"ociety ct& @KGD (@stCooperative #ct


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E8O9!T,O? OF COOPE3T,8E" ,?

Cooperative"ociety ct& @KGD

Classi*cation of society; Rural and 6rban

rgani


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Cooperative ociety #ct! @K@A

"cienti*cclassi4cation of society; Rural and 6rban

Registration of all types ofCooperatives in 3ural an

Formation of Central Financing and upervision Com

9imitedliability in 3ural and !r)an Cooperatives


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"ir Edward Mac 9egan Committee @K@D

Found.

(@ illiteracy and ignorance of the masses

(E misappropriation of funds

( extensive nepotism

(D delay in granting loans

(8 co-operative movement as a Iovt. movement.

&roper implementation could not be done due

5orld 5ar - ?

3ecommendat

(@ &unctual rep

(E ervices to m

( Raising capit

(D +ember awa

education

(8 +onitoring o


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@K@K. co-operation became provincial su)ect (growth in no an

@KAK. witnessed a worldwide economic depression (ruined coo

@KBD. started co-operative 9and Mortgage /an's (improved cre

@KDA> +ulti-6nit Cooperative ocieties #ct (expansion in multi. &r

@KD. ll ,ndia Co-operative Planning Committee (sustained

??


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Committee on Co-operation $@K

Findings 3ecommendations.

@. eliberately accelerated pace of expansion 2 igilant adm

and supervision

E. +odel with tremendous potential 2 Re%uire Financial! #dm

supervisory inputs

. Recti4cation of tate 0aws 2 nforcing 7 &rinciples of Coo

D. 6nclear frame-wor' 2 ound +odel for socialistic pattern

cooperative

8. ?nactive H False cooperative 2 &re-registration performanchttp>HHboo's.google.co.inHboo'sK


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3ural Credit 3eview

Failure to control unorganiJed Rural Credit system

Formation of 3;, )y ;ritish =ovt< in @KB for gri C

#evelopment

?n @B8E! Cooperative ;an5 share was B


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ll ,ndia 3ural Credit 3eviewCommittee @K-K

Chaired )y. "hri ;< 8en5atappiah

O)ectives.

=o reviewthe supply of rural credit

=o ma'e recommendations for improving the ow of credit

=o review the after e1ect of 3;,and ";,

3ecommendations implemented. #griculture as priority sector for providing credit

Commercial /an's as allies of Cooperative Credit /an'

#ecentraliJed credit planning through the #istrict 9

=his has helped =reen-3evolution in @K>G/s in ?ndia

#gricultural Credit in ?ndia> tatus! ?ssues and Future #gendaS - r. Ra'es

Committee on


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Committee onOrganiJation of Co-operatives for 3ura

@KKGChaired )y. "hri "an5am "


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?ational Policy on Cooperatives -

6hy it needed.

Role in socio-economic development

ELpansionof cooperatives in di1erent sectors

Regional ,m)alances

=o 3evamp and streamlineexisting initiatives

https.NN)oo5sSlpgP>>SdqCommitteeonOrganiJationofCooperativesfor

? ti l P li C ti


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?ational Policy on Cooperatives -6hat it is.

/ased on the Manchester statement of ,nternation

operative lliance @KK

ccounta)le to their mem)ers and contri)ute to t

national economy

eclared as distinct economic sector

nable to set up holding companies N su)sidiaries

Enter into strategic partnership

8enture into futuristic areas li'e insurance! food prohttp>HHshodhganga.inTibnet.ac.inHbitstreamH@MOMHE8MEHAHMAPchap


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The 97th amendment to the Constitution; grants citiz

fundamental right to form cooperative societie


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mendment to the Constitution in respect of C"ocieties

=he salient features of the proposed amendment to the Co

as follows>

@< ?nsertion of new article D / in &art ? of the Constitution p

the tate obligation to promote voluntary formation& auto

functioning& democratic control and professional mana

the cooperative societies.

A< ,ntegration of cooperative societies on the principle

voluntary formation! democratic mem)er control! mem

economic participation and autonomous functions.

d t t th C tit ti i t f C


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mendment to the Constitution in respect of Co"ocieties< OrganiJing =eneral ;ody meeting of every cooperative

a period of months close to the 4nancial year;

>< #ccess to the )oo5s& information and the accounts of t

cooperative society;

R< Filing of the returns by every cooperative society within

year end

K< Free! fair! impartial and timely elections of cooperative

the "tate Election Commissionor by any other appropriate

independent body

@G< #udit of the cooperative societies to be carried by the au

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MOC Module 1

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