A co-op society is a voluntary association of individuals who pool resources to meet their common economic and social needs through a jointly owned and democratically controlled enterprise. These societies are based on the principle of "each for all and all for each," with members contributing equitably and having an equal say in decision-making, regardless of their capital contribution. Key characteristics
- Voluntary membership: Individuals can join or leave the society freely.
- Democratic control: Each member has one vote, ensuring equality in governance.
- Member-owned: The society is owned and controlled by its members.
- Mutual aid: The primary goal is to provide mutual assistance and support to members rather than to maximize profit.
- Legal status: In many places, a co-op society needs to be registered under the relevant Cooperative Societies Act to acquire a distinct legal identity.
- Consumer cooperatives: Owned by consumers who buy goods and services from the co-op.
- Producer cooperatives: Members pool their output to benefit from a larger scale of production and sales.
- Housing cooperatives: Members pool resources to build and manage housing.
- Credit cooperatives: Provide financial services to their members.
- Worker cooperatives: Businesses owned and managed by the people who work there.
- Marketing cooperatives: Facilitate the marketing of members' products.
- Multi-stakeholder cooperatives: Share ownership between different groups, such as caregivers and receivers, or non-profits and investors.
Common types of co-op societies
