Cooperative Organisation

Concept of Cooperative

Organization Cooperative organization is a voluntary association of persons having limited means and common economic objectives. It is based on the principle of “self-help through mutual help” and “all for each and each for all”. Basically, it concentrates to fulfill the economic and social needs of the members. All the members have equal status. It is managed by management committed, members of which are the representatives of shareholders. There is the system of one person one vote.

Features of Cooperative Organization

Some of the common features of the cooperative organization are

1. voluntary association
2. mutual relation
3. cash transaction
4. separate legal status
5. equality
6. open membership
7. service motive
8. democratic management
9. distribution of profit
10. fulfillment of community motive.

Types of Cooperative Organizations

On basis of working area and objectives, cooperative organizations may be divided into different types.

Producers’ cooperatives establish by small producer involved in agriculture and small-scale cottage and handicraft industries Industrial cooperatives form by small manufacturers for joint promotion of the business.

Consumers’ cooperatives establish by final consumers a certain locality to fulfill their basic needs in minimum price.

Cooperative credit society is formed to provide financial aids to members in the minimum rate of interest.

Cooperative marketing society supports to sale of the output of members at a reasonable price.

Cooperative farming society forms by the small farmers to merchandise their farming for mutual benefit.

Cooperative housing society forms especially in urban areas to provided housing facility to its members in subsidy cost.

Role of Cooperatives in Developing Countries

In developing countries, cooperative organizations are playing an important role in the appropriate utilization of available resources. They play important role in the economic, social, and ethical development of community. The following are the common points of role of cooperative organizations:

1. encourage saving
2. help for economic diversification
3. democratic society
4. development of moral character
5. improving production and
6. distribution proper utilization of resources
7. provide institutional credit
8. terminate the middlemen
9. creation of employment opportunity
10. improve living standard

Registration of Cooperatives in Nepal

A cooperative organization must be registered according to the Cooperative Act 2048. The preamble of the act provides procedures for the incorporation and operation of cooperative societies. Normally, the following are the procedures of registration of cooperative society:

1. preliminary consultation and meeting
2. application for registration
3. investigation of the application
4. certification of registration

National Cooperative Development Board

Introductions: The National Cooperative Development Board was established in 2049. This board is established to promote mutual socio-economic cooperation among the poor community through cooperative organizations. It provides support to establish and to promote various types of cooperative organizations

Formation: National Cooperative Development Board is managed by an executive committee formed under the Chairmanship of the Ministry of Agriculture. Other members of executive committee involve associate chairman nominated by Government of Nepal, Governor of Nepal Rastra Bank, Secretaries of various ministries, representative of National Planning Commission Registrar of Cooperative Department, and other members associated with cooperative organisations.

Functions: The following are the major functions of National Cooperative Development Board:

1. formulation of policies
2. support to government
3. conduct necessary study and research
4. provide credit facilities
5. investment in cooperative organizations
6. provide guarantee for securities
7. provide technical assistance
8. promote cooperative business make agreements