CO-OPERATIVES AND MUTUAL
WHAT IS CO-OPERATIVE? • A co-operative is a corporation closely held by the members WHO use its services (a shopper cooperative or credit union), • or by folks that work there (an employee co-operative), or by those that live there (a housing cooperative).
WHAT IS CO-OPERATIVE? • Once neutral teams share a typical interest within the success of associate enterprise these teams will use different categories of membership within the CoOperative’s bylaws to arrange however, they will work along (a multi-stakeholder Co-Operative).
WHAT IS CO-OPERATIVE? • Co-operatives will offer just about any product or service and square measure completely different from alternative businesses in this they use profits for functions that square measure directed by the board and membership. • Co-operatives exist in each sector of the economy and may bit each facet of our lives.
WHAT IS MUTUAL? • The term “mutual” is sort of continually – although not solely – wont to describe associate insurance firm in Asian countries. • In an exceedingly mutual insurance firm, the client is that the insured party and additionally a participant within the business – sort of a co-operative.
WHAT IS MUTUAL? If you terminate a mutual insurance, the merchandise, you are additionally retreating from the mutual business and leaving behind the rights of possession.
WHAT IS MUTUAL? • The security of pooled of funds and shared risk among an oversized cluster of individuals may be a terribly stable and winning business model. • Mutual tend to grow steady over time to serve current and future policyholders.
CHARACTERISTICS OF CO-OPERATIVES • Open membership policy – meaning its receptive all those of have common interest.
• Voluntary association – Members will exit at its can and be a part of as long as they will.
CHARACTERISTICS OF CO-OPERATIVES • State management – to shield the interest of members, co-operative society’s square measure placed beneath state management through registration. • Whereas obtaining registered, a society needs to submit details concerning the members and also the business it's to undertake.
CHARACTERISTICS OF CO-OPERATIVES • All its members are contributing finance • Service is main motive • Separate legal entity – will buy/sell all its properties by own name. • Self-facilitate through cooperation and distribution of profits to any or all its members.
CHARACTERISTICS OF CO-OPERATIVES • All its members are contributing finance • Service is main motive • Separate legal entity – will buy/sell all its properties by own name. • Self-facilitate through cooperation and distribution of profits to any or all its members.