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Cooperatives
Co-operative is a form of organization where persons voluntarily associate together on
a basis of equality for the promotion of the economic interests of themselves. Generally
the persons belonging to a certain locality, region or group form a co-operative society
for the promotion of their common economic, educational and social needs. They join
together for business with the principle of equality and mutual help. It is a democratic
organization established with equal contribution from all its members.

According to prof. H. Clavert, “Co-operative society is the form of organization
in which persons voluntarily associate together as human beings on the basis
of equality for the promotion of economic interests of themselves.”

According to Nepal Co-operative Act 2048, ”Society or union means a primary
co-operative society or union registered under section 5.”

From the above analysis and definitions we can say co-operative is a democratic set
up by which the common interests of the members are served. It is an autonomous
organization established on the basis of mutual co-operation and equality. It has the
principle of “All for each and each for all.”
The first co-operative organization “Rochadale society of equitable pioneers”
was established in 1844 AD by Robert Owen. He is considered as the father of the
cooperative movement. The main objective of this society was to save poor people
by providing goods at cheaper rates than the market by eliminating middle man and
provide better service to its members.
Principles of co-operatives

a. Democratic management: The management is always a democracy. Members can
elect a body of persons to administer the day to day functions of the society.

b. Self help through mental help: The objective is not maximization of profit but to
provide service to members.

c. Voluntary membership: Any member is at liberty to join or leave the cooperative
society. There are no restrictions on admission on the basis of religion or caste or
political party.
d. One man one vote: Irrespective of a member’s contribution to capital each
member is given only one vote. So there is no question of oppression of minority.
e. Distribution of surplus: The society can allocate a portion of the surplus towards
reserve and common welfare measures and distribute the rest in the form of
dividend.

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