Question

What is the purpose of forming a cooperative society?

Answer 1

The purpose of forming a cooperative society is primarily to protect and promote its members’ economic interests through joint effort and mutual aid. A cooperative society is a voluntary association of persons who come together on a basis of equality to improve their economic conditions, provide goods or services at fair rates, secure financial assistance, and promote the habit of thrift and self-help. It is essentially formed by people with limited financial means to overcome disabilities arising from inadequate resources and to resist exploitation by wealthier classes or intermediaries.