Features of Cooperative Society

1. Separate Legal Entity

As registration of a Cooperative Society is compulsory, it has a separate legal entity that is distinct from its members. After registration, a cooperative society can hold property in its name and can enter into contracts, can sue, and be sued by others. All the transactions taking place in a cooperative society will be under the name of the society and not in the name of its members. As it holds a separate legal identity, it is not affected by the entry or exit of its members. 

2. Democratic 

The major decisions of a cooperative society are handled by an elected managing committee. The members of a cooperative society have the power to choose the members of the managing committee, which gives rise to the role of democracy. The members can choose their representatives as they have voting rights.

3. Limited Liability 

A cooperative society is a convenient form of association in which the liability of any member is limited to the extent of capital contributed by them. Therefore, with minimum risk, any member can protect their economic interest through a cooperative society.

4. Free Entry and Exit

A cooperative society is a voluntary association; therefore, an individual is free to join or leave the society according to their will. It works according to a democratic society, i.e., it is open to all irrespective of their caste religion and gender.

5. Social Welfare

A cooperative society works for the economic welfare of poor or weaker sections of society. Its main aim is to eliminate middlemen and protect the interest of its members and society. Hence, it can be said that a cooperative society works for a service motive. If any surplus is left, then it is distributed amongst its members as a dividend according to the rules and procedures of the society.