COOPERATIVE AS A BUSINESS ORGANIZATION:-

Can You Identify Someone Among ACFA Member

4.1g.    By this, we mean that co-operative Society is formed as a business venture. They also have as one of its responsibilities to offer charitable services to the community or society they belong; this does not mean that they can render such humanitarian services like the Red Cross does etc.

Let’s take for instance a co-operative Society that wants to render humanitarian service to his member by given “Blanket Loan” to majority of them without observing laid down rules. Such group will easily collapse. Therefore, business techniques must be employed to successfully run a co-operative society in order to continue to be in business^*.

MAKING EQUITABLE CONTRIBUTION:-

4.1h.    The fact that cooperative is a viable tool in reaching those in the grassroot is undisputed because from the explanation of the following terms used in defining the co-operative society is a business set up by those with a limited means. Therefore, any contribution made by individuals in the group must be in relation to his/her financial convenience.

In order not to make any of the members’ inferior, the minimum and maximum capital contribution should be pegged in such a way that all cooperators will be able to pay their shares. To understand this concept, compare the fact that although the capital shares of each affiliate co-operative societies, although different  from one group to another, the beauty should be that all members can conveniently key in.

ACCEPTING A FAIR SHARE OF THE RISK AND BENEFITS

4.1i.     This means that all members must contribute both their presence and their cash to the running of society. The running of a Co-operative society is not like running other public limited liabilities, ie private companies or joint stock companies; where the shareholders don’t normally participate directly in the operation of the business. In co-operative, the management is directly done by the members. This means the shareholders directly participate in the running of its affairs. Because of this truth, there is no time the investor is given second hand information about the business as him/her is also involved in the operation of the business. If on the other hand there is loss observed in the process, every member must also share the risk.