Meaning and Characteristics of Consumer’s Co-Operative Stores.
Consumer’s co-operative store is a type of retail store established to eliminate the importance of middlemen. These stores are established by those persons who are dissatisfied with middlemen’s profit and high prices of goods. These stores are formed by consumers who join together and manage the business. The consumers contribute capital for the purchase of goods directly from the producers in large quantities and sell them to its members or outsiders of a reasonable profit. the profit of the store is retained among the members in proportion to their capital. England was the pioneer in the establishment of co-operative stores. In 1844, 28 weavers of England established the ROCHDALE PIONEER EQUITABLES SOCIETY as a store for distribution of consumption of goods and for production of some of goods.
The followings are some of the essential characteristics of a co-operative store:
- It is a voluntary association of adult persons registered under the Co-operative Societies Act.
- The capital is divided into shares of small value and these shares are subscribed by its members.
- The liability of the member is limited to the extent of face value of the shares subscribed by its members.
- It is controlled in a democratic set up.
- The accounts of the society are subject to audit by the registrar of co-operative societies.
- One member has one vote irrespective of his holding.