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Features:

 The cooperative stores generally buy in large quantity, directly from manufacturers or

wholesalers and sell them to the consumers at reasonable prices. Since the middleman
are eliminated or reduced, the members get products of good quality at cheaper rates.

 The profits earned by consumer cooperative stores during a year are utilized for

declaring bonus to members and for strengthening the general reserves and general
welfare funds or similar funds for social and educational benefits of the members.

 To start a consumer cooperative store, at least 10 people have to come together and

form a voluntary association and get it registered under the Cooperative Societies Act.

 The capital of a cooperative store is raised by issue of shares to members. The

management of the store is democratic and entrusted to an elected managing
committee where one man one vote is the rule.

 The liability of the members of a cooperative store is generally limited to the extent of

the capital contributed by them.
 To ensure fair management of funds, the accounts of the stores are audited by the

Registrar of Cooperative Societies or a person authorized by him/her.

Advantages

The major advantages of a consumer cooperative store are as follows:

(i) Ease information: It is easy to form a consumer cooperative society. Any ten people can

come together to form a voluntary association and get themselves registered with the Registrar

of Cooperative Societies by completing certain formalities.
(ii) Limited liability: The liability of the members in a cooperative store is limited to the extent

of the capital contributed by them. Over and above that amount, they are not liable personally

to pay for the debts of society, in case the liabilities are greater than its assets.
(iii) Democratic management: Cooperative societies are democratically managed through

management committees which are elected by the members. Each member has one vote,

irrespective of the number of shares held by him/her.