How to Start a Co-Operative Society

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  • Topic: Cooperative, Co-operative Party, Co-operatives UK
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  • Published : March 3, 2013
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Proposal for starting Ashodaya Samithi Multipurpose
Co-operative Society

Name: Ashodaya Multipurpose co-operative society
Location: Mysore

Background
Sex workers working in Ashodaya Samithi did not have access to facilities to save money. They could not open bank accounts without identification and residence proof – documents that their illegal occupation did not allow them to possess. Sex workers also faced humiliation when banks insisted that they bring their husbands along. Most sex workers kept their earnings with themselves and there is absence of savings. Sex workers were also robbed of money by local goondas or extortions by Police. In the absence of savings, sex workers are forced to borrow money to meet unforeseen expenses resulting from illness, marriage or death in the family. Women had to take loans from local money lenders at interest rates as high as 300% or approach chit funds with unfair lending deals. Consequently, sex workers found themselves in deep economic debt and were compelled to engage in risky and unsafe work. Economic desperation exposed sex workers to severe vulnerability and exploitation. In order to address economic concerns of sex workers, Ashodaya decided that a financial institution be set up exclusively for sex workers. It was agreed that such an agency would offer easy access and low threshold services to sex workers while simultaneously ensuring prudent management for financial viability and has the aim of providing financial security to sex workers and securing educational and career building opportunities for children of sex workers.

Objectives:
1. To encourage regular savings among member and to provide credit to members for provident and productive purposes. 2. To set up small scale businesses like juice junctions, tea shops, small breakfast centers etc., and other items those are economically viable. 3. To create special funds for investment purposes, including procurement of essential commodities, aimed at enhancing the economic and social well-being of members. 4. To promote among members the spirit and practice of thrift, mutual and self-help based on co-operative principles. 5. To supply members with consumer goods at reasonable prices. 6. To carry out investments (shares, FD’s, bonds, mutual funds) for the benefit of members. 7. To take other measures designed to encourage the spirit and practice of cooperation and self-help to the members.

Required Documents for starting Co-operative society:

Some of the organization papers are common as far as registration of societies is concerned. A list of such papers are given below- 1) Application in Form – 1.
2) Bye-laws (The Rules and Regulations undertaken by the Respondent Society are governed by the Karnataka Co-operative Societies Act, 1960). 3) Resolution of list organization meeting.
4) Consent letter from the financing bank.
5) List of shareholders.
6) Challan of suspense deposit of share money and admission fee to the nearest branch of District Central Cooperative Bank Ltd. 7) Consent letter for office accommodation and business premises. 8) Tentative cash account showing all income and expenditure updated till the date of submission of organization paper. 9) Tentative budget for three years (surplus should be generated at the end of each year). 10) Schemes (of work/business).

11) A certificate (if necessary) from the neighboring cooperative society stating that the promoter members have no dues. 12) Residential proof of all the members.
13) A forwarding letter from the Chief Organizer, submitted to register through Inspector of Cooperative Societies concerned. 14) One set of the organization papers should be submitted to the respective District Cooperative Union, proper receipt of which is to be included in the set of organization papers would be submitted to the Register. 15) Finally, the organization papers would be...
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