Co-operatives Flashcards
Name of co-operatives
The word cooperative or Co-op in the name and limited will appear at the end of the name
Number of owners in co-operatives
At least 5 memebers are required
Management in co-operatives
Members own and manage the business together.
Decisions are made democratically. They are managed by at least 3 directors
Capacity in co-operatives
The purpose of a co-operative is to create mutual benefit for the members and allow the members to work together as a team
Legal requirements in co-operatives
Must register with the registrar of cooperative societies
Liability in co-operatives
Limited liability
Legal personality in co-operatives
A legal personality and are allowed to own land and open bank accounts
Continuity in co-operatives
Unlimited continuity
Capital in co-operatives
The amount of capital obtained limited to the amount of members.
Additional capital obtained by asking members to buy shares
Profit-sharing in co-operatives
Profits are shared equally amongst its members
Taxation in co-operatives
Pay taxes on income retained for investment and reserves and surplus revenues are returned,
Advantages of co-operatives
Limited liability
Legal personality and continuity
Facilities of members are combined to achieve common goals
Disadvantages of co-operatives
Unable to pay high salaries
To reach a decision is often difficult and time consuming
Auditing of financial statements is compulsory
