Meaning:
            The co-operative organisation is another form of organisation whose principal objective is not to earn profit but to render service to its members.  It is an enterprise generally set up by the individuals of the weaker sections to safeguard their own interest by eliminating middlemen and exploitation.
Definition:
            International Labour organisation defines co-operative organisation as “an association of persons usually of limited means who voluntarily joined together to achieve a common economic and through the formation of democratically controlled organisation making equitable contributions to the capital required and accepting fair share of risk and benefits of the undertaking”
            Calvets defines co-operation as “a form of organisation which persons voluntarily associate together as human beings on the basis of equality for the promotion of economic interests of themselves”.
CHARECTERISTICS/FEATURES:

1. Voluntary association:

            A co-operative society is a voluntary association of persons and not of capital.  The membership is open to all having common interests.
2.  Open membership:
Any person irrespective of his caste, sex, creed, beliefs and religion can become a member of co-operative society.  New members are always allowed to the society.

1. State control and corporate status:

            A co-operative society is required to be registered under the co-operative societies act, 1912.  On registration, it becomes a corporate body like an incorporated company enjoying certain privileges, and subject to control and supervision of the government.
4.   Equality in voting:
Each member irrespective of his capital contribution has one vote and hence an equal right to take part in its management.  “One man, one vote” is the principle of co-operative form of organisation.

1. Democratic management:

            Co-operative societies are managed on democratic lines.  The board of directors is elected by the members from among themselves at the annual general meeting.

1. COMMON NEEDS:

            The co-operative societies are formed to achieve some common needs of the members.  So the persons having such common needs alone become members of these societies.

1. Service motive:

            The primary objective of co-operative societies is to render service to its members.

1. Trading on cash basis:

            As a rule, co-operative societies conduct business on cash basis, and allow no credit.

1. Disposal of surplus:

            The surplus arising out of a year’s working is distributed among its member on the basis of their transactions with the society.  But in the other forms of organisation, the surplus is distributed on the basis of their capital contribution.

1. Each for every one:

            “All for each and each for all” is the basic principle of the co-operative society.