Theory question 103
Co-operative SocietiesPlantain farmers of Falla community formed a cooperative society to provide support to its members.
(a)(i) Name the type of cooperative society formed.
(ii) State four features of the cooperative society.
(b) State five advantages of a private company.
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(a)(i) Producers' (agricultural/farmers') cooperative society.
(ii) Any four: formed by producers (farmers) of similar products; voluntary and open membership; democratic control (one member, one vote); pool resources to buy inputs and market produce together; surplus shared according to patronage/produce supplied; registered with limited liability; aims at members' welfare rather than profit alone.
(b) Any five: limited liability of shareholders; continuity (separate legal entity); more capital than sole trader or partnership; can be run by family members/keeps control in few hands; affairs are more private (accounts need not be published as for public companies); can start business on incorporation; easier to form than a public company; specialised management.
A cooperative of farmers is a producers' cooperative.