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In India co-operative societies are instituted or carved as conveyance for the impetus of mutual ownership of the business and lucrative or profit-oriented activities. Though in India co-operative societies have not evolved much rather the standing of company structures has a greater influence or prominence. Observing the existing organizations preferred for business are mostly of business format and co-operative society’s version has scraped away. The persuasive reason behind this is that companies contrives for increase and hike in profits for the shareholder which plays a significant role for society and contributes towards economy. One of the disadvantages of doing business in company format is that profits are commonly assiduous in handful of people. On the contrary a co-operative society bestows an option mutual ownership as along with the sharing of the profits. The reason why the co-operative societies are loitering and not able to keep pace is splintered legislative set-up. In India, the co-operative legislative is not yet advanced like the company law framework. Companies’ legislative structures are frequently remoulded and altered.
It is very necessary to make modifications in the existing legal framework in India, in case of co-operative societies in order to increase the hold of co-operative societies in Indian market. Also, legal framework needs to be reconsidered from the stance of financing alternatives. On top of that, there is a requirement to empower the legal framework so that it can stimulate them to encrust into new arrangements of commercial endeavor which is essential looking at the present stake of co-operative societies. Incentive set-ups from companies which are established as peripherals of co-operatives could be a quintessential beginning for this. In the current scenario there is no enabling legal channel for the co-operative societies in India to act as a holding unit. All these factors explicitly imply that the prospects of co-operative society organizations are yet to be perfectly traversed in the Indian milieu.
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