This question tests knowledge about the fundamental principles governing the management and control of co-operative societies. Co-operatives are distinct from other business organizations due to their democratic nature.
Correct Option: B) One member, one vote, irrespective of the number of shares held by a member
This option correctly describes the democratic principle of "one member, one vote" which is central to the functioning of co-operative societies. It ensures equality among members, regardless of their financial contribution.
The question asks about the general nature of liability for members of a co-operative society. Understanding the fundamental principles of co-operative societies is crucial to answer this. Co-operative societies are distinct from other business structures like sole proprietorships or partnerships in terms of member liability.
Correct Option: B) Limited, generally to the extent of the capital contributed by them
This option accurately describes the general nature of liability in a co-operative society. Members are usually liable only up to the amount of share capital they have invested or promised to invest, protecting their personal assets.
The question asks about the implications of a co-operative society being a distinct legal entity, specifically focusing on its features beyond perpetual succession. Understanding the concept of a "distinct legal entity" is key here.
B) Own property, enter into contracts and sue or be sued in its own name — This option correctly lists the fundamental rights and capacities that a distinct legal entity possesses. A co-operative society, once registered and recognized as a separate legal person, can hold assets in its own name, enter into agreements, and participate in legal actions independently of its members.
The question asks about the primary government authority responsible for the control and regulation of co-operative societies in India. To answer this, one needs to identify the specific office or body established for this purpose under co-operative laws.
C) Registrar of Co-operative Societies — The Registrar of Co-operative Societies is the statutory authority appointed under the Co-operative Societies Act (state or multi-state) to administer, supervise, and regulate co-operative societies. This office is directly responsible for their registration, audit, inspection, and overall governance, making it the primary point of government control.
This question tests understanding of the fundamental principles governing co-operative societies, particularly how they distribute profits (surplus) among their members. Unlike conventional companies, co-operatives operate on different principles, emphasizing member benefit and participation over capital return.
Correct Option: B) The extent of members' patronage/use of the society's services, rather than solely their capital contribution
The question asks about the level of business secrecy in a co-operative society, considering its obligations to members and government oversight. We need to evaluate how these factors impact the confidentiality of its affairs and accounts compared to other business structures.
C) Limited business secrecy, since detailed information may need to be disclosed to members and regulatory authorities. This option accurately reflects the nature of co-operative societies, which are characterized by transparency to their members and accountability to government regulators, thereby limiting their ability to maintain complete secrecy over their affairs and accounts.