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Student's Book Form Five

characterized by “Each for all and all for Surplus distribution: Like profit-oriented
each” philosophy meaning that, everybody businesses, a co-operative organisations’
benefits from acting collectively. Examples surplus is distributed to members in
of co-operative organisations in Tanzania proportion to their capital contribution or
include: Savings and Credit Co-operative an agreed ratio. At least twenty-five per cent
Societies (SACCOS), Kilimo Fursa of profit must be allocated to the general
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Co-operative, and Agricultural Marketing reserve according to the law. Similarly,
Co-operative Society (AMCOS). a portion of the proceeds (not to exceed
ten percent) may be used for the general
Features of co-operatives welfare of the community.

The following are the features of Service motive: A co-operative organisation
co-operative organisations:
is created with the primary goal (motive)
Voluntary membership: Co-operative of delivering beneficial services to its
organisations are formed by voluntary members and society, whether in the form
membership. A person who shares similar of credit, consumption items, or input
interests and is willing to follow a society’s resources.
norms has the right to join the society, and Education and training: A co-operative
become a member.
organisation may provide education and
Finance: Co-operative organisation training to its members with the aim of
members contribute to the finances of a developing the skills of its members for the
co-operative organisation by purchasing growth of the co-operative organisation.
shares or periodic compulsory savings. Solidarity: Co-operative organisations are
The government also may provide financial formed by people with common interests.
assistance in the form of state and central The members of co-operative are united
co-operative bank loans.
while making any decision regarding their
Democratic control: Co-operatives are welfare.
controlled democratically. The business
of a co-operative organisation is generally Formation of co-operatives
managed by a committee elected by the Co-operative organisations are registered
members at an annual general meeting. under the Co-operative Societies Act of
Regardless of the number of shares, all the year 2013. The Tanzania Co-operative
members have the same voting rights and Development Commission (TCDC) is
power. “One man one vote” is the basic the registrar of all co-operative societies
element of co-operative democracy in in Tanzania. The following are the
making decisions pertaining to co-operative procedures to register a co-operative
operations and welfare. organisation:

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