(a) State five merits of co-operative societies
(b) Explain five procedure to be followed in the formation of a Private Limited Company
Explanation
(a) Merits of Co-operative Societies
(i) They encourage saving habits among their members
(ii) They are democratic in nature. Each member has equal say or right with others irrespective of shares held.
(iii) They improve the standard of living of their members by providing goods which they cannot buy on their own e.g electronics, lands,vehicles etc.
(iv) They assist their members in marketing their products by ensuring fair prices.
(v) The death of any of its members cannot bring it to an end since they are duly registered under the Law.
(vi) They render financial assistance to members by way of extending loans to them for business expansion at low interest rates
(vii) Settlement of disputes among members
(viii) They educate their members
(ix) They link their members with government, research and financial institutions.
(x) They eliminate middlemen in the channel of distribution
(xi) Protection against sharp practices of distributors and manufacturers.
b. Procedures in formation of a Private Limited Company
(i) Application for Name search and reservation.
(ii) Preparation of Articles and Memorandum of Association.
(iii) Preparation of declaration documents.
(iv) Filing of documents with the registrar of companies.
(v) Assessment of documents filed for the purpose of fee payment.
(vi) Payment of the fee charged on the documents for registration.
(vii) Collection of certificates of incorporation.