The word cooperative suggests working together and with others for a common objective. The cooperative society can be defined as a voluntary association of persons, who join together with the objective of welfare of the members. They are motivated by the need to protect their economic interests in the face of possible exploitation at the hands of middlemen preoccupied with the desire to earn greater profits. The cooperative society is mandatory required to be registered under the Cooperative Societies Act 1912. The process of setting up of a cooperative society is very simple and requires the consent of at least ten adult persons to form a society. The capital of a society is raised from its members through issuance of shares. It acquires a distinct legal identity after its registration.