Two features include:
- A cooperative society works on the principle of sharing and welfare. If any surplus (or loss) is generated, it is distributed/shared amongst the members (shared profits or losses of members).
- An elected managing committee has the power to take decisions. Members have the right to vote, by which they elect the members who will constitute the managing committee (shared decision making between members).
- There is limited liability of the members of a cooperative society. Liability is limited to the extent of the amount contributed by members as capital (limited liability of members).