Foundation for any co-operative is its shareholders (often called “members”). Shareholders support their co-operative financially by contributing start-up funds and/or using its services. Co-operative that raise funds by selling shares need to have a good idea of who their members are and how they can contribute to set the co-operative up for success.
Becoming a member of a co-operative also makes you an owner. This usually includes getting to vote on major decisions, an opportunity to run for a board position, dividends, loan and credit and other different facilities and access to information about the co-operative. However, being a member also comes with responsibilities, including financially supporting the co-operative, participating in its governance, holding directors and staff accountable, and offering suggestions on how to improve the business.
Sarokar has founder shareholders and common shareholders but both have the same values and respect. Act of becoming a shareholder gives a shareholder more control of the co-operative and gives you the right to vote or run for the board.
Firstly 29 youth gathered and invested their part to establish a fund of 1,00,000 (NPR One lakh only). So there were only 29 share members but currently, the organization has more than 3000 shareholders constituting the share capital more than 20 million.
Share members are the building blocks of the organization as they invest their part as an investor for long-term purposes and get the benefit as share bonuses and many more. More the number of shareholders more the fund to be utilized without any risk and return. Shareholders make the organization stronger and stronger.
Shareholders entertain the share bonus in against their investment under the profit-loss sharing system (PLS) after the completion of fiscal year and approval received from the annual general meetings is also called dividend either in form of cash or account/share deposits.
Share Purchase Procedure
A person interested to become the share member of Sarokar has to perform the following procedures.
- Should open an account by paying 100 as an account opening charge and 500 as minimum account deposit requirement, so NPE 600 in total.
- Should pay NPR 100 as share application charge and NPR 500 as an entrance fee and 1000 as 10 kitta share costing 100 for each share. So, 1600 in total.
- Should submit a copy of the citizenship certificate, photographs of own, and nominee.