Observation

Few Candidates attempted this question and their performance was impressive. However, some candidates wrote the characteristics instead of the merits of co-operatives society for 4a.

The expected responses are.

4a. 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, land, 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.

4b. Procedures in formation of a private limited liability company

1. Application for Name search and reservation.
2. Preparation of Article and Memorandum of Association.
3. Preparation of declaration document.
4. Filing of documents with the registrar.
5. Assessment of documents filed for purpose of fee payment.
6. Payment of the fees charged on documents for registration.