The legislature has allowed a co-operative society certain privileges to boost the concept of co-operative and to attract more and more people to work within the framework of co-operative principle. In short these are:

Corporate Bodies :-

The cooperative societies are corporate legal entities and are considered as body corporates known by the name under which they are registered. They have perpetual succession and a common  seal. They have power to hold property and  enter into contract institute and defend suite and do everything necessary to achieve the purpose for which they are formed.

First charge of cooperative society on certain assets :-

A cooperative society has first charge upon the assets and other agricultural produce cattle, fodder for cattle, agricultural implement or machinery, raw materials for manufacture and any finished products manufactured from such raw material belonging to a member or a past member or forming part of the estate of a deceased member to secure and debt or outstanding amount. The cooperative society has wide power to control the working of individual members and to discipline them.

Charge of the cooperative society on immovable property:-

A cooperative society in order to secure a loan or debt gets a first charge on the property declared by a member for and to extent of lion and advances. Such charges are, however, subject to prior claim of the Government in respect of land revenue or any  money recoverable as land revenue.

Charge and set-off in respect of share or contribution or interest of members:-

A multi state cooperative society has charge upon the share or contribution or interest in the capital and on the deposits of a member or past member or deceased member and dividend bonus or profits payable to such member, in respect of any debt due from such members. The society may set-off any sum credited or payable to a member or past member or the estate of these members in or towards in or payment of any such debt.