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Difficulty: EasyCooperative Societies: Types, Principles, Features, and Operation

Which of the following principles governs voting rights and decision-making control in a cooperative society?

  1. Equal voting power where each member has one vote regardless of share capital heldAnswer
  2. B
    Voting rights proportional to the number of shares owned by each member
  3. C
    Exclusive voting rights granted only to the executive committee and founding members
  4. D
    Voting power allocated strictly based on the annual interest earned on member capital

Answer

Equal voting power where each member has one vote regardless of share capital held
Cooperative societies are governed democratically under the Rochdale principle of 'one man, one vote.' This ensures every member possesses equal administrative authority regardless of the financial capital or number of shares contributed.

Step-by-Step Solution

1
Identify the foundational principle governing administration in cooperative societies.
Cooperative societies are founded on Rochdale principles, including democratic member control.
Democratic control promotes equality and prevents wealthy members from dominating decision-making.
2
Apply the democratic control rule to member voting rights.
Each member receives exactly one vote ('one man, one vote'), regardless of how many shares they hold.
This differentiates cooperatives from joint-stock companies where voting rights depend on shareholding size.

Key Concept

Democratic Control ('One Man, One Vote' Principle)
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Topics

Cooperative Societies: Types, Principles, Features, and Operation

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