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

Which fundamental Rochdale principle determines the decision-making power of individual members during meetings in a cooperative society?

  1. Voting rights are distributed on the basis of one member, one voteAnswer
  2. B
    Voting power is directly proportional to the number of shares held
  3. C
    Voting rights are allocated according to total annual patronage volume
  4. D
    Voting rights are reserved exclusively for members of the executive committee

Answer

Voting rights are distributed on the basis of one member, one vote
The principle of democratic control in cooperative societies ensures equal participation by granting every registered member exactly one vote regardless of the amount of share capital contributed.

Step-by-Step Solution

1
Identify the core Rochdale principle regarding governance in cooperative societies.
Democratic member control is established under the principle of equality.
Unlike limited liability companies where share ownership dictates control, cooperatives prioritize member equality.
2
Apply the democratic control rule to member voting rights.
Each member receives one vote irrespective of capital contribution.
This prevents financial dominance by wealthy members and preserves the mutual benefit purpose of the society.

Key Concept

Democratic Control in Cooperative Societies
Estimated Time:45s
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Topics

Cooperative Societies: Types, Principles, Features, and Operation

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