Explain three principles of Co-operative management

Principles of co-operatives
i) Open and voluntary membership Membership is open and voluntary to any person who has attained the age of 18 years. No one should be denied membership due to social, political, tribal or religious differences. A member is also free to leavem the society at will

ii) Democratic Administration:
The principle is one man one vote. Each member of the co-operative has only one vote irrespective of the number of shares held by him or how much he buys or sells to the society

iii) Dividend or repayment
-Any profit/surplus made at the end of every financial year should be distributed to the members in relations to their contribution.
-Part of the profit may be retained/reserved/put in to strengthen the financial position of the society.

iv) Limited interest on share capital
-A little or no interest is paid on share capital contributed (co-operatives do not encourage financial investment habits but to enhance production, to encourage savings and serve the members)

v) Promotion of Education Co-operative societies should endeavor to educate their members and
staff on the ideas of the society in order to enhance/improve quality of decisions made by the concerned parties. Education is conducted through seminars, study tours, open days

vi) Co-operation with other co-operatives
-C-operatives must learn from each other?s experience since they have a lot in common. Their cooperation should be extended to local national and international.