(First article published on this subject on 15.01.2021. visit online https://dailyftepaper.pressreader.com/daily-ft/20210115)
Features of Co-operatives
Detailed historical background and evolution of the Co-operative business was discussed in my first article on the subject published before. Few readers enthusiastic on the subject and would prefer to dig deep into this unique business model which is not state or privately owned business.
A Co-operative is an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly owned and democratically controlled enterprise.
Hence, Co-operative is a member-based people’s business model. At least seven members are required to form a Co-operative. Therefore, it is collective effort rather than individualistic approach. Further, Co-operative members have one vote at the General Body irrespective of number of shares he or she invested in the Co-operative. This is a significant factor that demarcate the Co-operative from privately owned businesses where privately owned businesses representation is largely based on the number of shares owned in the entity.
International Co-operative Alliance (ICA) has published seven Co-operative principles in 1995 at Manchester, United Kingdom. These principles are,
- Voluntary and Open Membership
Co-operatives are voluntary bodies, open to all individuals able to be part and willing to accept the responsibilities of membership, without gender, social, racial, political or religious discrimination. - Democratic Member Control
Co-operatives are democratic institution controlled by members, who actively participate in setting their policies and making decisions. Individuals serving as elected representatives are accountable to the membership. In primary Co-operatives, members have equal voting rights (one member, one vote policy). - Democratic Member Control
Co-operatives are democratic institution controlled by members, who actively participate in setting their policies and making decisions. Individuals serving as elected representatives are accountable to the membership. In primary Co-operatives, members have equal voting rights (one member, one vote policy). - Democratic Member Control
Co-operatives are democratic institution controlled by members, who actively participate in setting their policies and making decisions. Individuals serving as elected representatives are accountable to the membership. In primary Co-operatives, members have equal voting rights (one member, one vote policy).