Q.State whether the following statement is TRUE or FALSE, and justify your answer:
"A credit co-operative society follows the rule of 'one member, one vote'."

Democratic control is a defining feature of every co-operative, including a credit society.

In a credit co-operative each member has exactly one vote regardless of the number of shares held, which keeps control with people rather than with capital.

The statement is TRUE.

A credit co-operative society is managed democratically. Its managing committee is elected by the members on the principle of 'one member, one vote' — every member has a single vote in the society's meetings, irrespective of how many shares he owns or how large his deposits are.

This rule is one of the settled principles of co-operation. It distinguishes a co-operative from a joint-stock company, where voting power rises with the number of shares held. By giving each member an equal voice, the rule prevents a few wealthy members from capturing control and keeps the society genuinely under the control of the ordinary people it serves.

A frequent error is to say voting depends on the number of shares (as in a company). In every co-operative, voting is by person, not by shareholding.