Democratic Member Control

3. Democratic Member Control

The second principle states that co-operatives are democratic organisations controlled by their members, who actively take part in setting policies and making decisions. Elected representatives are answerable to the members.

The heart of this principle is the rule of "one member, one vote." Every member has exactly one vote, regardless of how many shares he or she holds or how much money he or she has invested. This is the sharpest difference between a co-operative and a joint-stock company: in a company, voting power depends on the number of shares owned (money controls the vote), whereas in a co-operative, the person controls the vote, not the size of their capital. This keeps the society under the control of its members as people, not as investors, and reflects the value of equality.

How democratic control works:

• The general body of all members is the supreme authority. It meets in the general meeting, approves the accounts and budget, frames and amends bye-laws, and takes major policy decisions.
• The general body elects a managing committee to run the society's day-to-day affairs on its behalf.
• The managing committee and its office-bearers are accountable to the general body — they must report to the members and can be voted out.
• Decisions are taken by majority, so that the collective will of the members prevails. …