Q.State whether the following statement is True or False, and justify your answer: 'A co-operative society can accept financial help from the government even if the terms of that help take away the members' control over the society.'
The statement is False.
The principle of Autonomy and Independence (the fourth ICA principle) says that co-operatives are autonomous, self-help organisations controlled by their members. It expressly allows a co-operative to enter into agreements with other bodies — including the government — or to raise capital from outside sources, but only on terms that ensure democratic control by the members and maintain the co-operative's autonomy.
Therefore a co-operative may accept government financial help — but not on terms that take away the members' control. Help accepted on such controlling terms would surrender the society's independence and turn it into an instrument of the outside provider, which the principle exists precisely to prevent. Because the statement claims the society may accept help even if it loses member control, it contradicts the principle and is false.
The statement is False — outside financial help is permissible only when it preserves the members' democratic control and the society's autonomy.
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