Q.The voting rule followed by a co-operative society under the Act is: (A) votes in proportion to shares held
(B) one member, one vote
(C) votes in proportion to capital contributed
(D) only the chairman has a vote

Democratic control is a basic principle of co-operation, and the Act gives it legal form in the way votes are counted at meetings. …

Under Section 27 of the Act, the voting power of a member does not depend on the number of shares he holds — each member is entitled to only one vote. This 'one member, one vote' rule is the democratic feature that distinguishes a co-operative from a joint-stock company.

(A) Votes in proportion to shares held — incorrect; this is the rule in a joint-stock company, not a co-operative.

(B) One member, one vote — correct; this is the co-operative rule laid down in the Act. …

Confusing the co-operative rule with the company rule (votes with shares). In a co-operative, holding m …