Q.Explain the principle of 'one member, one vote'. Why is it regarded as the basis of democratic management in a co-operative society?

The rule of one member, one vote is the cornerstone of co-operative democracy and the feature that most sharply separates a co-operative society from a company.

The single feature that most sharply distinguishes the organisation of a co-operative society from that of a company is democratic management, and the cornerstone of democratic management is the principle of 'one member, one vote'. A co-operative society is run on the footing that it belongs to its members equally, and this principle gives concrete effect to that equality at the most important moment — when decisions are taken by vote.

Under Section 27 of the Maharashtra Co-operative Societies Act, 1960, every member of a society has one vote, and only one vote, in the affairs of the society, irrespective of the number of shares he holds. This is fundamentally different from a joint-stock company. In a company, voting power follows shareholding, so that a person who holds more shares commands more votes and, if he holds enough, can dominate the company and control its decisions. In a co-operative society there is no such thing: a wealthy member holding many shares and a member of modest means holding only the minimum number of shares stand exactly equal at the ballot — each has one vote and no more. (Where the members of a society are themselves societies, that is, in a federal society, the Act makes special provision for their voting rights, but the underlying principle of equal voice continues to govern the co-operative structure.)

This rule is regarded as the basis of democratic management for several reasons. First and most importantly, it makes control of the society rest on membership, not on money. Because votes cannot be bought by acquiring more shares, no small group of rich members can capture the society and run it for their own benefit; the society remains genuinely under the control of the whole body of members. Second, it gives every member an equal say and therefore an equal stake in the running of the society, which encourages ordinary members to participate actively — to attend meetings, to speak, and to vote — knowing that their voice counts as much as anyone else's. Third, it fits the very purpose of the co-operative movement, which is self-help through the mutual co-operation of equals, especially of persons of small means; a system in which the well-off could out-vote the rest would defeat that purpose. …