Q.How is democratic management ensured in the organisation of a co-operative society?

Democratic management is not secured by a single rule but by several linked features of the society's organisation working together.

Democratic management is the defining characteristic of a co-operative society, and it is secured not by any single rule but by a number of linked features of the society's organisation working together. Each feature reinforces the others, and together they ensure that the society is genuinely owned and controlled by its members on a footing of equality.

The first feature is open and voluntary membership. Membership of a co-operative society is open, on equal terms, to any eligible person who is willing to accept the responsibilities of membership, and it is voluntary — a person joins of his own free will and may leave in the manner allowed by the bye-laws. This keeps the society open to all who share its common interest, rather than closed to a select few.

The second and central feature is equal voting rights: the rule of one member, one vote under Section 27 of the Maharashtra Co-operative Societies Act, 1960. Every member has one vote, and only one, irrespective of the number of shares he holds. Because control cannot be bought by acquiring more shares, control rests on membership rather than on money, and no small group of wealthy members can dominate the society.

The third feature is management by an elected committee. The managing committee, in which the day-to-day management of the society vests under Section 73, is elected by the general body from among the members through this equal vote, and it holds office for a fixed term (commonly five years), after which it must face election again. The managers are therefore chosen by the members and can be changed by them, which keeps the committee answerable to the membership.

The fourth feature is the supremacy of the general body. The whole membership, meeting as the general body, remains the supreme authority of the society and keeps in its own hands the vital powers — adopting the accounts, disposing of the profits, electing and removing the committee, and amending the bye-laws. The committee manages only within the framework and control set by the general body.

The fifth feature is decision-making by majority in duly called meetings. Business is transacted in general meetings called on proper notice and with the required quorum, and decisions are taken by the majority of members present and voting, every member having the right to attend, speak, and vote. This ensures open, collective decision-making rather than decisions imposed by a few. …