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CS Professional · CSR and Social Governance · Contribution of Non-Corporate Entities in Social Governance

A dairy cooperative society in Gujarat has 800 farmer-members. At its general body meeting, a resolution is put to vote and a large member holding 40 times the milk-supply volume of a small member demands 40 votes. Under the basic cooperative principle of democratic member control, what is the correct position?

Each member has one vote regardless of milk supplied or shareholding. Democratic member control is a core cooperative principle, so voting power is not tied to capital or patronage. Patronage only influences how surplus is shared, such as through bonus or dividend, not the right to vote.

  1. AEach member has one vote irrespective of patronage or share capitalCorrect
  2. BVotes are weighted by the quantity of milk supplied
  3. CVotes are weighted by the shareholding of the member
  4. DThe chairperson alone may cast the decisive votes for large suppliers

Explanation

Cooperatives follow the one-member-one-vote principle, which separates control from capital or volume of business. Weighting by milk supplied or shares would mirror company voting, which is not the cooperative norm. Patronage affects the surplus return, not the voting right.

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