Financing and Marketing Management

Unit 1 - Cooperation

1.5. Members' Economic Participation
Members contribute equitably to and democratically control the capital of their co-operative. At least part of that capital is usually the common property of the co-operative. Members usually receive limited compensation, if any, on capital subscribed as a condition of membership. Members allocate surpluses for any or all of the following purposes; developing their co-operative, possibly by setting up reserves part of which at least would be invisible; benefiting members in preparation to that transactions with the co-operatives; and supporting other activities approved by the membership.
Autonomy and Independence
This is a new principle and in a way underscores a part of the definition of cooperatives explained earlier. The principle has been included to clearly emphasize the distinctive character of cooperatives vis-à-vis the government. In referring to other organizations the principle acknowledges the fact that cooperatives are entering in to joint projects with private sector firms. The principle stresses, however, how important it is that cooperatives retain their freedom ultimately to control their own destiny whenever they enter such agreements.