Question

According to the Rajasthan Cooperative Societies Act, 2001, Member Economic Participation is defined under which Co-operative Principles?
1. 3rd Principle
2. 5th Principle
3. 2nd Principle
4. 1st Principle.
5. 4th Principle

Answer 1

Correct Answer - Option 1 : 3rd Principle

The correct answer is  3^rd Principle.

• The co-operative principles are guidelines by which co-operatives put their values into practice.
• Member Economic Participation is defined under the 3^rd Principle.
• According to the 3rd Principle:-
  • Members contribute to, and democratically control, the capital of their co-operative. At least part of that capital is usually the common property of the cooperative.
  • Members usually receive limited compensation, if any, on capital subscribed to as a condition of membership. Members allocate surpluses for any of the following purposes:-
    • Developing their co-operative, possibly by setting up reserves, part of which at least would be indivisible, benefiting members in proportion to their transactions with the co-operative, and supporting other activities approved by the membership.

• There are total 6 Co-operative Principles:-
  • 1st Principle:-  Voluntary and Open Membership 
  • 2nd Principle:- Democratic Member Control
  • 3rd Principle:- Member Economic Participation 
  • 4th Principle:- Autonomy and Independence
  • 5th Principle:-  Education, Training, and Information
  • 6th Principle:-  Co-operation among Co-operatives