Describe five principles that distinguish co-operative societies from other forms of business organizations.

Describe five principles that distinguish co-operative societies from other forms of business organizations.

1. Principles that distinguish co-operative societies from other forms of business organizations include:
2.  Democratic control. Decisions are made by members on a one-man-one-vote basis.
3.  Voluntary membership:-members are affiliated to co-operatives freely and may also exit freely.
4.  Political/religious neutrality. Co-operative societies are not supposed to favour, align or identify with any political or religious grouping.
5.  Co-operation with other co-operatives. They do this in order to share ideas and experiences at different levels.
6.  Limited interest on share capital. The capital paid is meant for running the society’s affairs rather than generating interest.
7. Promotion of education to members. The co-operatives are obliged to educate their staff. management and the members in general.
8.  Repayment of dividends. They distribute their surplus on a prorate basis.
9. Offer of utmost service to members. They are formed to carter for members interests and welfare.
10. Limited number of shares to be held by any single member. This is to avoid dominance or control of the business by one or just a few members.

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