4.2 Equilibrium
4.2.1 The Slip Case
UNIT 4 THE PRINCIPLES OF COOPERATIVE
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contribution to the society. For an example a Cooperative Society is not an association of beggars. Intending members must be able to make capital contributions like entrance fees, share capital etc. to the society. Limited means explains the fact that they don't have enough money. They are still looking for more money and they hope to get more by becoming members of a Cooperative society.
Voluntarily joined together
Cooperative societies are voluntarily organizations. People should not be forced directly or indirectly to join Cooperative societies. In some parts of the country, people are indirectly forced to join cooperative societies by asking them to form cooperative societies so that they would get fertilizer or loan from the Government.
It then means that the people becomes members out of their own volition but because the government wants them to join cooperative so as to benefit something from the cooperative.
Experience has shown that people will rush to join such a Society to benefit from what "'Father Christmas" the government will give to them. This may however be regarded as their own share of the national cake. Apart from that, if this ―gift‖ is no more forthcoming, then the members will disperse and the Society will die a natural death.
Achieve a common economic end
The main aim of forming a cooperative Society is to achieve Economic goals. Such economic goals include, making surplus, increasing members ability to have more money buying goods at a cheaper rate, getting cheaper loan that can be used to expand business etc.
Democratically controlled
The business that is formed by the people is usually democratically controlled. Democracy in a cooperative society connotes ―One man one vote‖ Each member has only one vote to cast when a decision on matters affecting the business of the society is to be taken. It is one man one vote irrespective of each member's Capital contribution to the society, wealth, and post in the religious organization he/she belongs, whether he is a Chief, Oba, Pastor or Reverend. A member has the right to vote only once when a decision is to be taken Apart from this, voting by proxy is not allowed. This is somebody else voting in place of a member or non-member voting on behalf of a member that is absent in a meeting. In addition, majority carries the vote and whatever is decided in the meeting (where quorum was formed) binds on all
members.
Equitable contribution to the capital
Since cooperative Society is a business venture, intending members must make some Capital Contributions. However, individual Capital contribution must be in relation to his/her financial ability. In practice, minimum and maximum capital contribution is usually stated. Example of this is Share Capital.
Accepting a fair share of the risks and benefits
Each member must contribute physically to the running of the society.
Cooperative society is not like public limited liability company or Joint Stock Company whereby the shareholder may not participate directly in the running of the business. Cooperatives like other types of business ventures are interested in making surplus. If at the end of the business year, the society makes surplus, each member will have a fair share of this benefit and smile. On the other hand, if the society makes a loss, the members will share their risk.
Giving the members adequate Cooperative Education
The cooperative Assistant should endeavour to attend the meetings of the Society regularly. He can pass a lot of information to the members when they are holding a General meeting. Apart from this, he can organize seminars and workshops for the members. It is usually during meetings or training sessions that the members can receive Cooperative Education. He can use this opportunity to discuss their problems with them, answer their questions, and guide them aright by using the Cooperative laws, principles of cooperation and the society s bye- laws as guide. Members should learn how to be good business men/women using business principles and methods.
Business organization
The Cooperative Society formed is a business Organization. It is not a humanitarian organization like the Red Cross society where business principles are neglected. For an example, when a society wants to be humane, it may give "blanket loan" to majority of its members without regard to laid down rules. Such society may collapse within a short time. Business techniques and principles must be employed to run Cooperative society‘s activities. It must be run to make surplus and lender maximum services to the members. Also, the society or the business belongs to the members and it should not be seen as a business set up by the Government.
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3.2