Amendment status not verified — confirm the current text below against the official source.
Principles.—The cooperative principles are guidelines by which cooperatives put their values into practice. 1st Principle : Voluntary and Open Membership Cooperatives are voluntary organizations, open to all persons able to use their services and willing to accept the responsibilities of membership, without gender, social, racial, political, or religious discrimination. SELF-RELIANT COOPERATIVES ACT, 1999 59 2nd Principle : Democratic Member Control Cooperatives are democratic organizations controlled by their members, who actively participate in setting their policies and making decisions. Men and Women serving as elected representatives are accountable to membership. In primary cooperatives members have equal voting rights (one member, one vote), and cooperatives at other levels are also organized in a democratic manner. 3rd Principle : Member Economic Participation Members contribute to, and democratically control, the capital of their cooperative. 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 cooperative, possibly by setting up reserves, part of which at least would be indivisible ; benefiting members in proportion to their transactions with the cooperative ; and supporting other activities approved by the membership. 4th Principle : Autonomy and Independence Cooperatives are autonomous, self-help organizations controlled by their members. If they enter into agreements with other organizations, including governments, or raise capital from external sources, they do so on terms that ensure democratic control by their members and maintain their cooperative autonomy. 5th Principle : Education, Training and information Cooperatives provide education and training for their members, elected representatives, managers, and employees, so they can contribute effectively to the development of their cooperatives. They inform the general public-particularly young people and opinion leaders-about the nature and benefits of cooperation. 6th Principle: Cooperation among Cooperatives Cooperatives serve their members most effectively and strengthen the co-operative movement by working through local, national, regional, and international structures. 7th Principle : Concern for Community Cooperatives work for the sustainable development of their communities through policies approved by their members. ——— 60 SELF-RELIANT COOPERATIVES ACT, 1999 Schedule B [Section (3)] Subject matter for specific consideration when framing articles of association of a cooperative