Ans. This statement is True.
(i) “Co-operative society is a society which has its objectives for the promotion of economic interests of its members in accordance with co-operative principles.” (Indian Co-operative Societies Act1912).
(ii) Co-operative organization is a voluntary association of individual. In other words the membership of a Co-operative society is voluntary i.e. the membership is open to all. Normally, there is no restriction of caste, creed, race, religion, etc. At Least 10 Members are required to form a Co-operative Society.
(iii) The members of a co-operative organisation form the General Body which is the supreme power in the management of the organisation. This body exercises the powers through annual general meetings. This body again elects their representatives to look into day – to – day management which is collectively known as Managing Committee.
(iv) This committee elects the president, Vice – President, Treasurer, Secretary, etc. as the office bearers. Thus Meeting is an important feature of the Co – operative organisation. One member one vote, principle of equality etc. are the underlying principles.
(v) Thus, all these denote that management in Co – operative organisation is democratic in nature.