Rochdale Principles

[2] The first of the Rochdale Principles states that co-operative societies must have an open and voluntary membership.

However, this does not prohibit the co-operative from setting reasonable and relevant ground rules for membership, such as residing in a specific geographic area or paying a membership fee to join, so long as all persons meeting such criteria are able to participate if they so choose.

Members allocate surpluses for any or all 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."

The first part of this principle states that "Members contribute equitably to, and democratically control, the capital of their co-operative.

The second part of the principle deals with how members are compensated for funds invested in a co-operative, and how surpluses should be used.

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 co-operative autonomy.

"[2] The fifth of the Rochdale Principles states that co-operative societies must provide education and training to their members and the public.

They inform the general public – particularly young people and opinion leaders – about the nature and benefits of co-operation.