Appendix 2 - Extract from ICA Rules

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    This document has been made available in electronic format
         by the International Co-operative Alliance ICA 
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                         August, 1996

Source : An ICA Policy for Co-operative Development, Studies and
Reports, ICA, London, 1983, 28 pp. Hard copy available in French,
German, Spanish and Russian.

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          An ICA Policy for Co-operative Development
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                         Appendix 2

                   Extract from ICA Rules


Article 8:     Eligibility
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Associations of persons or co-operative organisations which
observe the aims of the ICA and the policy laid down by its
Congress shall be eligible for membership of the ICA.

Any association of persons, or of societies, irrespective of
its legal constitution, shall be recognised as a co-operative
society provided that it has for its object the economic and
social betterment of its members by means of the exploitation
of an enterprise based upon mutual aid, and that it conforms
to the Co-operative Principles as established by the Rochdale
Pioneers and as reformulated by the 23rd Congress of the ICA:

i.   Membership of a co-operative society shall be voluntary
     and available without artificial restriction or any
     social, political, racial, or religious discrimination to
     all persons who can make use of its services and are
     willing to accept the responsibility of membership.

ii.  Co-operative societies are democratic organisations.
     Their affairs shall be administered by persons elected or
     appointed in a manner agreed by the members and
     accountable to them. Members of primary societies shall
     enjoy equal rights of voting (one member, one vote) and
     participation in decisions affecting their societies. In
     other than primary societies, the administration shall be
     conducted on a democratic basis in a suitable form.

iii. Share capital shall only receive a strictly limited rate
     of interest, if any.

iv.  The economic results, arising out of the operations of a
     society belong to the members of that society and shall
     be distributed in such manner as would avoid one member
     gaining at the expense of others.

     This may be done by decision of the members as follows:

     -    by provision for development of the business of the
          co-operative;
     -    by provision of common services; or
     -    by distribution among the members in proportion to
          their transactions with the society.

v.   All co-operative societies shall make provision for the
     education of their members, officers and employees, and
     of the general public, in the principles and techniques
     of co-operation, both economic and democratic.

vi.  All co-operative organisations, in order to best serve
     the interest of their members and their communities shall
     actively co-operate in every practical way with other co-
     operatives at local, national and international levels,
     having as their aim the achievement of unity of action by
     co-operators throughout the world.

Subject to compliance with these conditions, the types of
associations eligible for membership shall include the
following:

a)   National unions or federations of co-operative societies
     of the types mentioned in (f), (g),(h),(i),(j).

b)   National federations of co-operative unions.

c)   Regional unions of co-operative societies.

d)   Consumers' or agricultural co-operative wholesale
     societies.

e)   Co-operative banks and co-operative insurance societies.

f)   Consumers' co-operative societies.

g)   Co-operative societies of industrial producers or
     artisanal co-operatives.

g)   Agricultural or fishery co-operative societies.

i)   Co-operative credit societies.

j)   Housing and building societies.

k)   Supra-national or international co-operative
     organisations.

l)   Other associations of persons or associations which have
     as their aim the promotion of co-operation.