"Co-operatives are autonomous, self-help organisations." In this phrase the adjective "autonomous" describes an attribute of the noun, "organisations": it describes co-operatives as organisations that have the freedom to act independently to govern themselves, control their own affairs and set their own rules of operation.

"Controlled by their members." This phrase refers to another integral attribute of co-operatives. As stated in the Alliance's definition of a co-operative, a co-operative is "an autonomous association of persons meeting their economic, social and cultural needs through a jointly owned and democratically controlled organisation" . The phrase "controlled by their members" also refers back to the 2nd Principle of Democratic Member Control and incorporates member control into the concept of a co-operative's autonomy and independence. A co-operative is not autonomous and independent unless control rests with its members in accordance with sound, open, transparent and accountable democratic practice.

"If they enter into agreements with other organisations, 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." This sentence, taken in its entirety, qualifies the relationship that ought to exist between any co-operative and any other organisation, including governments, with which a co-operative may enter into an agreement. It cautions and exhorts co-operatives not to risk independence and member democratic control by entering into any agreement that compromises the co-operative's autonomy. There are three dimensions to this caution and exhortation: "agreements with governments" , "agreements with other organisations" and when a co-operative raises capital, agreements for "capital from external sources". All three categories of agreement have the potential to compromise a co-operative's autonomy and independence and the right of its members to exercise democratic control of its affairs