COOPERATIVE

GOVERNANCE
BASIC OBJECTIVE OF COOPS

TO FULFILL MEMBERS SOCIAL,ECONOMIC

AND CULTURAL NEEDS

IF THE OBJECTIVE GETS VITIATED; SO

WOULD BE THE GOVERNANCE
Global Challenges

Globalization

Accounting Scandals

Poor Corporate Governance

 COOPERATIVE
GOVERNANCE

COOPERATIVE GOVERNANCE REPRESENTS

A DEMOCRATIC SYSTEM OF MANAGEMENT,
WHEN THE
EXERCISE OF AUTHORITY I S DERIVED
FROM ITS MEMBERSHIP
STAKEHOLDERS OF COOPS

MEMBERS CUSTOMERS

EMPLOYEES

GOVT PUBLIC
Characteristics of SUCCESSFUL COOPERATIVES

• PROFESSIONAL GOVERNANCE

• COOP VALUES AND PRINCIPLES

• STRONG CAPITAL BASE

• IT INTERVENTIONS
 GOVERNANCE REQUISITES

TRANSPARENCY PARTICIPATION

ACCOUNTABILITY PREDICTABILITY
 TRANSPARENCY

ACCOUNTS
INTEREST OF DIRECTORS
MATERIAL INFORMATION
DECISIONS OF PUBLIC INTEREST
LOW COST ACCESS TO INFORMATION
 Transparency
Transparency is the availability and accessibility of information on

• decisions taken by Management

- and the information leading to those decisions

• services provided by the Management

- and the quality of those services

• procedures for transacting with the Members/Customers

• actions taken by functionaries

• works undertaken and their quality

 ACCOUNTABILITY
ANSWERABILITY
CONSEQUENCES
TO MEMBERS
Stake CUSTOMERS
Holders GOVT.
PUBLIC AT LARGE
ORGANISATION
PARTICIPATION
INVOLMENT OF

MEMBERS

DIRECTORS

USERS
PREDICTABILITY

CLARITY IN

COOPERATIVE LAW
COOPERATIVE
POLICY
BYE LAWS
 Governance Models

1
ELECT
MGT
Elected
Management

EXECT
MGT Exect. Mgt
 Governance Models

Elected
Management
1A
ELECT
MGT

EXECT Executive. Mgt

MGT
Governance Models

2
Elected Executive
 Cooperative Governance-keys to success

Keep The members Informed & Involved

Maintain Good Board-Management Relationship
Conduct business like Meetings
Follow sound Business Policies
Use Advisers for Developments
Forge Links with Other Coops
Strengthen Internal Capital
Follow coop Values & Principles
 Undemocratic
Loss making
Poor reserves
Poor capital
Poor disclosure
Concentration of power
High manpower turnover
Poor audit
Poor reporting
Poor participation
Poor liquidity
Nepotism
Unprofessional
RUPEE BANK
MADHOPURA
NAGPUR BANK
KRUSHI BANK

T N –no election

TN-wine trade

Election

Board Accountability
•MULKANOOR

•IFFCO

•BUTTI WEAVERS
INFOYSIS
•WARNA
TELCO
•AMUL
GOOD
GOVERNANCE
•COSMOS BANK

•SARASWAT BANK

•DOABA BANK

•POTATO SOCIETY

•MARKFED
COOPERATIVE DILEMMA

COOPERATIVES

CREDIBILITY
MANAGERIAL
FINANCIAL
UNPROF’LISM
POLITICS
LESISLATION
VIABILITY
 COOPERATIVE DILEMMA

GOVT. SUPPORT COOPERATIVES

QUALITY

LOANS TIME
CREDIBILITY
MANAGERIAL
CAPITAL FINANCIAL
UNPROF’LISM
GRANTS POLITICS
POLICIES LESISLATION
SUBSIDIES VIABILITY
I’FERENCE
 COOPERATIVE DILEMMA

GOVT. SUPPORT COOPERATIVES MARKET FORCES

QUALITY

LOANS TIME
CREDIBILITY
COM,TETION
MANAGERIAL
CAPITAL INNOVATION
FINANCIAL
CHANGES
UNPROF’LISM
GRANTS PROF’LISM
POLITICS
POLICIES LESISLATION
FINANCE
SUBSIDIES CONF’TIONS
VIABILITY
I’FERENCE
e-governance