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Unit #3 Co-operative Principles, Legislation & Governance

Unit #3 Co-operative Principles, Legislation & Governance. Co-operative Principles & Values. Voluntary and open membership Democratic member control Member economic participation Autonomy and independence Education, training, and information Co-operation among co-operatives

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Unit #3 Co-operative Principles, Legislation & Governance

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  1. Unit #3Co-operative Principles, Legislation & Governance

  2. Co-operative Principles & Values • Voluntary and open membership • Democratic member control • Member economic participation • Autonomy and independence • Education, training, and information • Co-operation among co-operatives • Concern for community

  3. Co-operative Legislation • Canada Co-operatives Act • Applies to co-ops that do business in two or more provinces or territories • NL Examples: Co-operators Group & Mountain Equipment Co-op • NL Co-operatives Act • Incorporates local co-ops & gives them legal status • Regulates operations including: • Member investment & profit sharing • Democratic processes • Limited member liability & board indemnification • Non-member investments • Financial & audit requirements • Dissolution of a co-op

  4. Co-operative By-Laws • The NL Act requires co-ops to develop by-Laws to govern their operations. By-laws address: • Structure and objectives of the co-op • Who can be a member • Member share purchase requirements • Meeting quorum & notification requirements • For profit or non-profit status • Distribution of profits • Board size, election, & term of office • Membership withdrawal & share pay outs • Role of officers, committees & manager • Bonding requirements • Procedures for by-law amendment

  5. Co-operative policies • Articulate operational & service delivery procedures • Are developed by individual co-ops and articulated in: • Meeting minutes • Operational manuals • Member information kits • Build on the Co-op Act & by-laws by & address: • Procedures for decision-making • Actions to be taken in different situations • Stakeholder roles, responsibilities and authorities

  6. Common Co-operative Policies • Procedures for: • Hiring of staff, personnel policies, working conditions • Member & public relations • Gender equity & responding to harassment issues • Charitable donations & other community supports • Setting of service fees • Terms/conditions for access to services • Treatment/protections - members/customers/clients • Conflict of interest guidelines • Financial management & reporting

  7. Co-op Governance Summary • Co-op Principles • Canada Co-operatives Act • NL Co-operatives Act • Co-operative By-laws • Co-operative Operational Policies • Membership handbooks • Member/customer service procedures

  8. Preview of Other Units of Module 1 • Unit #4: The Existing Co-operative System • A review of the existing co-op system globally, in Canada & in Newfoundland & Labrador • Unit #5: Developing a Co-operative • What’s required for the successful establishment of a new co-operative at the community level • Steps involved in developing a new co-operative in Newfoundland & Labrador • Advisory & financial support services available in NL to assist the co-op development process.

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