Feature: Member Rights And Responsibilities

Members are the most important part of a co-operative-they are the owners of the business and their needs are the reason for its existence. Just as the board and management of a co-operative have specific duties and responsibilities, members have certain responsibilities and rights which they must accept and exercise for the business to effectively meet their needs.

Member responsibilities include:

  • patronize and use the services provided by the co-operative;
  • be informed about the co-operative;
  • finance the co-operative through the purchase of shares and other forms of member investment;
  • attend meetings and participate on committees and in other activities of the organization;
  • assist in amending the rules and other legal documents as required;
  • evaluate the performance of the co-operative;
  • communicate complaints and suggestions to management and board of directors;
  • support the development of other co-operatives;
  • elect and evaluate directors.

Member rights normally include:

  • adopt and amend the Memorandum of Association and Rules of the co-operative;
  • elect, and if necessary, remove directors of the business;
  • dissolve, merge or consolidate the co-op or form a joint venture with others;
  • require officers, directors, and other agents to comply with the law under which the business was set up, and with its Memorandum of Association, Rules and membership and marketing agreements;
  • hold directors and officers liable for damage injurious to members;
  • examine the annual reports.

Adapted from Understanding Cooperatives: Who Runs the Cooperative Business? Members, fact sheet prepared by the United States Department of Agriculture, Cooperative Services.