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.