Mainstream business media often comment on what is perceived as the lack of sophistication of governance when a co-operative business fails or runs into difficulty. This is usually attributed to the lack of business expertise of elected boards. While this can be a causal factor, it is not necessarily so and ought not to be used as reason to undermine democratic control by members. To avoid the charge of lack of sophistication, co-operatives should ensure that appropriate training is made available to all directors and committee members. All co-operatives, but especially co-operatives in industries that are subject to government regulation such as banking and insurance co-operatives, may reasonably require members wishing to stand for election to have qualifications that are appropriate to the role they wish to contest as well as demonstrating commitment to the Co-operative Principles and Values.

All co-operatives should consider whether it is appropriate to develop qualifications that are appropriate for members to hold before they stand for elected office. The requirement that candidates for election should hold specified qualifications before they stand for election is to be encouraged and should be approved by the members in general meeting or assembly. However, the requirement for qualifications should not be used as a means of disqualifying members from seeking elected office. Where such qualifications are required and are approved by the membership, members wishing to stand for election should be given training opportunities to gain the qualifications needed.

Where qualifications are required, particularly in regulated or larger co-operatives, it is easier for persons who already hold the qualifications required to take control of a co-operative. This risk of usurpation of control of a co-operative must be guarded against by structured democratic procedures and sound checks and balances, in particular by education and training opportunities for other members.

Historically, some co-operatives have included a purchase or trading qualification designed to show that a candidate has been a regular trading member of the co-operative. Others have replaced this with a capital holding requirement, but this creates the danger that it discriminates against members who have a small capital holding. Other qualifications for office are frequently length of membership of a co-operative, say a minimum of two years, prior to being eligible to stand for election. While these may be useful to prevent hostile takeovers, a balance needs to be struck as to the reasonableness of such rules. Where such rules exist they must be justifiable and approved by the membership in general assembly.