Cooperative Director Responsibilities

Roger G. Ginder- Economics Dept.

Iowa State Univ.

Traditional Responsibilities—View from 30,000 feet

Roles and Responsibilities ---- Ground level view from the perspective of common decision areas

Discussion and Other Topics

1. Board and Management Working Together to Accomplish Success for the Cooperative

2. Non-Adversarial Relationship

3. Mutual Respect

4. Mutual Trust

1. Represent the members in making decisions for the cooperative

2. Oversee the business to make sure it is financially sound and operates in the best interest of its member-owners

1. Decision making

Establish objectives

Formulate policies

Approve programs and plans

Select general manager

Five Basic Board Functions:

1. Decision making

2. Advisory

Advise members of changes requiring their approval.

Counsel with management.

Advise members of the condition, performance, and any significant issues affecting the cooperative

Five Basic Board Functions:

1. Decision making

2. Advisory

3. Trustee

Directors act as trustees for the members and the employees

Monitor the stewardship of assets for protection of members capital

Ensure that the assets are used for the benefit of the membership in accordance with articles, by-laws and statutes.

Monitor and protect employee rights and interests

Five Basic Board Functions:

1. Decision making

2. Advisory

3. Trustee

4. Perpetuating

Management Develop potential managers. Select and guide effective managers

Board Maintain a capable and effective board Maintain a high level of board knowledge and

skills

Five Basic Board Functions:

1. Decision making

2. Advisory

3. Trustee

4. Perpetuating

5. Symbolic

Communicate with management and membership

Represent the cooperative to the industry Represent the cooperative to the community Clearly Differentiate Personal Views From

Board Views

How do we handle these responsibilities in actual practice?