COOPERATIVE GOVERNANCE

BASIC OBJECTIVE OF COOPS

IF THE OBJECTIVE GETS VITIATED; SO WOULD BE THE GOVERNANCE

TO FULFILL MEMBERS SOCIAL,ECONOMIC AND CULTURAL NEEDS

Global Challenges

Globalization

Accounting Scandals

Poor Corporate Governance

COOPERATIVEGOVERNANCE

COOPERATIVE GOVERNANCE REPRESENTSA DEMOCRATIC SYSTEM OF MANAGEMENT,

WHEN THEEXERCISE OF AUTHORITY I S DERIVED

FROM ITS MEMBERSHIP

STAKEHOLDERS OF COOPS

GOVT PUBLIC

MEMBERS CUSTOMERS

EMPLOYEES

• PROFESSIONAL GOVERNANCE

• COOP VALUES AND PRINCIPLES

• STRONG CAPITAL BASE

• IT INTERVENTIONS

Characteristics of SUCCESSFUL COOPERATIVES

GOVERNANCE REQUISITES

TRANSPARENCY PARTICIPATION

ACCOUNTABILITY PREDICTABILITY

TRANSPARENCY

ACCOUNTSINTEREST OF DIRECTORSMATERIAL INFORMATIONDECISIONS OF PUBLIC INTERESTLOW COST ACCESS TO INFORMATION

TransparencyTransparency is the availability and accessibility of information on

• decisions taken by Management - and the information leading to those decisions

• services provided by the Management

- and the quality of those services • procedures for transacting with the Members/Customers • actions taken by functionaries • works undertaken and their quality

ACCOUNTABILITY

TO MEMBERSCUSTOMERSGOVT.PUBLIC AT LARGEORGANISATION

ANSWERABILITYCONSEQUENCES

Stake

Holders

PARTICIPATION

INVOLMENT OF

MEMBERS

DIRECTORS

USERS

PREDICTABILITY

COOPERATIVE LAWCOOPERATIVE POLICYBYE LAWS

CLARITY IN

Governance Models

ELECT

MGT

EXECT

MGT

Elected

Management

Exect. Mgt

1

Governance Models

ELECT

MGT

EXECT

MGT

Elected

Management

Executive. Mgt

1A

Governance Models

2Elected Executive

Cooperative Governance-keys to success

Keep The members Informed & InvolvedMaintain Good Board-Management RelationshipConduct business like MeetingsFollow sound Business PoliciesUse Advisers for DevelopmentsForge Links with Other CoopsStrengthen Internal CapitalFollow coop Values & Principles

UndemocraticLoss makingPoor reservesPoor capital

Poor disclosure Concentration of power

High manpower turnoverPoor audit

Poor reportingPoor participation

Poor liquidityNepotism

Unprofessional

RUPEE BANKMADHOPURANAGPUR BANKKRUSHI BANK

T N –no election

TN-wine trade

Election Board Accountability

GOODGOVERNANCE

•MULKANOOR

•IFFCO

•BUTTI WEAVERS

•WARNA

•AMUL

•COSMOS BANK

•SARASWAT BANK

•DOABA BANK

•POTATO SOCIETY

•MARKFED

INFOYSISTELCO

COOPERATIVE DILEMMA

COOPERATIVES

CREDIBILITYMANAGERIAL

FINANCIALUNPROF’LISM

POLITICSLESISLATION

VIABILITY

COOPERATIVE DILEMMA

GOVT. SUPPORT COOPERATIVES

LOANS

CAPITAL

GRANTS

SUBSIDIES

CREDIBILITYMANAGERIAL

FINANCIALUNPROF’LISM

POLITICSLESISLATION

VIABILITY

QUALITY

TIME

POLICIES

I’FERENCE

COOPERATIVE DILEMMA

GOVT. SUPPORT COOPERATIVES MARKET FORCES

LOANS

CAPITAL

GRANTS

SUBSIDIES

CREDIBILITYMANAGERIAL

FINANCIALUNPROF’LISM

POLITICSLESISLATION

VIABILITY

COM,TETIONINNOVATION

CHANGESPROF’LISMFINANCE

CONF’TIONS

QUALITY

TIME

POLICIES

I’FERENCE

e-governance