1.

Discuss the ff responsibilities of:

a. Member
b. BOD
c. Manager
2. Differentiate BOD responsibility from Management Responsibility
3. Discuss the procedure of BOD elections
4. Explain the importance of communication and election

Answer:
1.
a. The money of the members help finance the cooperative and they alone reap the benefits and suffer
the losses associated with the cooperatives performance. They have important duties to ensure their
cooperative remains viable.
b. the primary duties of the board of directors are to safeguard assets of the members and to represent
their interest. The board of directors is legally responsible for the cooperatives continued viability. They
are also charged with establishing policies to implement cooperative’s mission.
c. the CEO or general manager is the sole employee of the board of directors and is ultimately
responsible for the day-to-day operations of the cooperative. The CEO is responsible for ensuring that
the cooperatives daily activities are leading towards the realization of the cooperatives objectives and
mission. The most important function of the CEO is hiring and supervising all other co-op employees.
2.
Board Responsibility Management Responsibility
Ideas Actions
Decisions about what the cooperative should be Decisions about how the cooperative does
doing something
Long-term and substantial commitments of Short-term and moderate commitments of
resources resources
Personnel development to ensure executive depth Job related training for people other than the
and capable succession management team
Monitoring board and managerial performance Evaluating employee performance

3. most common and the most traditional way of board of director election procedure is to find board
candidates and ask for nominations from the floor during the co-ops annual meeting. A better approach,
and one used by most established cooperatives, is to appoint a nominating committee and to find well-
qualified board candidates where the committee is selected by the board and may comprise board
members, the manager and members. Once nominated the cooperative should publish the candidates
credentials and other pertinent information in a newsletter or website weeks prior to the voting. Voting
by secret, anonymous is the most common and preferred method.

4. effective communication and educations becomes particularly critical as cooperatives grow and
become more complex, making them increasingly difficult for members to comprehend. Cooperatives
have special communication and education because of their unique owner-ship and governance
structures. Copperatives involve a wide range of people in the decision making and management
process.