Cooperative Rules & Regulations PDF

*Article 32: Composition of the General Assembly* - The general assembly of a cooperative consists of all the members who have the right to vote, based on the cooperative's rules. *Article 32: Powers of the General Assembly* - The general assembly has the most authority in a cooperative. It can:...

*Article 32: Composition of the General Assembly* - The general assembly of a cooperative consists of all the members who have the right to vote, based on the cooperative's rules. *Article 32: Powers of the General Assembly* - The general assembly has the most authority in a cooperative. It can: 1. Approve changes to the cooperative's important documents (articles of cooperation and bylaws). 2. Elect or remove members of the board of directors. 3. Approve the cooperative's development plans. - The assembly can delegate some of its powers to a smaller group, but this requires the approval of 75% of voting members. *Article 34: Meetings* - Regular meetings happen once a year, within 90 days after the fiscal year ends, with proper notice to all members. - Special meetings can be called when needed by the board of directors or if enough members request it. If the board doesn’t call the meeting, a government authority can step in to order it. - For newly registered cooperatives, a special meeting must be held within 90 days. - Members can choose to waive the notice of a meeting. *Article 35: Quorum* - A quorum (the minimum number of members needed to make decisions) is 25% of all voting members. For cooperative banks, a different rule applies, and for electric cooperatives, a quorum is 5%. *Article 36: Voting System* - In a primary cooperative, each member gets one vote. In larger cooperatives, some members may have more than one vote based on the cooperative’s rules. - Voting by proxy (having someone vote on your behalf) is allowed in certain cooperatives, but not primary cooperatives. *Article 37: Board of Directors Composition and Term* - The cooperative’s board of directors, which handles its management, should have between 5 and 15 members. They are elected for two-year terms. *Article 38: Powers of the Board of Directors* - The board is responsible for setting policies, strategic planning, and guiding the cooperative’s overall direction. *Article 39: Directors* - Only members who meet the cooperative’s qualifications can become directors. - Sometimes, external experts who are not members may be brought in to provide technical advice, but they have no voting rights. - Directors cannot be involved in the cooperative's day-to-day operations. - If someone runs a business similar to the cooperative or has a conflict of interest, they can’t be a director. *Article 40: Board Meetings* - The board must meet at least once a month. Special meetings can happen if needed, with proper notice. - A majority of the board must be present to make decisions. - Directors cannot use proxies for voting in board meetings. *Article 41: Vacancy in the Board of Directors* - If a board member leaves before their term ends, the remaining board members can fill the vacancy if there’s still a quorum. If not, the general assembly must fill the vacancy. The new director will only serve the remainder of the previous director’s term.