How to become a Board Member in a Cooperative Society

Cooperative societies are unique business entities where members come together to achieve common goals. These co-ops are managed by a board of directors who play a crucial role in guiding and overseeing the organization’s activities. Understanding how to become a board member and the responsibilities involved is essential for anyone interested in contributing to a cooperative’s success.
What is a Board of Directors?
In every cooperative, a board of directors is elected to make important decisions on behalf of all the members. This board is responsible for managing the cooperative, setting policies, and ensuring that the organization functions efficiently. The size of the board can vary depending on the cooperative’s needs and regional regulations. For instance, in British Columbia, Alberta, and Manitoba, a minimum of three directors is required, while Saskatchewan mandates at least five.
When forming a cooperative, the founders decide on the number of board members, usually between 5 and 9, but smaller cooperatives may have fewer members serving on the board. Boards come in different types, such as policy boards, which focus on setting direction and overseeing staff, and working boards, which are more hands-on and involved in daily operations.
Becoming a Board Member
To become a board member, you must be a member of the cooperative and meet certain qualifications. Basic requirements include being at least 18 years old, being of sound mind, and not being bankrupt. These requirements are set by law, but individual cooperatives may have additional criteria outlined in their bylaws.
Board members are elected at the annual general meeting (AGM), where every member has a vote. The length of the director’s term is typically defined in the cooperative’s bylaws, usually ranging from 1 to 3 years.
Preparing for the Role
New directors benefit from orientation and training to understand their responsibilities better. This might include board governance courses, reading directors’ manuals, or receiving guidance from experienced members. While deep expertise in cooperative governance is not required, having a basic understanding of procedures and responsibilities is essential.
Roles and Responsibilities of the Board
The board of directors has several key responsibilities:
- Managing Financial Matters: The board must understand the cooperative’s financial status, help create and monitor the budget, and ensure transparency in financial reporting. They may also handle the cooperative’s accounts and sign important documents.
- Strategic Planning: The board provides leadership and direction for the cooperative, creating and updating strategic plans that outline goals and key opportunities.
- Creating Policies and Procedures: Boards develop and implement policies to guide the cooperative’s operations, addressing areas such as finances, membership, and safety.
- Representing the Cooperative: The board acts as the face of the cooperative, representing it to partners, funders, and the public. They ensure consistent communication and promote the cooperative’s interests.
- Management Oversight: In larger cooperatives, the board oversees managers or an executive team. They make final decisions on significant issues, such as profit allocation, and handle conflicts or debates that arise.
- Engaging Members: The board ensures that members are involved in important decisions and have a sense of ownership in the cooperative. Open communication helps maintain this engagement and commitment.