Roles of a member in a cooperative society

Cooperative societies are unique business entities where members, directors, and employees each play crucial roles in ensuring the success and efficiency of the organization. Understanding these roles is essential for maintaining a well-functioning cooperative.
Roles of a Member in a Cooperative Society
Members are the backbone of a cooperative society, and their involvement is vital for the co-op’s success. Here are the key responsibilities of members:
- Members must follow the rules and regulations outlined in the cooperative’s bylaws and policies.
- By purchasing membership shares, members contribute financial support to the cooperative.
- Members are encouraged to use the services offered by the cooperative to ensure its success.
- Members should promote the reinvestment of profits back into the cooperative to foster growth.
- Members have the power to vote for the board of directors from among themselves, ensuring that leadership reflects their interests.
- Members need to stay updated on the cooperative’s activities and developments.
- Attending member meetings and engaging in decision-making processes is crucial for effective governance.
- Members can get involved by joining committees that oversee various aspects of the cooperative’s operations.
- At the annual meeting, members appoint an auditor to review the cooperative’s financial status.
- Members are responsible for holding the board of directors accountable for their decisions and actions.
Role of Directors in a Cooperative Society
Directors are responsible for providing strategic leadership and overseeing the cooperative’s operations. Their key roles include:
- Directors lead shareholders, staff, and committees, setting the direction for the cooperative.
- They develop policies and procedures to ensure the cooperative operates efficiently.
- Directors seek out opportunities that will benefit the cooperative and its members.
- They hire staff who align with the cooperative’s mission and goals.
- Directors supervise day-to-day operations and provide reports to shareholders.
- They work closely with staff to achieve the cooperative’s objectives and growth targets.
- Directors maintain essential records, including financial documents, meeting minutes, and a shareholder list.
- They promote active participation among shareholders in the cooperative’s governance.
- Directors assess the overall performance of the cooperative and develop strategies for improvement.
- They review and approve new shareholder applications, ensuring that new members understand their role in the cooperative’s success.
Role of Employees in a Cooperative Society
Employees are essential for the daily functioning of the cooperative. Their responsibilities include:
- Employees carry out daily business activities in accordance with board policies.
- They report to the board of directors, providing updates and feedback on their work.
- Employees are encouraged to learn about cooperatives and the role of the business within the community.
- They contribute to achieving the cooperative’s goals through their work and dedication.