USDA, RBS, CIR 11 Chapter 2 - Members Make Cooperatives Work Cooperatives: What They Are and the Role of Members, Directors, Managers, and Employees United.

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Presentation transcript:

USDA, RBS, CIR 11 Chapter 2 - Members Make Cooperatives Work Cooperatives: What They Are and the Role of Members, Directors, Managers, and Employees United States Department of Agriculture Rural Business - Cooperative Service RBS Cooperative Information Report 11

USDA, RBS, CIR 11 Chapter 2 - Members Make Cooperatives Work MEMBERS MAKE COOPERATIVES WORK

USDA, RBS, CIR 11 Chapter 2 - Members Make Cooperatives Work Exercising Member Responsibilities Commitment and Use Ownership and Control Finance

USDA, RBS, CIR 11 Chapter 2 - Members Make Cooperatives Work Member-Owner Commitment and Use Commit to Use Products and Services Maintain Control Provide Financing

USDA, RBS, CIR 11 Chapter 2 - Members Make Cooperatives Work Member-Owner Commitment and Use Using the cooperative is members’ easiest responsibility to carry out, and by using it as much as they can, members help the cooperative succeed

USDA, RBS, CIR 11 Chapter 2 - Members Make Cooperatives Work Member Ownership and Control Know legal responsibilities Understand the Cooperative Make decisions Vote Express opinions Serve (board/committees)

USDA, RBS, CIR 11 Chapter 2 - Members Make Cooperatives Work Member-Owners Have Legal Responsibilities Incorporate Approve legal documents Elect directors according to mandated State law and cooperative policy Ensure that general business and cooperative-specific laws are followed Make major decisions that alter legal status

USDA, RBS, CIR 11 Chapter 2 - Members Make Cooperatives Work Owners Must Understand Their Cooperative Know and understand its Definition and history Mission or purpose Articles and Bylaws Organizational structure and staffing Products and services Policies

USDA, RBS, CIR 11 Chapter 2 - Members Make Cooperatives Work Member-Owner Financial Responsibilities Control follows finance Finance in Proportion to Use Most capital from members Distribute earnings according to use Return equity to inactive members Revolve equity

USDA, RBS, CIR 11 Chapter 2 - Members Make Cooperatives Work Ways Member-Owners Finance Cooperatives Direct Investment Retained margins Per-unit retains Start-up capital

USDA, RBS, CIR 11 Chapter 2 - Members Make Cooperatives Work Using the Cooperative Is Essential for Maintaining control Achieving business success Fulfilling member needs Producing continuing benefits