Duties and Responsibilities of

Cooperative Board Members

 LEARNING OBJECTIVES
end of the lesson, the student should be able to:
1.Understand the duties
and responsibilities of
Cooperative Board
Members;
2.Illustrates their specific
functions; and
3.Appreciate the important
role of cooperative
directors.
 Members of the Board of
Directors of a Cooperative have
the same duties and
responsibilities as do board
members of any other business
 COOPERATIVES
are member organizations, unlike most other businesses

Cooperative Director

 Sensitive
 Balance their conflicting interest
 #1 Important Function of Cooperative Board

DUCATE members about their organ

Real Estate
Direction and Management of the Affairs

Not less
than 5 but Elected by the general assembly.

nor more
 For a term fixed in the by-laws not exceeding a
term in 2 years

than 15
 Shall hold office until their successors are duly
elected and qualified or until duly removed for
cause
Powers of Board of Directors
STRATEGIC PLANING

DIRECTION SETTING

POLICY FORMULATION

Real Estate
General Standards of Directors
a.) A director shall discharge the
duties as a director, including the
duties as a member of a committee.

General Standards  In good faith

 With the care of an ordinarily
prudent person in a like position
would exercise under similar
circumstances; and
 In a manner that reasonably
believes to be in the best interest
of the cooperative.

Real Estate
 b.) In discharging his /her duties, a director is
entitled to relay on information, opinions,
reports, or statements and other financial data if
General prepared or presented by:
Standard  One or more officers or employees of the
cooperative whom the director reasonably
believes to be reliable and competent in the
matters presented.

 Legal counsel, public accountants, or other

persons as to matters the director reasonably
believes are within the person professional and
expert competence; or

 A committee of the board of directors of which he

(sic) is not a member if the director reasonably
believes the committee merits confidence.
c.) A director is not
acting in good faith if
he/she has knowledge
concerning the matter
in question that makes
reliance otherwise
permitted by sub-
section.
d.) A director is not
liable for any action
taken as a director, or
any failure to take any
action, if he/she
performed the duties of
his/her office in
compliance with this
secton.
Director Conflict of Interest
This occurs when Director’s transaction is
not agreed by the cooperative and the
general assembly.

For instance,
• If the material facts of any transaction with the
cooperative or committee authorized, approval of any
transactions were not properly ratified by the members
and officers cooperative, will be fair. Otherwise, it
consider fair and decided properly by the general
assembly and the board of directors.
Thank you