ILO—It is commonly accepted that the role of government in cooperative affairs be restricted to four functions: legislation, registration, dissolution/liquidation,and monitoring the application of the law by the cooperatives. Therefore these Guidelines take as a premise that the main objective of a cooperative law be to guarantee minimum government involvement, maximum deregulation, maximum democratic participation and minimum government spending by translating the cooperative principles into a legally binding framework for the organization of self-determined self-help. [PDF]
Cooperatives are distinguished from other organizations in that member use, or patronage is linked to control of the enterprise, rather than the degree of monetary investment. Any financial returns to cooperative owners typically come through profit allocation based on their patronage, or transactions with the cooperative. This is very different from an investor-owned firm where it is not necessary to transact any business with the enterprise in order to benefit from it as an owner. In an investor-owned firm, return comes through funds invested, not services used. [PDF]
A cooperative is an autonomous and duly registered association of persons, with a common bond of interest, who have voluntarily joined together to achieve their social, economic, and cultural needs and aspirations by making equitable contributions to the capital required.
The Cooperative Development Authority shall periodically assess the required paid-up share capital and may increase it every five (5) years when necessary upon consultation with the cooperative sector and the National Economic and Development Authority.
Any vacancy in the board of directors, other than by expiration of term, may be filled by the vote of at least a majority of the remaining directors, if still constituting a quorum; otherwise, the vacancy must be filled by the general assembly in a regular or special meeting called for the purpose.