An overview of corporate governance issues for co-operatives Stirling Smith London 8 February 2007

Not just about co-operatives Strong economies require a thick business “ecology” - a rich diversity of business structures and ownership forms A well governed co-operative & mutual sector of the economy is not just good for its members, and customers, it is a public good as well

Little evidence Extensive literature research – hardly any results Reflects general lack of interest in co- operatives Northern standards, extrapolating from small data sets

A single model? Financial co-operatives will be regulated by a financial authority Great diversity in size and shape No real consensus on what is a co-operative Co-operatives governance codes developed in the North, adapting mainstream corporate governments codes

Agency conflicts Members v Boards Members/Directors v Managers Co-operatives v governments Men v women

Worse than others? No evidence that these conflicts are worse in co-operatives than other businesses (Pollet & Develtere)

Some suggestions Does convergence offer a platform for a common governance paradigm? If good corporate governance of co- operatives is a public good, who is responsible? Can education prevent agency conflicts Knowledge sharing and case studies Womens’ empowerment