Like other businesses, in cooperatives too, the board of
directors provides leadership and guidance to the management.
Their primary responsibility is the establishment of long-term,
broad objectives/purposes/visions for the cooperative. The
board must hire and guide the manager. They need to ensure
that operations are consistent with the articles and bylaws,
understand the corporate philosophy, act in good faith in
handling the affairs of the cooperative, avoid conflicts of
interest, and represent the best interests of members. In
addition, they also need to be able to understand and read
financial statements and help in disseminating this and other
relevant information to the members.
However it is important to note that individual directors
should not act independently on matters that should be decided
by the entire board nor should they receive special favors
from the managers or employees.