In our Two-Hats post, we argue that directors of a second-tier co-operative must put the interests of that organization first when they are actively engaged with the board. This, in turn, means they cannot act as a “representative” of their first-tier organization while sitting on a second-tier board. But, if this is the case, where does representation occur?
Hanisch’s presentation — “Changing Governance in European Co-operatives: Simply Shifting or Losing Control?” — outlined a series of innovations occurring in European co-operative governance and the impact of these changes on co-operative performance. Based on data from 571 farmer co-operatives in the European Union, Hanisch concluded that co-operatives that have implemented certain governance innovations — professionalising and allowing outsiders to join their boards of directors, recruiting larger boards, and creating a governance model in which the co-op acts as a holding structure — have improved their performance. The research also notes, however, that these shifts towards corporate governance structures may affect member control. Continue reading →