Governance Issues Flashcards
1
Q
governance definition
A
the processes and structures used to direct and manage the co-op’s operations and activities
2
Q
Where was Garry Loewen from?
A
past chair of ACU Board
3
Q
Challenges faced as board chair?
A
- non-performing CEO
- non-performing board members
- acquiring industry knowledge to provide sound guidance to management
- ensuring board is a cohesive team
- protecting corporate image
4
Q
who provides leadership at a credit union?
A
- boards
- senior management
5
Q
Principles of good governance (5)
A
- participation (voice in decision making)
- strategic vision (long term)
- fairness (equity and human rights)
- responsiveness (to all stakeholders)
- effectiveness (best use of resources)
6
Q
Governance components in co-ops (4)
A
1) membership
2) board of directors
3) committees
4) management
7
Q
Component 1: Members
A
- highest authority in a co-operative
- each member has one vote
- elect board of directors
- active participation in co-op
8
Q
Component 2: Board of Directors
A
- elected by members
- fiduciary and legal responsibilities
- legal responsibility- duty to act with care and skill
- member relations and communication
- policy making
9
Q
Qualifications for Board Directors
A
- good business judgement
- respect for other members
- strong work ethic
- understanding of co-ops
10
Q
Does a directors personal liability stop when they leave the board?
A
No, it stops after 6 months of leaving the Board
11
Q
Component 3: Board Committees
A
- finance/audit
- Human Resources
- corporate governance
- member and corporate relations executive
- sustainability and citizenship
- special (info technology, business plan)
12
Q
Component 4: Management
A
- responsible for overseeing the day-to-day running of the co-operative
- the manager may be a member or hired employee
- regular performance evaluation of management by the board
13
Q
Board vs. Management
A
- board: idea decisions, Mgmt: action decision
- board: long term, Mgmt: short and medium
- board: determines objectives, mgmt: how to carry out objectives
