Decision-making in co-operative businesses is regulated by provincial and federal governments. Certain decisions a co-operative and its directors may make have special requirements set out in legislation. For instance, voting to accept a report will follow a different procedure than voting to amend the bylaws. The decision-making processes co-operatives use is influenced by Robert’s Rules of Order which reflects procedure used by most Canadian governments and corporations.
A co-operative will accept or reject a decision by voting on a resolution. A resolution is a formal decision, action, or policy that is, usually, proposed by the board and decided at a board or members’ meeting. Resolutions are voted upon and need a majority to be accepted and implemented. There are two types of resolutions:
Provincial legislation governs the type of resolution required for various decisions. Check the Act or Regulations for clarification on the necessary procedure for different decisions or actions.
It is good practice to be formal when writing resolutions and maintaining a consistent style; this will provide a standardized template for future resolutions. Consider using the format below that relies on 4 commonly used elements:
If you need more information about decision-making in a co-operative or help drafting resolutions, please contact us to find out how we can help.
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