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The One Member-One Vote Rule in Cooperatives

Author

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  • Reynolds, Bruce J.

Abstract

Cooperative s can achieve better business decisions when their boards of directors maintain a commitment to member consensus. Directors usually try to avoid making decisions by votes, especially by narrow majority victories. Governance on the basis of one member-one vote promotes the search for broad-based consensus that improves board representation of membership interests, but it also leads to more analysis of decision and search for innovative alternatives. By contrast, proportional voting for electing directors creates incentives for large patron members to form coalitions for controlling the board. Pursing such incentives would tend to undermine membership consensus and the motivation to develop new solutions to business problems.

Suggested Citation

  • Reynolds, Bruce J., 2000. "The One Member-One Vote Rule in Cooperatives," Journal of Cooperatives, NCERA-210, vol. 15, pages 1-16.
    • Handle: RePEc:ags:jlcoop:46411
    DOI: 10.22004/ag.econ.46411
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    Cited by:

    1. Ville Pönkä, 2018. "The Legal Nature of Cooperative Membership," Journal of Entrepreneurial and Organizational Diversity, European Research Institute on Cooperative and Social Enterprises, vol. 7(2), pages 39-61.
    2. repec:bla:annpce:v:89:y:2018:i:1:p:87-107 is not listed on IDEAS
    3. Nilsson, Jerker, 2024. "Differentiated voting and membership composition – the case of a large Swedish dairy cooperative," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 15(02), June.

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    Keywords

    Agribusiness;

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