Many co-operatives are too large to be operated by members, and need to engage a CEO and staff. Careful selection of the management team is crucial to ensure the co-operative remains viable, meets its objectives and can compete in the marketplace.
The day-to-day management of an employing co-operative is not the role of the board. The CEO’s duties include ensuring the co-operative operates according to its business plan,
rules, strategies, policies and principles; understanding the co-operative’s objectives and achieving them; giving the board information and suggesting new objectives; choosing, training, supervising and helping staff, and ensuring the co-operative operates on a sound financial basis.
A co-operative needs to have a management contract approved by special resolution for a person who is not an officer of the co-operative who will perform a large part of the functions of the co-operative or direct the co-operative to perform its functions in a particular way, before engaging that person.