The key administrative bodies of a regional cooperative include its Council of Representatives, Supervisory Board, Board of Directors and Managing Director. The Council of Representatives exercises the highest decision-making power belonging to the owners of the regional cooperative in matters that fall within its authority in accordance with laws and regulations. A Council of Representatives elected by co-op members is not a statutory body of the cooperatives, but it replaces the function of the cooperative meeting in large cooperatives.
The Cooperatives Act does not require the setting up of a Supervisory Board, but a Supervisory Board has been set out in the rules of the cooperatives as part of the administrative model. The participation of the large number of owners in decision-making requires the extensive representation of elected officials and owners in the administration. The Supervisory Board often plays an important role in the operations of a cooperative. Its duties are particularly important with regard to monitoring. As the representative of the large number of owners in a cooperative, the Supervisory Board elects the members of the Board of Directors.
As a rule, the Board of Directors of a regional cooperative consists of the Managing Director and members elected by the Supervisory Board for one calendar year at a time. The number of the members of the Board varies by cooperative. The Managing Director usually serves as Chair of the Board in accordance with the rules of the cooperative. The Board of Directors is responsible for carefully promoting the interests of the cooperative and managing its matters in accordance with the Cooperatives Act, the rules of the cooperative, the regulations confirmed by the Supervisory Board and the instructions and decisions issued by the Council of Representatives and the Supervisory Board. The Board of Directors is responsible for ensuring that the business operations of a cooperative are successful.
A regional cooperative has a Managing Director, who is responsible for managing its operations in accordance with laws and regulations and the instructions and decisions issued by its administrative bodies.
The Council of Representatives of a cooperative elects its auditors for the following financial period based on the preparatory work carried out by the Nomination Committee.