Structure of a Housing Cooperative

The members of a housing cooperative are those individuals whose applications for membership have been approved by the management committee. The members should:

• be at least 18 and less than 65 years of age to qualify for a mortgage protection policy issued by a long-term finance institution,
• work and live in the area served by the cooperative,
• be able to meet their financial commitments to the cooperative,
• be willing to work with the other members to achieve the objectives of the cooperative, and
• need a house to live in.

The supreme authority in a cooperative is the general membership (or general assembly). The membership meets at least once a year in the general meeting or on such occasions as may be considered necessary by the members in accordance with the bylaws.

To join a housing cooperative, a member must pay an entrance fee and subscribe to at least one share. The amount of the entrance fee and the share are determined by the cooperative and are usually stated in the by laws.

Each member in a housing cooperative shall have one vote. The members are expected to attend the general meetings of the cooperative to use their vote in the democratic decision-making process of the cooperative. Members shall not be allowed to use a proxy vote.

The members will participate in the general meeting in the following decision-making activities:

• electing, suspending, and removing members of the mamagement committee
• confirming the management committee in accepting, refusing, or expelling members
• considering management committee reports, the annual statement of accounts, the balance sheet, the auditor’s report, and any inspection report by the commissioner for cooperative development
• approving the distribution of surplus income or profit
• approving the maximum financial liability to be incurred during the following year
• approving any amendments to the cooperative’s bylaws
• approving any other business in accordance with the bylaws

Members must understand that the bylaws limit their rights and powers, as well as those of the mamagement committee. They also need to realize that the bylaws or policies of the elected management committee and the long-term finance institution may further limit their operations by establishing obligations, regulations, and controls exceeding those prescribed by legal statutes.

Management Committee Members

The management committee is composed of cooperative members who are elected in the general meeting to hold office in the cooperative housing society. The members of the committee should be recognized leaders who are able to work with other to achieve a common goal. They should possess leadership qualities that include the following: Good judgment

• ability to distinguish what is important
• ability to assess a situation and make plans accordingly

Good character ·

• ability to be honest with others and themselves
• ability to take action without fear of criticism

Motivation

• ability to focus on the tasks at hand
• ability to convey interest to colleagues

Self-discipline

• ability to forego self-indulgences
• ability to endure the headaches that the position entails

Good management skills ·

• ability to delegate authority to others
• ability to work with others in a constructive fashion
• ability to share credit with others

The committee shall number between five and nine members and include a chairperson, vice chairperson, honorary secretary, and honorary treasurer.

Management Committee Duties

The powers and duties of the management committee are the following:

• maintain true and accurate accounts of all monies received and expended by the cooperative
• keep a true account of the assets and liabilities of the cooperative
• keep the register of members correct and up to date
• prepare and present to the annual general meeting a profit and loss account and the balance sheet duly audited
• examine the accounts, sanction contingent expenditures, and supervise the maintenance of all books and accounts
• review each quarter the cooperative’s obligations to creditors, debtors’ obligations to the cooperative, and the status of all outstanding loans against or owed to the cooperative
• select members to fill vacancies in the management committee until the next election at a general meeting
• summon meetings
• contract loans subject to any restrictions imposed by the membership and/or the commissioner for cooperative development
• arrange for the examination of all stock received by the cooperative
• decide, with the consent of the general meeting, the terms of purchase and sale of any goods or stock which the cooperative may require and arrange for the safe custody of such assets
• assist in the inspection of books by an person authorized to see them
• appoint, suspend, or dismiss employees; fix their salaries; and obtain security from them where necessary
• conduct, defend, compromise, refer to arbitration, or abandon legal proceedings by or against the cooperative, the management committee, or the officers or employees concerning the cooperative’s affairs
• acquire on behalf of the cooperative shares in other registered societies and appoint delegates to represent the cooperative at such meetings or societies to which the cooperative may be affiliated
• enforce the regulations, terms and conditions relating to beneficiaries and property of the cooperative and to the letting and sale of such property
• enter into contracts on behalf of the cooperative
• arrange for the custody of the books of the cooperative
• impose fines on the members subject to pertinent agreements/contracts
• draw up a set of working rules subject to the approval of the general meeting and the sanction of the commissioner for cooperative development
• collect rents, repayments, installments, and interest on loans from members, tenants (if any), and purchasers
• carry on the business of the cooperative

Subcommittees

The management committee also appoints subcommittees drawn from the membership to assist it in developing and carrying out policies and maintaining liaison with the members. For example, the management committee might designate an education subcommittee, a finance subcommittee, an activities subcommittee, and so on.

Employees

The management committee may find it necessary to hire an employee for the cooperative on a part- or full-time basis who might, for example, handle correspondence, receive payments, or staff the office of the cooperative.

Professional Services A housing cooperative will probably need the services of professional groups or individuals for some services. For example, a cooperative may need legal counsel to assist in the organization of the cooperative and the review of contracts and agreements, or it may need an auditor to review its accounting records.

Organizational Structure

The following chart shows the organizational structure of UPEHCO:

UPEHCO’s Organizational Structure