State Cooperative Statutes -- Conflict of Cooperative Concept with Efficiency
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Cooperative statutory provisions that provide
for democratic membership control provide
limitations affecting the management of cooperatives.
Management provisions concerning membership
requirements for directors and officers,
amendments to articles of incorporation, and removal of officers may unduly restrict the management
of cooperatives and contribute to the poor
economic performance of Northeastern cooperatives.
Minor statutory changes, or changes of a
cooperative's articles or bylaws, may help improve
the performance of these business operations.