New Legislation Requires Cooperative Members Approval for Borrowing
A recent law mandates that cooperatives are not allowed to obtain loans without the consent of their members.
Through a Cabinet dispatch, the government urged the National Parliament to fast-track the enactment of corporate governance reforms for cooperatives. These changes are intended to establish institutional safeguards to enhance accountability and transparency within cooperatives.
Notably, one of the main stipulations is that the farmers must approve any borrowing by cooperatives at either their annual general meetings or extraordinary general meetings.
