The future of cooperative governance in Sweden

Transcription

1 The future of cooperative governance in Sweden Leif Linde, Director KF Secretariat, KF, Sweden Brussels 2 June

2 Swedish Consumer Cooperation 3 million members 58 local co-operative societies About 900 sales outlets in Sweden About employees 410 million paid back to members

3 KF Group Owners: 3 million members in 58 societies Subsidiaries Associated company KF Real Estate MedMera (member card) KF Media KF Invest Coop Norden 42%

4 Coop Norden Sweden Norway Denmark KF Coop NKL FDB 42 % 20 % 38 % Coop Norden

5 Election process Members attend Store-, district-, constituency meetings elect representatives to General Assembly (58) Societies appoint representatives to Constituency Meetings (10) elect 94 representatives to Other members elect 7 representatives KF General Meeting 101 representatives elect KF Board of Directors appoints Chairperson

6 Democratic structure General Assembly Constituency Meeting Regional Conference *Formellt har ett ombud alla KFs 42 röster på Coop Norden Abs bolagsstämma (och motsvarande för FDB och Coop NKL). Society Board KF General Meeting 60 Representatives * KF Board M-soc., DDF, MD Coop Norden General Meeting Coop Norden Board of Directors

7 Reviewing the KF statutes The KF directives to the Statute Committee in brief: The KF Board of Directors, after KFs Annual Meeting in May 2003, decided to appoint a committee which was given the task of looking into the matter of reviewing the KF statutes: consider the Swedish Code of Company Governance an editorial review in relation to KFs part ownership in Coop Norden analyse the role of KF to strengthen the consumer co-operative activity

8 Statute committee The business idea proposed to be included in the statutes Co-operation is a organized collaboration between members. The consumers' cooperative movement shall create economic added values and at the same time enable members to contribute, through their consumption, to a society which is characterised by sustainable development for man and for the environment. This is achieved mainly through the selling and supply of products and services, knowledge development, information and moulding of public opinion related to consumption The membership gives benefits and owner influence. The distribution of surplus is made in relation to the purchases

9 Statute committee Parlamentary organisation Regional meetings not imperative according to the statutes; the societies to be invited annually for discussion on urgent issues Annual Meeting to be held before 15 May and motions to be given before 15 January No substitutes in Boards and Election Committees Chairperson of the Board to be elected by the Annual Meeting Board to be elected for one year and the Managing Director shall not be member of the Board Model rules have been changed as to consequences and Member Councils no longer called for in statutes

10 Statute committee Mission and economic matters The business can be executed as wholly-owned company, partlyowned company and in wholly-owned subsidiary to a partly-owned company No limit of Share Capital and abolition of Annual Fee Annual Meeting to approve on principles for remuneration and other terms of employment for the Executive Management Possibilities for KF to follow up and support consumer cooperative societies with economic problems

11 Statute committee The Norwegian model KF has the right to obtain economic data from a consumer cooperative society s Balance of Accounts for a full year or part of the year. Compulsory for societies to consult KF: - if the operating margin is negative according to latest Annual Report; - if total equity is below 20 % of total assets according to the latest Annual Report; - before decision on store establishment when own capital is below 25 % of total assets according to latest Annual Report; - before decision on any other investment which exceed 20 % of total assets

12 Statute committee The Norwegian model KF has the right to co-opt 1-2 persons as members of the Board of a society; - if the operating margin is negative according to the following Annual Report - if own capital in accordance with balance sheet for liquidation purpose is below 20 % of the balance sheet A cooperative shall establish a balance sheet for liquidation purposes when equity is below 20 % of total assets according to the latest Annual Report

13 Member influence New forms Member Councils connected to stores, also doing customer surveys and collecting ideas and proposals at in-store Member Points Reference Groups open to all members, each group invited regulary to meet with the store manager and representative from society Member Panels answering inquiries on consumer matters by ; some members today Members Evenings with offers and possibility to talk to staff on assortment, products and store issues