The Maltese co-operative general meeting : a display of corporate governance?

Abstract

Purpose The objective of this study is to determine whether the general meeting of Maltese co-operatives serves as an adequate display of corporate governance. This includes considerations of accountability, member attendance and participation, transparency and regulatory framework compliance. Design The objective is achieved through a series of semi-structured interviews with seven cooperative experts and fourteen Committee of Management representatives complemented by the observation of one Annual General Meeting. Findings The study indicates a lack of knowledge on the deeper meaning of corporate governance and its role within general meetings. The latter deemed as compulsory by law yet essential for communication purposes, notwithstanding the apathy with respect to participation on the part of quite a few members. Nonetheless, members are satisfied with the prevailing level of accountability particularly that conveyed by the external auditor. Members appeared satisfied with the level of transparency transmitted; however doubts lingered as to whether all unfavourable or adverse events which were in the interest of members were in fact passed on to such members. The findings reveal the need for the respective authorities to formulate stricter and harsher measures for co-operatives to hold the Annual General Meeting within the stipulated period. Conclusion The study concludes that general meetings are as yet not an adequate display of corporate governance. Although co-operatives are moving in the right direction, they cannot progress without the appropriate education and expertise, sufficient commitment and member participation, and the guiding light of corresponding laws and regulations. Value It is hoped that this study will increase awareness on general meetings as a display of corporate governance. Recommendations include; allowing in the Committee of Management non-members with management background, instituting members’ panels, revising the present Act, and developing Code of Ethics in individual co-operatives.