14 



Of the associations reporting the number of successive terms a director 

 served, three stated that a director could serve two successive terras 

 only. Two other associations replied that while only two successive 

 terms might be served, if a year of absence elapsed after each two, 

 the number which could be served was not limited. 



The boards of most of the cooperatives were regulated to assure reason- 

 able stability and allow use of accumulated directorial experience, 

 yet provide for turnover of board members through regular elections 

 and successive term restrictions. 



The bylaws of most associations also provided for other than normal 

 regulation of the board. Means were made available for the member- 

 ship, and sometimes fellow directors, to remove during tenure a director 

 or directors for cause. 



Functions 



The functions of association boards were concentrated primarily in the 

 areas of policy-making and policy-supervision. 



The boards of some of the cooperatives appointed an executive (or 

 management) committee. This committee, composed of a designated number 

 of board members, was delegated certain powers and duties by the board 

 of directors. The executive committee might be required to meet more 

 often than the board of directors. 



It considered specific problems which would be difficult for a meeting 

 of the entire board to handle, especially if it was composed of a large 

 number of directors. Such problems might concern management of the 

 business, guidance of manager and employees, acquisition of employee 

 bonds and various types of insurance, composition of audit reports, 

 handling of funds and selection of a depository, or preparation of 

 reports for Federal and State authorities. 



Seven association boards held quarterly meetings and four met semi- 

 anually. Two others held monthly meetings, and a similar number met 

 only when warranted. Of the seven cooperatives reporting quarterly 

 board meetings, two held additional meetings when required. 



All cooperatives reported that board meetings were open to the manager, 

 and 13 reported that they were also open to members of the association. 

 However, only 2 of the 13 associations reported that members actually 

 attended the meetings. 



Compensation 



Nine of the 15 associations paid directors for attending board meetings. 

 Five of these, whose meetings were sometimes expected to last more than 

 1 day, paid on a per diem basis. In addition, one also paid for all 

 living expenses board members incurred while attending the meeting. The 



four remaining associations paid their directors a fixed amount for 

 attending each meeting. 



