Effective Management of Co operative Businesses (Co - ops): Significant Remarks and Legal Perspectives

Rationale and Purpose

A cooperative is an organization founded to further the economic and social interests of its members through self-help and mutual support, adhering to cooperative principles. The establishment of a cooperative have to comply with cooperative law as enshrined in the Cooperative Act B.E. 2542, as amended (No. 3) B.E. 2019. This legislation has continually evolved in response to the many issues frequently encountered in cooperative management, issues that consistently find their way into media reports. These complications may originate from various levels of cooperative operation, from the committee, directors, and managers, to the cooperative officers themselves. Furthermore, the auditing systems in place often exhibit deficiencies, especially concerning financial audits, which contribute to these issues. A particular area of concern is the neglect or outright avoidance of legal procedures, as well as the presence of vulnerabilities or oversights in the regulation of savings cooperatives and credit unions, entities that function much like traditional financial institutions. These problems frequently lead to wide-reaching consequences for a substantial portion of the cooperative's membership. Other prevailing issues, including operational inefficiencies, prevent cooperatives from achieving their foundational objectives and intended operational scope. Cumulatively, these diverse challenges have eroded trust in the cooperative system. This distrust has catalyzed initiatives to revise and enhance the governing laws, aiming to foster the cooperative system's development, safeguarding, and stability while addressing the escalating severity and complexity of contemporary challenges.

In light of these issues, Graduate School of Law has introduced the course “Effective Management of Co operative Businesses (Co - ops) : Significant Remarks and Legal Perspectives” This short course aims to equip participants with a thorough understanding of the cooperative system's fundamental principles, emphasizing the benefits this system brings to Thai society. The course covers laws pertinent to cooperatives, including common operational practices that could potentially harm members. Participants will also gain critical legal insights into both administrative and criminal cases associated with cooperative endeavors. This understanding is invaluable for those who serve as cooperative facilitators or regulators, empowering them to perform their duties with increased caution, adherence to legal standards, and optimal efficiency.