The Kuwaiti experience in the field of cooperative work is one of the oldest and most ancient and successful experiences in the region. Cooperative work was organized in its comprehensive form after the issuance of the first legislation in 1962.This aims for cooperative societies to raise the social and economic level and provide the necessary services to their shareholders in residential areas.
To ensure that cooperative societies play their role and objectives, the legislations have a guarantee that there is a monitoring role for the Ministry of Social Affairs, which undertakes the supervision and inspection of its activities, works, and accounts. In addition, the Ministry performs its supervisory role through some mechanisms such as appointing financial and administrative controllers in the associations and appointing members to their boards of directors, in addition. Supervising its general assembly meetings.
One of the most important oversight mechanisms carried out by the Ministry of Social Affairs in my opinion is the appointment of members to the boards of directors of cooperative societies, which guarantee the effectiveness of their performance and control over their work. The Ministry has organized procedures for appointing members to boards of directors through decisions issued by them, but the decision issued by the Minister of Social Affairs Recently, to appoint Ministry employees to the boards of directors of associations, in my opinion, may undermine governance.
in this regard, we must emphasize the importance of strengthening the governance of cooperative societies’ business by providing systems and mechanisms, which control the relationship between the stakeholders to serve their interests, especially in light of some manifestations of corruption in the cooperative work. Among the most important of these mechanisms is the appointment of members of boards of directors who has experience in the same field, and are characterized by complete independence in their positions and decisions, so there will not be any conflict of interests in their presence.
In my opinion, appointing members of the board of directors of cooperative societies who work in a ministry affects the independence of this member, as he works in the same ministry that monitors the work of these societies, and at the same time participates in making strategic decisions for the association. Therefore cannot be described as an independent member.
On the other hand, the legislation that organizes cooperative work allows members of the boards of directors of cooperative societies to be granted a reward for their membership, and here the ministry’s employees may face reservations from the supervisory authorities that have a point of view regarding the disbursement of such rewards, given that such work is one of the nature of the ministry’s employees’ duties, and he is not entitled to any reward.
Therefore, I think it is prudent that the Minister of Social Affairs reconsiders his decision, by not appointing members of the boards of directors of cooperative societies from among the Ministry’s employees to preserve the role of the independent member in the boards of directors. And to consolidate the principle of their independence, which is one of the foundations of sound governance practices.
Bader alhammad 