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— Anti-Corruption News Story Curated by Anti-Corruption Digest International Risk & Compliance News

When news broke about Mountain Equipment Co-op (MEC) being sold to an investor in the United States, the reaction among many of its 5.4 million member-owners was surprise, anger and disappointment.

More than 130,000 members have so far signed a petition to reverse the sale, while a group of members has raised more than $100,000 to give members a voice at MEC’s Companies Creditors Arrangement Act (CCAA) proceedings.

Unfortunately, these efforts are too little, too late. MEC began eroding its membership’s democratic voice years ago, which put in motion the process that’s led to its demise as a co-operative. It was all sadly predictable.

Researchers have shown that big co-operatives often fail when they drift away from co-operative principles and values, especially democratic representation.

 

 

Source: The MEC debacle is a predictable and avoidable governance failure







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