hand peeling back paper to reveal word governance

The Business Council of Co-operatives and Mutuals (BCCM) has published the first edition of the CME Governance Principles, incorporating recommendations, guidance and commentary for effective member-focussed governance. 

The publication follows an 18-month development and consultation process in partnership with the CME 100 Chairs' Forum, members and governance experts.

The Principles outlined in the publication are:

Principle 1: Create, protect and return member value: A CME should act on behalf of its members to achieve its agreed purpose by pursuing the sustainable creation, protection and return of value to current and future members.

Principle 2: Lay solid foundations for management and oversight: A CME should establish and disclose the respective roles and responsibilities of its board and management and how their performance is monitored and evaluated.

Principle 3: Structure the board to add member value: A CME should have a board that meets the organisation’s minimum requirements, is of an appropriate size, diversity and composition, and has the skills and commitment to discharge its duties and responsibilities effectively.

Principle 4: Act ethically and responsibly: A CME should act ethically and responsibly in relation to its members and other stakeholders.

Principle 5: Safeguard integrity in CME reporting: A CME should have formal controls and rigorous processes that safeguard its assets, provide independent attestations to members of the integrity of its financial processes and disclosures, and can demonstrate alignment with purpose.

Principle 6: Make timely and balanced disclosure: A CME should make timely, transparent and balanced disclosure of all matters concerning it that a reasonable person would expect to have a material effect on the value received from ongoing membership and the interests of members and other stakeholders.

Principle 7: Respect the rights of members and other stakeholders: A CME should respect the rights of its members and other stakeholders by enabling them to access information, and where appropriate, education and training to allow them to exercise those rights effectively.

Principle 8: Recognise and manage risk: A CME should establish a sound risk management framework and periodically review the effectiveness of that framework in relation to the creation, protection and return of member value.

Principle 9: Remunerate fairly and responsibly: A CME should pay director remuneration sufficient to attract and retain high quality member and independent directors and design its executive remuneration to attract, retain and motivate high quality senior executives and employees and to align their interests with the creation of value for members and other stakeholders

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