Posted by & filed under Corporate Governance.

Description:¬† Mountain Equipment Co-op (MEC) has responded to concern from its members and scrapped certain criteria it had proposed for its board members. Given its role as a major retailer, MEC wanted board members who had governance or management experience in large and complex organizations. But this upset MEC’s members who appealed to the principle of democratic governance of the co-op.

 Date: October 16, 2016

Source: theglobeandmail.com

Link:

http://www.theglobeandmail.com/report-on-business/mountain-equipment-co-op-eases-board-applicant-rules/article32383675/

Discussion Points:

1) Are you or any one in your family a MEC member? If so, were you familiar with the controversy over governance?

2) What is your take on the controversy? Should democratic principles trump the criteria for directors?

3) The article notes that although MEC’s sales were up, its profits were down. What factors may have lead to this?

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