Virginia Court Rules in Favor of Democratic Control for Cooperatives

08 Apr 2024
Photo by Matthew Henry on Unsplash

8 April 2024 | A Virginia State Court of Appeals ruled in favor of an electrical cooperative’s members. A few years ago, members of the Rappahannock Electric Cooperative had brought forth proposals that would change certain bylaws, most notably for board transparency and operations. However, the board denied members from even being able to make proposals. 

Members filed suit claiming that by nature of being a cooperative, their voices should be heard and weighed. The state's court of appeals found that members are legally allowed to make proposals to change a coop’s bylaws under the state's Virginia Utility Consumer Services Cooperatives Act, Virginia Nonstock Corporation Act, and Virginia Stock Corporation Act. 

The decision reinforces the ICA's statement that cooperatives should be democratically run. This new legal precedent also guarantees the right for any member of a co-op in Virginia to try and change their cooperative rules and procedures without fear of being dismissed. 

To read more about the case click the link above.

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