Why does LREC have a board of directors?
When the cooperative was formed in 1937, its founding members approved an Articles of Incorporation and Bylaws, as the basis for cooperative governance. This document provides for a board of directors, specifies the election procedure and spells out the responsibilities of board members.
Who is on the board of directors?
LREC territory is divided by population into nine districts each of which is represented by one director elected for a three-year term.
What are the responsibilities of a director?
Monthly board meetings are usually held the last Thursday of each month from 8 a.m. to about 1 p.m. Board responsibilities include:
- Hiring a CEO
- Approving policies and policy revisions
- Approving rates
- Reviewing and approving operating budgets and work plans
- Strategic planning
- Approving various loans and contracts
How much of a time commitment is there?
Directors read a large amount of material to keep up-to-date on legislative and other issues important to cooperatives. Prior to each board meeting directors receive an e-mailed report on the specific business of the cooperative in order to prepare for the meeting. In addition, directors attend meetings of related organizations such as Great River Energy, Minnesota Rural Electric Association (MREA) and National Rural Electric Cooperative Association (NRECA) and National Rural Electric Cooperative Finance Corporation (CFC). Most meetings are held within the state. An average of 30 days per year is necessary for board and other cooperative meetings. Directors can also expect to have personal contact with and receive telephone calls from members in their districts.
What else should I know?
Directors sign a conflict of interest certification annually. Directors must accept election to leadership positions. Directors can serve five consecutive three-year terms. Directors must complete the National Rural Electric Cooperative Association Credentialed Cooperative Director (CCD) certification program within the first three-year term.
Who is eligible?
Candidates must meet the following criteria as stated in the LREC Articles of Incorporation and Bylaws:
- Receive electric service in the district from which they would be elected
- Reside within the district from which they would be elected
- Cannot have had a felony conviction within the past five years
- Cannot be an LREC employee now nor within the past three years
- Cannot be an employee of nor have a financial interest in a company doing business or competing with LREC
- Cannot be a close relative of any LREC employee (parent, brother, sister, grandparent or grandchild including step, in-law or half)
- Cannot be employed by nor share a material financial interest with an existing director
How do I become a candidate?
At district meetings
Any member of the district may nominate one candidate from the floor at district meetings. Regardless of the number of candidates, only the two receiving the most votes will be on the ballot.
By petition*
Nominee must meet the same qualifications as those nominated from the floor. Petition must be signed by 50 members of the district and filed with the secretary of the board of directors not more than 30 days after the district meeting. The secretary certifies signatures and makes sure the candidate meets all qualifications. Names are placed on the ballot in order of nomination following candidates nominated at the district meeting.
All candidates
Before officially being declared eligible, all candidates undergo an independent background check paid for by the cooperative.
When are elections held?
Each year, three of the nine districts nominate candidates for directors at district meetings. Directors are elected at the annual meeting. Prior to that, ballots are mailed to members in the nominating districts. Candidates who were nominated at district meetings are listed first on the ballot, with the name of the person receiving the most votes first. Petitioners are listed after those nominated at district meetings. All ballots are tallied by a member Credentials and Elections Committee. Results of the election are announced before the close of the annual meeting.
*This action is separate from any nomination taking place at a district meeting. Because voting at district meetings is by secret ballot, there is no way to determine whether a member who signed a petition voted for a candidate nominated at his or her district meeting without violating secrecy requirements.
LREC Articles of Incorporation and Bylaws supersede any discrepancy with the information provided in this brochure.