11.1 The first cooperatives, started in the first half of the 20th century, were credit cooperatives, later issues of supply of inputs to the farmers and help in marketing of their produces were taken up. During the early years the villages were quite isolated and cut off from towns and cities. In the second half of this century, changes had been rapid, particularly due to improvement in infrastructure and communications. Consequently rural village business is no longer dominated by cooperatives and small shopkeepers. As marked potentials grow in rural areas, the presence of large scale business and even multinational companies in the rural economies is rising. Due to these changes a restructuring of agricultural cooperatives is needed; cooperative management practices and the extent to which the legal structures are inducive to the changes in business settings are vital to the survival of the cooperatives.
11.2 Cooperative management can be classified by five elements, namely Annual General Assembly (AGA), Board Chairman, Chief Executive, Audit and Committees (in some countries). The legal position relating to these elements are analyzed below.
