[HCoop-Discuss] Goals and policies

[S. Taylor]

Any person joining a coop like HCoop should be aware of their obligation
to support the coop by maintaining a minimum deposit.

They should also understand their rights and obligations when they
fail to make necessary payments

- a warning e-mail 30 days before their balance reaches zero
- a notification of suspension when their balance reaches zero
  and how it can be re-activated. This is where a pre-defined appeals
  process is needed - members who review appeals and advise the board of
  their decision.
- a 30 appeal period during which they either use the appeals process
  to demonstrate that they did make payment or they restore the
  minimum balance (deposit plus at least 1 month's payment)
  - in that case their account is re-activated
  - otherwise, 30 days later their membership is revoked.

For current members I'd suggest you send them all an e-mail with your
reasoning for introducing an minimum balance, asking for their
feedback. Unless feedback gives you an alternative, begin using the
bylaws you have: request that deposit. And, as soon as possible get
the necessary approval for a warning-suspension-appeal/revocation
process so HCoop stops losing money and your time.

Some kind of subject flag might better alert members to read their
e-mail: [HCoop-Discuss] + something like [ANNOUNCE] or [BYLAW CHANGE]
or [MEMBERS PLEASE VOTE].


By the way, is there any vote-by-proxy or similar process? I ask
because some HCoop Chat room Meetings have been Sunday afternoons; I'm
nowhere near my computer at that time.

Nathan Kennedy <ntk at hcoop.net> writes:

>>>
>>> 5. Most members have been prompt about payment and we are in decent
>>> financial health.  This is aided by a number of members voluntarily
>>> contributing more than a single share.  However there have been and
>>> continue to be a few who remain behind in payments.  A particular
>>> problem is people who default on paying and then leave, forcing the rest
>>> of the membership to come up with the difference.
>>>
>>> Our bylaws allow for us to require a deposit, yet we have never really
>>> enforced this.  Our bylaws also allow the board to eject members for
>>> three months nonpayment.  I propose a new mandatory policy of requiring
>>> a refundable deposit of just over three months average costs to be made
>>> (equivalently, keeping ones balance over that amount at all times).
>>> Right now there is no deposit required and members are only emailed when
>>> their balance is very low or actually negative.
>>>
>>> This would enable the board to remove nonpaying members before their
>>> debt exceeds their deposit, and prevent delinquent members from leaving
>>> the co-op with bad debts at the expense of responsible members.  A three
>>> month deposit would only be around $15.
>>
>> Hi,
>>
>> Instead of requiring a refundable deposit (and thus increasing
>> entry-barrier for new members, which would be $25 that way),
>> I would rather see a bit different change in the
>> bylaws. One which would allow us to close people's accounts as
>> soon as their balance is below 0.
>
> One fair reading of Section 210 would already allow this.  "The board may
> suspend a member's privileges, other than the privilege to attend and vote
> in meetings, by majority vote at any time pending a vote on expulsion."  I
> had this mainly in mind for suspension of accounts pending votes for
> expulsion based on misuse or other misconduct, but I see no reason why we
> couldn't use this for negative balances.
>
> However, I think that requiring a deposit would be a simpler solution that
> wouldn't require suspending accounts and whatnot.  If someone can't come
> up with $15 or $25 for a deposit, they may not be regular keeping up with
> their payments anyway.  Some VPS and shell providers require a
> nonrefundable setup fee in that range.
>
> I think a compromise is called for.  Initially, suspend accounts that go
> negative, and require a three-month deposit to reactivate them.  Maybe if
> they persist in having negative balances after that, increase the required
> deposit to six months.
>
> -ntk
>
>
> _______________________________________________
> HCoop-Discuss mailing list
> HCoop-Discuss at lists.hcoop.net
> https://lists.hcoop.net/listinfo/hcoop-discuss

--