Thank you, Mr. Chair.
I want to thank the witnesses for being here this morning.
My question is for all three witnesses.
The cooperative system is extremely beneficial, particularly in terms of the relationship between members and the cooperative. There is also the relationship with the board of directors. As Mr. Malloy mentioned earlier, at the end of the day, it's the board of directors that decides what direction the cooperative will take.
As you said, there are years when cooperatives do well and other years when they don't do so well. As regards profit distribution, the board of directors can divvy up all or part of the profits in a given year among members. That is a legitimate decision the board of directors makes. Some boards, however, keep a portion of the profits for recapitalization, whether to fund projects or bolster their balance sheet. There are also years when the board decides to pay out a little more.
In those years when cooperatives make a bigger profit, what would you say is the best strategy? Is it preferable to allocate a portion, say a third or half, to long-term recapitalization, or just redistribute the money to members? The second option could in fact weaken the cooperative's financial standing.
A number of strategies are possible. As I see it, every cooperative can decide for itself, but I would like to hear what you would recommend.
Mr. Malloy.