Governance Structure of Chinese Farmer Cooperatives: Evidence From Zhejiang Province

The governance of farmer cooperatives in China is addressed regarding democratic decision-making procedures, participation in decision making, member exit, and profit allocation. Empirical results from a survey of fruit and vegetable cooperatives in the Zhejiang province (China) indicate that the distribution of ownership rights, decision rights, and income rights in a farmer cooperative is quite skewed towards a small proportion of members. Several governance practices by cooperatives are not in line with the requirements specified by the Law. [EconLit classification; D210; Q130].