Preamble: Purpose and Value of the Label

These Regulations define the criteria, procedure, and conditions for the granting, use, and revocation of the Label, ensuring that it represents a reliable seal of trust for members, stakeholders, and the market.

Article 1 • Purpose and scope

These Regulations govern the entire life cycle of the Label, including:

a) The eligibility conditions for applicant cooperatives.
b) The objective evaluation criteria on which the OETC's audit is based.
c) The formal procedure for application, review, and granting.
d) The terms for the correct use of the Label.
e) The conditions for monitoring, renewal, suspension, and revocation of the Label.

Article 2 • Eligibility Conditions

Any cooperative enterprise with its registered office in a Member State of the European Union may submit an application for the Label, provided it meets the following prerequisites at the time of application:

1. Integrity in the REGC Having no active reports against it in the European Register of Cooperative Governance (REGC) for a minimum consecutive period of 36 months.

2. Management Stability The current Board of Directors must have been in office for at least 12 months.

3. Consent to Evaluation The cooperative must agree to undergo the OETC's documentary audit process and provide all necessary information for the evaluation.

4. Commitment to Communication with Members  The applicant cooperative must accept, as a condition for obtaining and maintaining the Label, that the OETC may communicate directly with its membership base. This includes authorization to send periodic communications (e.g., via a newsletter or dedicated sections on the cooperative's website) aimed at informing members of their rights, the principles of good governance, and the Observatory's activities. This commitment is a concrete demonstration of the cooperative's willingness to promote a conscious and participatory membership base.

Article 3 • Evaluation Criteria for Granting

OETC will evaluate the candidate cooperative based on a documentary analysis aimed at verifying the adoption of best practices in four key areas:

3.1 • Financial and Managerial Transparency

• Proactive publication on the cooperative's website of clear balance sheets, management reports, and minutes of general meetings.

• Adoption of an internal policy specifying in a detailed and transparent manner the criteria for calculating and distributing patronage refunds.

• Full and analytical publication of all remuneration, in any form, received by the members of the Board of Directors and the supervisory body.

3.2 • Democratic Member Participation

• Adoption of practices aimed at maximizing informed participation in general meetings (e.g., sending documentation well in advance, organizing pre-meeting sessions, using digital platforms for debate).

• Existence of structured and permanent communication channels between the membership base and the Board of Directors (e.g., member advisory committees, periodic surveys).

3.3 • Access to Rights and Information

• Adoption of an internal regulation for the exercise of the right of inspection and access to documents that is demonstrably more favorable and less restrictive for the member than the minimum legal provisions.

• Existence of a periodic training program for new and current members on their rights and the principles of cooperation.

3.4 • Governance Structure

• Presence of statutory or regulatory mechanisms favoring the turnover of corporate officers, by limiting the number of consecutive terms for directors.

• Adoption of an internal code of ethics and clear procedures for managing directors' conflicts of interest.

Article 4 • Application and Granting Procedure

1. Application The cooperative submits its application via the dedicated portal on the OETC website, attaching the required documentation (statutes, latest balance sheets, internal policies, etc.).

2. Review (Documentary Audit) The OETC team examines the documentation to verify compliance with the criteria in Article 3. This phase may include requests for additional information.

3. Decision The OETC's Evaluation Committee deliberates on the outcome of the review. The decision, whether positive or negative, is reasoned and formally communicated to the cooperative.

4. Granting and Publication In the event of a positive outcome, the OETC issues an official certificate and grants the license to use the Label. To ensure maximum visibility for virtuous practices, the OETC reserves the right to publish and maintain  an official list of "Governance Compliant Cooperatives" on its website, thus making public which companies have obtained this recognition.
   

Article 5 • Duration, Monitoring and Renewal

• Term The Label is valid for 3 years from the date it is granted.

• Monitoring The cooperative undertakes to inform the OETC of any substantial changes to the policies that led to the granting of the Label. The OETC reserves the right to conduct spot checks.

• Renewal Upon expiration, the cooperative may request renewal through a simplified procedure by submitting a declaration that the requirements are still met and providing updated documentation.

Article 6 • Suspension and revocation of the Label

1. Immediate Suspension The Label is suspended immediately and as a precautionary measure if a new report is opened against the cooperative in the REGC. The cooperative is obligated to immediately remove the Label from all its communication channels.

2. Revocation The suspension becomes a final revocation if the report in the REGC is confirmed. Revocation may also occur if, during monitoring, the OETC finds that the conditions that led to the granting of the Label are no longer met.

3. Exclusion Period A cooperative whose Label has been revoked may not submit a new application for 3 years.

Article 7 • Unauthorized use and penalties

The "OETC - Governance Compliant" Label is a registered trademark owned by the OETC. Its use is strictly limited to cooperatives holding a valid license. Any unauthorized, fraudulent, or misleading use of the Label will result in the following consequences:

1. Formal Notice The OETC will send a formal notice demanding the immediate and complete removal of the Label from all communication materials (digital and physical).

2. Registration in the REGC Unauthorized use of the Label is considered a serious breach of transparency principles and constitutes grounds for the immediate and escalated registration of the cooperative and its directors in the REGC.

3. Public Disclosure The OETC reserves the right to publicly communicate any misuse of its Label on its website and through other channels to protect the Label's integrity and inform stakeholders.

4. Legal Action In the event of non-compliance with the formal notice, the OETC will take all necessary legal action to protect its intellectual property rights, including claims for material and reputational damages.

5. Future Ineligibility The cooperative responsible for unauthorized use will be ineligible for any future application for the Label for a period of five (5) years from the date the violation is confirmed.

Article 8 • Process Costs

To ensure the sustainability and independence of the evaluation process, the applicant cooperative is required to pay a contribution to cover the review and audit costs. The fees are published on the OETC website and are differentiated according to the size of the cooperative. The contribution covers the entire three-year validity period of the Label and must be paid again in the event of a renewal application.

Article 9 • Benefits of the "OETC - Governance Compliant" Label

Obtaining the Label is not merely a formality but a strategic investment. Certified cooperatives benefit from:

• Enhanced Reputation The Label is a strong, credible signal of integrity and transparency, improving the cooperative's perception among members, clients, and the community.

• Increased Trust from the Membership Base
   This is a concrete demonstration of the Board's commitment to operating in the interests of its members, fostering a climate of trust and greater participation.

• Competitive Advantage In a market that is increasingly attentive to ethical values, the Label can be a distinguishing factor compared to less transparent competitors.

• Positive Visibility Inclusion on the public list of virtuous cooperatives on the OETC website offers a prestigious showcase at the European level.

• Credibility with Financial and Institutional Partners The Label acts as a certification of good governance, which can facilitate access to credit and relationships with public institutions.

Article 10 • Official communications

All communications from cooperatives regarding these Regulations (requests for information, submission of applications, etc.) must be made exclusively via the official forms on the OETC website or, in their absence, via the email address coop@oetc-rights.eu.