Any responsibility or authority not granted to the Board by the General Assembly, remains with the General Assembly. This by-law is required to allow the board to perform necessary financial transactions on behalf of the coop. While technically optional, it is standard practice to give this authority to the Board. The Assembly could, however, limit the amounts the Board is authorized to borrow, for example.
Unlike most decisions made by the General Assembly, which will normally pass by simple majority (50% + 1 vote), unless previously decided otherwise, the Act requires at least a 2/3 majority to approve a by-law granting the right to borrow funds on the cooperative’s credit, or mortgage its assets. Ref: Cooperatives Act, CQLR c C-67.2, Article 89.