GOVERNANCE STRUCTURES OF THE AGRICULTURAL CO-OPERATIVES IN BULGARIA – CONCEPTS AND PRACTICES

This paper examines the governance structures of Bulgarian agricultural co-operatives and the effective informal changes in the governance model. In this context, the focus is to study the innovations in the internal governance that either improve or deteriorate the governance structure. The agricultural co-operatives, as specific forms of doing business in agriculture, are part of the world economy. In the global world in which they are currently operating, market dynamics and growing competition have a significant impact on them: their visions, strategies, governance and governance structure are changing. The empirical data are the result of case studies and in-depth interviews conducted by 32 agricultural cooperatives in Bulgaria during the period 2013-2016. Qualitative research techniques are used. As a result of the reported deviations from the legal framework, the in-depth study highlighted the need for new informal assisting bodies of the governance structure in Bulgarian agricultural cooperatives - Members Council, informal interest groups, attracting external experts. The loss of trust from members to management leads to their leaving the cooperative and directing them to corporate structures