Chapter 5 — Projects & Conflicts of Interest

PROJ-01 Project Contracting Principle

Projects are contracted under the Co-op’s name. Contracts, quotes, payments received, and deliverables must be filed and traceable.

PROJ-02 In-Project Financial Decisions: At Least Two Approvals

Why “two approvals”?

Single-person decisions lack checks and balances, potentially leading to financial risk or unfair allocation. “Two approvals” is the minimum mutual-review mechanism — it’s not burdensome (no full-team vote required) yet prevents unilateral decisions. It’s protection for everyone.

1. Any project budget, allocation, cost expenditure, or freelance hiring requires approval from at least two worker-owners (including the proposer) before execution. Matters involving conflicts of interest are handled per recusal rules (see GOV-07).
2. Exception for solo projects (retroactive approval): if a project is actually executed by only one worker-owner, a second worker-owner’s approval is still required. Emergency expenditures may proceed first, but retroactive approval must be completed and filed within 7 days.

PROJ-03 Competition & Personal Contracting: Pre-declaration Required

Why require pre-declaration?

We encourage members to develop their personal expertise, while valuing team interests and trust. Pre-declaration allows the General Assembly to assess whether conflicts of interest or competitive risk exist and decide whether to approve the engagement. This balances personal professional development with team interests and ensures the Co-op’s sustainability.

1. If a member intends to take on personal work related to the Co-op’s business, they must declare in advance to the General Assembly, describing the project, client, expected income, and other relevant details.
2. The General Assembly will assess the declaration for conflicts of interest or competitive risk and decide whether to approve. Assessment criteria include: whether the work overlaps with the Co-op’s business, whether it may affect the member’s commitment and loyalty to the Co-op, and whether it may harm the Co-op’s reputation or interests.
3. Competition determination principles and allowed conditions will be provided in supplementary rules as a list and case library to ensure transparency and consistency in the assessment process.
4. Taking on potentially competitive work without declaration or General Assembly approval constitutes a bylaw violation and may result in disciplinary action (see DISC-02).
5. Members shall regularly update their personal contracting status and report it at quarterly review meetings to maintain transparency and trust.
6. This rule aims to balance personal professional development with team interests, foster trust and collaboration among members, and ensure the Co-op’s sustainability.
7. Any questions or disputes regarding this rule should be submitted to the General Assembly for discussion per the complaint and mediation procedure (see DISC-01).

PROJ-04 Asset Use, Lending & Responsibility

The Co-op maintains an asset registry; borrowing requires registration. In cases of significant negligence or rule violations causing loss, the General Assembly may resolve on remediation or shared liability. Depreciation/cost allocation is defined in supplementary rules.