International Journal of Scientific Research and Management (IJSRM) ||Volume||06||Issue||08||Pages||EM-2018-633-635||2018|| Website: www.ijsrm.in ISSN (e): 2321-3418 Index Copernicus value (2015): 57.47, (2016):93.67, DOI: 10.18535/ijsrm/v6i8.em1 Degsew Melak, IJSRM Volume 06 Issue 08 August 2018 [www.ijsrm.in] EM-2018-628 Governance of Multipurpose Agricultural Cooperatives in North Gondar Zone, Ethiopia Degsew Melak 1 , Beyene Derso 1 , Birhanu Melesse 1 1 Department of Rural Development and Agricultural Extension, College of Agriculture and Rural Transformation, University of Gondar, Ethiopia. Abstract Although cooperatives play important role to sustainable development through the services they rendered to their members, governance of cooperatives becomes one of the biggest challenges to their sustainability. This study was conducted to examine the governance of multipurpose agricultural cooperatives using primary and secondary data sources. Primary data was collected using Household survey on 274 sample households. Focus group discussion and observation were used to supplement household survey data. Data was analyzed using descriptive statistics and multinomial logistic regression to identify key factors of cooperative governance. The finding of the study revealed that Consistent with focus group discussion results, 63.2%, 34% 56.7%, 45%, 57.7, 66.7%, 57.6% of cooperative members were not satisfied with the services of cooperatives in distribution of chemical fertilizer, improved seeds, credit service, market access service, supply of consumer goods, farm equipment, and profitability of cooperatives respectively. The majority of sample cooperatives examined in this study displays low degree of implementation of key cooperative governance principles. The econometric result revealed that rule of law of law, awareness, and trust were found to significantly influence the satisfaction of members in the performance of primary multipurpose agricultural cooperative. On the other hand, participation, transparency, and accountability were found to influence the dissatisfaction level of members to the performance of primary multipurpose agricultural cooperative. Recommendations include Improve knowledge gap of members, and Bye-law Enforcement. Key words: governance, satisfaction, performance, principles 1. Introduction Cooperatives are important instruments for the success of sustainable development (ILO, 2013), socioeconomic transformation (Olabisi, et.al, 2015). They are solution for equality, poverty reduction, building social capital, improving marketing and financing system, empowering producers, women and the community at large (Ngozi et.al., 2013). They have played tremendous role in job creation, improved working conditions, additional income sources through profit-sharing and distribution of dividends, support community facilities and services, foster democratic knowledge, and social inclusion. As value-based and principle driven organizations, cooperative enterprises are participatory form of business, which is an important aspect cooperative governance. That is why cooperatives are recognized as vital instrument to the sustainable development’s triple bottom line of economic, social and environmental objectives, and good governance. However, the contributions of cooperatives are thin in many countries due to governance problems. Similarly, in Ethiopia Agricultural Cooperatives contribute to poverty reduction by providing economic opportunities for their members; employment, livelihoods, wide variety of services, empower the disadvantaged to defend their interests; provide security to the poor by allowing them to convert individual risks into collective risks; and mediate member access to assets to earn a living (ATA, 2012). Agricultural cooperatives in particular help farmers access the inputs required to cultivate crops and keep livestock. In addition to making accessible agricultural inputs, they help process of agricultural products, transport and market their produce (ibd). These services help pull members of cooperatives out of poverty. This is a