Cooperative
A Lecture for Narvacan National High School MPC
August9, 2013
Management
Definition1
Manipulation of resources to achieve objectives
Resources: 7Ms
1. Money
2. Machine
3. Men
4. Market
5. Materials
6. Measurements
7. Methods
Definition Management
The process of
getting activities
completed efficiently
and effectively with
and through other
people.
ORGANIZATIONAL
STRUCTURE OF
COOPERATIVE
Organizational
Structure
Audit Committee
Mediation/
Conciliation
Committee
Ethics
Committee
MC 2011-07
General Assembly
Board of Directors
Other
Committees
Management
Staff
Secretary
Election
Committee
Treasurer
COMPOSITION OF THE GENERAL
ASSEMBLY
The General Assembly shall be
composed of such members who are
entitled to vote under the Articles of
cooperation and By-laws of the
cooperative.
POWERS OF THE GENERAL ASSEMBLY
The General Assembly shall be the highest policymaking body of the cooperative. The general assembly
shall have the following powers:
•To determine and approve amendments to the
articles of cooperation and by-laws
•To elect or appoint the members of the board of
directors, and to remove them for cause.
•To approve developmental plans of the cooperative
7
MEETINGS
A regular meeting shall be held by the general
assembly on a date fixed in the by-laws, or if not so
fixed, on any date within ninety (90) days after the
close of each fiscal year. Provided, that notice of
regular meetings shall be sent in writing, by posting
or publication, or through other electronic means to
all members of record.
Whenever necessary, a special meeting of the
general assembly may be called at any time by a
majority of the board of directors or as provided for
in the by-laws.
QUORUM
A quorum shall consist of at least twenty-five
percent (25%) of all the members entitled to vote.
VOTING SYSTEM
Each member of a primary cooperative shall
have only one (1) vote. (one man-one vote policy)
GA Resolution
•
•
•
•
Development Plan
Annual Plan and Budget
Acceptance of AFS
Hiring of External Auditor
As far as practicable, the order of business of
a regular general assembly meeting shall be:
a. Call to order;
b. Declaration/Consideration of presence of
quorum;
c. Reading, consideration and approval of the
minutes of the previous meeting;
d. Presentation and approval of the reports of the
board of directors, officers, and the committees,
including audited financial statements of the
Cooperative;
e. Unfinished business;
f. New business;
i. Election of directors and committee
members
ii. Approval of Development and/or
annual Plan and Budget
iii. Hiring of External Auditor
iv. Other related business matters
g. Announcements; and
h. Adjournment
Direction and Management
of the affairs
The direction and management of the
affairs of a cooperative shall be vested in a board
of directors which shall be composed of not less
than five (5) nor more than fifteen (15) members
elected by the general assembly for a term fixed in
the by-laws but not exceeding a term of two (2)
years and shall hold office until their successors
are duly elected and qualified, or until duly
removed for cause.
POWERS OF THE BOARD OF DIRECTORS
The board of directors shall be
responsible for the strategic planning,
direction-setting and policy-formulation of
the cooperatives.
QUALIFICATION
Any member of a cooperative , who has the right to vote
and possess all the qualifications provided in the by-laws
shall be eligible for election as director.
The members of the board of directors shall not hold any
other position directly involved in the day to day
operation and management of the cooperative.
Any person engaged in a business similar to that of the
cooperative or who in any way has a conflict of interest
with it, is disqualified from election as a director of said
cooperative.
MEETING OF THE BOARD AND QUORUM
REQUIREMENTS
Regular meetings of the board of directors shall be held
at least once a month.
Special meetings of the board of directors may be held
at any time upon the call of the chairperson or a majority
of the members of the board.
A majority of the members of the board shall
constitute a quorum for the conduct of business.
Directors cannot attend or vote by proxy at board
meetings.
VACANCY IN THE BOARD OF DIRECTORS
Any vacancy in the board of directors, other
than expiration of term, may be filled by the vote
of at least a majority of the remaining directors.
Otherwise, the vacancy must be filled by the
general assembly in a regular or special meeting
called for the purpose.
A director so elected to fill a vacancy shall serve
only the unexpired term of his predecessor in
office.
OFFICERS OF THE COOPERATIVE
The board of directors shall elect from among
themselves the chairperson and vice-chairperson
and elect or appoint other offices of the
cooperative from outside of the board.
No two (2) or more persons with relationships
up to the third degree of consanguinity or affinity
nor shall any person engaged in business similar to
that of the cooperative shall serve as an
appointive office.
OFFICERS OF THE COOPERATIVE
The officers of the cooperative shall include:
• Members of the board of directors
• Members of the different committees created by
the general assembly
• General manager
• Secretary
• Treasurer
• Other positions as maybe provided for in the by-laws
MC 2011-04 LEGAL INTERPRETATION OF ARTICLE42 OF the PHILIPPINE
JCOOPERATIVE CODE OF 2008 (REPUBLICACT NO. 9520)
COMMITTEES OF COOPERATIVES
The By-laws shall provide for the creation of the
following committees:
1. Audit committee - elected by GA
2. Election committee - elected by GA
3. Mediation and Conciliation committee - appointed
4. Ethics committee - appointed by BOD
5. Education committee - appointed by BOD
6. Other committees as may be necessary for the
conduct of the affairs of the cooperative (ex. Credit
committee)
21
Implementation of the Training
Requirements for Cooperative Officers
MC 2011-27
To rationalize the implementation of Rule 7 of the
Implementing Rules and Regulations of RA 9520
MC 2013-02 | Supplemental Rules on
the Training Requirements of
Cooperative Director, Officers and
Committee Members
Inclusion in the election guidelines that
requiring all officers to comply with the
mandatory trainings and person
responsible to ensure compliance thereof
REMOVAL OF ELECTED OFFICERS
All complaints for the removal of any elected officer
shall be filed with the board of directors.
Such officer shall be given the opportunity to be
heard. Upon finding of a prima facie evidence of guilt,
the board shall present its recommendation for
removal to the general assembly.
An elective officer may be removed by ¾ votes of
the regular members present and constituting a
quorum, in a regular or special general assembly
meeting called for the purpose.
Strategic Plan Preparation
Development Plan (DP)
 Annual Plan
Social Development Plan (SDP)
Education and Training Plan (ETP)
Succession Plan (HRD Plan)
Note: - Annual plan is lifted from
the Development Plan
- SDP and ETP can be incorporated
in the DP
Board Resolutions
 Oversight functions
 Performance evaluation/appraisal
 Election guidelines
 Distribution of net surplus (Rate of
Interest and patronage refund)
 Provisions and funding for statutory
reserves
 Utilization of statutory reserves
 Provisions of funding for Retirement
fund
Policy/Board Resolutions
 Monetary benefits (Performance Bonus, 13th
Month Pay, SSS, Phil Health, Pag-ibig)
 Non Monetary Benefits (Rice subsidy,
uniforms)
 Membership subscription of capital
 Compliance limitation of shares
Deposit for share capital subscription
 Issuance of ISC/PR
Policy/Board Resolutions
• Conflict management – officers, employees,
members
Conflict management – officers,
• Associate
members members
employees,
• Laboratory
cooperatives
 Associate
members
• Subsidiary
coop cooperatives
Laboratory
 Subsidiary coop
COMPENSATION
In the absence of any provision in the bylaws fixing their compensation, the directors
shall not receive any compensation except for
reasonable per diems.
General Manager. The General Manager shall:
i. Oversee the overall day-to-day business operations
of the cooperative by providing general direction,
supervision, management and administrative control
over all the operating departments subject to such
limitations as may be set forth by the BOD or the GA;
ii. Formulate and recommend in coordination with
the operating departments under his/her
supervision, the Cooperative’s Annual and Medium
Term Development Plan, programs and projects, for
approval of the BOD and ratification of GA;
General Manager. The General Manager shall:
iii. Implement the duly approved plans and programs of
the cooperative and any other directive or instruction of
the BODs;
iv. Provide and submit to the BODs monthly reports on the
status of the coop’s operation vis-a-vis its target and
recommend appropriate policy or operational changes, if
necessary;
v. Represent the cooperative in any agreement, contract,
business dealings, and in any other official business
transaction as may be authorized by the BODs;
vi. Ensure compliance with all administrative and other
requirements of regulatory bodies; and
vii. Perform such other functions as may be prescribed in
the By-laws or authorized by the GA.
Functions Of Management
Get the job
done on time
Within
budget
Satisfactorily
Using
available
resources
Planning
Devise short-range and long-range
plans and set goals to help achieve the
plans
Organizing
How to use resources
Staffing
choosing the right person for the job
Directing
Guiding employees to perform their
work
Controlling
Monitoring progress towards goals
Manager Skills
•
•
•
•
•
Conceptual
Design (Technical)
Human
Decision making
Problem Solving
Managerial Skills
Top Level
Conceptual / Design
Middle
Design / Human Skills
First Line
Operations
Conceptual Skills
Ability to see the
Creation
Phase
:
‘big picture’, to
Establish positive
recognize and
thinking
understand
Develop creative ideas
Combine
significant
Refine
elements in a
Re-arrange
situation.
Simplify
Technical Skills
Knowledge of
and
proficiency in
activities
involving
methods,
processes and
procedures.
Development of your
technical skills as an
integral part of your
personal
development
Strong technical skills
can save you time
and increase income
Human Skills
Ability to work  HR is most important
career skill
with people.
Creation of an  One’s ability to get
along is the single
environment in
most important
which people
factor affecting
feel secure and
chances of success in
free to express
the workplace
their opinions.
Decision Making Skill
Ability to solve
problems that
will benefit
enterprise. Also
ability to design a
workable solution
to the problems
and to avoid
them in future
Simple tips:
- get all the facts
- weigh
- decide
- act
Post Implementation:
- monitor
- verify results
- document
- celebrate success
Problem Solving
Prevention Principle
– Solve problem @ the source.
Live by the 1 – 10 – 100 rule
Practice Principle
Problem Solving
•If problem is not fixed
when it occurs it will
1–
become costlier to fix later
– money and time
10 – 100 Rule
100
Fix Problem
After it Goes to
Customer
Cost
10
1
Fix Problem
Before it Reaches
Customer
Prevent Problem
Time
Lately in public administration
POSDECoRB
Managerial Function
1
2
3
4
5
6
Planning
Organizing
Staffing
Directing/Influencing
Coordinating/Reviewing
Budgeting
Level of Management
Top Level
Management
Middle Level
Operation
High level
(strategic)
Long-range
view
Planning
43
Middle level
(tactical)
Responsible for
working out
strategies and
plans to
implement
decisions and
policies made
by top level
managers.
Low level
(operational)
Supervisor
Directing and
controlling
Responsible for
ensuring work is
done according
to plans.
Task Assignment and Training
T3
T1
Worker
Worker
Manager
T2
T4
Worker
Worker
Continued Supervision, Coordination, and Planning by Manager
Manager
T1
T3
Worker
Worker
T2
Worker
T4
Worker
46
Workers
People who work directly on a job or
task and have no responsibility for
work of others.
Managerial Functions
45
25
TOP
20
5
35
30
Organizing
Plan
5
15
20
15
Leading
50
30
MIDDLE
FIRST
Coordinating
10 Managerial Roles
A. Interpersonal Roles (figurehead, liaison,
leads)
10 Managerial Roles
B. Decision Maker ( entrepreneur,
disturbance handler, resource allocator,
negotiator)
10 Managerial Roles
C. Informational Roles (monitors,
disseminator, spokesperson)
REPORTS REQUIRED FOR
COOPERATIVE
REQUIRED REGULAR REPORTS
The following reports shall be submitted to the
Authority:
1. Cooperative Annual Performance Report (CAPR)
2. Audited Financial Statement duly stamped
“Received "by BIR
3. Socio Audit Report
4. Performance Report
5. List of Officers and Trainings
undertaken/completed
54
REQUIRED REGULAR REPORTS
1.Cooperative Annual
Performance Report (CAPR)
2013-13 Revised CAPR
Template
55
REQUIRED REGULAR REPORTS
2. Audited Financial Statement duly stamped “Received
"by BIR
MC 2013-08 | Supplemental Policy on the
Submission of Audited Financial Statements Duly
Stamped "Received" by the BIR Pursuant to Section
2 (4), Rules 8 of Rules and Regulations
implementing Certain Provisions of R.A. 9520
Show proof within 30ndays that the cooperative have
submitted AFS to BIR however failure of the cooperative to
show proof will be construed the cooperative has not
submitted its AFS with BIR
56
REQUIRED REGULAR REPORTS
3. Socio Audit Report
2013-16 Guidelines on Social Audit
in Cooperatives
57
REQUIRED REGULAR REPORTS
4. Performance Report
5. MC 2013-15 Guideline on
Performance Standard for
Cooperatives
58
REQUIRED REGULAR REPORTS
5.List of Officers and Trainings
undertaken/completed
FILING
All registered cooperatives shall file
with the Authority a copy of the
required reports either through
personal, registered mail, courier
or electronic means, within 120
days from the end of every
calendar year.
PENALTY
P 100 per report per day
COOPERATIVE AS A
BUSINESS ENTITY
As a business...
• They follow all business norms like:
– Compliance with all business requirements
such as but not limited to business permits;
registration with BIR; social legislation and
labor laws;
– Adherence to local laws;
– Healthy competition;
– Open trade;
– Cash trading
63
As a business...
• They follow all business norms like:
–Selling at market price
–Avoid destructive competition among
coops
–Adequate capitalization
–Adherence to business governance
64
As a business...
•
•
•
•
Constant expansion
Quality Standardized Goods
Minimize Expenditures
Comply with basic
requirements of a business
enterprise.
65
As a business...
•
•
•
•
Constant expansion
Quality Standardized Goods
Minimize Expenditures
Comply with basic requirements of
a business enterprise.
As a business...
1. BIR REGISTRATION
• Articles of Cooperation and Bylaws
• Certificate of Registration from
CDA
2. Tax Identification Number
(TIN)
As a business...
3. Book of Accounts
- yearly, on or before the last
working day of December
- 2 Columnar, Cash Receipt,
Cash Disbursement,
Ledger, Journal
As a business...
4. Certificate of Tax Exemption
* Certified true copy of Articles of
Cooperation, By-laws and
Certificate of Registration
* Application Letter
* BIR Registration
* TIN of member or cedula