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Chapter III Membership

REGULAR MEMBER – one who has complied with all the
membership requirements and entitled to all the rights and
privileges of membership.

ASSOCIATE MEMBER – a member of cooperative who has no
right to vote or be voted upon and shall be entitled only to
such rights and privileges as the bylaws may provide.

LABORATORY COOPERATIVE – a cooperative duly recognized
by the CDA formed and managed primarily by minors, and is
affiliated with another registered cooperative which is called
the Guardian Cooperative.

A cooperative may assist in the organization of a laboratory
cooperative of fifteen (15) or more individuals who are minors,
who may be students or out school minor, Filipino citizens, and
are actually studying or residing within the nearest are of
operation of the intended guardian cooperative.
- the minors are w/in the area of operation of guardian
cooperative, so that they can be supervised properly.

A laboratory cooperative may choose a guardian cooperative
of its choice.
Purpose of Laboratory Cooperatives
a. To serve as a training ground for its members to prepare them for
membership in regular cooperatives.
- School of prospective in a regular coop.
b. To teach the values of thrift and saving mobilization among its
members.
- They can be familiar on how to manage their finances.
c. To install cooperative values, principles, financial discipline,
business skills, and leadership skills among its members.
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- So that we can train our youth to be a leader and help the
Philippines in nation building and also to have a business
skill so that they can establish enterprise that can help our
country to provide full employment to its citizens.
d. To promote and advocate Filipino social and cultural values,
financial education, ecological awareness, and sustainable
development.
Name of Laboratory Cooperative

It shall include in its name the word “Laboratory Cooperative of
( Name of Guardian Cooperative).”
Issuance of Certificate of Recognition

This serves as a conclusive evidence that the Laboratory
Cooperative is duly recognized by the CDA as affiliate of the
Guardian Cooperative and which shall remain valid unless such
recognition has been earlier revoked or cancelled.

However, the issuance of Certificate of Recognition does not
result to acquisition of juridical personality by the laboratory
cooperative.
- The Laboratory Coop has no separate legal juridical
personality of its own. It merely relies on the personality of its
Guardian Cooperative.
Duties and Responsibilities of the Guardian Cooperative
a. Formulate the programs, plans and activities appropriate for the
education and training of the members of the Laboratory
Cooperative;
b. Supervise the conduct of Officers and General Assembly meetings
of the Laboratory Cooperative;
c. Represent the laboratory cooperative in its dealings and
transactions with third partner;
d. Formulate, adopt, and implement internal control policies and
procedures of laboratory cooperative which shall be embodied in
manual of operation for the Laboratory Cooperative;
e. Prepare, keep, and maintain the list of members;
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f. Submit an annual report on the activities and economic
operations of the Laboratory Cooperative;
g. Maintain separate subsidiary ledgers, passbooks of members, and
other accountable forms; and
h. Adopt and implement a systematic procedure in the collection of
savings deposits.
Termination of Membership
a. Upon reaching the age of majority; and
b. Such other causes as may be provided for in the by–laws of the
Guardian Cooperative and in the Manual of Operations for the
Laboratory Cooperatives.
Example:
There is a condition in the by-laws of the Guardian
Cooperative that all the members of the Laboratory
Cooperative must complete their studies. But if this
member stop from studying. It can be use as a ground to
terminate him as a member.
Option of Member who reaches the Age of Majority

Any member who reaches the age of Majority has the option
to join the Guardian Cooperative by signifying his/her intention
to become a member upon compliance with all the
requirements for membership.
NOTE: A guardian cooperative may supervise more than 1
laboratory cooperative. In addition, the dissolution of the Guardian
Cooperative shall result in the revocation of the Certificate of
Recognition of Laboratory Cooperative.
Government Officers and Employees
It is prohibited to appoint elective officials as officers of the
cooperatives which include:
a. Members of the Board of Directors;
b. Members of the different committee created by the general
assembly;

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c. General Manager or the Chief Executive Officer;
d. Secretary;
e. Treasurer; and
f. Members holding other positions as may be provided for the
by-laws of the cooperative.
NOTE: The ineligibility shall commence upon the assumption of
office.
- Pag nanumpa kana ng katungkulan sa Gobyerno, bawal
kanang maelect as an officer.
- Except for barangay officials

Any officer or employee of the Cooperative Development
Authority shall be disqualified to be elected or appointed to
any position in a cooperative

Any government employee may, in the discharge of his duties
as member in the cooperative, be allowed by the head of office
concerned to use official time for attendance at the general
assembly, board and committee meetings of cooperatives as
well as cooperative seminars, conferences, workshops,
technical meetings, and training courses locally or abroad:
Provided, That the operations of the office concerned are not
adversely affected.

APPLICATION - An applicant for membership shall be deemed
a member after approval of his membership by the board of
directors and shall exercise the rights of members after having
made such payments to the cooperative in respect to
membership or acquired interest in the cooperative as may be
prescribed in the by-laws. In case membership is refused or
denied by the board of directors, an appeal may be made to
the general assembly and the latter's decision shall be final.
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
LIABILITY OF MEMBERS - A member shall be liable for the
debts of the cooperative to the extent of his contribution to
the share capital of the cooperative.
TERMINATION OF MEMBERSHIP
 RIGHT TO WITHDRAW
– a member of a cooperative may, for valid reason, withdraw his
membership from the cooperative by giving a 60 day notice to the
board of directors.
 DEATH OR INSANITY OF A MEMBER IN A PRIMARY
COOPERATIVE
– these are valid grounds for termination of membership.

EXCEPTION
– in case of death or insanity of an agrarian reform beneficiary
member of a cooperative, the next of kin may assume the duties
and responsibilities of the original member.
- mga farmers na nakakuha ng land from government
because of the Land Distribution Program.
- Their heirs can still be a member of the coop.
Grounds for Termination of Membership by a Vote of the
Majority of All the Members of the Board of Directors.
a. When a member has not patronized any of the services of the
cooperative for an unreasonable period of time as may be
previously determined by the board of directors;
- The essence of joining a cooperative is for unity to join bond
with oher people and so that these coop will provide a service
or product that can be avail of by its members and
subsequently be the profit of teh coop and distributed. That if
one member will not patronize these coop., he can be remove,
provided it is for unreasonable period as be determined by the
BOD.
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b. When a member has continuously failed to comply with his
obligations;
- Ex: Attending a meeting
c. When a member has acted in violation of the by-laws and the
rules of the cooperative; and
- By-laws must be strictly followed.
d. For any act or omission injurious or prejudicial to the interest or
the welfare of the cooperative.
- As if, its a catch all provision that tacles any act or ommission
by a member that can greatly affect the coop.
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Chapter IV Administration

GENERAL ASSEMBLY – refers to the full membership of the
cooperative duly assembled for the purpose of exercising all
the rights and performing all the obligations pertaining to
cooperatives, as provided by Cooperative Code, AOC and bylaws.
POWERS OF GENERAL ASSEMBLY –
a.
b.
c.
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; and
To approve developmental plans of the cooperative.
NOTE: The general assembly may by a ¾ vote of all its members
with voting rights, present and constituting a quorum, delegate
some of its powers to a smaller body of the cooperative.

REGULAR MEETING – held annually on a date fixed in the bylaws, or if not so fixed, on any date within 90 days after the
close of each fiscal year.

SPECIAL MEETING – it may be called at any time by a majority
vote of the board of director or as provided in the by-laws. A
notice shall be sent one (1) week prior to the meeting to all
members entitled to vote. Members constituting 10% of all the
members may request the board to call a meeting, provided a
one (1) month notice was sent.
- It can be the Boad who can ccall the meeting, stated in the
by-laws, or the members constituting 10% of all the
members may cal for special meeting.

QUORUM – the quorum shall at least 25% of all the members
entitled to vote.
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Exception:

COOPERATIVE BANKS – ½ plus 1 of the number of voting
shares of all the members in good standing.

ELECTRIC COOPERATIVES – 5% of all the members entitled to
vote.
Voting System In Cooperative
 PRIMARY COOPERATIVE – 1 member shall be equivalent to 1
vote.

SECONDARY AND TERTIARY – Members shall have 1 basic
vote and may be granted with an incentive vote not exceeding
5 votes.

COMPOSITION OF THE BOD – not less than 5 nor more than
15 members elected by the General Assembly.

TERM OF OFFICE – 2 years
 Powers of the BOD:
a. Strategic Planning- setting the plan
b. Direction – setting
c. Policy - formulation
 Requirements for election as Director
a. Member of a cooperative who under the by-laws of the
cooperative has the right to vote.
b. Any member who possess all the qualifications and none
of the disqualifications provided in the laws or the by-laws.

Regular Meetings of the BOD
In case of the primary cooperative, the regular meetings of
the BOD shall be held at least once a month.
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
Special Meetings of the BOD
It may be called at any time upon the call of the chairperson
or a majority of the members of the board.

Quorum of the BOD
Majority of the members of the board shall constitute a
quorum.
EXCEPTION:
-laws.
NOTE: Unlike in RCC, where Directors are allowed to vote and
attend meeting via proxy. This is prohibited on meetings of BOD in
cooperative.

Vacancy in the BOD
General Rule:
Unless the vacancy occurs by reason of expiration of term, the BOD
may fill the vacancy by a majority of the remaining directors. The
director elected to fill the vacancy shall only serve the unexpired
term of his predecessor in office.
- The vacancy occurs on any ground other than by reason of
expiration of terms, the BoD may fill. But if it is, then General
assembly will be vote
Exception:
If there is no quorum, the vacancy must be filled by the general
assembly in a regular or special meeting.
 Officers of the Cooperative
It shall include the BOD, members of the different
committees by the General Assembly, General Manager or Chief
Executive Officer, Secretary, Treasurer, and members holding other
positions as may be provided for in the by-laws.
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The prohibition with relationship up to third civil degree of
consanguinity or affinity shall not apply to elected officers. It shall
only apply to officer appointed by the BOD.
- Ex: If I’m a BoD, I am not allowed to appoint my aunt as a
member of the commitee or officer to the cooperative.
- 1st degree is Parents; 2nd degree is Grandparents; 3rd
degree is Aunt and Uncles. Committees of Cooperatives
a. EXECUTIVE COMMITTEE – created in the by laws to be
appointed by the BOD with powers and duties as may be
delegated to it in the by-laws or by a majority vote of all the
members of the BOD.
b. AUDIT COMMITTEE – elected by the general assembly, thus it
shall be directly responsible and accountable to the general
assembly.
- assisting the board's oversight of the integrity of the
company's financial statements
c. ELECTION COMMITTEE – elected by the general assembly.
d. MEDIATION AND CONCILIATION COMMITTEE – appointed by
the BOD.
- Kung may gulo sila ang magsosolve
e. ETHICS COMMITTEE – appointed by the BOD.
NOTE: Other committees may be necessary for the conduct of the
affairs of the cooperative.

CERTIFICATE OF COMPLIANCE – a certificate issued to all
cooperative after complying with the rules of CDA.
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Joint and several liability for damages of Directors, Officers and
Committee members
a.
b.
c.
d.
Those who willfully and knowingly vote for or assent to
patently unlawful acts;
- Alam mong may illegal na ginagawa yung mga kasamahan or
coop and you did not do anything about it or object to it.
Those who are guilty of gross negligence or bad faith in
directing the affairs of the cooperative;
- Alam nilang male, but they still followed their collegues in
doing a bad or negligent (there was an omission on action.
That there is a required action that is incumbent upon you but
you did not do something about it)
Those who are guilty of bad faith in directing the affairs of the
cooperative; and
Those who acquire any personal or pecuniary interest in
conflict with their duty.
NOTE: When a director, officer or committee member attempts to
acquire or acquires, in violation of his duty any interest or equity
adverse to the cooperative in respect to any matter which has been
reposed in him in confidence, as trustee for the cooperative, be
liable for damages and shall be accountable for double the profits
which otherwise would have accrued to the cooperative.
- there was a strict or a trust that was imposed or granted
upon him by the cooperative and that trust was aviolated the
persons concern or liable for the damages or any profit that
the cop could have obtain and we should double that

In RCC, there is a provision that makes a BoD, Officers and
members as liable joint and severaly to cooperative. Joint and
several liability among the Directors, officers, and comitee
members, it means that it is solidary. Unlike in joint
obligation,you can only be compeled to perform on your
aliquot portion of that obligation. But in solidary obligation of
in LawEd 1, the entire obligation can be compelled with you,
but you have the right to seek reimbursement to your codebtors.
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
COMPENSATION - includes all forms of remuneration (lahat
ng klase ng bayad or benefits for the services rendered). It
refers to any remuneration given for services rendered, like
salary which is a compensation paid regularly, as by, month. It
does not imply an immediate payment, or direct return, nor
the payment of cash or its equivalent. It refers to any
remuneration, by whatever name or it is designated.
- (provided that there is a payment that is made to apartucular
person, it is cosidered as acompensation, whether any term
was use for that purpose in payment. Becasue sometimes, the
terms are being use to confuse the regulatory agency, in this
case, CDA.

PER DIEM – refers to allowance given as a reimbursement for
extra expenses incurred by one in the performance of his
duties.
- Ex: BoD’s transportation during a meeting, including the food,
toll, or gas. He is being paid for the expenses that he incured.

HONORARIUM – a gesture of appreciation for the service of
one with expertise of professional standing in recognition of his
broad and superior knowledge in specific fields. It is given to
official/ employee not as a matter of obligation but in
appreciation for services which admits of no compensation in
money.
- A honorarium is being paid as a compensation, considering
that you are specializing in a particular field.
 Grant of compensation to directors
As a rule, the compensation for directors shall be fixed in
the by-laws. If the by-laws do not provide for compensation of the
directors, the directors are not entitled to any compensation except
for reasonable per diem.
If the members voted by majority vote at a regular or
special general assembly meeting, granting compensation the
directors may receive the same.
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Suspension of the grant of per diem:
a.
b.

When the cooperative incurred net loss in the preceding year,
or
- Ex: In the prev year is naluge. Then the next year, its BoD
member’s per diem can be suspended.
When the dividend rate of the cooperative fell below the
official national inflation rate during the preceding year.
- Pag mas mababa ang dividend na nakukuha ng mga
members over the national inflation rate or pagtaas ng bilihin.
Then the grant of per diem can be discontinued.
Resumption of the grant of per diem to directors and officers
shall not be compounded. No recovery of per diem during the
period of suspension shall be allowed.
Dealings of Directors, Officers, or Committee members
General Rule
directors, officers, and committee members is voidable at the
option of the cooperative.
Dealings of Directors, Officers, or Committee members are valid
if the following are present:
a.
b.
c.
d.
The presence of such director in the board meeting wherein
the contract was approved was not necessary to constitute a
quorum for such meeting;
That the vote of such director was not necessary for the
approval of the contract;
That the contract is fair and reasonable under the
circumstances; and
That in case of an officer or committee member, the contract
with the officer or committee members has been previously
authorized by the general assembly or by the BOD.
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NOTE: Where any of the first two conditions set forth in the
preceding paragraph is absent, in the case of a contract with a
director, such contract may be ratified by a ¾ vote of all the
members with voting rights present and constituting quorum in a
meeting called for the purpose.
Provided, that full disclosure of the adverse interest of the directors
involved is made at such meeting, and that the contract is fair and
reasonable under the circumstances.
The above-mentioned rule is akin to Section 31 of the RCC.
 Disloyalty of Director
A director who, acquires for himself an opportunity, by virtue of his
office, which should belong to the cooperative shall be liable for
damages and must account for the double the profits that
otherwise would have accrued to the cooperative by refunding
the same.
The said action may be ratified by all ¾ vote of all members with
voting rights.
Illegal Use of Confidential Information by a Director, or Officer,
or an Associate of a Director or Officer
a.
b.
He shall be liable to compensate the cooperative for the direct
losses suffered by the cooperative as a result of the illegal use
of information; and
He shall be accountable to the cooperative for any direct
benefit or advantage received or yet to be received by him or
his associate, as a result of the transaction.
Example: The contact info of all the coop members was
obtained by a Director and sold it to marketing agencies. The
coopmembers then discovers what the Director has done, and
sued the coop. The one who will be liable is not the coop, but
the director.
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 Removal of Elected officer
All complaints for the removal of any elected officer shall be
filed with the BOD. Majority of the BOD may place the officer
concerned under preventive suspension pending the resolution of
the investigation.
- to prevent the officer that is being complained to from using
his position to destroy evidences that can be use againts him

If prima facie evidence exists (malinaw na evidence), the Board
shall refer its recommendation for removal before the General
Assembly. The regular members may remove the elected
officer via ¾ votes of those present and constituting quorum in
a general assembly.
Chapter V Administration
 Address and Signage
Cooperatives shall put up and maintain a signage at the
entrance of the principal offices and all branch or satellite offices.
The signage shall be visible, legible and shall contain at least the
following:
a. Name of the Cooperative;
b. Address, whether it is:
i. Principal office;
ii. Branch office;
iii. Satellite office;
c. Registration Number of the Cooperative
d. Tax Identification Number;
e. The words “ Principal, Satellite and/ or Branch Office”,
f. if applicable; and
g. The phrase “Registered with Cooperative Development
Authority- ___Extension Office”.
Addition Information for Branches and Satellites:
a. Certificate of Authority No. for branch; and
b. Letter of Authority No. for satellite.
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 Inspection
CDA can conduct inspection to ensure that cooperatives
comply with the regulatory requirements imposed by the
cooperative laws, rules and regulations, related laws, and other
administrative issuances.
 Notice of Inspection
It shall be sent to the cooperative concerned through its
BOD or the General Managers at least 2 weeks prior to the conduct
of the inspection.
The notice shall contain the following:
a. The name/s of the duly authorized inspector/s;
b. The date of the inspections; and
c. Documents and records needed during the inspection.
 Authority of the Inspector/s
During the conduct of the inspections, the Inspector/s shall
have the following powers and authorities:
a. Require the presentation and/ or submission of reports or
documents or records necessary to ascertain the facts relative
to the condition of the cooperative and other matters which
are the subject of the inspection;
b. Inquire into financial information of the cooperative and other
cooperative activities to determine whether they are in
accordance with cooperative laws, rules and regulations, and
with the general policies set by the general assembly and the
Board of Directors.
c. Conduct interview and other inquiries on matters that need
clarifications;
d. Conduct an Exit/ Clarificatory Conference; and
e. To do other acts that may be deemed necessary in the conduct
of inspection.

During the inspection, the inspection team shall observe the
principle of independence and confidentiality on the conduct
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of inspection. Further, the inspection shall be conducted by
only the authorized personnel of CDA or a team thereof. The
inspection shall be undertaken at least once a year.

After the inspection, the inspector/s shall conduct Exit
Conference to discuss all the findings and observations with
the Board of Directors and other officers of the cooperative. It
shall include the good practices of the cooperative.
- Para sabihin kung ano ba yung mga mali and kung ano yung
mga best practices ng coop na dapat icontinue and kung ano
yung dapat hindi nila gawin.

The Auditors should not publish the report in public, unless it is
for the purpose of the court filling. In case the Chairman, other
members of the Board or the key officers did not attend during
the conference, their absence shall constitute waiver of
participation. Hence, they cannot question what has occured
during the exit interview.

After the exit conference, the Inspector/s shall furnish the
cooperative a copy of the Inspection Report. It shall be signed
by the inspector and confirmed by the Chairman and/ or
General Manager or representative of the cooperative, with
written authority to sign and in their behalf.
Prohibited Acts or Omissions of Officer or Employee
a.
b.
c.
d.
e.
Omission or refusal to furnish any information, report or other
document required under RA 9520;
Providing information, reports, or other documents to the CDA
which the persons responsible know to be false or misleading;
Omission or refusal to keep a book or registry required under
RA 9520 or to make the required entry therein;
Making an entry required under RA 9520 in a book or registry
which the persons responsible know to be misleading;
Hindering an authorized inspector from making an inspection
or refusal of the cooperative to be inspected;
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f.
g.
h.
Failure to comply with an order or written instruction issued or
given by the CDA;
Violation of the provisions regarding the transactions with a
restricted party; and
Abetting, counselling, allowing, authorizing, or commanding
another person to commit an offense punishable by this Code.

Provided, that in case the violator is a cooperative or juridical
person, the penalty shall be imposed on its directors and
officers.

The cooperative may request for reconsideration within 10
days, if the inspection yields for negative findings. The request
shall be filed before the appropriate CDA – Extension Office
(EO).
- Kung meron silang ayaw sa inspection report. They can have
it reconsidered, provided it shall be filled within 10 days from
receiving.
 Required Reports
a.
For primary cooperatives Cooperative Annual Progress Report
(CAPR) with the following attachments:
1. Social Audit Report, including its programs of activities,
pursuant to the socio – civic goals of the cooperative;
- Kung ano ba yung effect nito sa society to improve the lives of
its members
2. Performance Audit Report, including copies of the semi-annual
Report on mediation and conciliation as received by the CDA
pursuant to EO 97;
- Refers to the financial position of the coop. and including the
conflict that happend during the year which is subject to
conciliation and mediation. Sometimes, may conflict yung mga
members, so it must be included.
3. Audited Financial Statements; and
- In coop, the members, directors and officers are required to
undergo training.
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4. List of Officers and Trainings Undertaken/ Completed.
b. For secondary and tertiary cooperatives ( Federations
and Unions)
Cooperative Annual Progress Report ( CAPR) with the following
attachments:
1.
2.
3.
4.
5.
6.
7.
Social Audit Report including its programs of activities pursuant
to the socio-civic goals of the cooperative;
Performance Audit Report, including copies of the semi-annual
Report on mediation and conciliation as received by CDA
pursuant to EO 97;
Audited Financial Statements;
List of Officers and Trainings undertaken/ completed;
List of affiliates and cooperatives which have remitted their
respective Cooperative Education and Training Funds (CETF);
- Yung pangalan ng mga kasama sa federation ng mga coop.
and yung mga binigay nilang pondo sa union and federation.
Business consultancy assistance to include the nature and cost,
including the use of CETF; and
- For the use, maintenance of fed. and union to improve its
operation.
Other training activities undertaken specifying therein the
nature, participants, and cost of each activity.
- All activities that were undertaken by the fed or union must
be indicated.
 Effect of Partial Compliance of required reports
It shall be considered as non-compliance, the cooperative
shall be in delay until such time that the filing of the required
reports have been fully complied with. Delay shall commence on
the day following the last day prescribed for the filing reports.
- Ex: The required filling should be done on Jan 1. on Jan 2, they
still haven’t submitted. The they were in delay starting Jan 2.
until such time it complice.
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 Notice of Delay
The CDA shall notify the cooperatives of their noncompliance within 15 days from the lapse of the period to file the
required reports, stating:
- If the deadline of submission is Jan 1, whithin Jan 2-16, the
CDA should notify the coop on what are the reports of the
particular coop who lacks or failed to submit
a. That the cooperative has incurred delay;
b. The commensurate fines and penalties that will be imposed as
a result of its failure to file the required reports; and
c. The demand to pay the fines and penalties.
 Fines and Penalties
Failure to file the required regular reports on time shall be
subject the Accountable Officers to a fine of P100 per day of delay.

Accountable Officers refer to the officer/ individuals duly
authorized by the cooperative to prepare, certify/approve the
reports and in whose had the delay/failure has occurred.
- Accountable Officers - mga tao na dapat magprepare ng mga
require reports na isusubmit sa CDA
The following officers are accountable for the following reports:
- The Chairman of the BoD is always liable becasue he is the
head of the coop. Sya ang may huling salita.
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 Bonding requirements of Accountable Officers/ Employees
of the Cooperative
In order to meet any contingency that may arise in the
operation of the cooperative, accountable officers/ employee of
cooperatives shall submit a surety bond for the faithful
performance of their functions.
 The following persons shall be bonded:
a.
b.
c.
d.
e.
f.
g.
Chairperson;
Treasurer and Cashier;
Manager;
Warehouseman;
Loan/ deposit Collectors;
Signatories of checks and other financial instruments; and
Such other persons as may be authorized by the cooperative to
act as a custodian of funds, merchandise, inventories,
securities, and other assets of the cooperative.
- The insurance company can run after the chairman of the
board or the internal auditor on the principle of Subrogaton.

The Board of Directors shall determine the adequacy of such
bonds.
- It is the BoD who will determine kung magkano ang bibihin
na Bond para sa bonded person. It can be 30M, in case of
liability, the 30M will answer in his liabilities.

CERTIFICATE OF COMPLIANCE – refers to the certificate in
lieu of Certificate of Good Standing, issued to all types of
cooperatives after compliance with the rules of CDA. This may
only be issued to operative cooperative. In MC 2011-16,
Certificate of Good Standing was changed into Certificate of
Compliance.

OPERATING COOPERATIVE - refers to cooperative that has
been performing cooperative activities with business operation
whether realizing gains or losses in the conduct of business.
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
Newly registered cooperatives can be waived operation for
NOT more than 1 year from date of its registration.

COOPERATIVE ACTIVITIES – refers to the membership,
governance, and institutional undertaking of the cooperative.

BUSINESS OPERATION – refers to the economic undertaking
of providing product and services to members in accord with
the cooperative registered objectives.
Grounds for non issuance of Certificate of Good Standing.
Notwithstanding with the provisions of this guidelines, any of the
following conditions shall warrant the non-issuance of the CGS:
a. Non- submission of statutory reports for 2 or more consecutive
years;
- From the prev slides, where numerous reports must be
submitted by the accountable officers.
b. Delayed in the submission of the statutory reports for more
than 6 months for at least 2 consecutive years;
c. Non – compliance with CDA guidelines (violation of laws,
guidelines, circulars and their by-laws); and
d. The existence of the question on legitimacy of leadership.
- Kung may issue, yung mga officers ba at BoD were properly
elected. Dapat hindi issue and legitemacy nila or yung kanilang
pagkakaelect or pagkakaappoint.
 Period of Filing
Cooperatives shall secure a Certificate of Good Standing
(CGS) to CDA on or before April 30 of the current year.
 Validity of Certificate of Good Standing
It shall be valid and effective until April 30 of the succeeding
year. However, Certificate of Good Standing issued for Special
Purpose shall be valid for six (6) months only from the date of
issuance.
23
- There is a cert of good standing for special purpose and shall
be only be valid for 6 months. But if it is a regular cert of good
standing, it is 1 year.
Chapter VI Insolvency of Cooperatives
Proceeding Upon Insolvency

In case a cooperative is unable to fulfill its obligations to
creditors due to insolvency, such cooperative may apply for
such remedies as it may deem fit under the provision of Act No.
1956, as amended, otherwise known as the Insolvency Law.

Nothing in this Article, however, precludes creditors from
seeking protection from said insolvency law.
NOTE: Republic Act No. 10142 or The Financial Rehabilitation and
Insolvency Act repealed the Insolvency Law
Chapter VII Dissolution of Cooperatives

DISSOLUTION – refers to the termination of the juridical
personality of the cooperative through appropriate judicial
proceedings, or by an order of the CDA, or through its own
initiative.
Please see distinction with dissolution of Corporations.

MODES OF DISSOLUTION – either voluntary or involuntary.

VOLUNTARY DISSOLUTION – is initiated by the members of
the cooperatives. There are 2 manners of voluntary dissolution,
namely:
a. Where creditors are affected; and
b. Where creditors are not affected.
24
 Effects of dissolution
Dissolution, whether voluntary or involuntary, terminates
the right of the cooperative to continue the business or purposes
for which it was established and is bound to wind up its affairs
within the period as specified by law.
 Voluntary Dissolution
It shall be done by the members, provided, when creditors
are affected, the interest of the third party shall be protected.

a.
b.
c.
d.
e.
f.
g.
h.
i.
The approval of the General Assembly of the involuntary
dissolution shall not restrict or preclude the cooperative to
continue the business for which it was established, except for
the following:
Refunding of member’s share capital contributions, including
the offsetting against any receivable from the members;
Making investments of any kind;
Acceptance of share capital and deposits from members;
Acceptance of new members;
Entering into a contract of whatever nature;
Securing of new loans;
Payment of liabilities which have not matured;
Payment of per diems, honorarium or allowances of the
officers unless approved by the General Assembly; and
Other acts as may be determined by the CDA.
 Voluntary Dissolution where no creditors are affected
the procedural guidelines shall be as follow:
1. Conduct of BOD meeting, with passage of a Board Resolution
dissolving the cooperative.
2. BOD sets the date, time, and place of General Assembly (GA).
3. Directing the Secretary to send written notice of GA to each
member of record with voting rights, by personal delivery or
registered mail, at least 30 days before the general assembly
meeting.
25
The notice shall contain:
a. Agenda;
b. The date, time, and place of meeting; and
c. The purpose of the meeting which is to discuss the reason/s for
the dissolution, if approved, to elect a liquidator/s.
4. Publication of Notice to Dissolve in a newspaper published
where the principal office is situated, in its absence, the same
shall bepublished in anewspaper of general circulation, all for 3
consecutive weeks.
5. Conduct of GA meeting, if the dissolution is approved, the
Board of Liquidators may be constituted.
6. Elects or appoints the constitution of the Board of Liquidators,
if the GA approves the dissolution
7. The members of Board of Liquidators shall order the
management temporary suspension of the transactions.
8. The cooperative shall submit 2 copies to CDA, the following
documentary requirements:
a. Board Resolution authorizing the dissolution;
b. Certification of the BOD signed by at least majority of the BOD
and countersigned by the Board Secretary certifying the
approval of the resolution by the members and to the fact
that no third-party creditors will be affected by the
dissolution;
c. Affidavit of Publication;
d. General Assembly Resolution with names of Board of
Liquidators; and
e. Minutes of General Assembly
9. The CDA shall issue a Certificate of Dissolution and an Order to
Commence the Winding up of Affairs within 30 days from
receipt of the Notice of Voluntary Dissolution from the
cooperative. The CDA shall inquire the financial position of the
cooperative, if it is of the opinion that third parties may be
affected.
10. The Certificate of Dissolution and the Order to Commence the
Winding-up Affairs shall be posted in accordance with the
terms of reference.
26
11. If after the CDA has issued the Certificate of Dissolution and a
creditor who is prejudiced by such dissolution appears, the
BOD shall be liable to the creditor for such amount as the
creditor was prejudiced.
12. The voluntary dissolution of a cooperative shall only take effect
upon receipt by the BOD of the Certificate of Dissolution from
CDA.
13. Upon such receipt, the cooperative, through its Liquidator,
shall proceed with the winding up of the affairs of the
cooperative.
 Voluntary Dissolution where Creditors are affected –
the procedural guidelines shall be as follow:
1. Conduct of BOD meeting and coming up with a Board
Resolution dissolving the cooperative.
2. BOD shall set the date, time, and place of the general assembly
meeting.
3. Directing the Secretary to send a written notice of the general
assembly meeting to each member of record with voting rights,
by personal delivery or registered mail, at least 30 days before
the general assembly.
The notice shall contain:
a. Agenda;
b. The date, time, and place of the meeting; and
c. The purpose of the meeting which is to discuss the reason/s for
the dissolution of the cooperative, and if such is approved, to
elect a liquidator or liquidators.
4.
Publication of the Notice to Dissolve the Cooperative of the
time, place and subject of the meeting for 3 consecutive weeks
in a newspaper published in the place where the principal
office of said cooperative is located, or if no newspaper is
published in such place in a newspaper of general circulation in
the Philippines.
27
5.
Conduct of General Assembly Meeting. The General Assembly
approves and disapproves the dissolution.
6. The Board of Directors shall prepare and file a verified petition
to dissolve the cooperative with CDA. The said petition shall be
in writing, signed by at least a majority of the members of the
Board of Directors or other officers managing its affairs,
verified by its Chairperson or Board Secretary or one of its
directors and shall set forth all claims and demands against it
and that its dissolution was resolved upon by the affirmative
votes of at least ¾ of all the members with voting rights,
present and consisting a quorum at a meeting called for that
purpose, and containing the following documents:
a. Board Resolution authorizing the dissolution;
b. Certification of the BOD signed by at least majority of the BOD
and countersigned by the Board Secretary certifying the
approval of the resolution by the members and to the fact
that no third-party creditors will be affected by the
dissolution;
c. Affidavit of Publication;
d. General Assembly Resolution containing the names of the
elected or appointed Board of Liquidators; and
e. Minutes of the General Assembly.
7.
The CDA shall issue an Order containing the following:
a. Affirmation of sufficiency in form and substance;
b. The purpose of the petition; and
c. The period to file objection or opposition to dissolve the
cooperative which shall not be less than 30 days nor more
than 60 days reckoning from the date of the filing of the
petition.
8.
The petitioner at its expense, shall publish a copy of the Order
at least once a week for three (3) consecutive weeks in a
newspaper of general circulation published in the municipality
or city where the principal office of the cooperative is situated
28
or in the absence of such local newspaper, in a newspaper of
general circulation in the Philippines.
9. The Petitioner shall likewise affect the posting of the copy of
the Order for three (3) consecutive weeks in three (3) public
places in the municipality or city where the cooperative office
is located.
10. Upon expiry of the 5-day notice to file objection, the CDA shall
proceed to hear the petition and try any issued raised in the
objection filed.
a. Objection may be in writing, together with the
documentary proof of the claim to support the objection
to be submitted to the CDA within the period specified in
the preceding paragraph.
b. After the expiration of the period of filing of objection or
claims, the CDA shall notify the BOD, and all the parties
who have filed any objection or claim, of the hearing to be
held on such a date which shall be within 15 days from the
end of the period to file objections or claims.
11. Conduct of Hearings, during the hearing, all parties shall given
the opportunity to present their objections and defend their
positions. The CDA shall act as the final arbiter issues raised.
The parties may present their evidence and seek their
admissions as exhibits.
12. Issuance of Order of Dissolution and Winding-up – The CDA
shall terminate the hearings and issue the Order of Dissolution
to the cooperative. The content of the Order of Dissolution
shall set forth the following:
a. The assets and liabilities of the cooperative;
b. The claim of any creditors;
c. The number of members;
d. The nature and extent of the interest of the members of the
cooperative; and
e. Appointment of the Board of Liquidators.
29
13. Sending of the Order – The CDA shall send the Order of
Dissolution, either by personal delivery or through a registered
mail, within 10 days upon issuance thereof.
14. Upon receipt of the above Order, the cooperative, through its
Liquidator, shall proceed with the winding up of the affairs of
the cooperative.
 Involuntary Dissolution of a Cooperative
The termination of the existence of a cooperative shall be
initiated either by the regular courts of law or by CDA. In the course
of such proceedings, the respondent shall be the cooperative,
represented by the BOD.

If upon receipt of final and executory decision of a court, the
CDA shall issue an Order to proceed with the winding up of the
affairs of the cooperative.

The CDA may order in writing that the cooperative be dissolved
for any of the causes enumerated in Articles 53, 67 and 68 of
the Cooperative Code.
The grounds are as follow:
a. Failure to file the required report ( Article 53);
b. Having obtained its registration by fraud;
c. Existing for an illegal purpose;
d. Willful violation, despite notice by the CDA, of the provisions of
the Cooperative Code and its own bylaws;
e. Willful failure to operate on a cooperative basis; and
f. Failure to meet the required minimum number of members in
the cooperative (Article 67, Cooperative Code);
g. Failure to commence business and its operation within two (2)
years after the issuance of its certificate of registration; and
h. The cooperative has not carried on its business for two (2)
consecutive years, the CDA shall send a formal notice to the
said cooperative to show cause as to its failure to operate.
30
The procedural guidelines for involuntary dissolution, are be the
following:
1.
COMPLAINT
Receipt of verified complaint (external) or reports (internal)
of cooperatives recommended for dissolution.
2.
SUMMONS OR SHOW CAUSE ORDER
Within 15 days from receipt of the complaint or report, the
CDA shall issue a summons or show cause order addressed to the
cooperative concerned, through the BOD, stating the grounds for
involuntary dissolution, and requiring the cooperative to comment
why the cooperative should not be dissolved and its certificate of
registration be cancelled.
3.
SENDING OF NOTICE
The cooperative shall be notified of the summons or show
cause order, throughregistered mail or personal delivery, it shall be
received by employees authorized to receive the same. If the
summons or show case order remains unserved, the CDA shall serve
the notice to the members of the BOD on the last known address or
as stated in AOC.
4.
ANSWER TO THE COMPLAINT
The cooperative within 15 days from receipt of summons or
show case order, file with CDA its Answer, stating the justifications
why it should not be dissolved.
5.
NOTICE OF HEARING
Upon receipt of the answer or failure to file the same within
the 15 day period, the CDA shall issue a Notice of Hearing stating
the date, time, and place of the hearing. No postponement shall be
allowed by the CDA.
6.
PRESENTATION OF EVIDENCE
During the hearing/s, the parties shall be given the
opportunity to present their evidence for or against the dissolution
31
of the cooperative. Failure of the cooperative to attend the hearing
shall warrant the CDA to issue the Order of Dissolution.
7.
ORDER OF DISSOLUTION/ DISMISSAL
After the hearing and as warranted by the evidence
presented, the CDA may issue and Order of Dissolution or dismissal
of the complaint. The resolution shall become final and executory
15 days after receipt of such Order by the parties unless a motion
for reconsideration or appeal has been perfected.
8.
APPEAL
The parties who are not satisfied with the decision of the
CDA may file their appeal to the CDA Central Office, Department of
Finance, or the Office of the President, whichever is applicable
within 15 days from the receipt of the decision.
9.
EXECUTION
The order of the CDA shall be final and executory after the
lapse of 15 days from receipt of resolution.
10. APPOINTMENT OF LIQUIDATOR
The CDA shall appoint a liquidator through issuance of an
Appointment of the Liquidator. The appointment shall also
empower the appointed person to transact business with the
cooperative’s depository banks for and in behalf of the cooperative.

The appointed liquidator shall then proceed with winding up of
affairs of the cooperative commencing from the date specified
in the appointment.
Liquidation
This concerns the various activities undertaken by a dissolved
cooperative, through its duly constituted Board of Liquidators, such
as:
a. Make inventory of assets and liabilities of the
Cooperative;
32
b. Preserved the existing assets of the cooperative;
c. Convert all assets of the cooperative into cash;
d. Pay the creditors;
e. Prosecute and defend suits by or against the
cooperative;
f. Settle and closure of its affairs;
g. Dispose, convey and distribute its remaining assets;
h. Transfer of the statutory funds to the intended
beneficiaries; and
i. Submit the Final Reports to the CDA.
years from the issuance of the Order of Dissolution
except that any time during the said period, the
cooperative is authorized and empowered to convey all
of its properties to Trustees for the benefit of its
members, creditors, and other persons in interest. From
and after any such conveyance, all interests which the
cooperative had in the properties are terminated.
METHODS – the winding up of affairs of a cooperative
may be provided for in the cooperative By-laws provided
it is not inconsistent with law. The winding up of affairs
may be undertaken in the following manner:
a. In case of voluntary dissolution, the winding up of
activities shall be carried out by cooperative itself
through a Board of Liquidators. The members of
cooperative entitled to vote shall elect from among
themselves their Board of Liquidators, and/ or by
conveying all the cooperative assets to Trustee or
Trustee who will take charge of all the winding up
activities.
b. In case of involuntary dissolution, the winding up of
activities shall be carried out by a Liquidator to be
appointed by the CDA or Competent Court.
Constitution of Liquidators/ Trustees
dators/
33
Trustees shall be selected by the BOD. In case of
failure, they shall be selected in a General/
Representative Assembly. If the Assembly failed to
act on the matter, the CDA shall appoint the same.
The appointment or election of Liquidator/s shall
terminate the powers of the BOD.
(3) but not more than five (5).
Qualifications of Liquidators
a. He must have the time and willingness to undertake
the activities concerned;
b. He must not have any conflicting interest with the
cooperative aside from his membership;c. He must possess the
technical competence to
undertake the winding up activities of the
cooperative;
d. He must not have been found guilty of any crime
involving moral turpitude, gross negligence, or gross
misconduct in the performance of his duties; nor
must he have been found culpable in any
administrative case involving such offenses;
e. He must not be facing charges as a defendant in any
civil, criminal, or administrative proceedings involving
financial or property accountability, or both; and
f. He must not have been a party to any past
cooperative anomaly.
Compensation of Liquidator
fixed by the latter. If the Liquidator was appointed by
the CDA, the compensation shall be fixed by the latter.
Distribution of Remaining Assets
shall commence the distribution of the assets in the
following manner:
a. Notice of such distribution shall be given to all
members.
34
b. The member shall surrender their share capital
certificates and/or passbooks to the Liquidator/s.
c. Checks payable to each member shall be prepared
containing the total amount of the member’s share
in the remaining assets.
d. The member shall sign a receipt of acknowledging
receipt of the amount indicated above.
e. All surrendered capital certificate and/or passbooks
shall be appropriately cancelled by marking or
mutilating such document to invalidate it.
f. In the case of loss or destruction of the share
capital certificates and/or passbooks, the member
shall execute an affidavit containing the following
information:
1. The serial number/s of the certificate/s and/or
passbook/s;
2. The value and number of shares represented by
the certificate/s and/or the last stated balance/s
of the passbook/s;
3. The circumstances as to how, when and where
the certificate/s and/or passbook/s was lost or
destroyed;
4. The lost or destroyed certificate/s and/or
passbook/s have never been transferred, sold or
endorsed to a third party; and
g. The Liquidator may also establish the member’s
shareholdings and/or deposits from other records
of the cooperative, such as the share and transfer
book and/or individual/subsidiary ledgers.
h. If a member cannot personally receive his share in
the remaining assets, the Liquidator/s may opt to
send the check representing the member’s share by
registered mail to the last known address of the
member.
i. The assets distributable to creditor/s or member/s
whose whereabouts is unknown or cannot be found
35
shall be held in trust by the Board of Liquidators or
Trustees who will hold as such for a period of five (5)
years from the date of its receipt
j. After the lapse of the five (5) year period, such
unclaimed amount shall be given to the federation
or union to which the cooperative is affiliated with,
for cooperative development. If the cooperative is
not affiliated with any federation or union, the
undistributed assets shall be given to federation or
union where the cooperative operate for
cooperative development.
Effects of Liquidation
a. All debts are realized and assets are converted into
cash;
b. Debts are settled in accordance with the provisions of
the New Civil Code, in a following manner:
1. Government taxes, duties and fees due;
2. Third Party creditors;
3. Employees compensation;
4. Deposit liabilities;
5. Preferred shares; and
6. Common share;
c. Reserved are disposed of in accordance with the
existing laws, rules and regulations, and the by-laws of
the cooperative; and
d. Remaining assets are returned to the members in
proportion to their investments.
Prohibition during Liquidation
other than necessary to carry out the winding up of its
activities. These transactions are classified as: a.
conversion of assets to cash; b. payment of liabilities; c.
disposition of reserve funds; and d. return to the
members of any remaining assets.
Bond requirements for Liquidators
36
of the cooperative retained by the Liquidator/s whohave direct
access and responsibility to the
cooperative funds shall be covered by adequate bonds.
The coverage of such bond shall extend for a period of
6 months after the end of the 3 year winding up period
unless extended. The amount to be bonded shall be
equivalent to at least 20% of the total assets of the
cooperative but not less than P5,000.00.
Examination of the Books of Accounts
CDA may cause the examination of the book of
accounts and other financial documents of the
cooperative during the winding up period through an
Independent Certified Public Accountant.
Request for Lifting or Order of Liquidation
g up period, the Liquidator/s finds
evidence that the continued existence and operation
of the cooperative may be viable and beneficial to its
members and other concerned parties, he may request
for the lifting of the Order to Dissolve and the Order to
Commence the winding up of affairs.
Issuance of Order of Cancellation of the Certificate of
Registration
activities have been completed in accordance with law
and prescribed guidelines, it shall issue an Order of
Cancellation of the Certificate of Registration within 45
days from receipt of the Final Report.
Nature
years and the submission of the Board of
Liquidators/Trustees of the Liquidation’s Final Report,
the CDA shall order the cancellation of the Certificate
of Registration.
Effects
cooperative will result in the delisting of the name of
37
the cooperative in the Cooperative Registry and
cessation of the existence of the cooperative as a
cooperative body for all intents and purposes. The
claims for or against the cooperative will no longer be
enforceable.
Delisting of Cooperatives
It shall refer to the act of striking out or deleting the
registered cooperative bane from the Registry of
Existing Cooperative after its Certificate of Registration
has been ordered cancelled.
Chapter VIII Capital, Property, and Funds
which may be fixed at any figure not more than P1,000,
may consist of common share capital and preferred
share capital if the later is provided for under the
cooperative’s Articles of Cooperation. The share capital
contribution of the members shall be considered as
equity. Provided, that it shall not be withdrawn and
should not be used in offsetting obligations whether
past due or current while the membership subsists.
1. Common Share Capital shall be issued only to regular
members. Its holders shall be entitled to vote and be
voted under the principle of one-man, one vote
principle, and shall receive interest, the rate which
should not exceeded the normal rate on investment.
2. Preferred Share Capital may be issued to regular and
associate members. However, associate Members shall
not be eligible to vote nor be voted on account of such
shareholdings but shall be entitled to, among others
the following:
a. Preference in the payment of interest as provided
for in the Bylaws of the cooperative; and
b. In case of liquidation, priority in the distribution on
Preferred Share Capital shall be prescribed in the
By-laws of the cooperative.
PREFERRED SHARES
38
Limitation on share capital holdings
cooperative itself shall own or hold more than 10% of
the share capital of the cooperative. In the case of
Secondary and Tertiary Cooperatives, members should
own not more than 10% of the share capital of the
cooperative.
Assignment of share capital contribution or interest
cooperative or any part thereof unless:
a. He/she has held such share capital contribution or
interest for not less than one (1) year;
b. The assignment is made to the cooperative or to a
person who falls within the field of membership of
the cooperative;
c. The Board of Directors has approved such
assignment.
Capital build-up
of continuing subscription on share capital, which shall
include, but is not limited to requiring members to
subscribe additional capital upon fill payment of the
eratives are prohibited from issuing
multiple
types of Common Shares and different par value per
share. Also, it is prohibited for any cooperative to
increase/ decrease the par value of the share capital by
way of amending their AOC or by-laws.
Art.80- Annual Audit
performance and social audit of cooperatives
registered under the Code
must be (a) independent of the cooperative or any of
its subsidiary that he is auditing; (b) must be a member
in good standing of the PICPA and is accredited by both
39
the Board of Accountancy and the Authority.
-refers to the procedure where the
cooperative assesses its social impact and ethical
performance vis-a-vis stated vision, goals and social
mission.
It has 2 phases:
1. SOCIAL PERFORMANCE ASSESSMENT-it refers to
the review of the performance of the cooperative in
relation to its social development plans and budget
2. SOCIAL IMPACT AND ASSESSMENT-It refers to the
processing of monitoring, analyzing and evaluating
the intended and unintended social outcome/result,
both positive and negative as well as the planned
interventions and social change processes involved
in said interventions.
refers to the summary report of analysis/assessment
to be undertaken by the cooperative based on the
result of the audit using the tool prescribed by the
authority.
Art.80-Audit Report
committee; to be presented to the general assembly at
the next meeting
Art. 83-Right to Examine
to be kept by the cooperative during reasonable hours
on reasonable hours.
from said records and no additional cost shall be
charged except for cost of reproduction.
refuses to grant such request
shall be liable for damages and shall be subject to
prosecution under Art. 140 of the Code
Art.85-Net Surplus
-laws of a
40
cooperative
payments made by the members for the loans borrowed,
or the goods and services availed by them from the
cooperative or the difference of the rightful amount due
to the members for their products sold or services
rendered to the cooperative including other inflows of
assets resulting from its other operating activities and
which shall be deemed to have been returned to them if
the same is distributed as prescribed herein.
Art. 86-Order of Distribution
Net surplus shall be distributed as follows:
1. 10% to reserve fund (exception: 50% during the first
5 years of operation)
2. 10% to education and training fund
3. 3% community development fund
4. 7% optional fund, a land and building and other
necessary fund
5. Remaining net surplus to members in the form of
interest on share capital
Art. 88-Definition and Purpose
-is one organized by
marginal farmers, majority of which are agrarian
reform beneficiaries, for the purpose of developing an
appropriate system of land tenure, land development,
land consolidation, or land management in areas
covered by agrarian reform
Art. 89-Preferential Right
cooperative shall have the preferential right in the
grant of franchise and certificate of public convenience
and necessity for the operation of public utilities and
necessity for the operation of public utilities and
services
Art.95-Governing Law
41
govern cooperative banks; other provisions shall apply
to them insofar as they are not inconsistent with the
are still under the
supervision of the BSP
Art. 97-Organization, Membership and Establishment of a
Cooperative Bank
established in each province
province justify additional cooperative banks as may
be determined by BSP provided that the same shall not
be located in the city or municipality where the
existing cooperative bank is located
associate. Regular membership shall be limited to
cooperative organizations which are holders of
common shares of the bank. Associate members are
those subscribing and holding preferred shared of the
bank
-laws of a cooperative bank or any
amendment thereto shall be registered with the
Authority only when accompanied by a certificate of
authority issued by the BSP under its official seal.
Art.98-Administration of Cooperative Banks
f
bank directors and officers to maintain the quality of
bank management and accord protection to depositors
and the public
Art.99-Quorum and Voting rights
-half
plus 1
-laws=¾ vote of all
members
good standing
42
Art.105- Cooperative Insurance Societies
entity for the purpose of engaging in the business of
insuring life and property
Art. 106-Types of Insurance Provided
1. Life insurance with special group coverage
2. Loan protection
3. Retirement plans
4. Endowment with health and accident coverage
5. Fire insurance
6. Motor vehicle coverage
7. Bonding, crop and livestock protection
8. Equipment insurance
Art. 107-Applicability of Insurance Laws
and all other laws and regulations
Art.109-Definition and Coverage
-is one organized to
render public services as authorized under a franchise or
certificate of public convenience and necessity duly
issued by the appropriate government agency
Art. 111-Regulation of Public Service Cooperatives
requirements, rate-fixing shall be governed by the
appropriate government agency
-refers to the certificate,
in lieu of the then certificate of good standing, issued to
all types of cooperatives after compliance with the rules
of the Authority.
Art.114-Coverage
-is one that provides savings and
credit to their members only
jec
t
43
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e
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ed
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44
e
sa
v
in
g
s
a
m
o
n
g
it
s
m
e
m
b
ers;
b. To create a pool of such savings for which loans for
productive ir provident purposes may be granted to
its members
c. To provide related services to enable uts members
to maximize the benefit from such loans
Art.119-Definition and Functions of Financial Service
Cooperatives
- is an organization
owned and operated by its members and authorized to
provide the following members EXCLUSIVELY to its
members:
1. The functions of credit cooperatives and other
cooperatives, including MPCs, that provide savings
and credit to their members
secure a certificate of authority from BSP
to operate as such
Art.120-Membership and Affiliation
45
A financial service cooperative shall have two (2) types of
members:
1. Regular members who are natural persons
2. Associate members who are natural persons but
who do not immediately qualify under the
requirements for membership set out in the bylaws
of the cooperative
can qualify as associate member and may convert to
regular members upon reaching the age of majority
Art. 126-Coverage
utilizing renewable energy sources, including hybrid
systems, acquisition and operation of subtransmission
or distribution as its primary purposes.
Art. 128-Voting Requirement for Registration
required number of votes for registration with the
Authority shall be 20% of all members in good standing
Art.131-Role of the Energy Regulatory Commission
under the Authority shall be subject to the the rules on
application and approval of and by the Energy
Regulatory Commission for distribution facilities
Art.133-Share Capital in the Electric Cooperatives
- is a document issued by
the electric cooperative under its seal, if any,
evidencing that a member has contributed a sum of
money or value of property received by the electric
cooperative corresponding to his share in contribution.;
shall not be issued to a subscriber until the full amount
of subscription together with interest and expenses, if
any is due, has been paid.
Art. 137 Settlement of Disputes, Conciliation and
Mediation Proceedings
-is process whereby a neutral third
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party takes a vigorous and active role in assisting
disputants formulate solutions in order to reach an
amicable settlement
-is a process whereby the neutral third
party facilitates the negotiation between disputing
parties to reach a voluntary, mutually satisfactory
outcome
cooperative shall facilitate the amicable settlement of
intra-corporate disputes and disputes among members,
officers, director and committee members. If the same
fails, then disputes shall be settled through voluntary
arbitration to be initiated with CDA (the complaint to
be filed within 45 days from receipt of certificate of
non-compliance).
secure first a certification from the conciliation and
mediation committee and from the cooperative union
or federation to which it belongs that despite all
efforts to settle, the same have failed (certificate of
non-settlement)
to the Office of the President
-shall refer to a dispute
resolution process wherein any intra/inter cooperative
disputes is settled by a voluntary arbitrator/s chosen by
the disputing parties from a list of qualified and
accredited arbitrators, who shall decide on the merits of
the case by rendering an award
--shall refer to any
process or procedure used to resolve a dispute or
controversy, other than by adjudication of a presiding
judge of a Court or an officer of a government agency, in
which a neutral third party participates to assist in the
resolution of issues, which includes arbitration.
Mediation, conciliation, early neutral evaluation, mini
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trial or any combination thereof.
-shall refer to any compromise agreement
between disputants to settle the matters in dispute and
thus dispose of the controversy.