"ART. Failure to submit reports on time shall be considered as Delay or Default. (25) Division - shall refer to the act of spiting a single cooperative into two or more cooperatives, wherein the original cooperative shall be dissolved and the resulting cooperatives shall acquire separate and distinct juridical personalities. 21. All the statutory funds established by the cooperative shall be disposed of in accordance with the provision for Art. The number of sector, chapter, or district Representative or Delegate to be elected shall be provided in the By-laws but in no case, shall be less than ten percent (10%) of the total number of the regular members entitled to vote of the sector, chapter, or district. Capitalization. "However, the bylaws of a cooperative other than a primary may provide for voting by proxy. � The provisions of this Chapter shall primarily govern cooperative banks registered under this Code and the other provisions of this Code shall apply to them only insofar as they are not inconsistent with the provisions contained in this Chapter. Section 5. In case of violation, the individual or individuals concerned, or in the case of an organization, its officers and directors shall, upon conviction, each suffer the penalty of imprisonment of not less than two (2) years nor more than five (5) years and a fine not exceeding Twenty thousand pesos (P20,000.00) or both at the discretion of the court; "The Authority may motu proprio, initiate complaints for violations of this provision. (4) Area of Operation - shall refer to the area where the cooperative members come from as provided for in their Articles of Cooperation and By-laws. Treatment of Donated Capital. The Votes of the sector, chapter, or district Representatives or Delegates shall be considered the votes of all the members of the sector, chapter, or district they represent. Section 14. Men and women serving as elected representatives, directors, or officers are accountable to the membership. Certificate of Registration from the Authority; 3. � The Authority shall issue rules and regulations to implement those provisions of this Code which expressly call for the issuance thereof. Legal Basis. All matters relating to the Franchise or Certificate of Public Convenience and Necessity of Transportation Service Cooperatives such as capitalization and investment requirements, equipment and facilities, frequencies, rate-fixing, registration, dropping and substitution of units, and such other matters affecting their transportation service operations shall be governed by the following government agency: (a) For land transportation - LTFRB/LTO/OTC, (b) For water transportation - MARINA/PCG. Assistance for Parent Cooperative. The share capital contribution of the members shall be considered as equity. A dissenting member shall be entitled to a refund of his/her share capital and all other interests under Art. Land Ownership. The Authority shall have the power to regulate the internal affairs of Agrarian Reform Cooperative such as: b. Formulation of rules and procedures and the conduct of meetings of General Assemble, Board of Directors and Committees; c. Manner of election and qualifications of Officers, Directors, and Committee Members; e. Other matters relating to the internal affairs of Agrarian Reform Cooperatives. hޤ�mk�8���>n9R�ؒeXy�t�n��!��658v�]h���H�[����Q�\���'��DJ�UH�"�iMd@�/AW��"C"��D1"�Pʼn|E� "�Q����W����[�Qi@�[pt����β�����:�6}��D�Μh�81ġ��c�m�\���.�k�a���w��{��bt�.� �e�.�� �f�omG�Ƥ% ������Ļ��1:5�k 8��$��v Section 12. "ART. Dealings of Directors, Officers, or Committee Members. "The authority granted this provision may be revoked by the BSP if any of the grounds for receivership mentioned under Section 53 and 56 of Republic Act No. Purposes and Objectives. Hearings may be adjourned for a valid cause or upon agreement of the parties. "ART. The members of cooperative entitled to vote shall elect from among themselves their Board Liquidators; and/or. Pursuant to the provisions of Republic Act. In 1993, the National Cooperative Movement (NCM) was organized and then the Such facts shall be stated in the Order of Cancellation. Identification of members in good standing based on the qualification and disqualification provisions in the By-laws. Fifteen (15) or more minors who are Filipino citizens, actually residing in the community or enrolled in an educational institution within or near the area of operation of the Guardian Cooperative or out of school minor actually residing in the community, may organize a Laboratory Cooperative composed of minors, which shall be seven (7) years old but below eighteen (18) years of age. The express purpose of this cooperative is Upon submission of the abovementioned documents, the Authority shall issue the new certificate of registration to the Cooperative. No allocation of interest on share capital shall be made without the approval of the Board of Directors which may increase or decrease any or both. The lien upon the property or interest shall continue to exit even after the sale or conveyance thereof until such lien has been duly extinguished. A Resolution certified by the cooperative's Secretary and by the majority of the Board of Directors stating the fact that said amendments have been duly approved by at least two-thirds (2/3) vote of all the members with voting rights; 5. To promote and advance Filipino social and cultural values, ecological awareness and sustainable development. (3) Area of Business Operation - shall refer to the principal place of business of a cooperative where the cooperative conducts its business as provided for in their Articles of Cooperative and By-laws. The initial courses or any equivalent substitute thereof must be undertaken. Requirements for Registration. Appeal to the Office of the President of the Republic of the Philippines. The By-laws of a cooperative shall prescribe a fine on unpaid subscribed share capital. "ART. e. Other matters relating to the internal affairs of Housing Cooperatives. Any provision or any part thereof in the existing Articles of Cooperation and By-laws of the cooperative, which are found to be inconsistent or contrary to the provisions of the Code and of this Rule shall be amended accordingly. "ART. In case the ARB Coop engages in Transport Service, it shall comply with the other requirements prescribed in Section 5, Rule 5 of these Rules and Regulation. Procedure for the division of assets, allocation and settlement of the obligations and the collection of receivables of the cooperative; 7. A century and a year after the first law supporting cooperatives - the Act of 2508 - was signed in February 5, 1915, cooperatives in the Philippines have produced about 35 billionaire cooperatives, five of which are cooperative banks. Education, Training and Information - Electric Cooperatives shall provide education, training and information for their members, elected and appointed representatives, managers, and employees so that they can contribute effectively and efficiently to the development of their cooperatives; 6. Limitation. The legal basis for this rule is Art. Liability of the Guardian Cooperative. Intra/inter cooperative disputes shall be settled as far as practicable through conciliation-mediation mechanism embodied in the cooperative by-laws, which shall be in accordance with the CDA Guidelines for the Implementation of Conciliation-Mediation of Cooperative Disputes, and applicable laws. 4. Mandate. Legal Basis. It shall be approved by at least majority of the members of each of the constituent cooperatives with voting rights, present and constituting a quorum in separate general/representative assembly meetings called for the purpose. Assets building. Only one cooperative bank may be established in each province: Provided, That an additional cooperative bank may be established in the same province to cater to the needs in the same province to cater to the needs of the locality depending on the economic conditions of the province as may be determined by the BSP: Provided, further, That the additional cooperative bank shall be located in the City or municipality other that the city or municipality where the first cooperative bank is located. Regular Member - refers to a natural person (member-consumer) with electrical service connection who has the right to vote and be voted upon and entitled to all the rights and privileges of membership under the Code. Section 3. An electric cooperative shall not be registered with the Authority unless it complies with the financial requirements of minimum paid up capitalization of Five Million Pesos (P5,000,000.00). Should such conciliation-mediation proceedings fail, the matter may be settled through voluntary arbitration by the Authority or adjudication by the Commission or in a Court of competent jurisdiction. Purpose and Objectives. Community Involvement and Solidarity. The Authority shall issue and adopt the proper rules of procedure governing arbitration as the primary and exclusive mode for dispute resolution in accordance with the Alternative Dispute Resolution Act of 2004. The attendance of any third party or the exclusion of any witness in the proceeding shall be determined by the Voluntary Arbitrator/s. SEC. "ART. Cooperative Code of the Philippines of 2004 c. Cooperative Law of the Philippines of 2006 d. Philippine Cooperative Law of 2010 2. The Financial Statements of each of the new cooperatives duly certified by the respective Treasurers and Chairpersons; 5. Privileges. To ensure compliance with the administrative and other requirements of the Authority and the Commission; 3. Cooperative Annual Performance Report (CAPR); 2. The Guardian Cooperative shall supervise, monitor, and act for and in behalf of the Laboratory Cooperative in their dealings, transactions with third parties when capacity to contract is required. Section 21. In the case of Secondary and Tertiary Cooperatives, members should own not more that ten percent (10%) of the share capital of the cooperative. Coverage. Water Service Cooperatives shall file their application with the CDA Extension Office, which shall have jurisdiction over the said cooperatives. If the remaining assets is not sufficient to pay the full share capital contribution of the members, the distribution shall be done in proportion to their capital. "ART. Revolving Capital. 118. 3. Section 1. The Party who filed the complaint shall be called the "Complainant/s" and the Party complained of shall be called the "Respondent/s". Unless agreed otherwise, the parties shall equally share the cost of the proceedings including the Arbitrator's Fee. A single-purpose cooperative may transform into a multipurpose or may create subsidiaries only after at least two (2) years of operations. 15. "ART. The procedure for such division shall be prescribed in the regulations of the Authority: Provided, That all the requirements set forth in this Code have been complied with by the new cooperatives: Provided, further, That no division of a cooperative in fraud of creditors shall be valid. Section 1. 4. 53 of this Code, quoted as follows: (1) Every cooperative shall draw up regular reports of its program of activities, including those in pursuance of their socio-civic undertakings, showing their progress and achievements at the end of every fiscal year. "ART. The Net Worth of the FSC shall, at all times, not be less than an amount equal to eight percent (8%) of its risk assets. � Where the dissolution of a cooperative may prejudice the rights of any creditor, the petition for dissolution shall be filed with the Authority. 107. 12. e. To issue a Writ of Execution, if necessary. "(13) The appropriate housing agencies and government financial institutions shall create a special window for financing housing projects undertaken by cooperatives, with interest rates and terms equal to, or better than those given for socialized housing projects. Transitory Period. The method for the issuance of share certificates shall prescribed in its bylaws. "(b) 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. "An elective officer may be removed by three fourths (3/4) votes of the regular members present and constituting a quorum, in a regular or special general assembly meeting called for the purpose. "ART. Probative Value of Certified Copies of Entries. Likewise, letters/notices duly signed by the Chairperson announcing such division shall be sent by the Secretary of the cooperative through registered mails to their creditors. No. Northwest Cooperative Development Center www.nwcdc.coop Cooperative Starter Series by Andrew McLeod December, 2006 Types of Cooperatives Cooperatives are owned, controlled and operated for the benefit of their members. e. Recommend ethical rules and policy to the Board of Directors; f. Perform such other functions as may be prescribed in the By-laws or authorized by the General/Representative Assembly. Revolving Capital which consist of the deferred payment of patronage refunds, or interest on share capital; and. The Minutes of the General/Representative Assembly Meeting approving the Plan of Division; 4. Neither the rights of creditors nor any lien upon the property of any of such constituent shall be impaired by such merger or consolidation.". In relation to this, all cooperatives are encourage to promote environmental awareness and instill environmental protection and conservation to their members and the community where they operate, and as far as practicable to conduct tree-planting activities in the community where they operate or its immediate environs. The Board of Directors shall be responsible for setting loan policies and lending procedures. In instances of non-compliance, a Motion to Enforce or Execute may be filed with the Voluntary Arbitrator/s who may issue a Writ Execution requiring either the sheriff of the Authority, if any, or the regular courts or any public official whom the parties may designate in the submission agreement to execute the final decision or award. The name of the public official whom the parties may designate to execute the final decision or award, if necessary; and. All existing Insurance Cooperative with members which are non-cooperative and/or cooperative oriented societies and organizations are hereby given five (5) year period to terminate and remove such entities from their member registry. Undistributed Assets. Repealing Clause. 2. ", "The Authority in consultation with the cooperative sector, shall promulgated the rules and standards for the social audit of cooperatives.". Legal Basis. 64. Section 7. The Authority shall likewise create a Local Monitoring Committee in its extension offices to facilitate the monitoring of these Transportation Service Cooperatives. The Authority, upon written request, shall provide necessary assistance in the documentary requirements for the loans, credit, grants, donations and other financial support; "(9) To avail of preferential rights granted to cooperatives under Republic Act No. Section 3. However, shall be entitled to the preferential rights and privileges as indicated in the by-laws and under the Code. All cooperative are hereby given two (2) years from effectivity of this Rule to comply with the Social Audit Requirements as provided above. OTC - shall refer to the Office of Transportation Cooperatives. Failure to convert within said period shall mean automatic withdrawal of their associate membership. Section 11. 09, Series of 2008 entitled "Revised Rules and Regulations on ARB Membership Status and Valuation and/or Transfer of Paid-Up Share Capital in Agrarian Reform Plantation-Based Cooperatives dated September 4, 2008" including any amendments thereto or subsequent issuances. 30 of the Code. Posting/Publication. RULE 6GUIDELINES FOR LABORATORY COOPERATIVES. Extension Offices - shall refer to the offices of the Authority covering one geo-political region each as their area of jurisdiction. Financial Service Cooperative Federations. However, those already engaging in such shall be given two (2) years transition period to undertake any of the following options: To organize an insurance cooperative with other primary cooperatives that have the same insurance-like business activity; (2) To join an existing Insurance Cooperative; (3) To partner with licensed micro-insurance providers; and. � Landholdings like plantations, estates or haciendas acquired by the State for the benefit of the workers in accordance with the Comprehensive Agrarian Reform Program which shall be collectively owned by the worker-beneficiaries under a cooperative set-up. "The Authority, in consultation with the cooperative sector, shall promulgate the rules and standards for the social audit of cooperatives. The form and contents of the reports shall be as prescribed by the rules of the Authority. p. Other matters relevant to the conduct or representative assembly meeting. Such director or committee member not be a member of the cooperative and shall have no powers, rights, nor responsibilities except to provided technical assistance as required by the cooperative. Supply of Electricity - shall refer to the sale of electricity by a party other than a generator or a distributor in the franchise area of a distribution utility using the wires of the distribution utility concerned. Any amendment thereto, shall be subject to the review and approval of the JCOCC. Only cooperatives belonging to the same category can be parties to Merger or Consolidation. Coverage. 69. Transmission of Electricity - shall refer to the conveyance of electricity through the high voltage system. Settlement of Disputes. "ART. "The social audit shall be conducted by an independent social auditor accredited by the Authority. To this end, cooperative banks shall provide financial and banking services to its members. 134. A Guardian Cooperative shall supervise only one (1) laboratory cooperative. Voluntary Dissolution Where no Creditors are Affected. "ART. 2. Issuance of Certificate. "ART. All FSCs shall adopt the Standard Chart of Accounts and its accompanying Accounting Manual for Credit and Other Types of Cooperatives with Credit Service issued by the Authority. Water Service Cooperative - shall refer to a duly registered cooperative organized to own, operate, and manage water supply systems for the provision and distribution of potable water for its members/consumers. 65. The provisions of this Rule shall apply to Rules 1 to 13. Any violation of the provisions of the Code, the By-laws of the cooperative and other issuances of the Authority; and. To determine the capability of the cooperative to access, process and disseminate information from/to its members and community. Formulation of Plan of Merger or Consolidation by the representatives of the constituent cooperatives; 3. h�b```f``2b`a`��g�e@ ^�r,`8��^�������� A�u�`�@��F�1�>>�2�Re��&VU��2'&�%��k iF �bQ�}�P�� ;r 6. 12. Legal Basis. "The Authority, in consultation with the concerned government agencies and cooperative sector, shall issue appropriate rules and regulations pertaining to the provisions of this Chapter.". "ART. Cooperative shall be categorized according to membership and territorial consideration. This Rule shall cover all Transportation Service Cooperatives duly registered with the Authority under RA 9520 which are organized to render public services such as land and sea/water transportation services, limited to small vessels, for the safe conveyance of passengers and/or cargo. 49. Parties to the Dispute. Said share certificates shall take into consideration, among others, the previous equity contributions, and the amortization component, through the payments made, capital build-up and other capital contributions. Basic Cooperative Course primarily on: f. Policies and Programs of Cooperatives; h. Implementing Rules and Regulations of RA 9520; 2. Pasig City. � (1) The bylaws may create an executive committee to be appointed by the board of directors with such powers and duties as may be delegated to it in the bylaws or by a majority vote of all the members of the board of directors. 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