Article 9-16

Question 1

Article 10. Organizing a Primary Cooperative.

Fifteen (15) or more natural persons who are Filipino citizens, of legal age, having a common bond of interest and are actually residing or working in the intended area of operation, may organize a primary cooperative under this Code: Provided, That a prospective member of a primary cooperative must have completed a ________

Answer 1

Pre-Membership Education Seminar (PMES).

Question 2

Article 11. Economic Survey

Every group of individuals or cooperatives intending to form a cooperative under this Code shall submit to the Authority a general statement describing, among others the structure and purposes of the proposed cooperative: Provided, That the structure and actual staffing pattern of the cooperative shall include a bookkeeper; Provided, further, That they shall not be allowed to operate without the necessary personnel and shall also submit an economic survey, indicating therein the _______, ________, and _______ in a format provided by the Authority.

Answer 2

• the area of operation
• the size of membership
• other pertinent data

Question 3

Article 12. Liability.

A cooperative duly registered under this Code shall have ________

Answer 3

Limited liability

Question 4

Article 13. Term
A cooperative shall exist for a period not exceeding _______ from the date of registration unless sooner dissolve or unless said period is extended.

True or false
The cooperative term, as originally stated in the articles of cooperation, may not be extended for periods not exceeding fifty (50) years in any single instance by an amendment of the articles of cooperation, in accordance with this Code:

True or false
No extension can be made earlier than five (5) years prior to the original or subsequent expiry date/dates unless there are justifiable reasons for an earlier extension as may be determined by the Authority.

Answer 4

50 years…

False

True

Question 5

Article 14. Articles of Cooperation.

(1) All cooperatives applying for registration shall file with the Authority the articles of cooperation which shall be signed by each of the organizers and acknowledged by them if natural persons…

The articles of cooperation shall set forth:

Answer 5

(1) The name of the cooperative which shall include the word cooperative

(2) The purpose and scope of business for which the cooperative is to be registered

(3) Term of existence

(4) Area of operation and postal addresses of its principal office

(5) Names, nationality, and postal addresses of the participants

(6) Common bond of Membership

(7) List of names of the directors

(8) Amount of its share capital, names and residences of its contributors, statement of whether the cooperative os primary, secondary, or tertiary.

Question 6

Article 14. Articles of Cooperation

True or false

1. “(4) Four (4) copies each of the proposed articles of cooperation, bylaws, and the general statement required under Article 11 of this Code shall be submitted to the Authority.
2. No cooperative, other than a cooperative union as described under Article 25 hereof, shall be registered unless the articles of cooperation is accompanied with the bonds of the accountable officers and a sworn statements of the treasurer elected by the subscribers showing that at least twenty-five per centum (25%) of the authorized share capital has been subscribed and at least twenty-five per centum (25%) of the total subscription has been paid: Provided, That in no case shall the paid-up share capital be less than Fifteen thousand pesos (P15,000.00).

Question 7

Article 14. Articles of cooperation

“The Authority shall periodically assess the required paid-up share capital and may increase it every five (5) years when necessary upon consultation with the cooperative sector and the ___________

Answer 7

National Economic Development Authority (NEDA)

Question 8

Article 15. Bylaws

Each cooperative to be registered under this Code shall adopt bylaws not inconsistent with the provisions of this Code. The bylaws shall be filed at the same time as the ______

Answer 8

Articles of cooperation

Question 9

Article 15. Articles of Cooperation

The bylaws of each cooperative shall provide:

Answer 9

1. The qualifications for admission to membership and the payment to be made or interest to be acquired as a conditions for the exercise of the right of membership;
2. The rights and liabilities of membership;
3. The circumstances under which membership is acquired, maintained and lost;
4. The procedure to be followed in cases of termination of membership;
5. The conditions under which the transfer of a share or interest of the members shall be permitted;
6. The rules and procedures on the agenda, time, place and manner of calling, convening, conducting meetings, quorum requirements, voting systems, and other matters relative to the business affairs of the general assembly, board of directors, and committees;
7. The general conduct of the affairs of the cooperative, including the powers and duties of the general assembly, the board of directors, committees and the officers, and their qualifications and disqualifications;
8. The manner in which the capital, may be raised and the purposes for which it can be utilized;
9. The mode of custody and of investment of net surplus;
10. The accounting and auditing systems;
11. The manner of loaning and borrowing including the limitations thereof;
12. The method of distribution of net surplus;
13. The manner of adopting, amending, repealing, and abrogating bylaws;
14. A conciliation or mediation mechanism for the amicable settlement of disputes among members, directors, officers and committee members of the cooperative; and
15. Other matters incident to the purposes and activities of the cooperative.

Question 10

Article 16. Registration

True or False

1. A cooperative formed and organized under this Code acquires juridical personality from the date the Authority issues a certificate of registration under its official seal.
2. All applications for registration shall be finally disposed of by the Authority within a period of fifty (50) days from the filing thereof, otherwise the application is deemed approved, unless the cause of the delay is attributable to the applicant
3. In case of a denial of the application for registration, an appeal shall lie with the Office of the President within ninety (90) days from receipt of notice of such denial: Provided, further, That failure of the Office of the President to act on the appeal within ninety (90) days from the filing thereof shall mean approval of said application.

Answer 10

1. True
2. False
3. True