Chapter 3: Membership

Question 1

ART. 24. Functions of a Federation of Cooperatives

Answer 1

“(a) To carry on any cooperative enterprise authorized under Article 6 that complements augments, or supplements but does not conflict, complete with, nor supplant the business or economic activities of its members;

“(b) To carry on, encourage, and assist educational and advisory work relating to its member cooperatives;

“(c) To render services designed to encourage simplicity, efficiency, and economy in the conduct of the business of its member cooperatives and to facilitate the implementation of their bookkeeping, accounting, and other systems and procedures;

“(d) To print, publish, and circulate any newspaper or other publication in the interest of its member cooperatives and enterprises;

“(e) To coordinate and facilitate the activities of its member cooperatives;

“(f) To enter into joint ventures with national or international cooperatives of other countries in the manufacture and sale of products and/or services in the Philippines and abroad; and

“(g) To perform such other functions as may be necessary to attain its objectives.

Question 2

“A __________ may be registered by carrying out the formalities for registration of a cooperative

Answer 2

Federation of Cooperatives

Question 3

“Registered cooperatives may organize a federation according to the type of _________ engaged in by the cooperatives.

Answer 3

business activity

Question 4

True or False

“ART. 25. Cooperative Unions. Registered cooperatives and federations at the appropriate levels may not organize or join cooperative unions to represent the interest and welfare of all types of cooperatives at the provincial, city, regional, and national levels.

Answer 4

False; MAY organize and join cooperative unions

Question 5

Cooperative unions may have the following purposes: (8)

Answer 5

“(a) To represent its member organizations;

“(b) To acquire, analyze, and disseminate, economic, statistical, and other information relating to its members and to all types of cooperatives within its area of operation;

“(c) To sponsor studies in the economic, legal, financial, social and other phases of cooperation, and publish the results thereof;

“(d) To promote the knowledge of cooperative principles and practices;

“(e) To develop the cooperative movement in their respective jurisdictions;

“(f) To advise the appropriate authorities on all questions relating to cooperatives;

“(g) To raise funds through membership fees, dues and contributions, donations, and subsidies from local and foreign sources whether private or government; and

“(h) To do and perform such other non-business activities as may be necessary to attain the foregoing objectives.

Question 6

“_________ may assist the national and local governments in the latter’s development activities in their respective jurisdictions.”

Answer 6

Cooperative unions

Question 7

“ART. 26. Kinds of Membership. A cooperative may have two (2) kinds of members, to wit:

Answer 7

(1) regular members
(2) associate memebers

Question 8

is one who has complied with all the membership requirements and entitled to all the rights and privileges of membership.

Answer 8

Regular member

Question 9

is one who has no right to vote nor be voted upon and shall be entitled only to such rights and privileges as the bylaws may provide

Answer 9

Associate member

Question 10

True or False

An associate who meets the minimum requirements of regular membership, continues to patronize the cooperative for two (2) years, and signifies his/her intention to remain a member shall be considered a regular member.

Answer 10

True

Question 11

“A cooperative organized by minors shall be considered a __________ and must be affiliated with a registered cooperative.

Answer 11

Laboratory cooperative

Question 12

True orr False

A laboratory cooperative shall be governed by special guidelines to be promulgated by the Authority.

Answer 12

true

Question 13

True or False

“ART. 27. Government Officers and Employees.

(1) Any officer or employee of the Authority shall be disqualified to be elected or appointed to any position in a cooperative: Provided, That the disqualification does not extend to a cooperative organized by the officers or employees of the Authority.

“(2) All elective officials of the Government shall be eligible to become officers and directors of cooperatives: Provided, That the disqualification does not extend to a party list representative being an officer of a cooperative he or she represents; and

“(3) Any government employee or official may, in the discharge of is duties as a member in the cooperative, be allowed by the end 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.

Answer 13

1. True
2. False; ineligible
3. True

Question 14

True or False

“ART. 28. 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 member after having made such payments to the cooperative in respect to membership or acquired interest in the cooperative as may be prescribed in the bylaws.

Answer 14

True

Question 15

In case membership is refused or denied by the board of directors, an appeal may be made to the _________ and the latter’s decision shall be final.

Answer 15

General Assembly

Question 16

For this purpose, the general assembly may opt to create an appeal and grievance committee, the members of which shall serve for a period of one (1) year and shall decide appeals on membership application within _______ upon receipt thereof. If the committee fails to decide within the prescribed period, the appeal is deemed approved in favor of the applicant.

Answer 16

Thirty (30) days

Question 17

“ART. 29. Liability of Members. A member shall be liable for the debts of the cooperative to the extent of his contribution to the _________ of the cooperative.

Answer 17

share capital

Question 18

“ART. 30. Termination of Membership.

(1) A member of a cooperative may, for any valid reason, withdraw his membership from the cooperative by giving a ________ notice to the board of directors.

Answer 18

Sixty (60) days

Question 19

True or False

Subject to the bylaws of the cooperative, the withdrawing member shall be entitled to a refund of his share capital contribution and all other interests in the cooperative: Provided, That such fund shall not be made if upon such payment the value of the assets of the cooperative would be less than the aggregate amount of its debts and liabilities exclusive of his share capital contribution.

Answer 19

True

Question 20

“ART. 30. Termination of Membership.

“(2) The death or insanity of a member in a primary cooperative, and the insolvency or dissolution of a member in a secondary or tertiary cooperative may be considered valid grounds for termination of membership: Provided, That in case of death or insanity of an _____________ of a cooperative, the next-of-kin may assume the duties and responsibilities of the original member

Answer 20

agrarian reform beneficiary member

Question 21

“ART. 30. Termination of Membership.

“(3) Membership in the cooperative may be terminated by a vote of the majority of all the members of the board of directors for any of the following causes:

Answer 21

“(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;

“(b) When a member has continuously failed to comply with his obligations;

“(c) When a member has acted in violation of the bylaws and the rules of the cooperative; and

“(d) For any act or omission injurious or prejudicial to the interest or the welfare of the cooperative.

Question 22

“A member whose membership the board of directors may wish to terminate shall be informed of such intended action in ______ and shall be given an opportunity to be heard before the said board makes its decision.

Answer 22

writing

Question 23

The decision of the board to terminate a membership of a member shall be in writing and shall be communicated in person or by registered mail to said member and shall be appealable within ________ from receipt thereof to the general assembly whose decision shall be final.

Answer 23

Thirty (30) days

Question 24

True or False

The general assembly may create an appeal and grievance committee whose members shall serve for a period of one (1) year and shall decide appeals on membership termination. The committee is given thirty (30) days from receipt thereof to decide on the appeal. Failure to decide within the prescribed period, the appeal is deemed approved in favor of the member. Pending a decision by the general assembly, the membership remains in force.

Answer 24

True

Question 25

“ART. 31. Refund of Interests. All sums computed in accordance with the bylaws to be due from a cooperative to a former member shall be paid to him either by the _______ or by the approved ______, as the case may be, in accordance with this Code.”

Answer 25

cooperative or by the approved transferee