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RFBT > Cooperative Code > Flashcards

Cooperative Code Flashcards

1
Q

an autonomous and duly registered association of persons with common bond of interest, who have voluntarily joined together
- achieve social, economic and cultural needs
- in accordance with universally cooperative principles

A

Cooperative

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2
Q

What are the cooperative principles

A

Democratic Member Control
Autonomy and Independence
Concern for Community
Voluntary and Open Membership
Member Economic Participation

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3
Q

Are cooperatives generally exempted to tax?

A

Yes.

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4
Q

How is cooperative created?

A

By operation of law. You let the cooperate code operate through filing by-law and articles of incorporation

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5
Q

It refers to the government agency created by Cooperative Code entrusted with the supervision and regulation of cooperatives in the Philippines

A

Cooperative Development Authority

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6
Q

Cooperative is subject to three types of audit. What are those?

A

Social, Performance and Financial Statements Audit

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7
Q

It refers to type of audit wherein the cooperative assesses its social impact an ethical performance vis-a-vis its stated mission, vision, goals and code of social responsibility

A

Social Audit

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8
Q

It is a type of cooperative that promotes cooperativism among its members and the public through socially-oriented projects, education and training, research and communication and other similar activities to reach out to its intended beneficiaries

A

Advocacy Cooperative

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9
Q

It is a type of cooperative that is organized for the primary purpose of engaging in saving and credit services and other financial services

A

Financial Service Cooperative

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10
Q

Pool Savings then render credit services

A

Credit Cooperative

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11
Q

Provide financial services to other cooperatives

A

Cooperative Bank

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11
Q

Provide financial services to other cooperative banks

A

Cooperative Bank

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12
Q

It is a type of cooperative the members of which are natural persons

A

Primary Cooperative

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13
Q

Members are primary cooperatives

A

Secondary Cooperative

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14
Q

Members are secondary cooperatives

A

Tertiary Cooperative

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15
Q

A purpose of cooperative. Yes or No.

To promote monopoly and restraint of trade

A

No.

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16
Q

Consists of cooperatives

A

Federation. Keyword is member cooperative

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17
Q

Consists of federation of cooperatives

A

Union. Ex, member organization, member association

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18
Q

Qualifications of organizers or founders of a prospective cooperative

A

-fifteen or more natural persons
-all are filipino citizens
-residing or working in the intended area
- have a common bond of interest

xx age is not a requirement

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19
Q

What is the maximum foreign invest or ownership in a cooperative?

A

0%

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20
Q

formed and managed principally by minors with another registered cooperative

A

Laboratory Cooperative

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21
Q

a cooperative affiliated to a cooperative handled by minrs

A

Guardian Cooperative

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22
Q

Should organizers or founders of a laboratory be graduates?

A

No. It is not necessary for them to be high school graduates

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23
Q

What is the age bracket of a laboratory cooperative?

A

At least 7 years old but below 18 years old

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24
Q

What is the minimum years of operation of a single purpose cooperative in order to transform into a multi purpose OR single purpose to create a subsidiary?

A

at least two years of operations

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25
Q

It refers to the document that will be filed to CDA in order for the prospective cooperative to be created.

A

Articles of Cooperation

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26
Q

When shall the cooperative by-laws be filed to the CDA?

A

At the same time the Articles of Cooperation submitted to the CDA (similar with Cooperation)

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27
Q

What is the minimum prescriptive period to lapse from filing of application for registration as a new cooperative for the inaction of CDA to be considered an implied approval of the registration?

A

At least 60 days.

In SEC, there is no implied approval

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28
Q

What is the minimum prescriptive period to lapse from filing of application for amendment of articles of cooperation or bylaws for the inaction of CDA to be considered an implied approval of the amendment?

A

At least 30 days

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29
Q

What is the minimum subscribed shares before a prospective cooperative be registered with CDA

A

at least 25% of authorized share capital

In SEC, none

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30
Q

What is the minimum paid up capital?

A

At least 25% of the actual total subscription or 15,000 whichever is higher

In SEC, none

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31
Q

What is the voting requirement for registration or formation of an electric cooperative

A

at least 20% of all members in good standing

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32
Q

When does a cooperative formed and organized acquire juridical personality?

A

From the date of issuance of COR

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33
Q

What is the conclusive evidence and its due registration with CDA?

A

Certificate of Registration issued by CDA under official seal

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34
Q

What is the required vote for amendment of Articles of Cooperation of a Cooperative?

A

at least 2/3 of all members with voting rights

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35
Q

What is required vote for amendment of the provisions of By-Laws of a Cooperative

A

at least 2/3 of all members with voting rights

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36
Q

What is the nature of liability of a Cooperative?

A

Limited Liability

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37
Q

What is the maximum term of cooperative?

A

Life is indefinite. Unlimited renewal. 50 years

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38
Q

What is the period for renewal of a term of a cooperative?

A

within 5 years prior to the expiration of the term

In Corporation, within 3 years

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39
Q

What are the two types of members?

A

Regular and Associate

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40
Q

What type of member has voting rights and can buy common and preferred shares?

A

Regular Members

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41
Q

What type of member that has no voting rights and can only buy preferred shares?

A

Associate Members

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42
Q

What are the requirements for an associate become a regular member?

A
  1. met the minimum requirements of regular membership
  2. continues to patronize for at least 2 years
  3. signifies his intention to remain a member
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43
Q

What is required vote for the termination of a membership?

A

at least majority of all the member of the BOD of the cooperative

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44
Q

What is the minimum number of days of giving notice to the BOD before a member may withdraw his membership

A

60 days notice

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45
Q

What is the right of a withdrawing member of a coopearive?

A

Book Value per share, refund of share capital and all other interests

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46
Q

Ground for termination of a membership of a member in a primary cooperative?

A

Death and Insanity

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47
Q

Ground for termination of a membership of a member in a secondary or tertiary cooperative?

A

Insolvency or Dissolution

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48
Q

Extent of nature of liability of a member for the the debts to third person

A

liable up to the extent of his capital contribution

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49
Q

It shall be the highest policy making body of the cooperative and shall exercise such powers

A

General Assembly

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50
Q

What is the composition of General Assembly?

A

Regular members only = voting rights

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51
Q

What cannot be delegated by General Assembly to Board of Directors?

A

Approval of amendments of articles of cooperation
Elect or appoint members of the board and their removal
approve developmental plans of the cooperative

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52
Q

What is the required vote for the valid delegation by the General Assembly to smaller body?

A

At least 3/4 vote of all its members with voting rights

53
Q

How often shall regular meeting be held?

A

At least anually

54
Q

In absence of a date fixed, when shall regular meeting by the GA be held?

A

Any date within 90 days after the close of each fiscal year

55
Q

What is the quorum in the meeting of GA of an ordinary cooperative?

A

at least 25% of all the members

56
Q

What is the quorum in the meeting of GA of an electronic cooperative?

A

at least 5% of all members entitled to vote

57
Q

As a general rule, what is the quorum in the meeting of GA of a cooperative bank

A

At least one half plus one of the number of voting shares

//majority

58
Q

As an exception to general rule of quorum in cooperative bank, for amendment of its articles of cooperation or by-laws

A

At least 3/4 of all members with voting rights

59
Q

What is the number of vote that a regular member of a primary cooperative? Generally

A

Only one vote.

60
Q

What is the number of vote that a regular member of a cooperative bank?

A

The number of shares held. Proportionate toe the number of their paid-up shares

61
Q

What is the number of vote that member cooperatives of a secondary or tertiary

A

One basic vote and as many incentive votes as provided for in the by-laws but not exceeded five votes

62
Q

It shall be the body in a cooperative responsible of the strategic planning, direction-setting and policy formulation

A

Board of Directors

63
Q

Composition of BOD of a cooperative

A

not less than 5 but not more than 15

64
Q

What is the term of office of a directors of a stock corporation (oo tama corporation yan)

A

1 year

65
Q

What is the term of office of a directors of a ordinary non-stock corporation (oo tama corporation yan)

A

3 years

66
Q

What is the term of office of a directors of a non
stock, non profit educational institution (oo tama corporation yan)

A

5 years

67
Q

What is the term of office of a directors of a cooperative?

A

2 years

68
Q

What is the quorum necessarily for validity of meeting of BOD of ordinary cooperative

A

at least majority unless the bylaws provide otherwise

69
Q

What is the quorum necessarily for validity of meeting of BOD of cooperative bank

A

one-half plus one. majority. always. cant be changed by the bylaws

70
Q

What position can be concurrently be held of a director of a cooperative?

A

If director, you cant be an officer. Only as a chairman or vice chairman of the board of directors

71
Q

What reason of vacancy in the BOD will disqualify the remaining directors despite consituting quorum to fill up the vacancy? Only General Assembly can fill up such vacancy

A

Expiration of term and Removal

72
Q

Can be filled up by constituting a quorum by the BOD to fill up the vacancy?

A

Death of a director
Disqualification of a director
Resignation or abandonment of office by a director.

If no quorum, automatic general assembly
If quorum, it can still be filled through either meeting or general assembly

73
Q

How may an executive committee in a cooperative be created?

A

by provision in the by-laws

74
Q

How may the powers of executive committee in a cooperative be delegated?

A

Can BE provision or majority vote of all the members then board resolution

75
Q

In the absence of provision, what extent of benefits are directors of a cooperative entitled to? Generally they do not have compensation

A

Reasonable per diems or other term is Honorarium

76
Q

Required vote for directors of cooperative to have compensation?

A

At least majority vote of the members with voting rigts

77
Q

In case there is a provision, to what extent of benefits are directors of a coopereative entitled to during the first year of existence?

A

No compensation for the first year. Only Reasonable per diems

78
Q

If last year is net loss, what extent of benefits shall the director receive? Compensation? Reasonable per diems?

A

None.

79
Q

How shall the compensation of officers as well as the memebrs of the committees be fized?

A

It may be fixed in the by-laws

80
Q

How shall the compensation of employees as the committees be fixed?

A

It may be fixed by at least majority vote of the BOD present in a meeting qith a quorum.

81
Q

How often shall the regular meeting of the BOD of a primary cooperative

A

At least monthly

82
Q

As a general rule, what is the status of contract entered into by the cooperative with one or more of its directors? Also known as contract with self-dealing directors?

A

Valid on part of director. Voidable on the part of cooperative. Since voidable, subject for annulment. 4 years upon discovery

83
Q

What is the required vote for ratification of voidable contract entered with self-dealing director?

A

At least 3/4 of members constituing a quorum. To approve ratification, also 3/4 of the the quorum.

84
Q

The liablity for a director that acquires an oopurtuinty that should have been of cooperative

A

Liable for damages and double the profits
To ratify acquisition, 3/4 members

85
Q

What is the required vote for removal of an officer or a director of a cooperative?

A

3/4 of members

86
Q

Who will be disqualified to be appointed as an officer of a cooperative?

A
  1. Two or more persons with relationships up to the 3rd civil degree of consaguinity. (Cooperative = C, A B C, pangatlo)
  2. Any person enagegd in a business similar to that of the cooperative. Conflict of interest
87
Q

What does prejudice means?

A

Total Assests>Total Liability

88
Q

What procedure should be done for a voluntary dissolution of a cooperative if the dissolution does not prejudice the rights of any creditor?

A

By submitting a resolution duly adopted by BOD and ratified by General Assembly (majority vote of BOD, 3/4 of members)

89
Q

What procedure should be done for a voluntary dissolution of a cooperative if the dissolution does prejudice the rights of any creditor?

A

In this case, TL>TA
Filing a formal petition for dissolution with CDA with notice and hearing

90
Q

What is the required vote for voluntary dissolution?

A

Majority of the BOD and 3/4 all members in General Assembly

91
Q

What are the valid grounds for involuntary dissolution?

A

Violation of any law or rules
Violation of the cooperative’s by laws
Insolvency of the cooperative

xx incuriing net loss in the cooperatives operation is not a valid ground

92
Q

What are the modes of dissolution of a cooperatieve?

A
  1. Expiration of its charter/term. Failure to renew its term
  2. Termination of its existence through voluntary dissolution
  3. Termination of its existence through an appropriate judicial proceeding also known as involuntary dissolution
93
Q

After the dissolution, what is the maximum period for liquidation of the cooperative?

A

Similar with the corporation, three years from the time it is dissolved

94
Q

if the asset distributable to any creditor, shareholder, or member who is unknown cannot be found given?

A

in liquidation, to the federation or union to which the cooperative is affiliated with

in corporation, national government

95
Q

in liquidation, what will happen to the subsidies, donations, legacies, grants aids and other assistance

A

it will be escheated in favor of the governemt

96
Q

Where will education and training fund go in liquidation?

A

to the federation it is affiliated with

97
Q

It refers to a union of two or more existing cooperative, same category, whereby surviving cooperative retaining its identity

A

only the same category can merge. different category can’t merge

Merger
A + B = A

98
Q

It refers to a union of two or more existing cooperative, same category, whereby surviving combining cooperatives created a new cooperative

A

Consolidation
A + B = C

99
Q

What is the required vote for the validity of merger or consolidation?

A

Regular Members only, 3/4

In corporation, majority of BOD, ratified by 2/3 of shareholders

100
Q

What is the required vote for division of cooperative to two or more?

A

General Assembly only, 3/4

101
Q

Cooperative does not have investment or capital contribution by stockholders. T/F?

A

True. A cooperative does not have stockholders, only members

102
Q

What is the maximum limitation on share capital of a member of a cooperative?

A

Control is not allowed in cooperative. No more than 10% of the share capital of cooperative

103
Q

WHat is the minium and maximum par value?

A

At least 100 pesos but not more than 1000 pesos

104
Q

Who shall perform annual FS audit of a cooperative?

A

Independent CPA in good standing with PICPA and accredited by PRC-BoA and CDA.

105
Q

It shall not be construed as profit but as an excess of payments made by the members for loans - Cooperative

A

Net surplus

106
Q

How shall the net surplus of a cooperative be determined or computed?

A

by the provisions of the by-laws of the Cooperative

107
Q

What is the 1st priority in the distribution of the net surplus of a cooperative?

A

Reserve Fund

108
Q

This shall be used for the stability of the cooperative, to meet net losses in its operation and will not be utilized for investment purposes

A

Reserve Fund

109
Q

What is the minimum amount of the reserve fund in the first five years of operation?

A

at least 50 % of net surplus

110
Q

What is the minimum amount of the reserve fund after five years of operation?

A

at least 10% of net surplus

111
Q

This fund shall provide for the training, development geared towards the growth of the cooperative movement

A

Educational and Training Fund

112
Q

What is the maximum amount of education and training fund of a copperative

A

Not more than 10% of net surplus

113
Q

This fund shall be used for projects or activites that will benefit the community

A

Community Development Fund

114
Q

What is the minimum amount of Community Development Fund

A

At least 3% of net surplus

115
Q

What is the maximum amount of optional fund

A

Not more than 7% of net surplus

116
Q

This is the fund used for acquisition of plant, property and equipment

A

Optional Fund

117
Q

What is the maximum interest on share capital that may be distributed by a cooperative

A

Not more than the normal rate of return of investments

118
Q

What is the required vote for allocation of interest on share capital

A

Majority of BOD

119
Q

What is the required vote for recommendation of deferment of distribution or payment

A

Majority of all members of GA present and constituting a quorum

120
Q

It refers to the portion of net surplus allocated to members who patronize the goods and services?

A

Patronage fund

121
Q

What is the minimum amount of net surplus for paatronage fund

A

At least 30% of the net suplus after decuting the statutory reserves based on the principle of equity

122
Q

What is the percentage for the statutory reserves of the net surplus

A

30%

10% - reserve fund (min)
10% educational and training fund (maximum)
3% - community development fund (min)
7% - optional fund (min)

123
Q

What is the maximum amount of net surplus of patronage fund

A

No more than more than twice the rate of interest on share capital

124
Q

It is a principle of equity wherein an equal right of members to participate in the organization and to equitable share in the benefits accruing is established

A

Principle of Patronage Refund

125
Q

In what fund shall the remaining net surplus be credited after the allowable interest and patronage refund have been decuted?

A

Reserve Fund

126
Q

It refers to the amount available out of the deferred payment of the patronage refund and interest on share capital of the members or by authorized deduction of a percentage from the product sold

A

Revolving Capital / Revolving Fund

127
Q

What is the right available to a member of a cooperative who dissents to a cooperative acts provided by Cooperative Code

A

Right to withdraw membership or appraisal right

128
Q

Where is appraisal right not available?

A

Granting compensation to directors

129
Q

What is the RA for Cooperative Code?

A

RA No 9520 Cooperative Code of 2008

RFBT (1 decks)

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