Cooperative Law Flashcards
Cooperative principle
cooperative voluntary organizations, open to all persons able to use their services and willing to accept the responsibilities of membership, without gender, social, racial, cultural, political or religious discrimination
voluntary and open membership
Cooperative principle
cooperatives are controlled by their members who actively participate in setting their policies and making decisions. In primary cooperatives, members have equal voting rights of one member one vote
democrative member control
Cooperative principle
members contribute equitably to, and democratically control, the capital of their cooperatives. At least part of that capital is to common property of the cooperative. Members allocate surpluses for any or all of the following purposes: developing the cooperative by setting up reserves; benefiting members in proportion to their patronage; and supporting other activities
member economic participation
Cooperative principle
cooperatives or self-help organizations controlled by their members. If they enter into agreements with other organisations, they shall do so on terms that ensure democratic control of their members and maintain their cooperative autonomy
autonomy and independence
Cooperative principle
cooperative shall provide education and training for the members, elected and appointed representatives, and employees so that they contribute effectively and efficiently to the development of their cooperatives
education, training and information
Cooperative principle
cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, national and international structures
cooperation among cooperatives
Cooperative principle
cooperative work for the sustainable development of their communities through policies approved by their members
concern for community
A cooperative duly registered shall have _______ liability
a. Unlimited
b. Personal
c. limited
c.
True or false. A cooperative can be likened to a corporation with a personality separate and distinct from its owner members
true
Contents of an economic survey SAV
- Area of operation
- Size of membership
- other pertinent data in a format provided by the cda that relates to the viability of the cooperative to perform its purpose
Minimum number of members of a primary cooperative
15 natural persons
Which of the following is not qualification of a member of a primary cooperative
a. Filipino Citizen
b. Legal age
c. having a common bond of interest
d. Actually residing or working in the intended area of operation
e. Must have complete a pre membership education seminar
none of the above
A newly organized primary cooperative may be registered as multi-purpose cooperative only after ____________________________
compliance with the minimum requirements for multi-purpose cooperative to be set by the cda
True or false. A single purpose cooperative may transform into a multi-purpose or may create subsidiaries only after at least three years of operation
false. Two
Except for agricultural cooperatives and agrarian reform cooperatives, only those cooperatives with a minimum paid up capital of __________ or as required in the feasibility study, whichever is higher, maybe allowed to transform into a multi-purpose cooperative
100,000
What is the minimum subscription for cooperatives
25% of authorized share capital
The 25% minimum subscription of authorized share capital requirement shall apply to all types capital shares of a cooperative. True or false
false. Only to common share capital
True or false. fractional shares may be issued for both common and preferred share capital
false
How much is the minimum paid up share capital of a cooperative
25% of the total subscription but not less than 15,000, except for multi-purpose cooperative which should have at least 100,000 or as required by the feasibility study whichever is higher
The cda shall periodically assess the required paid of share capital and may increase it every _________ when necessary of one consultation with the cooperative sector and NEDA
5 years
A cooperative formed and organized under the cooperative code acquires juridical personality from the date ____________________
the authority issues a certificate of registration under its official seal
All applications for registration shall be finally disposed by the authority within a period of __________ from the filing, otherwise the application is deemed approved, unless the cause of delay is attributable to the applicant
60 days
In case of a denial of the application for registration, an appeal can be made to the ___________________ within _________ from the receipt of notice of such denial
office of the president, 90 days
Failure of the office of the president to act on the appeal in case of denial within _________ from the filing thereof shall mean approval of said application
90 days
The use of the words “development” and “integrated” shall be encouraged
false. Discouraged
The use of the federation and union in the name of the proposed primary cooperative is always prohibited. True or false
false it is prohibited except if it is part of the registered name of association or institution for the members of the proposed cooperative come from
Minimum number of members of a federation and union for the secondary category
10 primary cooperative, 15 primary cooperatives
Minimum paid up capital of federation and union for the secondary category
500,000, not applicable
Minimum number of members federations and unions for tertiary categories
10 secondary cooperatives, 15 secondary cooperatives
How much is the minimum paid up capital of federations and unions for tertiary categories
5 million or feasibility study requirement whichever is higher; not applicable
How much is the registration fee to be paid by the proposed federation
one-tenth of the 1% of the authorized share capital or the amount prescribed in the cda schedule of fees, whichever is higher
Required vote for amendment of articles of cooperation and bylaws
can only be made by 2/3 vote of all the members with voting rights without prejudice to the right of the dissenting members to exercise the right to withdraw their membership
Any registered cooperative may, by a resolution approved by a vote of _______ of all the members with voting rights, present and constituting a quorum, resolve to divided itself into the two or more cooperatives
3/4
What is the status of a division of a cooperative in fraud of creditors
invalid
No merger or consolidation shall be valid unless approved by a ______ vote of all the members with voting rights, present and constituting a quorum of each of the constituent cooperatives at a separate general assembly meetings. Dissenting members shall have the right to exercise the right to withdraw their membership
3/4
It refers to a primary cooperative which or whose members are involved or engaged in raising or culture of plants, fungi, and other living organism for productive and economic purpose and in related activities that lead to the reduction of costs and or or value addition of outputs
agricultural cooperative
Is one organized by marginal formers 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
agrarian reform cooperative
Its primary purpose is to procure and distribute commodities to members and non-members
consumers cooperative
It is a cooperative which engages in the supply of production inputs to members and markets their products
marketing cooperative
It is one that undertakes joint production weather agricultural or industrial it is formed and operated by its members to undertake the production and processing of raw materials or goods produced by its members into finished or processed products for sale by the cooperative to its members and nonmembers
producers cooperative
It offers a wide range of financial services to other cooperatives and their members
cooperative bank
It offers savings and lending services to its members
credit cooperative
Who are the clients of a credit cooperative
its members
It offers savings, credit and other financial services
financial service cooperative
Who are the clients of a financial service cooperative
none specified
This refers to a cooperative for the members of which or registered cooperatives and or or federations organize purposely to represent the interest and welfare of all types of cooperatives at the provincial city regional and national levels
union
It refers to a cooperative whereby the members of which or doing the same line of business
federation
A laboratory cooperative shall include in its name the words _____________________________________
” laboratory cooperative of (name of guardian)”
A laboratory cooperative obtains its juridical personality after the issuance of a certificate of registration. True or false
false. A certificate of registration issued to a laboratory cooperative does not bestowed upon it a juridical personality
True or false. The dissolution of the guardian cooperative shall result in the revocation of the certificate of registration of the laboratory cooperative
true
The laboratory cooperative shall be liable for any violations it committed in its operations. True or false
false. It is the guardian cooperative who shall be liable
True or false. A guardian cooperative may only supervise one laboratory cooperative
false. may be more than one
This members of cooperative has no right to vote nor be voted upon and shall be entitled only to such rights and privileges as the bylaws may provide
associate member
the requisites to be a regular member
- Meets the minimum requirement of regular membership
- Continuous a patronize the cooperative for ____________
- Signifies his or her intention to remain a member
2 years
Who are disqualified for ineligibility to become officers and directors of a cooperative?
- Any officer or employee of the cda, except in a cooperative organized by the officers or employees of the cda
- Elective officials of the government except to a partylist representative being an officer of a cooperative he or she represents
Termination of membership
withdrawal for a valid reason and giving off a _______ notice to the board of directors
60 days
The withdrawing member shall be entitled to a refund of his share capital contribution and all the other interests in the cooperative. True or false
true, provided that such font shall not be made if a pawn 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
True or false. The insolvency of a member in a primary cooperative may be considered valid grounds for termination of membership
false. Insolvency applies to secondary or tertiary cooperative
The __________________ of member in a primary cooperative may be considered valid grounds for termination of membership
death or insanity
In case of death or insanity of an (what kind of cooperative) beneficiary member of a cooperative, the next of kin may assume the duties and responsibilities of the original member
agrarian reform
Membership in the cooperative may be terminated by a vote of ___________________________ for any acts prejudicial to the cooperative
majority of all the members of the board of directors
The decision of the board regarding the termination of a member shall be in writing and shall be communicated in person or by registered mail to send member and shall be appealable within __________ from the receipt thereof to the general assembly whose decision shall be final
30 days
They decide on appeals on membership termination
appeal and grievance committee which the general assembly created
The general assembly may create an appeal and grievance committee whose members shall serve for a period of ________ and shall decide appeals on membership termination
1 year
The appeals and grievance committee is given ______ from the receipt of appeal to decide thereon. Failure to decide within the prescribed period shall result to adm to approval in favor of the number.
30 days
Pending a decision on appeal on member’s termination by the general assembly, the membership remains suspended. True or false
false. The membership remains in force
The interest of a member whose membership has been terminated either by the cooperative or by the approved transferee shall be non-refundable. True or false
false. All sums computed in accordance with the bylaws to be due from a cooperative to a former member shall be paid to such member who has been terminated
It refers to the full membership of the cooperative duly assembled for the purpose of exercising the rights and performing all the applications pertaining to cooperatives, and is considered the highest policy making body of the cooperative
general assembly
Only for purposes of prompt and intelligent decision making, the general assembly may by a _____________________, delegate some of its powers to a smaller body of the cooperative; these powers shelby enumerated under the bylaws of the cooperative
3/4 of all its members with voting rights, present and constituting a quorum
What are the exclusive power of the general assembly which cannot be delegated
AmApDev
- To determine and approve amendments to the articles of cooperation and bylaws
- To elect or appoint the members of the board of directors, and to remove them for cause
- To approve developmental plans of the cooperative
The regular meeting of the general assembly shall be held __________ on a date fixed in the bylaws, or if so not fixed, any date within ______ after the close of each fiscal year
annually, 90 days
A special meeting of the general assembly shall be held whenever necessary. it may be called at any time by a __________________ or as provided for in the bylaws. A notice in writing should be sent ________ prior to the meeting to all members who are entitled to vote
Majority of the board of directors; 1 week
A special meeting shall be called by the board of directors after compliance with the required notice within _______ after receipt of a request in writing from at least ______ of the total members who are entitled to vote to transact specific business covered by the call
1 month, 10%
If the board fails to call a regular or special meeting within the given period, the authority, upon petition of _____ of all the members of the cooperative who are entitled to vote, and for good cause shown, shall issue an order to the petitioners directing them to call a meeting of the general assembly by giving proper notice as required by the code or in the bylaws
10%
In the case of a newly approved cooperative, special general assembly shall be called, as far as practicable, within______ from such approval
90 days
Quorum for general assembly
at least 25% of all the members entitled to vote
Quorum for a general assembly of cooperative banks and electric cooperatives
1/2 + 1; 5% of all members entitled to vote, unless otherwise provided by the bylaws
Voting system for a primary cooperative
one vote for each member
Voting by proxy is not allowed in a primary cooperative. True or false
true. Voting by proxy may be allowed by the bylaws of a cooperative other than a primary cooperative
In case of members of secondary or tertiary cooperative, they shall have one basic vote and as many incentive votes as provided for in the bylaws but not to exceed ______
5 votes
The votes cast by the ____________ shall be deemed as votes cast by the members thereof
delegates
They are responsible for the direction and management of the affairs of the cooperative, unless the bylaws provided otherwise
board of directors
What is the composition of the board of directors
5 to 15 elected by the general assembly
Maximum term for a board of director
2 years
What are the powers of the board of directors
- Strategic planning
- Direction setting
- Policy formulation
Membership is one of the qualifications to be a board of director
false. The cooperative may, by resolution of its board of directors, admit as directors or committee member one appointed by any financing institution from which the cooperative receive financial assistance solely to provide technical knowledge not available within its membership
The members of the board of directors shall be directly involved in the day-to-day operation and management of the cooperative
false
A person engage in a business similar to that of the cooperative is disqualified from election as a board of director of of said cooperative. True or false
true
In the case of primary cooperatives, regular meetings of the board of directors shall be held ______________
at least once a month
Special meetings of the board of directors may be held at anytime upen the call of the ____________ or _____________________: provided, that written notices of the meeting specifying the agenda of the special meeting should be given to all the members of the board _______ before the said meeting
chairperson; majority of the members of the board; 1 week
What is the quorum for the board of directors
majority unless the bylaws provide otherwise
True or false. Directors cannot attend or vote by proxy at board meetings
true
If the cause of vacancy is due to the expiration of the term of member of the board, who shall fill the vacancy
general assembly, in a general or special meeting called for the purpose
If the cause of the vacancy in the board of directors is other than the expiration of its term, who shall fill the vacancy
the board of directors if they still constitute a quorum; shall serve only up to the unexpired term
Who shall elect the chairperson and vice chairperson of the board of directors
the board of directors from among themselves
Who shall elect or appoint other officers of the cooperative
the board of directors from outside of the board in accordance with their bylaws
Loss of confidence shall be a valid ground for removal of a board of director
false, not a valid ground unless evidence by acts or omission causing loss of confidence in the honesty and integrity of such officer
No two or more persons with relationships to the _______ civil degree of consanguinity or affinity nor shall any person engage in a business similar to that of the cooperative nor who and any other manner has interest in conflict with the cooperative shall serve as an appointive officer.
Third
What are the committees required to be provided under the bylaws
- Audit
- Election
- Mediation and conciliation
- Ethics
- Such other committees as may be necessary
What are the committees whose members are elected by the general assembly
- Audit
- Election
Directors are not to receive any compensation as a general rule except if there is a provision in the bylaws fixing their compensation or reasonable diems, except
- if in the preceding calendar year, the cooperative reported and net loss
- Had the dividend rate less than the official inflation rate for this year
True or false. No additional compensation other than per diems shall be paid during the first year of existence of any cooperative
true
Resumption of grant per diem after a period of suspension shall be compounded. True or false
false
Required vote for compensation of board of directors
majority vote of the numbers with voting rights at the regular or special assembly
The compensation of all other employees shall also be determined by the general assembly. True or false
false. fixed in the bylaws or by the board of directors
What is the status of contracts entered into by the cooperative with oneor more of its directors
voidable, at the option of the cooperative
A contract entered into by the cooperative with one or more of its directors is voidable unless
- That the presence of such director in the board meeting wherein the contract was a proposed not a society constitute a quorum for such meeting
- That the vote of such to the thermos not necessary for the approval of the contract
- That the contract is fair and reasonable
If the first two conditions for validity of a contract entered into by the cooperative with one of its directors is absent, such contract may be ratified by
3/4 vote of all the members who voting rights, present and constituting a quorum
True or false. The rules with regard to self-dealing directors shall also be applied to self-dealing officers and committee members
true, except in the case of an officer or committee member, the contract shall be valid if it has been previously authorized by the general assembly or by the board of directors
If a director who acquires for himself an opportunity which should belong to the cooperative used his own funds in the venture, the profit shall be a accrued for himself
false, unless his act has been ratified by 3/4 vote of all the members with voting rights present and constituting a quorum
What is the liability of a director who by virtue of his office a course for himself an opportunity which should belong to the cooperative
liable for damages and must account for double the profits that otherwise would have accrued to the cooperative by refunding the same; unless ratified by 3/4
What are the liabilities of a director or officer home for his benefit or advantage makes use of confidential information that, if generally known, my persona be expected to adversely affect the operation and viability of the cooperative
- Liable to compensate the cooperative for the direct losses suffered
- Accountable to the cooperative for any direct on a feet or advantage received or yet to be received by him
To whom are complaints for the removal of any elected officers shall be filed
to the board of directors
An elected officer may be removed by ________________________ in a regular or special general assembly meeting called for the purpose
3/4 of the regular members present and constituting a quorum
This officer of the cooperative shall be responsible for the maintenance of the cooperative in accordance with generally accepted accounting practices. He shall also be responsible for the production of the same at the time of audit inspection
accountant or bookkeeper
This committee shall be responsible for the continuous and periodic review of the books and records of account to ensure that these are in accordance with generally accepted accounting practices. It should also be responsible for the production of the same at the time of audit or inspection
audit committee
A cooperative be disposed by way of burning or other method of complete destruction any document pertaining to its financial and non-financial operations which are already ___________ and those relating to transactions which are the subject of civil criminal and administrative proceedings
more than five years old
Regular reports of the programs of the cooperative shall be filed with the cda within ___________ from the end of the calendar year
120 days
If a cooperative fails to make publish and file the required reports of its programs, the cda shall, within _______ from the expiration of the prescribed period, send such cooperative a written notice, stating its noncompliance and the commensurate fines and penalties that will be imposed until such time that the cooperative has complied with the requirements
15 days
What are the annual audits a cooperative is subject to
financial, performance and social audit
The external auditor weather on his or her individual capacity or a supporter of a firm may undertake the external audit of the concerned cooperative for not ______________ consecutive years provided the test or auditor may be allowed to audit the same client after a gap of ____________
more than 5 years, 2 years
What are the records excluded from a member’s right to examine
- Subsidiary ledger
- Records of natural or juridical members other than their own personal records
Cooperatives with accumulated reserves and undivided net savings of not more than _________ shall be exempt from all national city provincial municipal or barangay taxes of whatever name or nature
10 million
All tax free importation of a cooperative shall not be sold or the beneficial ownership thereof be transferred to any person until after ______, otherwise, the cooperative and the transferee shall be solidarily liable to pay ________ the amount of the imposed tax and or or duties
5 years; double
True or false. All cooperatives regardless of the amount of accumulated reserves and on divided net savings should be exempt from payment of local taxes and taxes on transactions with bangs and insurance companies provided that all sales or services rendered for non members shall be subject to the applicable percentage taxes sales made by producers marketing or service cooperative
true
Which of the following is or are not a privilege/s of a cooperative
A. Deposit of cash in the safes of the municipal or city treasurer’s and other government offices free-of-charge
b. Cooperatives organized among government employees shall enjoy the free use of any available space in their agency
c. Cooperate during special types of services and facilities such as a story just and plants need not to secure a franchise
d. Cooperatives and gauge in credit services shall be entitled to loans credit lines, rediscounting of their loan notes, and other eligible papers with the dbp, landbank of the philippines and other financial institutions including bsp
e. Privilege of being represented by the provincial or city fiscal or the office of the solicitor general free of charge
c&d
No member of primary cooperative other than the cooperative itself shall hold or own more than ________ of the share capital of the cooperative
10%
Whenever a member of cooperative dies, his heir shall be entitled to the shares of the decedent provided
a. it does not exceed10% of the share capital of a cooperative
b. qualified and is admitted as member
c. If a and b are not met, only the excess shall be reverted back to the cooperative
A cooperative may set up a continuing subscription on share capital upon full payment of the initials subscription. True or false
false. Required
Unless otherwise provided for in their bylaws, cooperative shall issue share certificates at least ________________ based on the number of shares fully paid for the said period
every end of the calendar year
True or false. Cooperatives are prohibited from issuing multiple types of common shares and different par value per share
true
True or false. A cooperative can increase or decrease the par value of the share capital by way of amending their articles of cooperation and bylaws
false. Prohibited
A share refers to a unit of capital in a primary cooperative, the par value of each may be fixed to any figure not more than ________
1,000 pesos
Share capital of a cooperative is the paid up capital for the operations of the cooperative. True or false
false. Money paid or required to be paid
True or false. The bylaws of a cooperative may prescribe a fine on unpaid subscribed share capital
true
True or false. The net surplus shall not be construed as profit but as an excess of payments made by the members for the loans for road for 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
true
This fund is used for the stability of the cooperative and to meet the net losses in its operations
reserve fund
The amount of net surplus distributed to the reserve fund is equal to
_____________ of the net surplus; provided that in the first ____ years of the operation after registration shall not be less than ____ of the net surplus
minimum 10%; five; 50%
True or false. Reserve fund can be utilized for investments
false, only those allowed in ra 9520
To whom shall the reserve fund be distributed upon dissolution of the cooperative
to any federation or union to which the cooperative is affiliated or to the community were the cooperative operates
Who shall decide the distribution of the reserve fund upon the dissolution of the cooperative
the general assembly
How much is the maximum amount of net surplus distributed to the education and training fund
10%
How is the utilization of the education and training fund
half for education and training purposes; have to be related to a union or federation chosen by the cooperative or of which it is a member
The amount of net surplus distributed to the community development fund is equal to
minimum 3% of the net surplus
How much of the net surplus is distributed to the optional fund
maximum 7% of the net surplus
The remaining surplus should not exceed ______________
normal rate of return on investments and patronage funds
It is the sum connected to patrons for those who avail of the goods or services of the cooperative
patronage funds
Majority of all the members of the board of directors and 3/4 of the members constituting a quorum (1)
voluntary dissolution
- Where creditors are affected - filing of formal petition with notice and hearing
- Where creditors are not affected - mere submission of board resolution together with ratification by general assembly
Majority of all the board of directors and majority of all the members (1)
deferment of payment of interest on share capital
Majority of all of the board of directors (3) RemDelSus
removal of cooperative member for valid cause
delegation to executive committee
placing an elected cooperative officers under preventive suspension pending resolution by the investigating committee over his removal
Majority of the board of directors constituting a quorum RecromFillAll
allocation of interest on share capital
filling of vacancy in the executive committee
recommendation of removal of elected officers
Two-thirds of all the members (2)
amendment of the articles of cooperation
amendment of bylaws
both have appraisal rights
3/4 of all the members constituting a quorum (6) MerDivDelRaRaRe
merger or consolidation; with appraisal rights
division of the cooperative
delegation of powers to the board of directors
ratification of contracts with self-dealing officers
ratification of disloyalty of directors
removal of elected officers upon board recommendation
Majority of all the members (2)
filling of vacancy in the board of directors due to expiration of term
Filling of vacancy in the board of directors due to causes other than expiration if the board of directors does not constitute a quorum
It means that the body of cooperative principles adhere to worldwide by cooperatives
universally accepted principles
It means the full membership of a body of representatives elected by each of the sectors, chapter or district of the cooperative duly assembled for the purpose of exercising such powers locally dedicated on to them by the general assembly in accordance with its bylaws
representative assembly
It shall include cooperatives undertaking activities which are related to its main line of business for purpose
single purpose or single line cooperative
It refers to three or more primary cooperative, doing the same line of business, organized at the municipal, provincial, city, special metropolitan political subdivision, or economic zones created by law, registered with the authority to undertake business activities in support of its member cooperatives
subsidiary cooperative
Required age for the members of a laboratory cooperative
7 to 18 years of age
It is an organization of cooperatives
federation
Means an organization of cooperatives and federation of cooperatives
Cooperative unions
True or false. The functions or purposes of cooperative unions relate to its member cooperatives
false. Member cooperatives are linked to federation of cooperatives and not to cooperative unions
In compliance with the referendum as a voting procedure, the required number of votes for registration of electric cooperative with the cda shall be _______ of all members in good standing
20%
It indicates the area of operation, the size of membership, and other pertinent data in a format provided by the cda. It is submitted to the cda together with a general statement describing, among others the structure and purposes of the proposed cooperative
economic survey
Every group of individuals or cooperatives intending to form a cooperative under the cooperative code shall submit to the cda 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 _______________
bookkeeper
A cooperative shall exist for a period ___________ from the date of registration and this wonder dissolve or unless said period is extended. The cooperative term, as originally stated in the articles of it cooperation, may be extended for a period not exceeding __________ in any single instance by an amendment of the articles of cooperation in accordance with this code: provided, that no extension can be made earlier than _________ prior to the original or subsequent expiry date unless there are justifiable reasons for an earlier extension as may be determined by the authority
50 years; 50 years; 5 years
No cooperative, other than the ________________ as described under the article 25 here of, shall be registered unless the articles of cooperation is accompanied with the bonds of the accountable officers and a sworn statement of the treasurer elected by the subscribers showing 25% of the authorized share capital has been subscribed and at least 25% of the total subscription has been paid provided that in no case shall the paid of share capital be less than 15,000 pesos
cooperative union
The amendments in the articles of cooperation and bylaws shall take effect upon ___________________ or within ________ from the date of filing thereof if not acted upon by the authority for a cause not attributable to the cooperative
approval by the cda; 30 days
Grounds for membership termination in a cooperative (POVI) PatrObliViolInjury
- nonPatronization
- non fulfillment of Obligations
- Violation of bylaws and rules
- Injurious acts or omissions
Quorum in board of directors of a cooperative bank
1/2 + 1 of the members of the board of directors
Directors, officers and committee members who or willfully and doing lee vote for or ascent to patently unlawful acts or who are guilty of gross negligence or bad faith in directing the affairs of the cooperative or acquire any personal or pecuniary interest in conflict with their duty as directors officers all committee members shall be liable ________________ for all the damages or profits resulting therefrom to the cooperative, members and other persons
jointly and severally
Notice of time place and object of the meeting for the voluntary dissolution of the cooperative shall be published for three consecutive weeks in a newspaper published in the place where the principal office of set cooperative is located; such notice is sent to each member of record either by registered mail or personal delivery at least ________ prior to said meeting
30 days
Grounds for involuntary dissolution of a cooperative by order of competent court after due hearing (2)
violation of any law
insolvency
Grounds for suspension or revocation after to notice and hearing of certificate of registration of a cooperative by the cda (FIVOM)
Fail 2 Willful Illegal Fraud
- Having obtained its registration by fraud
- Existing for an illegal purpose
- Willful violation despite notice by the authority of the provisions of the code or its bylaws
- Willful failure to operate on a cooperative basis
- Failure to meet the required minimum number of members in the cooperative
Years to exist after dissolution
3 years
To whom shall the assets distributable to the creditors, shareholders or members who are unknown or cannot be found be given
to the federation or union to which the cooperative is affiliated with
Upon dissolution and liquidation, subsidies donations legacies grants aids and other assistance from any local or foreign institution whether public or private given to a cooperative which form part of the donated capital or fond of the cooperative shall be escheated in favor of the
republic of the philippines
With paid-up share capital contribution, a member patron’s proportionate amount of patronage refund shall be paid to him unless he agrees to credit the amount to his account as additional share capital contribution true or false
true
With unpaid capital contribution, a member patron’s amount of patronage refund shall be credited to his account until his share capital has been fully paid. True or false
True
In the case of a non-member patron, the proportionate amount of patronage refund shall be set aside in a ___________ for such patrons
general fund
Proportionate share of a non-member patron shall only be allocated to him only _____________
a. Upon request
b. Upon presentation of evidence of the amount of his patronage
a non-member patron shall be deemed and become a member
a. When a sum equal to the ____________________ has accumulated
b. At any time within a period specified in the bylaws of the cooperative
c. If he so agrees or requests and complies with the provisions of the bylaws for admission to membership
minimum capital contribution
The amount accumulated or credited to the non member patrons account together with any part of the general fund for such shall be credited to _________________________ of the cooperative at the option of the cooperative if within any period of time specified in the bylaws, any subscriber has not fully paid his subscribed share capital or when he does not request nor agree to become a member
the reserve fund or to the education and training fund
Required vote for voluntary dissolution where no creditors are affected
majority vote of the board of directors and at least three fourth votes of all the members with voting rights present and constituting a quorum
The notice of time place and object of a meeting for a voluntary dissolution where creditors are affected shall be published for ____________ in a newspaper published in the place where the principal office of said cooperative is located or in the general circulation in the philippines
three consecutive weeks
The notice for a meeting for the voluntary dissolution of the cooperative where no creditors are affected shall be sent to each member of record registered mail or by personal delivery at least __________ prior to said meeting
30 days
If the petition for voluntary dissolution of a cooperative where creditors are affected is sufficient in form and substance, the cda shall issue an order reciting the purpose of the petition and shall fix a date which shall not be _______________ nor _________________ after the entry of the order
30 days; 60 days
A copy of an order reciting the purpose of a petition for the voluntary dissolution of the cooperative shall be published at least _________ for _________________
once a week; 3 consecutive weeks
Upon expiry of the five day notice to file objections, the cda shall proceed to hear the petition and try any issue raised in the objection file; and if the objection is sufficient and the material allegations of the petition or proven, it shall issue an order to dissolve to cooperative and direct the disposition of its assets in accordance with existing rules and regulations. True or false
true
Grounds for involuntary dissolution by the court (2)
- violation of any laws or provision of bylaws
- Insolvency
Grounds for involuntary dissolution by order of the cda (5)
- Having obtained its registration by fraud
- Illegal purpose
- Willful violation despite notice by the cda of the provisions of ra 9520 or its bylaws
- Willful failure to operate on a cooperative basis
- Failure to meet the required minimum number of members in the cooperative
If a cooperative has not commenced business and its operation within __________ after the issuance of its certificate of registration or has not carried on its business for _________, it will be dissolved by failure to organize and operate
2 years; two consecutive years
Every cooperative post existence is terminated, shall continue to exist for _________ after the time it is dissolved for the purpose of prosecuting and defending suits by or against it; settlement and closure of its affairs; disposition conveyance and distribution of its properties & assets
3 years
