12 Questions
What is the maximum par value of the share capital of a cooperative registered under this Code?
$1,000
Which of the following is NOT a source of capital for cooperatives registered under this Code?
Profits from the cooperative's business operations
What is the status of capital coming from subsidies, donations, legacies, grants, aids and other assistance?
It forms part of the donated capital or fund of the cooperative
What is the status of the share capital of the members?
It is considered as equity
What is the purpose of preferred share capital?
To provide a way for the cooperative to raise additional capital
What is the purpose of revolving capital?
To provide a way for the cooperative to retain earnings for future growth
What is the maximum percentage of the share capital of a cooperative that a member, other than the cooperative itself, can own or hold?
10%
What happens if a member of the cooperative dies and their heir's total share holding exceeds 10% of the share capital?
The shares in excess of 10% will revert to the cooperative upon payment to the heir of the value of such shares.
What is the minimum duration a member must hold their share capital contribution or interest before they can transfer it?
1 year
To whom can a member transfer their shares or interest in the cooperative?
To the cooperative, another member, or a person who falls within the field of the membership
What is the maximum par value of the share capital of a primary cooperative registered under this Code?
$1,000
What is the status of the share capital of the members of a cooperative registered under this Code?
The share capital is owned by the individual members, but can only be withdrawn upon termination of membership.
Test your knowledge on the different sources from which cooperatives can derive capital as per Article 72 of the Code. Explore topics like member's share capital, loans, revolving capital, and subsidies.
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