ACCP307 - Summary of Coop Code Quiz

Special Meetings and Quorum Requirement

• A special meeting can be called by a majority vote of the board of directors or as provided in the by-laws, with a written notice sent to all members entitled to vote at least 1 week prior to the meeting.

Quorum Requirement

• General rule: A quorum consists of at least 25% of all members entitled to vote.
• Exception for cooperative banks: A quorum consists of one half plus one of the number of voting shares of all members in good standing.
• Exception for electric cooperatives: A quorum consists of 5% of all members entitled to vote, unless otherwise provided in the by-laws.

Voting System

• Primary cooperative: 1 vote per member.
• Secondary or tertiary cooperative: 1 basic vote per delegate + incentive votes, not to exceed 5.
• Voting by proxy is allowed if provided for in the by-laws, allowing a delegate to represent or vote on behalf of another delegate of the same cooperative.

Board of Directors

• Composition: At least 5 but not more than 15 members elected by the general assembly.
• Term: 2 years, until their successors are duly elected and qualified, or until duly removed for cause.

General Assembly

• Composition: Members who are entitled to vote under the articles of cooperation and by-laws of the cooperative.
• Powers:
  • Amendment of articles of cooperation and by-laws by a 2/3 vote of all members with voting rights.
  • Election or appointment of members of the board of directors, and removal for cause.
  • Approval of development plans of the cooperative.

Meetings

• Regular Meetings: Annually by the general assembly on a date fixed in the by-laws, within 90 days after the close of each fiscal year.

Membership

• Requirements:
  • Meet minimum membership requirements.
  • Patronize the cooperative for 2 years.
  • Signify intention to remain a member.
• Approval: Membership application approval by the Board of Directors.
• Termination grounds:
  • Failure to patronize the cooperative for an unreasonable period.
  • Failure to comply with obligations.
  • Violation of by-laws and rules.
  • Acts or omissions injurious to the cooperative.

Financial Management and Reporting

• Official Address: Every cooperative shall have an official postal address registered with the Authority.
• Books to be Kept Open:
  • A copy of the Cooperative Code and laws.
  • Regulations of the Authority.
  • Articles of cooperation and by-laws.
  • Register of members.
  • Minutes of meetings of the general assembly, board of directors, and committees.
  • Share books (if applicable).
  • Financial statements.
• Accountant's responsibilities:
  • Maintenance of financial records in accordance with generally accepted accounting practices.
  • Production of financial records at the time of audit or inspection.
• Annual publication of financial statements and disposal of records more than 5 years old, except those subject to litigation.
• Regular reports of program activities, including socio-civic undertakings, to be filed with the Authority within 120 days from the end of the calendar year.

This quiz covers the composition and powers of the General Assembly in a cooperative, including its role in amending articles of cooperation and bylaws. Learn about the highest policy-making body of the cooperative and its key responsibilities.