ACCP307 - Summary of Coop Code Quiz

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Questions and Answers

What is the minimum percentage of votes required to amend the articles of cooperation and bylaws of the cooperative?

Half of the total members

All members with voting rights

Three-fourths of all members with voting rights

Two-thirds of all members with voting rights (correct)

What is the purpose of the general assembly according to Article 32?

To approve the budget of the cooperative

To exercise the highest policy-making power of the cooperative (correct)

To appoint the members of the general assembly

To manage the daily operations of the cooperative

What is the consequence of not acting upon the amendments to the articles of cooperation and bylaws within 30 days?

The amendments will take effect upon approval by the authority (correct)

The amendments will be rejected

The amendments will be approved automatically

The amendments will be forwarded to the board of directors for review

What is the minimum number of members required to constitute a quorum for a regular meeting of the general assembly?

25% of the total members with voting rights Signup and view all the answers

What is the purpose of the bylaws in a cooperative?

To adopt rules not inconsistent with the provisions of this Code Signup and view all the answers

What is the timeframe for holding regular meetings of the general assembly after the close of each fiscal year?

Within 90 days Signup and view all the answers

What percentage of all members entitled to vote is required to constitute a quorum in electric cooperatives registered under the Code, unless otherwise provided in the by-laws?

5% Signup and view all the answers

In primary cooperatives, how many votes does each member have?

1 Signup and view all the answers

What is the minimum time period for a member to continue patronizing the cooperative to maintain their membership?

2 years Signup and view all the answers

What is the minimum number of members that can compose the Board of Directors, unless otherwise provided in the by-laws?

5 Signup and view all the answers

What happens if a member's application is refused or denied?

The member can appeal to the general assembly Signup and view all the answers

Who has the authority to send a notice in writing for a special meeting?

The board of directors Signup and view all the answers

Under what grounds can a member's membership be terminated?

When a member has not patronized the cooperative for an unreasonable period of time Signup and view all the answers

What is the term of office for members of the Board of Directors, unless removed for cause or until their successors are duly elected and qualified?

2 years Signup and view all the answers

What is the purpose of an official postal address for a cooperative?

To receive notices and communications from the Authority Signup and view all the answers

What is the consequence of a member's continuous failure to comply with their obligations?

The member's membership is terminated Signup and view all the answers

In secondary or tertiary cooperatives, what is the basic vote per delegate, plus incentive votes not exceeding?

5 Signup and view all the answers

What is the final authority in case of a dispute regarding membership termination?

The general assembly Signup and view all the answers

What is the purpose of maintaining cooperative records?

To ensure compliance with generally accepted accounting practices Signup and view all the answers

What is the responsibility of the accountant or bookkeeper of the cooperative?

To maintain the cooperative's records in accordance with generally accepted accounting practices Signup and view all the answers

Where should the annual financial statement be posted?

In a conspicuous place in the principal office of the cooperative Signup and view all the answers

What happens if the cooperative fails to file its reports with the Authority within 120 days?

The cooperative will be sanctioned with fines and penalties Signup and view all the answers

What is the purpose of disposing of records more than 5 years old?

To comply with the law Signup and view all the answers

What is the purpose of the register of members?

To keep a record of the cooperative's members Signup and view all the answers

What is a requirement for a member of a cooperative to be eligible for election as director?

They must have the right to vote and possess all the qualifications and none of the disqualifications provided in the laws or by-laws Signup and view all the answers

What is the purpose of a director or committee member appointed by a financing institution?

To provide technical knowledge not available within the cooperative's membership Signup and view all the answers

How often must regular meetings of the board of directors be held in primary cooperatives?

At least once a month Signup and view all the answers

What is the minimum number of days' notice required for special meetings of the board of directors?

1 week Signup and view all the answers

What constitutes a quorum for the conduct of business in the board of directors?

A majority of the members of the board of directors Signup and view all the answers

Can directors attend or vote by proxy at board meetings?

No, they cannot attend or vote by proxy Signup and view all the answers

Study Notes

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.

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Description

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.