Podcast
Questions and Answers
What is required for the management of a cooperative?
What is required for the management of a cooperative?
How long is the term for directors of a cooperative until their successors are qualified?
How long is the term for directors of a cooperative until their successors are qualified?
What is NOT allowed in a primary cooperative regarding voting?
What is NOT allowed in a primary cooperative regarding voting?
Which body in a cooperative consists of not less than 5 but not more than 15 members?
Which body in a cooperative consists of not less than 5 but not more than 15 members?
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Which of the following is NOT a qualification for members of the Board of Directors?
Which of the following is NOT a qualification for members of the Board of Directors?
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Which qualification is NOT necessary for becoming a member of the Board of Directors?
Which qualification is NOT necessary for becoming a member of the Board of Directors?
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What is the minimum frequency for regular meetings of the Board of Directors in a cooperative?
What is the minimum frequency for regular meetings of the Board of Directors in a cooperative?
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What does not need to be part of the notice for a Board of Directors meeting?
What does not need to be part of the notice for a Board of Directors meeting?
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What is the liability of a cooperative officer who denies a member access to examine records?
What is the liability of a cooperative officer who denies a member access to examine records?
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Which of the following statements about the net surplus of a cooperative is false?
Which of the following statements about the net surplus of a cooperative is false?
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What happens to the shares exceeding 20% of the share capital of an heir?
What happens to the shares exceeding 20% of the share capital of an heir?
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What minimum percentage of net surplus is allocated for the reserve fund?
What minimum percentage of net surplus is allocated for the reserve fund?
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Which distribution of net surplus is NOT permitted?
Which distribution of net surplus is NOT permitted?
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Under what condition can a member transfer their shares or interest in the cooperative?
Under what condition can a member transfer their shares or interest in the cooperative?
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What is the maximum fixed par value for a share in a cooperative?
What is the maximum fixed par value for a share in a cooperative?
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For what purpose can a member use the cooperative records after obtaining access?
For what purpose can a member use the cooperative records after obtaining access?
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Cooperatives are not allowed to invest their capital in which of the following?
Cooperatives are not allowed to invest their capital in which of the following?
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Which of the following is NOT a qualification for an auditor of a cooperative?
Which of the following is NOT a qualification for an auditor of a cooperative?
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During what hours can a member examine the cooperative's books?
During what hours can a member examine the cooperative's books?
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What is the primary reason a cooperative cannot invest its capital in real estate?
What is the primary reason a cooperative cannot invest its capital in real estate?
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Which statement regarding the inheritance of cooperative shares is true?
Which statement regarding the inheritance of cooperative shares is true?
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Which item is not included in the Articles of Cooperation?
Which item is not included in the Articles of Cooperation?
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Which of the following is unnecessary in the by-laws of a cooperative?
Which of the following is unnecessary in the by-laws of a cooperative?
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What statement about application registration is incorrect?
What statement about application registration is incorrect?
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Who holds the highest policy-making authority within a cooperative?
Who holds the highest policy-making authority within a cooperative?
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Which power cannot be delegated by the general assembly?
Which power cannot be delegated by the general assembly?
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What is true about the quorum requirement for the general assembly?
What is true about the quorum requirement for the general assembly?
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How can the general assembly's decisions be reinforced?
How can the general assembly's decisions be reinforced?
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What happens if the Office of the President fails to act on an appeal within 90 days?
What happens if the Office of the President fails to act on an appeal within 90 days?
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Which document is NOT required to be open for inspection by members of a cooperative?
Which document is NOT required to be open for inspection by members of a cooperative?
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Which of the following statements about annual reports is true?
Which of the following statements about annual reports is true?
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Which statement about tax exemptions for cooperatives is false?
Which statement about tax exemptions for cooperatives is false?
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What is the tax status of cooperatives with accumulated reserves over P10 million?
What is the tax status of cooperatives with accumulated reserves over P10 million?
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Which of the following statements is incorrect regarding tax obligations of cooperatives?
Which of the following statements is incorrect regarding tax obligations of cooperatives?
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What criteria determines the tax treatment of cooperatives based on their membership dealings?
What criteria determines the tax treatment of cooperatives based on their membership dealings?
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Which of the following does NOT need to be included in a cooperative's annual report?
Which of the following does NOT need to be included in a cooperative's annual report?
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Which statement about cooperatives dealing with non-members is correct?
Which statement about cooperatives dealing with non-members is correct?
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Study Notes
Articles of Cooperation and By-Laws
- The Article of Cooperation must include the name of the cooperative, powers and capacities, and term of existence.
- Membership details are not required in the Articles of Cooperation; they belong in the by-laws.
- The term of existence in by-laws is not required.
Cooperative Development Authority (CDA) Registration
- Applications for registration by the CDA must be resolved within 60 days, or they are deemed approved.
- Denials of registration can be appealed to the Office of the President, contrary to previous statements on appeal procedures.
Governance and Structure
- The highest policy-making body is the General Assembly, which cannot delegate strategic planning and policy formulation.
- The General Assembly requires a quorum for decision-making, which is determined by a ¾ vote of members present.
- A Board of Directors must consist of 5 to 15 members.
- Directors need to be cooperative members in good standing with no delinquent accounts.
Board Meeting Protocols
- Regular meetings of the Board of Directors must occur at least once a month, not quarterly.
- Majority constitutes a quorum for Board meetings; notice must be provided in writing.
- Proxies are not allowed for Board member incapacity or term expiration situations.
Member Rights and Audits
- Members, representatives of the Cooperative Development Authority, can inspect the cooperative's records, excluding membership certificates.
- Cooperatives must undergo annual audits by independent auditors who are accredited and recognized.
Financial Management
- Cooperatives are generally not subject to taxes on transactions with members only; exceptions apply for accumulated reserves over P10 million.
- Surpluses must be distributed according to specified guidelines, which includes reserving a percentage for education and optional funds.
Governance Violations
- Members can review cooperative records, but misuse of this right for personal gain is prohibited.
- Misunderstandings related to profit distributions should clarify that net surplus is not subject to income tax solely based on member transactions.
Share Ownership and Transfer
- Shares in cooperatives can be assigned only to members or those within the field of membership and must be held for at least one year before transfer.
- The par value of a share cannot exceed P1,000.
Investments and Limitations
- Cooperatives cannot invest capital in shares or debentures of other cooperatives without member approval—restricting investments promotes funding for cooperative activities.
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Description
Test your knowledge on the management of cooperatives, including the roles and responsibilities of the Board of Directors and voting procedures. This quiz covers key concepts such as voting by proxy and cumulative voting in primary cooperatives.