Cooperative Societies: Surety Bond Quiz and Flashcards for Accountable Officers

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Questions and Answers

What is the purpose of a surety bond for directors, officers, and employees handling funds, securities, or property in a cooperative?

To cover operational expenses

To insure against personal liabilities

To guarantee their salaries

For the faithful performance of their duties and obligations (correct)

What happens if the Authority fails to act on an appeal within 90 days from the filing thereof?

The appeal is dismissed

The application is deemed denied

The Office of the President reviews the appeal again

The application is deemed approved (correct)

When does a cooperative formed under this Code acquire juridical personality?

Upon filing the application for registration

From the date the Authority issues a certificate of registration (correct)

After the cooperative's first general assembly

Upon issuance of a certification from the Authority

What is required upon the filing of an application for registration of a cooperative?

The bonds of the accountable officers Signup and view all the answers

How often should the surety bonds of accountable officers be renewed?

Annually Signup and view all the answers

What is the maximum time frame for the Authority to dispose of an application for registration?

60 days Signup and view all the answers

What is the maximum amount of a loan instrument that can be registered for free by a register of deeds?

Two hundred fifty thousand pesos (P250,000.00) Signup and view all the answers

Which fees are cooperatives exempt from paying?

Court and sheriff fees, as well as registration fees Signup and view all the answers

What is required for a cooperative to be exempt from putting up a bond for an appeal?

A certification from the Authority showing net assets exceeding the bond amount Signup and view all the answers

What is exempt from the provisions of the Securities Act?

Securities issued by cooperatives that are not speculative Signup and view all the answers

What is the purpose of the certification from the Authority regarding a cooperative's net assets?

To waive the bond requirement for an appeal Signup and view all the answers

What is the condition for a cooperative to be exempt from putting up a bond for an appeal?

The cooperative's net assets must exceed the bond amount Signup and view all the answers

What is the primary condition for members to group themselves together to achieve their common goals and objectives?

Bond of Membership Signup and view all the answers

What is the principle that ensures cooperatives are open to all persons without discrimination?

Voluntary and Open Membership Signup and view all the answers

How do members in primary cooperatives exercise their voting rights?

One-member, one-vote Signup and view all the answers

What is the purpose of members' economic participation in a cooperative?

To contribute equitably to the capital of the cooperative Signup and view all the answers

What is the characteristic of a cooperative's capital?

At least part of it is the common property of the cooperative Signup and view all the answers

What is the primary goal of a cooperative's democratic control?

To allow members to actively participate in setting policies and making decisions Signup and view all the answers

Study Notes

Registration of Cooperatives

A cooperative acquires juridical personality from the date the Authority issues a certificate of registration under its official seal.
Applications for registration shall be finally disposed of by the Authority within a period of sixty (60) days from the filing thereof, otherwise the application is deemed approved.
In case of a denial of the application for registration, an appeal shall lie with the Office of the President within ninety (90) days from receipt of notice of such denial.

Bond of Accountable Officers

Every director, officer, and employee handling funds, securities or property on behalf of any cooperative shall be covered by a surety bond for the faithful performance of their respective duties and obligations.
The board of directors shall determine the adequacy of such bonds.
The bonds of the accountable officers shall be required by the Authority upon the filing of the application for registration of a cooperative.
Such bonds shall be renewed annually and the Authority shall accordingly be informed of such renewal.

Privileges of Cooperatives

Any register of deeds shall accept for registration, free of charge, any instrument relative to a loan made under this Code which does not exceed Two hundred fifty thousand pesos (P250,000.00).
Cooperatives shall be exempt from the payment of all court and sheriffs fees payable to the Philippine Government for and in connection with all actions brought under this Code.
All cooperatives shall be exempt from putting up a bond for bringing an appeal against the decision of an inferior court or for seeking to set aside any third party claim.
Any security issued by cooperatives shall be exempt from the provisions of the Securities Act provided such security shall not be speculative.

Cooperative Principles

Every cooperative shall conduct its affairs in accordance with Filipino culture, good values and experience and the universally accepted principles of cooperation.
The principles of cooperation include: • Voluntary and Open Membership - cooperatives are 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. • Democratic Member Control - cooperatives are democratic organizations that are controlled by their members who actively participate in setting their policies and making decisions. • Member Economic Participation - members contribute equitably to, and democratically control, the capital of their cooperative.

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Description

This quiz covers the requirements for directors, officers, and employees handling funds and property in cooperative societies, including the need for surety bonds and their adequacy.

Cooperative Societies: Surety Bonds for Accountable Officers

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