Cooperative Societies: Surety Bonds for Accountable Officers

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.

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.