Cooperative

Midterms

• Attorney Precious Swelan Santiago is relevant to business laws and regulations
• PDIC provides technical assistance to cooperatives
• Exemption from pre-qualifying bid requirements is possible for cooperatives
• Legal representation is necessary for cooperatives
• Blanket loans are a type of loan relevant to cooperatives

Organization and Registration

• A minimum of 5-15 natural persons are required to form a primary cooperative
• An Economic Survey is required for cooperative registration
• Articles of Cooperation and a Certificate of Cooperation are necessary documents
• Registration requires 9 specific steps, including a Pre-Membership Education Seminar

Membership

• There are two types of memberships: regular and associate
• Members are liable to the extent of their contribution to share capital
• Membership can be terminated with a 60-day notice
• Members have the right to examine records of the cooperative

General Assembly

• The General Assembly is the highest policy-making body of a cooperative
• The Assembly is composed of members entitled to vote
• Regular meetings are held 90 days after the close of the fiscal year
• Special meetings require a 1-week notice and can be petitioned by 10% of members
• A quorum requires 25% of all members entitled to vote
• Each member has one vote, with a maximum of four incentive votes

Board of Trustees

• The Board of Trustees consists of 5-15 members elected for a 2-year term
• The Board is responsible for strategic planning, direction-setting, and policy-formulation
• Regular meetings are held once a month, with special meetings requiring a 1-week notice

Trustees

• Trustees cannot hold positions directly involved in the operation and management of the cooperative
• Trustees need not be members if appointed by a financing institution
• Trustees with conflicts of interest or engaged in similar businesses are disqualified

Officers

• Officers serve during good behavior and can only be removed for cause
• Officers with conflicts of interest or 3rd degree relationships are disqualified
• Officers are required to post a bond

Committees

• There are five committees: Executive, Audit, Election, Mediation and Conciliation, and Ethics

Liabilities

• Self-dealing can be ratified by ¾ votes of members
• Disloyalty, illegal use of confidential information, and secret profits are liabilities