Tuesday, March 31, 2015

2015 REVISED IRR: SUBSIDIARY COOPERATIVE




RULE 2
SUBSIDIARY COOPERATIVE



Section 1.  Legal Basis.  The legal basis for this Rule is Art. 5 (16) of the Code, quoted as follows:


    "Article 5 (16) Subsidiary Cooperative refers to any organization all or majority of whose membership or shareholders come from a cooperative organized for any other purpose different from that of, and receives technical, managerial and financial assistance from, a cooperative, in accordance with the rules and regulations of the Authority."


Section 2.  General Requirements.  A parent cooperative may organize a subsidiary cooperative provided that:


    1.  The creation of a subsidiary cooperative and the technical, managerial and financial assistance to be provided shall be approved by at least two-thirds (2/3) vote of the members of the parent cooperative with voting rights present and constituting a quorum in a regular or special general assembly/representative assembly meeting called for the purpose.


    2.  The Parent cooperative has been in operation for at least three (3) years and has not incurred a net loss for the last two (2) preceding years of operation.

    3.  It has a total net worth of at least Fifty Million Pesos (P50,000,000.00) as shown in its latest Audited Financial Statement.

    4.  The purpose of the subsidiary cooperative shall be different from that of the parent cooperative.

    5.  All or majority of the members of the subsidiary cooperative must come from that of the parent cooperative.

    6.  The Parent Cooperative shall be required to submit a feasibility study.

    
Section 3.  Conditions.  The following conditions shall be considered in the registration and operation of Subsidiary Cooperatives:


    1.  Assistance in the form of technical, managerial and financial assistance shall be provided by the Parent Cooperative to its Subsidiary Cooperative;

    2.  Directors or Officers of the Parent Cooperative cannot be elected or appointed as Officers of the Subsidiary Cooperative.  However, the Parent Cooperative through its General/Representative Assembly may appoint its Representative to act as Ex-Officio member of the Board of Directors of the Subsidiary Cooperative;


    3.  The Management Staff of the Parent Cooperative cannot at the same time be the Management Staff of the Subsidiary Cooperative;

   

     4.  Transfer of shares of members and other related interests from the Parent Cooperative to the Subsidiary Cooperative or vice versa is prohibited; and

    5.  In the case of dissolution of the Parent Cooperative, the Subsidiary Cooperative cannot be a recipient of any grant or other interests from the Parent Cooperative.


Section 4.  Name of Subsidiary Cooperative.  The name of the Parent Cooperative shall appear in the name of the Subsidiary Cooperative.


Section 5.  Assistance from Parent Cooperative.  The financial assistance to be provided shall not exceed ten per centum (10%) of the net worth of the Parent Cooperative which shall be in the form of loans or donation.  In case of grant/donations it shall not be distributed as member share capital.  The technical and managerial assistance shall depend upon the needs of the Subsidiary Cooperative and capacity of the Parent Cooperative, which shall be taken up in the book at actual cost.


A Memorandum of Agreement containing the terms and conditions of the financial and other assistance provided by the Parent Cooperative to the Subsidiary Cooperative shall be entered into by both cooperatives.


Section 6.  Effect of Dissolution of Parent or Subsidiary Cooperative.  The dissolution of either cooperative shall not effect the existence of the other.


However, in case of the dissolution of the Parent Cooperative, the Subsidiary Cooperative shall subsequently amend its cooperative name to remove the words "Subsidiary Cooperative of (Name of Parent Cooperative)".


(To be continued..followed by RULE 3, MULTI-PURPOSE COOPERATIVE..).

Monday, March 30, 2015

REP ASSEMBLY: 2015 REVISED IRR OF RA 9520





PART I
Certain Provisions

Rule 1
Representative Assembly


Section 1.  Legal Basis.  The legal basis for this Rule is Art. 5 (2), (10) of the Code, quoted as follows:


   "(2) General Assembly shall mean the full membership of the cooperative duly assembled for the purpose of exercising all rights and performing all the obligations pertaining to cooperatives, as provided by this Code, its articles of cooperation and By-laws, Provided; that for cooperatives with numerous and dispersed membership, the general assembly may be composed of delegates elected by each sector, chapter or district of the cooperative and in accordance with the rules and regulations of the Cooperative Development Authority."


(10) Representative Assembly shall refer to the full membership of the body of representative elected by each of the sector, chapter, or district of the cooperative duly assembled for the purpose of exercising such powers lawfully delegated unto them by the general assembly in accordance with its  by-laws.


Section 2.  Coverage.  This rule shall apply to a cooperative opting to conduct its general assembly meeting by way of representative assembly as provided for under Art. 5 (2) and (10) of RA 9520.


Section 3.  Contents of the By-laws of the Cooperative with Representative Assembly Option.  These rules apply to cooperatives with numerous and dispersed membership; provided, that the adoption of representative assembly shall be stipulated in their By-laws.


    3.1   Basis for determining Sector, Chapter, or District.  The number of the members of the cooperative, which shall be at least One Thousand (1,000) and the geographical location, scope of operation, cluster, work shift, or other similar conditions shall be the basis in dividing the cooperative into sector, chapter, or district.


    3.2  Composition of Sector, Chapter, or District.  The By-laws shall provide for the number of the regular members comprising each sector, chapter, or district.


    3.3  Quorum requirement of Sector, Chapter, or District.  At least twenty-five per centum (25%) of the members entitled to vote in each sector, chapter, or district shall constitute a quorum.


    3.4  Number of Sector, Chapter, or District Representative.  The number of elected representatives of a sector, chapter, or district as provided in the By-laws, shall be within the range of 1% to 10% of the total number of the regular members entitled to vote in the sector, chapter, or district..


    3.5  Term of Office of the Sector, Chapter, or District Representatives.  The term of office of the Representatives or Delegate shall be provided in the By-laws which shall not exceed two (2) years, commencing on the first regular representative assembly meeting.


    3.6  Qualifications and Disqualifications of the Representative or Delegate.  The sector, chapter, or district representative or delegate shall possess all the qualifications and none of the disqualification as provided in the cooperative By-laws.


Section 4.  Powers, functions, and Responsibilities of the Representative or Delegate.  The Representative or Delegate shall have the following powers, functions, and responsibilities:


    1.  Represent the sector, chapter, or district in the Representative Assembly Meeting;

    2.  To present, after due consultation with the sector, chapter, or district, the respective decision of the sector, chapter, or district on issues and matters to be decided upon by the representative assembly.  Discretion, however, is given to the respective representative/delegate to decide on new matters raised during the said representative assembly; and

    3.  To present to his/her sector, chapter, or district the report and the minutes of the proceedings of the Representative Assembly Meeting.


    Section 5.  Election of Sector, Chapter, or District Representative or Delegate.  The election of sector, chapter, or district Representative/Delegate shall be held not later than sixty (60) days before the scheduled date of the regular representative assembly meeting as provided for in the By-laws.


    The Board of Directors shall mandate the Election Deputies, through the Election Committee, to conduct the election of the sector, chapter, or district Representatives/Delegates, either simultaneously or sequentially.


    In case the sector, chapter, or district fails to elect its Representative/s or Delegates, the right to send its Representatives/Delegates on the preceding representative assembly meetings shall be deemed waived.


Section 6. Vacancy in the Sector, Chapter, or District Representative or Delegate.  Any vacancy shall be filled up in accordance with the provisions of the cooperative By-laws.  The Delegate or Representative elected/appointed to fill a vacancy shall serve only the unexpired term of his/her predecessor.


Section 7.  Resignation, Removal, Incapacity or Death of Sector, Chapter, or District Representative or Delegate.  The sector, chapter, or district Representative or Delegate, may, for any valid reason, resign as Representative or Delegae of his/her sector, chapter, or district.  

The Board of Directors shall act on the resignation within sixty (60) days from receipt thereof, otherwise, the resignation shall be deemed approved.  Any sector, chapter, or district Representative/Delegate may be removed by a vote of three-fourths (3/4) of all the members with voting rights present and constituting a quorum at a sector, chapter, or district meeting called for the purpose on the following grounds:

    1.  Failure to attend the immediately preceding representative assembly meeting for unjustifiable reason;

    2.  Non-performance of any functions and responsibilities stated in the By-laws;

    3.  Any violation of the provisions of the Code, the By-laws of the cooperative and other issuances of the Authority; and

    4.  Any acts or omissions inimical or prejudicial to the interest of the cooperative.


During the same meeting, the sector, chapter, or district shall fill the vacancy caused by the removal, resignation, incapacity or death of the Representative or Delegate.  In case said Representative or Delegate is an incumbent Officer of the cooperative, his/her position shall be declared vacant and shall be filled up in accordance with the Rule of Succession as provided for in the By-laws of the Cooperative.  

Unless otherwise provided for in the By-laws, such successor shall not necessarily assume the position of his/her predecessor.  However, in case of membership in the committee, the vacated post shall be filled up by the Board of Directors of the Cooperative from among the Representatives/Delegates.


Section 8.  Sector, Chapter, or District Assembly Meeting.  The sector, chapter, or district meeting of the cooperative adopting this scheme shall be as follows:


    a.  Regular meeting
    b.  Special meeting


A regular meeting shall be conducted to elect the sector, chapter, or district Representatives or Delegates, to discuss and decide the matters which shall be taken during the representative assembly meeting and for such other purposes as maybe provided in the By-laws.  

After the conduct of the representative assembly meeting and within thirty (30) days, the officers of the cooperative shall prepare a report on the agreement reached thereon and shall be distributed to all members on record.  Said report shall also be included in the special meeting of the sector, chapter, or district.


In either case, the conduct of the meeting shall be called and conducted by the elected delegates presided by the Lead Representative or Delegate.  Such lead Representative or Delegate shall be the Representative or Delegate who obtained the highest number of votes during the last sector, chapter, or district election.


Section 9.  Quorum Requirements for Representative Assembly.  At least twenty-five per centum (25%) of all Representatives/Delegates shall constitute a quorum for the representative assembly meeting.


Section 10.  Power of the Representative Assembly.  The Representative Assembly shall exercise the powers provided for in the By-laws.


Section 11.  Conduct of Representative Assembly Meeting.  Representative Assembly Meeting shall be conducted in accordance with the provision of the cooperative By-laws, in the absence thereof, the following shall be observed.


    1.  The representative assembly meeting shall be held in accordance with the order of business addressing the agenda prepared by the Board of Directors.

    2.  The Chairperson or in his/her absence, the Vice Chairperson or any member of the Board of Directors shall preside over the meeting.

    3.  The Election Committee shall supervise the election of the Board of Directors and committee members of the cooperative; and

    4.  Each Representative or Delegate shall be entitled to one (1) vote.  The votes of the sector, chapter, or district Representative or Delegate shall be considered the votes of all the members of the sector, chapter, or district they represent.


The decision of the Representative Assembly shall be considered a valid cooperative act.


Section 12.  Eligibility and Term of Office of the Representative or Delegate to be elected as Officers of the Cooperative.  The elected officers of the cooperative shall come from the Representative/s or Delegate/s of the sector, chapter, or district.  

These officers shall be elected during the Representative Assembly Meeting for a term fixed in the By-laws which shall in no case exceed two (2) years and shall hold office until their successors are duly elected and qualified, or until duly removed for cause.  The term of office of the Officer of the Cooperative at the time of adoption of the Representative Assembly shall expire on the first representative assembly meeting.

(To be continued...)

 

Sunday, March 29, 2015

12 CO-OP CLUSTER SUMMITS SET




TWELVE (12) CLUSTER SUMMITS OF COOPERATIVE GROUPS are scheduled to be held this year.



    The Cooperative Development Authority, which is coordinating the Summits, with partner-cooperative groups, said that even with the presence of existing consultative frameworks, there are prevailing issues and and concerns per cooperative cluster that need to be addressed at the national level.



     It said further that there seems to be a need for the government agencies to have a full appreciation and grasp of the predicament of the cooperatives per cluster.  Hence, a need-based government intervention for cooperative growth and development is required.



    The tentative schedule of the "Cluster Congress", as of March 27, 2015 is as follows:

    1.   Finance Cluster - April 17-18, 2015

          Tagaytay International Convention Center.  To be attended by lending cooperatives; insurance cooperatives; and financial services cooperatives.  Lead partner is the Philippine Cooperative Center.

          What not to miss:  Big data about cooperatives;  and deadlines by cooperatives with the reporting requirements with the Credit Information Corporation, under the Credit Information System Act. Micro-insurance products for cooperatives, to promote inclusive finance for the underserved population.


    
    2.  Health Coops Cluster - April 17, 2015

         At Soriano Velasco Hall, Main Building, Asian Institute of Management (AIM), Paseo deo Roxas, Makati City.

         Lead partner is the Partnership for Health Action, Nation-building Socioeconomic Upliftment (PHANSUP).





    3.  Agrarian Reform Community (ARC) Coops - 
         a.  April 23-24, 2015 for Luzon
         b.  April 28-29, 2015 for Visayas and Mindanao

         Lead partner is the Department of Agrarian Reform.





    4.  Agriculture Cluster - May 10, 2015

         Cauayan, Isabela.

          For farmers' cooperatives (Crops, Poultry, Livestock, Forestry).  Lead partner: Provincial Government of Isabela.


    5.  Labor Service/Workers Coops - May 21, 2015

         Puerto Princesa, Palawan.

         Participants are cooperatives engaged in labor service.  Lead partner is Union of Labor Service Cooperative.





    6.  Muslim Coops - June 10-11, 2015


         Cotabato City.

         Lead partner is the National Commission for Muslim Filipinos, and National Commission on Indigenous People.



     7.  Transport Cluster - June 18, 2015

          Marikina Riverbank Convention Center, Marikina City.

          Participants are transport cooperatives and Multi-purpose cooperatives that are engaged in transport service.  

          Lead partners are Office of Transport Cooperatives, and the NCR-TC3.



     8.  Coop Banks - June 25, 2015

          Bacolod City.

          Lead partner is BANGKOOP.



     9.  Housing Cluster - July 16, 2015

          Quezon City.

          Lead partner is the Joint Monitoring and Evaluation Committee on Housing Cooperatives.



     10.  Youth Cooperatives (Special Group 2) - August 6, 2015
             Batangas.

             Lead partner is the Local Government of Batangas City.



     11.  Electric Coop Cluster - August 13, 2015

             Rembrandt Hotel, Quezon City.

             Lead partner is Philippine Federation of Electric Cooperatives (PHILFECO).



     12.   Elderly and PWD Coops - September 10, 2015

             Manila.

             Lead partner is the Bigay Buhay Multi-purpose Cooperative.

(Note:  For particulars, pls. contact the lead partner-organization, or Mr. Jun Defensor, Chief of CDA's Cooperative Project & Development Assistance Division; tel. nos. (02) 727-6735; mobile: 09285012436; e-mail: p_defensor@cda.gov.ph ). 

(END).


    

            


    

         

          

Thursday, March 26, 2015

TRAININGS: 2015 REVISED RA 9520 IRR




(Excerpts from Rule 7, Sec. 5 of "2015 Revised Rules and Regulations Implementing Certain and Special Provisions of the Philippine Cooperative Code of 2008").


 Section 5.  Training Requirements for the Officers of the Cooperative.  

     The following officers of the cooperative regardless of type and size, such as:

 
    1.  Board of Directors
    2.  Secretary
    3.  Treasurer
    4.   Election Committee 
    5.  Audit Committee
    6.  Ethics Committee
    7.   Mediation and Conciliation Committee
    8.   Other Committees created by the General/Representative Assembly; and
    9.  General Manager or Chief Executive Officer,


shall be required to undergo a minimum of sixteen (16) hours of training on the fundamentals of cooperatives and another sixteen (16) hours on governance and management of cooperatives within the first half of their term.  

    Provided, That in the case of micro-cooperatives,  they shall only undergo sixteen (16) hours of training on the fundamentals, governance and management of cooperatives.  


    The content of the training program shall be prescribed by the Authority in consultation with accredited training providers and the cooperative sector.


    In addition to the above-mentioned trainings, cooperatives engaged in savings and credit operations shall be required to undergo an additional sixteen (16) hours of specialized training on financial management, risk management, and credit management provided that these cooperatives have at least Five Million Pesos (Php5,000,000.00) worth of deposit liabilities based on the latest Audited Financial Statement of the cooperative.


    Cooperative officers shall likewise endeavor to undergo additional appropriate training.


    Section 5.  Training Provider.  The trainings shall be conducted by federations, unions, training institutions, or local cooperative development offices and National Government Agencies (NGAs) duly accredited by the Authority.


    Advocacy cooperatives which promote and advocate cooperativism through socially-oriented projects, education and training, research and communication and other similar activities may also be accredited as training providers.


    Section 7.  Sanction for Non-Compliance with the Training Requirements.


    a.  Willful failure of the cooperative to comply with the training requirements despite due notice from the Authority shall be ground for non-issuance of Certificate of Compliance for the next succeeding year.


    b.  Failure of any officer/s of a cooperative to undergo the prescribed trainings shall disqualify said officer/s to hold any elective or appointed position....".

    (END). 

Wednesday, March 25, 2015

Cooperatives seen as tool to fight poverty | Sun.Star

Cooperatives seen as tool to fight poverty | Sun.Star

2015 REVISED IRR OF RA 9520 - PART 3


TERMS AND DEFINITIONS (Continued...}



17.  Electric Cooperative - refers to a cooperative organized primarily for the purpose of undertaking power generation, utilizing renewable energy sources, including hybrid system, acquisition and operation of sub-transmission or distribution to its household members.


    For purposes of this definition the following terms shall mean:

    a.  Distribution of Electricity - refers to the conveyance of electric power by a distribution utility through its distribution system pursuant to the provisions of the EPIRA Law.


    b.  Distribution Utility - refers to any Electric Cooperative, private corporation, government-owned utility, or existing local government unit which has an exclusive franchise to operate a distribution system in accordance with the EPIRA Law.


    c.  EPIRA - refers to the Electric Power Industry Reform Act of 2001.


    d.  Referendum  - refers to a mechanism to secure the approval of the general membership of an Electric Cooperative on issues relative to its registration, operation, and management.


    e.  Renewable Energy Resources - refer to energy resources such as, but not limited to biomass, solar, wind, hydro, geothermal and ocean energy.  These resources do not have an upper limit on the total quantity of energy to be used and are renewable on a regular basis, the renewable rate of which is rapid enough to consider availability over an indefinite time.


    f.  Sub-transmission Assets - refer to facilities related to the power delivery service below the transmission voltages and based on the functional assignment of assets, including, but not limited to, step-down transformers used solely by load customers, associated switch yard/substation, control and protective equipment, reactive compensation equipment to improve customer power factor, overhead lines, and the land where such facilities/equipment are located.  These include NPC assets linking transmission system and the distribution system which are neither classified as generation nor transmission.


    g.  Supply of Electricity - refers to the sale of electricity by a party other than a generator or a distributor in the franchise area of a distribution utility using the wires of the distribution utility concerned.


    h.  Transmission of Electricity - refers to the conveyance of electricity through the high voltage system.


    18.  Escheat - refers to the power of the State to succeed to property, real or personal, for which there is no owner, heir or claimant.


    19.  Extension Offices - refers to the regional offices of the Authority.


    20.  Financial Service Cooperative - refers to a cooperative organized for the primary purpose of engaging in savings and credit services and enhanced financial services subject to the regulations of the Bangko Sentral ng Pilipinas (BSP).


    For purposes of this definition the following terms shall mean:

    a.  BSP - refers to the Bangko Sentral ng Pilipinas.

    b.  Conservator - refers to any person appointed by the Authority empowered to take charge of the assets, liabilities and the management of the cooperative, after finding that the cooperative is in a state of continuing inability or unwillingness to maintain a condition of liquidity which is deemed adequate to protect the interest of members and creditors of the cooperative.


    c.  Internal Control - refers to all the system and procedures adopted to safeguard the cooperative's assets, check the accuracy and reliability of its accounting data, promote operational efficiency, and encourage adherence to prescribed managerial policies.


    d.  Receiver - refers to any person of recognized competence appointed by the Authority and is empowered to take charge and administer all the assets and liabilities of the cooperative for the benefit of its creditors and exercises such other powers as provided under the Revised Rules of Court.


    21.  General Assembly - refers to the full membership of the cooperative duly assembled for the purpose of exercising all the rights and performing all the obligations pertaining to cooperatives as provided by this Code, its Articles of Cooperation and By-laws.


    22.  Housing Cooperative - refers to a cooperative organized to assist or provide access to housing for the benefit of its regular members, who actively participate in the savings program for housing.  It is co-owned and controlled by its members.


    For purposes of this definition the following terms shall mean:

    a.  Blanket Loan/Wholesale Loan - refers to a housing loan contracted/obtained by a housing cooperative intended to identify member-beneficiaries for land acquisition, land improvement, house construction, home improvement, or renovation and other similar purposes.


    b.  Cooperative Housing Program - refers to an alternative housing approach, in partnership with government/non-government agencies involved in a housing program, undertaken by a financially and organizationally stable cooperative to address the housing problems of its members, primarily the low-income earners, through its own cooperative efforts in planning and direct production of affordable, decent and adequate housing units.


   c.  DBP - refers to the Development Bank of the Philippines.


    d.  DENR - refers to the Department of Environment and Natural Resources.


    e.  HDMF - refers to the Home Development Mutual Fund or Pag-IBIG Fund.


    f.  HGC - refers to the Home Guaranty Corporation.

    g.  HLURB - refers to the Housing and Land Use Regulatory Board.


    h.  HUDCC - refers to the Housing and Urban Development Coordinating Council.


    i.  Housing Beneficiaries - refer to regular members in good standing of the Housing Cooperative who actively participate in the savings programs for housing and qualify to own a unit as provided in the By-laws and duly approved internal policies of the cooperative.


    j.  LBP - refers to the Land Bank of the Philippines.


    k.  NHA - refers to the National Housing Authority.


    l.   SSS - refers to the Social Security System.


    m.  Socialized Housing - refers to the housing program and project undertaken by the government and private sector for the underprivileged and homeless which may also be undertaken by a Housing Cooperative.  This includes sites and services development, long-term financing and liberalized terms on interest payments.


    n.  SHFC - refers to the social Housing Finance Corporation.


    o.  Technical Plan - refers to all technical documents required in planning a housing project, namely, the bar chart and construction schedule, systematic development plan, the architectural and detailed engineering and housing design, contract documents, technical and material specification.


    22.  Insurance Cooperative - refers to a cooperative engaged in the business of insuring life and property of the constituting cooperatives and their members.  It shall also refer to Cooperative Insurance Societies (CIS).

    For purposes of this definition the following terms shall mean:

    a.  Commission - refers to the Insurance Commission.


    b.  Insurance-like Activity - refers to any activity involving regular collection of premiums, fees, contributions, or charges prior to the occurrence of the contingent event and the payment of guaranteed benefits upon the occurrence of such event.  The term excludes risk pooling practices such as "damayan" or "abuloy" system wherein the individual or group of individuals voluntarily pledge and contribute a certain amount of money to a fund and he benefits are not pre-determined but are contingent to the amounts collected.


    c.  Micro-insurance - refers to an activity providing specific insurance and other similar products and services that meet the needs of the low-income sector for risk protection and relief against distress, misfortune and other contingent events.  This shall include all forms of insurance  and other similar activities, as may be defined by concerned regulatory bodies with features such as:  premiums, contributions, fees or charges collected/deducted prior to the occurrence of a contingent event and guaranteed benefits provided upon the occurrence of a contingent event.


    d.  Micro-insurance Product - refers to a financial product or service that meets the risk protection needs of the poor where the amount of premiums, contributions, fees or charges computed on a daily basis does not exceed seven and a half percent (7.5%) of the current daily minimum wage rate for non-agricultural workers in Metro Manila, as approved by the National Wages Productivity Board (NWPB)/Regional Tripartite Wages Productivity Board (RTWPB), and the maximum sum of guaranteed benefits is not more than 1,000 times the daily minimum wage rate for non-agricultural workers in Metro Manila.


    e.  Regular Insurance Product - refers to all other insurance policies not covered by Micro-Insurance Product.


    23.  Laboratory Cooperative - refers to a cooperative duly recognized by the Authority, formed and managed principally by minors and is affiliated with another registered cooperative which is called the guardian cooperative.


    For purposes of this definition the following terms shall mean:

    a.  Guardian Cooperative - refers to a duly registered with which a laboratory cooperative is affiliated.


    b.  Minor - refers to an individual below eighteen (18) years of age.


    24.  Labor Service Cooperative - refers to a cooperative organized primarily to engage in providing a specific work, job, or service to a principal under a contracting or subcontracting arrangement as may be defined under existing laws and in accordance with the cooperative principles set forth under the Philippine Cooperative Code of 2008 (RA 9520).


    25.  Liquidation - refers to the process of settlement and closure of the cooperative affairs, disposition, conveyance and distribution of its assets.


    For purposes of this definition the following terms shall mean:

    a.  Voluntary Dissolution - refers to the termination of the juridical personality of the cooperative at its own initiative or instance after complying with the requirements set forth in the Code, these rules and issuances by the Authority.


    b.  Involuntary Dissolution - refers to the termination of the juridical personality of the cooperative through an appropriate judicial proceeding or by Order of the Authority.


    26.  Member in Good Standing - refers to regular members who are entitled to vote and to such other privileges as provided in the By-laws.


    27.  Merger - refers to a union of two or more existing cooperatives belonging the same category whereby the surviving cooperative, retaining its identity, absorbs one or more constituent cooperative/s.


    For purposes of this definition the following terms shall mean:

    a.  Certificate of Merger - refers to the document issued by the Authority evidencing registration of merger.


    b.  Consolidation - refers to a union of two or more existing cooperatives belonging to the same category to form a new cooperative called the consolidated cooperative.


    c.  Constituent Cooperatives - refers to two or more existing cooperatives which are parties to a merger or consolidation.


    d.  Plan of Merger or Consolidation - refers to a written document containing the proposed merger or consolidation of cooperatives duly approved by the General Assembly or each of the constituent cooperatives at separate General/Representative Assembly Meetings.


    e.  Registration - refers to the operative act granting juridical personality to a proposed cooperative as evidenced by a Certificate of Registration.


    28.  Multi-purpose Cooperative - refers to a cooperative, which combines two (2) or more business activities.


    29.  Primary Cooperative - refers to a cooperative, the members of which are natural persons.  In case of electric and water service cooperatives, institutional users may be accepted as associate members.


    30.  Regular Members - refers to one who has complied with all the membership requirements and is entitled to all the rights and privileges of membership.


    31.  Reports - refer to any document or statement to be submitted regularly by the cooperative to the Authority.


    For purposes of this definition the following term shall mean:

    a.  Sanctions - refer to the penalties provided for in the By-laws of the cooperative, these Rules, and other administrative issuances of the Authority, the Code and other related laws.


    32.  Representative Assembly - refers to the full membership of the body of representatives elected from each of the sectors, chapters or districts of the cooperative, duly assembled for the purpose of exercising such powers lawfully delegated by the general assembly in accordance with the By-laws of the cooperative.


    For purposes of this definition the following terms shall mean:

    a.  Election Deputies - refer to those members of the cooperative from the sector, chapter or district appointed by the election committee as approved by the board of directors, tasked to facilitate the conduct of the election of the Representative/Delegate in their respective sector, chapter or district, in accordance with the By-laws of the cooperative, which shall not be more than five (5) for each sector, chapter, or district.


    b.  Representative/Delegate - refers to a member duly elected during the sector, chapter or district meetings who shall represent his/her sector, chapter or district to the representative assembly meeting.


    c.  Numerous and Dispersed Membership - refers to a cooperative with a large number of membership who are scattered/dispersed by reason of geographical location, work shift or other similar conditions making it impossible and difficult to conduct its general assembly meeting.


    d.  Sector, Chapter or District - refers to an aggrupation of a cooperative, membership, by reason of geographical location, work shift or other similar conditions.


    e.  Sequential Election of Representative - refers to the election of the representatives during meetings held in sequence, in different days and/or various venues, by several sectors, chapters or districts of a cooperative for the purpose of electing their respective Representatives to the representative assembly meeting.


   f.  Simultaneous Election of Representative - refers to the election of the representatives during the meetings held, on the same day and at various venues, by several sectors, chapters, or districts of a cooperative for the purpose of electing their respective Representatives to the representative assembly meeting.


    33.  Service Cooperative - refers to a cooperative organized primarily to provide any type of service to its members including, but not limited to, labor, transport, information and communication, insurance, housing, electric, health services, education, banking and savings, and credit.


    34.  Secondary Cooperative - refers to a cooperative the members of which are primary cooperatives.


    35.  Subsidiary Cooperative - refers to a cooperative all or majority of whose membership or shareholders come from a cooperative called a parent cooperative.  It is organized for a purpose other than that of the parent cooperative, and receives technical, managerial, and financial assistance from the said parent cooperative.


    For purposes of this definition the following term shall mean:

    a.  Parent Cooperative - refers to a cooperative which organizes a subsidiary and provides technical, managerial and financial assistance thereto.


    36.  Tertiary Cooperative - refers to a cooperative, the members of which are secondary cooperatives.


    37.  Transportation Service Cooperative - refers to a cooperative organized primarily to provide land and sea/water transportation, provided that  sea/water transportation shall be limited to small vessels as defined under Philippine Maritime laws.


    For purposes of this definition the following terms shall mean:

    a.  Accreditation - refers to the recognition extended by the OTC to a registered Transportation Service Cooperative, as evidenced by a Certificate of Accreditation.


    b.  CPCN/Franchise/Permit - refers to the Certificate of Public Conveyance and Necessity issued by the appropriate government agency.


    c.  Cooperative Education and Transport Operation Seminar (CETOS) - refers to seminars conducted by OTC for the purpose of providing continuing education on cooperative and transport service operations to enhance the knowledge and capability of the officers and members of the Transport Service Cooperative.


    d.  DILG - refers to the Department of the Interior and Local Government.


    e.  DOTC - refers to the Department of Transportation and Communications.


    f.  LGU - refers to the Local Government Unit.


    g.  LTFRB - refers to the Land Transportation Franchising and Regulatory Board.


    h.  LTO - refers to the Land Transportation Office.


    i.  MARINA - refers to the Maritime Industry Authority.


    j.  OTC - refers to the Office of Transportation Cooperatives.


    k.  PCG - refers to the Philippine Coast Guard.


    38.  Water Service Cooperative - refers to a cooperative organized primarily to own, operate and/or manage water supply distribution system to serve its members and their households.


    For purposes of this definition the following terms shall mean:

    a.  LWUA - refers to the Local Water Utilities Administration, created under PD 198, as amended.


    b.  NWRB - refers to the National Water Resources Board, created under PD 424.


    c.  Water Permit - refers to the authority to appropriate and use water issued by the NWRB.


    d.  Water Right - refers to the privilege granted by the government to appropriate and use water.


    e.  Water Tariff - refers to the water rate charged for water consumption as determined by the cooperative and approved by the NWRB.


    39.  Workers Cooperative - refers to a cooperative organized primarily by workers, including the self-employed, who are at the same time the member-owner of the enterprise, the purpose of which is to provide employment, business opportunities to its member-owners in accordance with the cooperative principles.

(End of "Titles and Definitions".  To be continued...).


     

Monday, March 23, 2015

2015 REVISED IRR OF R.A. 9520-PART 1


As we may know by now, the "2015 Revised Rules and Regulations Implementing Certain and Special Provisions of the Cooperative Code of 2008" were promulgated* (earlier) by the Board of Administrators of the Cooperative Development Authority (CDA).


It was also subsequently promulgated* jointly by the House and Senate Panels of the Joint Congressional Oversight Committee on Cooperatives last March 18, 2015 at The Legend Restaurant, CCP Complex, Pasay City.  This was after more than six months of hearings, through the Technical Working Group.


We will try to serialize the contents of the Revised IRR, for possible reference by the stakeholders of the cooperative sector, and for other purposes. But implementation of these shall be subject to the corresponding issuance of Memo Circulars by CDA, and other processes that may be required.


By way of summary, the Revised IRR have two (2) parts- Part 1 pertains to "Certain Provisions".  Part II - pertains to "Special Provisions".


Certain Provisions include the following:


a.  Titles and Definitions - pp. 1 to 12;
b.  Rule I - Representative Assembly - pp. 12 to16;
c.  Rule II - Subsidiary Cooperatives - pp.16 to 17;
d.  Rule III - Multipurpose Cooperative - pp. 17 to 18;
e.  Rule IV - Division of Cooperatives - pp. 18 to 21;
f.   Rule V- Merger and Consolidation; 
g.- Rule VI - Laboratory Cooperatives - pp. 25 to 27;
h.   Rule VII - Functions, Responsibilities and Training Requirements of Directors, Officers and Committee Members - pp. 27 to 33;
i.   Rule VIII - Reports Required for Cooperatives - pp. 33 to 36;
j.   Rule IX - Guidelines for the Liquidation of Cooperatives - pp. 36 to 40;
k.  Rule X - Capitalization and Accounting Procedures of Cooperatives - pp. 41 to 43;
l.   Rule XI - Social Audit of Cooperative - pp. 43 to 45;
m.  Rule XII- Financial Service Cooperative - pp. 45 to 49;
n.   Rule XIII - Voluntary Arbitration - pp. 49 to 65;


"SPECIAL PROVISIONS" include:

a.  Rule I - Housing Cooperatives - pp. 65 to 69;
b.  Rule II - Agrarian Reform Cooperatives - pp. 69 to 73;
c.  Rule III - Insurance Cooperatives - pp. 73 to 76;
d.  Rule IV - Water Service Cooperatives - pp. 76 to 79;
e.   Rule V - Transport Service Cooperatives - pp. 79 to 83;
f.   Rule VI - Electric Cooperatives - pp. 83 to 87;
g.  Rule VII - Dairy Cooperatives - pp. 87 to 89;
h.   Rule VIII - Labor Service Cooperative And Worker Cooperative - pp. 89 to 98;
i.   Common Provisions - pp. 98 to 99;
j.  Signatories - pp. 99 to 100. 

(*Important Note: Implementation and effectivity, subject to the Memorandum Circulars that may be issued by CDA).  

(To be continued...)

Related Posts with Thumbnails