Chapter 2: Organization and Registration Flashcards
(101 cards)
1
Q
What is the primary objective of every cooperative?
A
To help improve the quality of life of its members
2
Q
This refers to two or more existing cooperatives which are parties to a merger or consolidation.
A
Constituent Cooperatives
3
Q
How many persons can a primary cooperative organize with?
A
15
4
Q
True or False: A primary cooperative needs 15 natural or juridical persons to organize.
A
False. It must only consist of natural persons.
5
Q
True or False: A single-purpose cooperative may transform into a multipurpose or may create subsidiaries.
A
True
6
Q
When may a single-purpose cooperative may transform into a multipurpose or may create subsidiaries?
A
After at least 2 years of operations
7
Q
This refers to a cooperative which has members only consisting of natural persons.
A
Primary Cooperative
8
Q
What is the minimum capitalization requirement where a cooperative may be allowed to transform into a multipurpose cooperative?
A
100,000
except agriculture and agrarian reform cooperatives
9
Q
This indicates the area of operation, the size of membership, and other pertinent data.
A
Economic Survey
10
Q
What is the liability of a cooperative?
A
Limited
11
Q
What is the term of a cooperative?
A
50 years
12
Q
True or False: The 50 years term of a cooperative is renewable.
A
True
13
Q
When must a cooperative term be renewed?
A
Not earlier than 5 years prior to expiration
14
Q
True or False: In all circumstances, a cooperative term cannot be renewed earlier than 5 years prior to expiration.
A
False. There may be justifiable reasons allowed by the Authority.
15
Q
Who must sign the Articles of Cooperation of a PRIMARY cooperative to be submitted to the Authority?
A
Each of the organizers
16
Q
Who must sign the Articles of Cooperation of a TERTIARY OR SECONDARY cooperative to be submitted to the Authority?
A
Chairpersons or secretaries before a notary public
17
Q
How many copies each of the AOC, bylaws, and the general statement must be submitted to the Authority?
A
4 each
18
Q
What else must be submitted with the AOC on registration?
A
Bonds of accountable officers (except in coop unions)
Short statement of treasurer aka general statement saying that 25% of the authorized capital stock has been subscribed and 25% of the subscription has been paid up.
19
Q
In no case shall the paid-ip share capital be less than how much?
A
15 000
20
Q
Every how many years can a cooperative increase its required paid-up capital?
A
5 years
21
Q
Which government body should be consulted when a cooperative increases its share capital?
A
NEDA or National Economic and Development Authority
22
Q
The par value must not exceed how much?>
A
1,000
23
Q
When should bylaws be filed?
A
Along with the AOC
24
Q
All applications for registration shall be finally disposed of by the Authority within a period of how many days?
A
60 days
25
If the Authority did not dispose of a an application for registration in 60 days what happens?
The application is deemed approved
26
In the case of denial of the application by the Authority, what is the remedy of the applicant?
Appeal to the Office of the President within 90 days from receipt of denial
27
What happens when an applicant appealed to the Office of the President and the appeal was not acted upon in 90 days?
It is deemed approved
28
Which words shall be included in the name of a cooperative?
Cooperative, Kooperatiba, Cooperativa
29
True or False: A cooperative's name may be in all capital letters.
False
30
Preferred share capital shall not exceed what percent of the authorized share capital of the cooperative?
25%
31
True or False: No member shall own more than 10% of the subscribed share capital of the cooperative.
True
32
This bond of membership is where the members are working and/or actually and physically residing in the same place.
Residential
33
This bond of membership is where the members consist of employees, workers, and/or officers of a particular institution.
Institutional
34
This bond of membership is where the members come from a registered and/or recognized association, group, fraternity, religious group, cultural and other similar aggrupation.
Associational
35
This is a legitimate aggregation of persons which is validated to be publicly known in a particular community and is able to present certification from applicable government entity.
Recognized association
36
This bond of membership is where the members come from the same or allied profession or actual profession.
Occupational
37
True or False. A prospective cooperative may include in its bylaws a provision not allowing members of exiting cooperatives of the same type within the same area of operation to be a member of the proposed cooperative unless they resign from the former.
True
38
What is the vote required for the amendment of AOC or bylaws?
2/3 of all members with voting rights
39
How are amendments indicated?
Underscore
40
When shall amendment of AOC or bylaws take effect?
Within 30 days from the date of filing thereof if not acted upon by the Authority.
41
True or False: In an amendment of AOC or bylaws, a member may not withdraw.
False. They have the right to withdraw.
42
To whom are voting rights granted to?
Regular members who vote as persons
43
True or False: An associate member has the right to vote.
False.
44
True or False: An associate member has no right to vote but can be voted upon.
False. Both are prohibited.
45
What is the status of contracts executed prior to registration of a cooperative?
They are valid and binding
46
What must be adopted and made in the cooperative's name when contracting between private persons prior to registration?
A formal written contract
47
Can a cooperative divide into two or more cooperatives?
Yes
48
How can a cooperative divide into two or more cooperatives?
By 3/4 vote of all members with voting rights
49
When a cooperative divides, how are the new cooperatives become juridical persons?
After being legally established after registration with the CDA
50
What is the right of a dissenting member?
A refund of his/her share capital and all other interests
51
Who may propose a division?
Majority of BOD
or
At least 10% of members with voting rights
52
How many votes is needed in a merger or consolidation of a cooperative?
3/4 vote of all members with voting rights
53
When is merger and consolidation of cooperatives be effective?
Upon issuance of the certificate of merger or consolidation by the CDA
54
Who is the single cooperative in a merger?
Either of the cooperatives aka the surviving cooperative
55
Who is the single cooperative in a consolidation?
The consolidated cooperative
56
Who may propose a merger or consolidation?
Majority of BOD
or
At least 10% of members with voting rights
57
This is a cooperative that promotes and undertakes savings and lending services among its members. It generates a common pool of funds to do this.
Credit Cooperative
58
This is a cooperative where its primary purpose is to procure and distribute commodities to members and non-members.
Consumers Cooperative
59
Who supervises credit cooperatives?
BSP
60
This is a cooperative that undertakes joint production whether agricultural or industrial. It undertakes the production of raw materials into finished goods for sale by the cooperative to its members and non-members.
Producers Cooperative
61
True or False: Any end product or its derivative arising from the raw materials produced by its members, sold in the name and for the account of the cooperative, shall be deemed a product of the cooperative and its members.
True
62
This is a cooperative which engages in the supply of production inputs to members and markets their products.
Marketing Cooperative
63
This is a cooperative which engages in medical and dental care, hospitalization, transportation, insurance, housing, labor, electric light and power, communication, professional and other services.
Service Cooperative
64
This is a service cooperative engaged in providing contracting or sub-contracting service to principal employer.
Labor Service Cooperative
65
What is the bond of membership of a labor service cooperative?
Residential
66
What is the bond of membership of a workers cooperative?
Residential and/or occupational
67
True or False: A workers cooperative may engage in contracting or sub-contracting activities.
False
68
Labor service and workers cooperatives are required to comply with the requirement of which laws?
Labor laws
69
This is a primary cooperative organized by persons duly registered and licensed by appropriate government agency and as such belonging to the same group for the sole purpose of practicing their profession.
Cooperative among Professionals
70
What is the bond of membership of members of a Cooperative among Professionals?
Occupational
71
Which professionals are prohibited from organizing cooperatives in exercise of their profession?
Lawyers and Accountants
72
This is a cooperative which combines two or more of the business activities of these different types of cooperatives.
Multipurpose Cooperative
73
For how many years must a cooperative be in operation before it can be a multipurpose cooperative?
2 years
74
This is a primary cooperative which promotes and advocates cooperativism among its members and the public.
Advocacy Cooperative
75
This is a cooperative organized by marginal farmers majority of which are agrarian reform beneficiaries for the purpose of developing an appropriate system of land tenure, development, consolidation, or land management in areas covered by agrarian reform.
Agrarian Reform Cooperative
76
This is a cooperative organized for the primary purpose of providing a wide range of financial services to cooperatives and their members.
Cooperative Bank
77
This is a cooperative whose members are engaged in the production of fresh milk which may be processed and/or marketed as dairy products.
Dairy Cooperative
78
This is a cooperative organized for the primary purpose of owning and operating licensed educational institutions.
Education Cooperative
79
This is a cooperative organized for the primary purpose of undertaking power generation, utilizing renewable energy sources.
Electric Cooperative
80
This is a cooperative organized for the primary purpose of engaging in savings and credit services and other financial services.
Financial Service Cooperative
81
This is a cooperative organized by the marginalized fishermen in localities whose products are marketed either as fresh or processed products.
Fishermen Cooperative
82
This is a cooperative organized for the primary purpose of providing medical, dental, and other health services.
Health Services Cooperative
83
This is 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.
Housing Cooperatives
84
True or False: A housing cooperative is co-owned and controlled by its members.
True
85
This is a cooperative engaged in the business of insuring life and property of cooperatives and their members.
Insurance Cooperative
86
This is a cooperative which includes land and sea transportation, limited to small vessels, as defined or classified under the Philippine maritime laws.
Transport Cooperative
87
This is a cooperative organized to own, operate, and manage water systems for the provision and distribution of potable water for its members and their households.
Water Service Cooperative
88
True or False: A water service cooperative is the same as a water district.
False. They are not the same.
89
This is a cooperative organized by workers, including the self-employed. Its principal purpose is to provide employment and business opportunities to its members and manage it in accordance with cooperative principles.
Workers Cooperative
90
This is a primary cooperative whose members are involved/engaged in raising of plants, animals, fungi and other living organisms for productive and economic purpose.
Agriculture Cooperative
91
What is the bond of membership of an agriculture cooperative?
Residential
Occupational
Associational
92
This is a cooperative composed of Filipino citizens, duly registered with the CDA to engage in small-scale mining activities.
Small-scale Mining Cooperative
93
Small-scale miners must be registered with the?
DENR or Department of Environment and Natural Resources
94
What is the bond of membership of a small-scale mining cooperative?
Residential
Occupational
95
True or False: A small-scale mining cooperative may be allowed to register having nationwide area of operation.
False. They are not allowed.
96
In terms of membership, what are the categories of cooperatives?
Primary
Secondary
Tertiary
97
This is a cooperative where the members of which are natural persons.
Primary Cooperative
98
This is a cooperative where the members are primaries.
Secondary Cooperatives
99
This is a cooperative where the members are secondary cooperatives.
Tertiary
100
This refers to a cooperative the members of which are primary cooperatives doing the same line of business.
Federation of Cooperatives
101
This is a cooperative the members of which are registered cooperatives and/or federations organized purposely to represent the interest and welfare of all types of cooperatives at the provincial, city, regional, and national levels.
Cooperative Union
