Chapter 7 Flashcards
(12 cards)
I. Dissolution is voluntary if it is ordered by the CDA or a competent having jurisdiction over the cooperatives on grounds as specified by law and after due process
II. The dissolution of a cooperative, whether voluntary or involuntary, terminates the right of the cooperative to continue the business or purpose for which it was established and is bound to wind up its affairs within the period as specified by law
Only II is true
I. If the dissolution of a cooperative does not prejudice the rights of any creditor having a claim against it, the dissolution may be effected by a majority vote of the board of directors, and by a resolution duly adopted by the affirmative vote of at least a majority of all the members with voting rights, present and constituting a quorum at a meeting to be held upon call of the directors.
II. The notice of time, place, and object of the meeting shall be published for 3 consecutive weeks in a newspaper published in the place where the principal office of said cooperative is located, or if no newspaper is published in such place, in a newspaper of general circulation in the Philippines
Both are true
I. If a cooperative has not commenced business and its operation within 2 years after the issuance of its certificate of registration or has not carried on its business for 2 consecutive years, the CDA shall send a formal notice to the said cooperative to show cause as to its failure to operate.
II. Failure of the cooperative to promptly provide justifiable cause for its failure to operate shall warrant the CDA to delete its name from the roster of registered cooperatives and shall be deemed dissolved.
Both are true
I. Liquidation refers to the activities undertaken by a dissolved cooperative, through its duly constituted Liquidators.
II. The dissolved cooperative shall continue to exist for three years from the issuance of the Order of Dissolution.
Both are true
The following are the effects of liquidation, except:
A. Remaining assets are returned to the board of directors
B. All debts are realized and assets are converted into cash
C. Debts are settled in accordance with the provisions of the Civil Code on Preference and Concurrence of Credits or with the following claim of priorities.
D. Reserves are disposed of in accordance with the existing laws, rules and regulations, and the bylaws of the cooperative
A. Remaining assets are returned to the board of directors
I. Upon the expiration of the winding up period of 3 years and the submission of the Board of Liquidators/Trustees of the Liquidation’s Final Report, the CDA shall order the cancellation of the Certificate of Registration.
II. The cancellation of the Certificate of Registration of a cooperative will result in the delisting of the name of the cooperative in the Cooperative Registry and cessation of the existence of a cooperative as a cooperative body for all intents and purposes.
Both are true
It refers to the act of striking out or deleting the registered cooperative name from the Registry of Existing Cooperatives after its Certificate of Registration has been ordered cancelled.
Delisting
It refers to the termination of the juridical personality of the cooperative through appropriate judicial proceedings, or by an order of the CDA, or through its own initiative.
Dissolution
I. The dissolution of a cooperative may either be voluntary or involuntary.
II. Dissolution is voluntary if it is initiated through the voluntary decision of the members of cooperatives.
Both are true
I. Where the dissolution of a cooperative may prejudice the rights of any creditor, the petition for dissolution shall be filed only with the Regional Trial Court.
II. The petition shall be signed by a majority of its board of directors or other officers managing its affairs, verified by its chairperson or board secretary or one of its directors and shall set forth all claims and demands against it and that its dissolution was resolved upon by the affirmative vote of at least majority of all the members with voting rights, present and constituting a quorum at a meeting called for that purpose.
Both are true
A cooperative may be dissolved by order of a competent court after due hearing on the grounds of:
I. Violation of any law, regulation, or provisions of its bylaws.
II. Insolvency.
Both are true
I. Every cooperative whose charter expires by its own limitation or whose existence is terminated by voluntary dissolution or through an appropriate judicial proceeding shall nevertheless continue to exist for 5 years after the time it is dissolved.
II. At any time during the said 5 years, the cooperative is authorized and empowered to convey all of its properties to trustees for the benefit of its members, creditors, and other persons in interest.
Only II is true
