| ! ‘paarnew suse. or raxrmurewes REGULATORY FRAMEWORK FOR BUSINESS TRANSACTIONS ‘COVERAGE: { ‘A. Cooperative Code iection: Read and select the best anewer forthe folowing questions 1, Whats the ttle of Republic Act Ne, 9520? ‘Philippine Cooperative Code of 2008, 1, Cooperative Code ofthe Philippines of 2004 Cooperative Law of the Philipines of 2006 4. Philippine Cooperative Law of 2010 2. tis an autonomous and duly regisiered associston of persons, with a common bond of interest, who have voluntarily ‘ined together to achieve tir social, economic, and cultural peed and atprations by making equitable contbutons ‘othe capital required, pomonizing ter products and services and accepting afr share of the sks and benefits ofthe ‘undetking in accordance with universally eccepled cooperative pinelpls- Corporation Cooperative © Joint Vente & Association 3. Which ofthe following isnot a cooperative principle? ‘Democratic Member Consol Autonomy and independence Involuntary and Close Membership 4 Concer far Community 4. Which ofthe folowing is wot a cooperative principle? ‘Education, Training and Information 1 Cooperatcn among Cooperatives © Member Esonomie Partcipation i 4 Taxsbility of Cooperatives | 5+ Tis cooperative principe means Ut Coopertves sre voluntary organizations, open all prions abl to ase their vices and willing 0 accept the responsiblies of membership, without gender, soca, ravi, cultural, political religious discrimination, ‘a Democratic Member Contol Voluntary and Open Metibersip Autonomy and Independence 4» Concesn for Comumisity 6k 90 pret pry ent y Cope Co ome ot pies tt cope ie ign ‘& Securities and Exchange Commission (SBC) | Bouiesenry oghvins Oo | ¢. | Cooperative Development Authority (CDA) ie ee ei apy tcp of ead 9 BCEDN as Mi coon oe } Sean | Fete Ati ol Fine Suienrs tt ' & | Gompince A | + alee engenmnais seen |g kre was Teli ly ot ocr eee nic ie nd i vrs espns ems a bai for proving ivi na ot ovr peraens ed Akjettely informing the general memersip on such efomance i | Socal Aut | &. | Peonmne Aude | Financial Semen Audit 4 | Compliance Audit 1, neon pote tog aii td efi ce Sutter Seen * sateen [naa Cente (Sona copa & 4 Page 1 of 161, u, 2. 8, u Y. 18, tis a ype of cooperative thar promotes coopzatvism amog its members and the public arough soially-oriented projects, education and uaining, research and communicaioo, and other similar sotiviis to reach out to its intended beneficiaries. ‘a Education Cooperative 1, Advocacy Cooperative Training Cooperative Learning Cooper tis typeof cooperative that promotes and underakes savings ant lending services among its members. It generates & ‘common pool of fds In cede to provide fsa askstance to its rerabers for productive and provident purposes. ‘Insurance Cooperative 1b. Credit Cooperative ©. Cooportive Bank Financial service Cooperative Ttis a ype of cooperative the primary purpese of which Isto procure and iswibutecommodies to members end nen- members ‘Marketing Cooperative Producers Cooperative & Consumers Cooperaive Client Cooperative 1k is @ ype of cooperative that combines two (Z) or wore of the business activities of these different types of ‘ceoperives. ‘2 Muli-purpose Ceoperative 1 Singleline Cooperative © Duskpurpose Cooperative 4 No-pupose Cooperative IRisatype of cooperative she members of which ae narra persons. ‘2 Primary Cooperaive 1. Secondary Cooperative © Teriary Cooperative 4. Intermediate Cooperative IL is 2 type af cooperative that engeges in medical snd dental ere, hosyitalizeoc, twansportation insurance, housing, labor, elec light and power, communication, profes-nt! a ther svc Consumers Cucperaive 1b. Producers Cooperative a Iris a ype of ccopecativeorgznize fer the priiary purpose of rade energy soures, including hyorid systems, acqUision and operation of suttraasrission oF isaTbuion tits household members, ‘& Blectic Ccoperatve 1. Insursce Ceopentive Water Service Congcratve Dairy Cooperstve tis sype of coopecative oroanies t assist or prow soca to housing fo ie Sen of ts gular members who sctvely partite in he savings program fox housing, Its co-owned anc conrrelles hy is aetbers ‘2 Transport Cooperative Housing Congerstive © Workers Cooperative Fishermen Cooperative Itisa ype of cacpertve organized by workers, including the selt-employed, who we e same time the members and ‘owners ofthe onterise I princi: purpose st provide employment and Sssin-s opportunities to its members and. ‘manage it in accordance wid coupertive principles Transport Coceraive Housing Cooperative © Workers Cooperative 4 Fishermen Cooperat've tis atype of cooperative wise members ar eng the production of Iresh milk which may be processed andor marketed as dairy proce ms mye ‘= Daity Cooperative b. Meat Cocpertive ‘& Vegeiable Cooperative Fruits Cocperave ceAR- a rr Regulatory Bramework for Brciness Transscions (REBT 8616) Page 2 of 1620, The following ae the purposes ofa cooperative, except ‘a To encourage thrift and savings mobilization among the members : 1b. To generate funds and extend credit othe members for productive and provident purposes © Toencourage among members systematic production and marketing 44. To promote monopoly and restaint of rade 21, Which ofthe following is a purpose of «cooperative? ‘& Topromote and advance the economie, social and educational tfus ofthe members 1 To discriminate apsint non-members of a cooperative . © Todiscourge seep or selfemployment as a engine for economic growth and poverty alleviation 4 Toprovide goods and services and other requirements othe non-members, 22, Which of the flowing i the purpose ofa cooperative? ‘2 Toencoumge trf and savings mobilization among the members ‘Tomaximize the contol of wealthy people of businesses ‘To eeuie land for development as condominium projects for commercial purpor ‘To advocate srk, rally and boyeor poe 2. Which ofthe following is aot a purpose aft coopertive? ‘To promote and advance the economic, socal and eestiona stan ofthe meinbers oe alleviation ‘To generate funds and extend creo the memoers for productive end provident pupoces; “To.reate monopoly or business considered as resin of rade ee 24, Which of the following Is an objective ofa cooperative? ‘To encourage and promote self-help or se\Femployment ar an engine for economic growth and poverty 1 To provide goods and scvices to iss members 0 enable thems wy atin increased income, savings, investments, prodoctvin. and purchasing power, and promate among themssives equiable dstabution of net surplus fbrough maximum utization ef economies of sai, aeat-xasng and rik sharing, ‘oteach members of iaficient ways of doing thirgs ina cov ath ‘oallow the higher income and more privilege groups wo incr? ‘To provide minimal scial and cconeris benets tts mensbes are 25, The following are the function of Federton of Coopests, except ‘& To cany on any cooperative enemy: tnt o> complete with, nor supplant te basins or euanc mis senvities of neribes cooperatives, 1 Tocary on. encourage, and assis cucsvonal albicans testing Hs member cooperatives. ewes seeme’s, or supplements but does not conflict, © Torender services desigat¢ io snearage Smplicity ef teney, nd ecrony ft the conduct the bases of fis member conpertives ant to foc Viste te Iplemetitnh «+ Ui: bow eon systems and prosedoret 44 To print, publish, and ciate eny aewsquper or wher miic’en in site nd enterpris. ‘To coordinate andacitite the ntsc of ts mses eonpestes ‘To develop he cooperative snoverenin thei resp h> jie, £ 26, The following ae the purposes of Cooperative Unions. aeept ‘To represents raemter erguizathns. {Wall ype of cooperatives with is wen of coe ‘To aoquse, analyze, and disseminate, ecoromi, asl, end oth formation releting wo is members end © To sponsor studies inthe economic, legal, finwnca, social and oer passe of cooperation, and publish the resuls toro? ‘To develop the cooperative movercentin thee respevive rections, ‘To advise the appropriate aticribes om ll questions rte ecupertives, aves foreign sources whether plate or government and sale of products andr services inthe Paliprines aad ebro. To raise funds though menbecship fees, dues and wontiouions, donations, and subsidies from local and To emir into joint ventires with national ot je-nationa cooperatives of ever counties in the manufacture 27. Which ofthe following statements is true if cooperative compies wit the rravsions of Fhilopine Cooperative Code of 20087 ‘8 Such cooperative sal be deomed a conspiracy or combination i restaint of ted. ‘Such cooperative sal be implied en illegal monopoly © Such cooperative shal be considered an ten’ lessen computtion cto ts price arity. None ofthe above 28, The following are the quaitiouions oor za'aers or cooptrators of perspective cecperiiv, except They ae 15 of more natral perso, b. They reall Filipino citizens. They are ll ectull resing or wecking in he intend ere ef operon. 4. They have e common hon of interest. They must be incapacitated persons (CAR Regulatory Framework for Business Transactions (RFBT 8618) Page 3 of 162, 31. 3. 3s, 37. ‘What isthe numberof cooperatrs or founders ofa primary cooperative? ‘15 ormore ntral persons Notes than S but aot more than 15 natural persons & Sut not more than 10 naturel persons 4. 10r more natural persons ‘What ste maximum foreign investment or ownership in a coopersive? a 10086, be 40% 30% a Om 1 shal eer to a cooperative duly recognized by the Autbority, formed and managed princpelly by minors and is lated with soother registered cooperative which Is called he guardian cooperative. ‘The following ae the purposes of laboratory cooperative, except ‘Toserve as tuning ground forts members to prepare them for membership in regular cooperatives b. Toteach the value of tri and saving mobilization among its members, § Teinstl cooperative values, principles, financial discipline and leadership sill among its members & To promote and advance Filipino social and culiral valves, erological awareness and. sustainable development. ‘& Toaccumulate oto ruse fund forthe sing of guardian cooperative ‘shall refer to duly reginered cooperative to which alaboretory cooperative is affiliated with. ‘2 Laboratery Cooperative Guardian Cooperative & Student Cooperative 4. Youth Cooperative . The following ar the qualifications of organizers or founders of «laboratory cooperative, except '&Fifsen (15) or more minors b. They are all Filipino etzens. 1S They are actully residing in the community or enrolled in an educational instiuton within or near the area of eration ofthe Guasdian Cooperative or ou of sehool minor stualy residing in the commu. 4 They reall guinfully employed. What isthe age of members of laboratory cooperative? ‘© Atleast 7 years old but below 18 years of age 1. Atleast 12 yeas old bur below 18 years of age {& Atleast 15 years old but below 18 years of age 44 Atleast 10 yeas old but below 18 Jears of age ‘What i the minimum years of operation ofa single-purpose cooperative in order to transform into « mul-purpose cooperative or inorder for single-purpose cooperative wo create a subsidiary cooperative? ‘2 Atleast one year of operations b. Ateast two Years of operations Atleast three years of operations 4 At east four years of operations {refers to the doctnent signed and acknowledged before a notary public bythe organizers of a cooperative tht wil befiled to CDA in order forthe prospective cooperative tobe created, a Articles of Co-Parmership, b. Anices of Cooperation © Arles of incorporation 4d Amicles of Association . Each cooperative to be registered before CDA shall adopt by-laws not inconsistent withthe provisions of Cooperative (Code. When shall the cooperative by-laws be fled to 88 CDA? ‘& Within 30 days from the issuance of CDA of Certificate of Revistration of the Cooperative ‘Within 20 day ftom te issuance of CDA of Certificate of Registration of the Cooperaive Within 10 days fom the issuanee of CDA of Certificate of Registration of the Coopertive 4 Atthe sometime the Articles of Cooperstion ls submited to the CDA (CRAR Regulatory Framework for Businss Transactions (RFBT 8618) Page 4011638. Whats the minimum prescriptive period to lapse tom he fling of application for registration as anew cooperative for {he inaction of CDA to be considered an implied approval ofthe egistation? ‘At least 30 days ‘Atleast 60 days At east 90 days ‘Alea 120 days 40 What is the minimum prescriptive period to lapse fom the filing of application for amendment of articles of ‘cvoperation cr by laws for the faction of CDA tobe consiered an implied approval of te ameadment? ‘A Atleast 30 days Athens 60 days © At eas 9 days Atleast 120 days aoee ‘41, When sha the amendment of Anicis of Cooperation end By-Laws of the Coopemtve take effet? ‘& Upon ts approval by the CDA or ‘> Upon the lapse of 30 days ffom law fhe date of fling amendment of articles or cooperation of by-laws if not Acted upon by the CDA for «cause not atuibutabl tote cooperative © Either Aor B Neither nor 42. Whats the minimum subscribed shares before a prospective cooperative be registred with CDA? Atleast 25% of authorized share capital b. Atleast 9 of authored share capt © Atleast % of authored share capa! 44 Atleastmajosty of authorized share capital 49. What ithe minimum paid-up capital before «prspectve The general asembiy sual bs compote’ of gta moribers ana asccate member, & The general assery shall be composed cf aercice norte, The general assembly shall be composed sl nenvain nneoe 4 wo vole unier the articles of ith tng rgb or withou voting rights. Fae nent ny delete se conte onthe Boa of Dats: Howeve the flowing re ‘acasive powers tha cant be delegued by GesetalAstunbly he Sou of Ditton secon Te determine ane approve aendments athe eicle of coperston od tec Db. To-lect or apnoin the members of he bead of desta, ard to ceutve ew cause. & Toapprove development plans ofthe coopentin, To deterine the suai paaig, direc an jee fomulanon seis ofthe coopernives. (6: te te rue vote forthe valid delegation by tne Cetera Azeri of som: ot delogabie power wo aamaller boty ofthe cooperative for purposes ot pomp and irteiigentdeckionechng? BAU tare fours (4 vot of alts menzes with vag ch precem and voting a quorum. Atleast three-fourths (3) vot ofall its memSers presen a oust ns a quero GAUSS Seco ears (25) sot ofall is aembers 9. agg pres! and contig a quorum. Atleast hee fours (2/3) vote of el its memes, present and consioteg 9 one (67. How often sal the regular meeting bythe yeni! esc of a soupeiasie be held? ‘2 At east annus & a CPAR- Rygulatory Fremework for Busnes: Tanstons (RFBY 6818) Page 7 of 16(68. Inthe absence ofa date fixed inthe cooperative by-laws, when shal the regular esting by the gaeral assembly ofthe ‘cooperative beheld? ‘Any date within 90 days after the close of ach fel year 1. Any day of Apel, Apa s Any day of December (9. Whats the quorum in the meeting of the general asembly ofan ordinary cooperative? ‘2 Atleast majority ofall the members ented to woke ‘Atleast 25% of all the members ent ovate © Atleast ofall he members ened 0 vote Atleast 5% ofall the members ented to vote 70. Whats the quorum inthe meting ofthe general assembly ofan elecrc cooperative? ‘& At east majority of al the members ete to vote . “Atleast 25% of all the members entitled to ote & Atleast ofal the members ended to vote Atleast 5% ofall ae members ened to vote 71. As geal, wat the quorum ine elo spec meting of gael essmbly fa coopera ak? ‘Att oe alfa fe mane of eg sol meron ose Atlat 238 ll members ented vote Alas Sof menber ene to vte Atleast fal meer with aig hs rset end consthing «quran 72. As an exception fo gener rule of quorum in a cooperative bank, what is the quorem in the meeting of general assembly of a cooperative bank fr the emandment of ails of eooperstion or by-laws? ‘Atleast one half plus one ofthe number of voting shares ofall he mersbers in good standing Atleast 25% of al members ened to vole © Atleast 5% ofall members entitled to vote 4 Atleast 3/4 of al members with voting rights present and consi & quorum 73. Whats the numberof vote that a regular member ofa primary cooperative has? 12 Only one wote . Based on the numberof shares held Number of shares eld multiplied by ss in Board of Directors & None epee, 74, What sth voting rights of the members ef «cooperative bank? Each individual member shall hve ony one vot. ‘The voting rights f te members shall be proportionate tothe numberof this pid-up shares, Ech individual member shall ave one (1) basic vote and as many inceative votes as provided for inthe bylaws but not exceed five (8) vos. 44 Bach ndvicial member shall have fve (5) basi votes. pee 75, Whats the numberof vote that member cooperatives of secondary or tetary cooperative have? ‘They shall have one (1) basic vote and as many Incentive votes as provided for in the bylaws but no exceed five (5) votes, They sal have rwo (2) basic woes and as many incentive votes as provided for inthe bylaws but nt exceed fen (10) vores. ‘© They shall have thos (5) baie votes and as many incentive votes a provided fori he bylaws but mot exceed fifien (15) tes, 4 They shall have four (4) basic vor and as many incentive votes as provided for inthe bylaws but not excoed ‘twenty 20) vores. 76, Ke shall be the body in a cooperative responsible forthe suategic planning, dretion-sting and poliy-formulation activities ofthe cooperatives, General Assembly ‘6. Board of Directors Board of Trustees 4 Executive Commitee . ‘7. Whats the quorum necessary for validity of meeting of Board of Directors of olinary cooperative? ‘& At east majority ofthe members ofthe Boar unless the bylaws provide otherwise '. One-balf plus one of al the members ofthe beard of director: ©. Atleast 3/4 ofthe members ofthe Hoard les the bylaws provide otherwise 4. Atleast 26 ofthe members ofthe Board ules the bylaws provide otherwise CAR Ryglaory Framework for Busnes Tassartns (REBT 6618) Page 8 of 1678, What isthe quorum necessary for validity of meeting of Board of Directors of cooperative bank? ‘& Atleast majority ofthe members ofthe Board unless the bylaws provide 1b. One-half plus one ofall the members ofthe hoard of dirctors & At leas 3/4 ofthe members ofthe Beard unless the bylaws provide otherwise 4 Atleast 27 ofthe member ofthe Board nls the Bylaws provide tberwie 79. The members ofthe board of dirctors of a cooperative shall not hols any other positon diel Involved in the day to Gey operation and management of the cooperative. Which of the following postions in a cooperative may be Geld ‘concurrently of director ofa cooperative? ‘Chairman or Vicechairman of the Bosrd of Disectors ofthe Cooperative b. President ofthe Cooperative Secretary of the Coopertive Treasurer ofthe Cooperative 50. What reason of vacancy in the Board of Directors of a cooperative will disqualify the remaining directors despite Sonstituting quorum to fil te vacancy, thus, eguiring the general esembly to fllup uch vacangy? Expiration of erm ofa director b. Desthof a dteetor Disqualification of adireetor 44 Resignation or abandonment of office bya director ‘$1, There are ten sts in the Board of Dizectors of putcular cooperative. Thee sits are vacant dus to death, resignation nd disqualification of a director. How may the thre vacancies be flld-up? By remaining ditectors only 1. By general assembly only & Either A of B Neither A nor B 82. There are nine sits in the Board of Directors ofa particular cooperative. Five sis are vacant due to death, resignation, sandonment, disqualification or removal of diretor. How shall he five vacancies be filedp? By remaining directors only B. By general astembly only © BitherA ot B Neither nor B 83. There ae five sits im the Board of Directors of« particular cooperative, One git is vacant due to expiration of term of such director. How shall the vacancy be flled-up? ‘By remsining directors only >. By geoeral assembly only © Fiver AorB Neither A nor B 1 1. How may an executive commie in a cooperntive be created? ‘= By provision inthe by-laws j 5. By mere resolution of board of directors despite no authorization in thd by-laws Either A of B Neither A nor 55, How may te power of be ce commit in esouperave be eae? provision inthe by-laws By majority vote of al the members of the board of directors € Fliher Aer B Reiter A nor B 186, As a general rule. the directors, officers and comminee members are not personaly liable forthe lables of the ‘eopetatve. The flowing ae tc exepceal eases where econ offcer end eommites member seal eae jointly a severally for all damages or profits resulting thereftom to the re, members, and other persons, oad san rth i este el Se a eee ses Pa eg gaat lle ey swe ay & RESETS loner fo cment enpte ts hes of pcr tin kg i pina wa ear em Rn agree Se sini ioe & guy 1 i Poe tate (CAR Reglatry Framework for Business Vansactons (RFBT 8616) | Page 9 of 16‘8, Whats the required vote inorder fr directors of «cooperative to be exceptionally ented to compensation other than ‘reasonable per dems? Atleast majority vote ofthe members with voting rights , Atleast 23 vote ofthe members with voting rights Atleast 3/4 vote ofthe members with voing rights 4 Unanimous vote ofthe members wih voting rights {89, Ln case ther is provision in the by-laws fixing compensation of rectors, to what extet of benefits are directors of ‘cooperative ented to during the first year of existence of any cooperative? ‘Reasonable per diems . Compensation & Both A and B Neither A norB 90. in case ther is provision in the bylaws fxing compensation of directors, to what extent of benefits are directors of ‘ooperatve ented to during the year when the cooperative reported net loss? ‘Reasonable pe dies Compensation © BohA and B @. Nether A nor B 91, How often shall the regular meeting ofthe board of czeetors ofa primary coopertive beheld? ‘Atleast monthly b. Atleast weekly © Atleast annually a Atleast quarety 92. The following ae considered valid grounds for removal of an officer oft cooperative, except Mert oss of confidence Los of confidence inthe honesty and integrity as evidenced by acts or omissions Such officers a relative within thied civil degree of consanguinity or affinity who is also an officer ofthe sume cooperative. ‘Such officer has confit of intrest with employing cooperative. ‘Such officer is engaged ina business similar that of is employing cooperative. oe poe 93. As a general rule, what i the status of contract entered into by the cooperative with oxe or more ofits directors, officers or committee members also known as contact with self-deling decors or oficers? ‘sVoidable onthe part ofthe cooperative Unenforceable Void 4 Rescissibe 9. What isthe required vote for ratification of voldable contract entered by a cooperative witha sel-ealing director? ‘4 Atleast 3 of members with voting rights, present end continuing a quorus Atleast 34 of members with voting rights, present and constituting & guonim Atleast majority of members with voting righ, present and constituting & quorum 44 At least 25% of members wih voting righ, present and constituting a quorum 9. The cooperative hes 15 sis inthe board of directors. A contract with a self. dealing director wil beth subject mater of the meeting ofthe board of directors. In which of the following scenarios will te contact with such self- dealing directors be considered perfectly valid even without ratification by member? Present directors including self-deaing director Approving present dlectors including sel-daling director a Sdirecors 5 cireccrs b. Sirctors 6 directors © 1 directors 6 dirctors 4. 9 directors Sditecors ‘96. What is the liability or obligation of a director of a eoopernive who by virtue of his offce, acquires for himseif an ‘opportunity which should belong tothe cooperative? ‘& Heshall be lable but only up othe extent of bis capital contribution, He shall be liable but only upto the extent of his compensation and reasonable per dems. ‘& He shall be lable for damages and must aceclint for double the profits tha otherwise Would have acerued to the cooperative by reuanding the same, 44 He shall be lable for damages and must account for the profits that otherwise would have ecerved tothe ‘cooperative by refunding the same. —— ee (CAR - Regulatory Frarsework for Business Tensacions (REBT 0515) Page 10 0f 1697. What ste required vote for ratification of acquistion made by adiector ofa Who by vitue of his office, ‘quits for himsel an opportunity which should belong fo the cooperative? Atleast 29 of members with voting right, preset and constituting & quorum . Atleast 34 of members with voting rights, proset and consiuing a quorum & Atleast majority of members wit voting rights, present and constiuing a quomam 4 Atleast 25% of members with voting rights, present and eonstivting a quorur{ 98, Mints the liability ofa dretor or officer, cr an associat of a director or officer, who, for his benefit or advantage or ‘Eat of m associate, makes use of confidential information tha if generally known, might reasonably be expected to ‘versely affect the operation and vablty ofthe cooperative? Such director or officer shall be lisble to compensate the cooperative for the direct losses suffered by the ‘ooperatve as a result ofthe iegal ute of inormaion. ‘Such director or oficer shal be accountable to the cooperative for any diect benefit or advantage received or 4yett0 be received by him or his associate, asa result ofthe transaction, ©. Both A and B, Neither A tor B, 99. Whats te required vote fr removal ofan officer ora director of «cooperative? Atleast 29 of members with voting igh, present ad constituting @ quorum Atleast 3/4 of members with voting rights, present and consiuting a quorum & At least majority of members with Voting righ, present and constiuting» quorum 4 At least 25% of members with voting rights, present and consuting& suru 10 vec an TREYPE Of cooperative is absolutely exempted from ll taxes and fees imposed by national internal revenue taxes and other tax laws even without qualifetion? Duly raistered cooperative with CDA that doesnot transact business with non-members or the general public. ‘Duly registered cooperative with CDA that tacsacts business with members, non-members and the general publi '& Duby registered cooperative with CDA with accumulated reserves and undivided net savings of not more than 0,000,000, 4 Duly registered cooperative with CDA with accumulated reserves and undivided net savings of more than 10,000,000 10 ete BPE of transaction wil a cooperative transacting with both members and noo-members be absolutely ‘exempted from national tax and local even withoat qualifcaion? ‘8 Transaction of cooperative withthe general public. I ', Transaction of cooperative with non-members, 6. Transaction of cooperative with their members, 4. Allofthe above availabe locally a certified by the department of trae and industry? ‘© Duly repistered cooperative with CDA with eccurnalated reserves add undivided net svings of not more than 10,000,000, t ». Duly registred cooperative with CDA with accumulated reserves ad undivided net savings of not more than 20,000,000. I © Duly texistred cooperative with CDA with accumlted reserves ad undivided net savings of not more than | 30,000,000. Proc eM wih CDA with accumsated reserves pnd undivided ot svngs of more than P0,000,000. | 108. samy TS folowing are the types of taxes or custom duties wil a cooperstive dealing with nonmembers with ‘secumulte reserves and undivided net savings of not more tan P1,000,000 be exempted xcept Alaina! ues 8 ie provincial, city, municipal end baranguy taxes a | Customs duties, advance sales or compensating ines on ei importation of machineries, equipment nd spare | parts used by them and which are act availabe locally cerifed by the department of trade and industy 4 [Allan ies and its [hava epi iwi mer i a eit ne ret acon sede Derr 5 EES acy ita emma i ARES om a remy sa | | | ! CER. Framework for Gusinest Tancactons (REET 8616) 7 Page 11 of t610s. ___Te. folowing statements conceming other privileges given by Cooperative Code 10 cooperatives duly registered with CDA are correc. except ‘In areas where there are no available aotres publi, the judge, exercising his ex officio capacity as notary public, shall render service, free of charge, to any person or group of persons requiring the administion of ‘ath or the acknowledgment of articles of cooperation and instruments of loan from cooperatives not ‘exoseding Five Hundred Thousand Pesos (P500,000 00. '. Any register of deeds shall accept for regisvation, fie ofchurge, any instrument relative to a loan made under this Code which does not exceed Two Hundred Fifty Thousand Pesos (P250,000.00) or the deeds of title of any property acquited by the cooperative or any paper or document drawn in connection with any action ‘brought by the cooperative or with any cour jodrment rendered in it favor of any instrument relative 1 & ond of ary accountable officer of conperntve f= he fathful performance of his duties und obligations. ‘& Cooperatives shall be exempt fom the payment of all court and sherif's fees payable to the Phlippine Government for and in conaecton wit all ations brought under Coopersive Code, where such ations is brought by the CDA before the court to enforce the payinent of obligtions commacted in favor of the cooperative 4 All cooperatives shall be exempt fom puting up a bond for bringing an appe 1 against the decison of an inferior court or for seeking to set aside any third party claim: Provided, That a cerifiaton of the CDA showing thatthe net asets of the cooperive are fn encess ofthe amount ofthe bond required by the court ia ‘similar cases shall be accepted by the cour a a suficent bond ‘© Any secuiy issued by cooperatives shall te exempd fem the provisions ofthe Secures Regulation Code ‘even those securities which are considered tobe speculave 106 snp tt issoution of & cooperative doesnot peje the rights of any creditor having a claim agains it, what is ‘the prope procedure for voluntary dissolution of ry ‘By submitting a resolution duly adopted by Board of Directors and members to CDA. By filinga petition for ciscalution with CDA. © By filings petition for disslution wih RTC. 4 By filings pestion for aissolution with SEC. 107 eon dissolution aa cooperative prejudices or affers the rights of any credior having. claim agains it, what is the proper procedure for voluntary dissolution of cooperve? ‘By submitng a resolution Zuly adopted by Boar of Directors and members to CDA. . By filing a pettion for dissoliion with CDA. By fling a pettio for diseoiion wth RTC. By fling a petition for dissolution with SEC. 108. What s the required vote forthe volurary dissolution ofa stoperativ:? ‘© By atleast marty vote of the board of dirctors and bya reclution duly aloped by the affirmative vote of at {east 213 of all members with voting righ, presen and concitatiag 3 quorom ‘By a est majority vote ofthe Beard of sector nd by a resluticn dly aduptd bythe affmative vote ofa ‘eas 34 of all members with voring righ. presen and cercituiay agora By at least majority vote ofthe beard ut arectors an bya resolution duly nope! by the affimative vote of at least majority ofall members with votmg rigs, preset an cetitaing a jerem 4. By a least majority vote of he dod of diretrs ea! bya resoluioy duly adopted by the afimative vote of a ‘east 25% of all members with voting rights, prea ar constituting &guorunt nee tt filowing are vali grounds for involurery disse of « cooperative by onder of competent court ‘er due hearing, except ‘© Violation of xy law o ules and regulations Violation of the cooperaive's by laws Insolvency ofthe cocperative 44 curring net loss inthe cooperatives operation 10. The following are valid grounds for sespesior oc revoetin, after du notice and hearing, of ericate of ‘Tagstrsion of cooperative by Cooperative Development Au hort (CDA), except ‘The cooperative has obtained its certifiste of repieraion by aud ‘The cooperative fs existing foc an legal purpose, ‘The cooperative willy violated any of to provisions of Cooperative Cade or its by laws despite notice given by CDA, ‘The cooperative wilfilly filed to-cperste ona cooperative bass, ‘The cooperative filed to meet the required remer of mesrbers in the cooperative, ‘The cooperative created a subsidiary cooperaive Aer to yen of eperaion pee 111, What are the modes of dissolution of sooperaive? '& By the expcation ofits chan or cerfcate of regisation for failure to renew its term on the deadline provided by law. '. By termination of ts existence through vluntary dissolution, © By termination of its existence tough ac appropriate judicial proceeding also known as involuntary issolution, 4. Any ofthe above, rr (CAR Regulatory Franca for Business Transactions (RFET 8516) Page 12 of 16112. __After the disoltion ofa cooperstive through any of the modes provided by Cooperative Code, what i the ‘maximum petiod provided by Cooperative Code forthe liguation ofthe dissolved cooperative? ‘2 For he years fom the time it is dissolved. 1. Fortra gear from the ime iis dissolved. ‘¢ Forone yea fom the imei is dissolved. 4 For four yeas from the time itis dissolved. 113, The following wansactions may be done by a dstlved cooperative during the three-year liquidation period, Prosecuting and defending sus by or agains it Continuing basnes for which twas esublished Seting we closing its ass, Disposing conveying and disributing ofits properties and assets to creditors and members, 114 on te, Witding up or liquidation oft cooperative, to whom shal any cooperatives asset distributable to aay ‘reir, shareholder o member wo i unknown or ease be found be given? ‘Tote city or municipality where te assets ocaed ', Toth federation or union to which the cooperative ie afiliated with ._Tewill be escheated in favor ofthe Republic ofthe Philippine. 4. Tothemembers ofthe cooperative erard 115. isthe winding up or iuidation of cooperative, what wll happea tothe subsides, donations, legacies, gran, ‘sds and such oer asistance fom any Tocl or foreign iastntion whether pubic or private given to such dissolved cooperative? It wil be given to ct or municipality where the asset is ooated. [evil be given to feeration or union 0 which the cooperative i afte with, [el be escheatedin favor ofthe Republic ofthe Philippines. Te wl be given tothe members ofthe cooperative peer 116. _ltrefersto a union of two or more existing cooperatives belonging to the sume category whereby te surviving ‘cooperative, euning its identity, absorbs one or more consent cooperatives. ‘Consolidation Busnes combinton & Merge 4. Quasrreoganization 117, What ithe requted vote forthe validity of merge of vo or mre cooperatives? Atleast 28 of members with voting igs, prevent and costings quorum Atleast 4 ofmembers wih voing Hgts, present and contig a queram & Atleast majority of member with von rs, presen’ ad consti a quni, Atleast 25% of meres with vating righ, prsent a conaaing a qucrum ME Whats the equi vot for dvson of cooperative emo o morcoopectves? Atleast i ofall te memes with ving ts, present and conning © guonam 5 Aen ofall te members wih vosing rg, pent and conting»quonam & Atlas 29 ofall he member with voting nhs, presented esting «gram 4. Atleast majority ofl he members wi voting MS, prea! and consuting quo 119, The folowing ae the suc of cept prope and ands fa cooperate, except Menibers share cpa Lean and borowings intuing depos &Revlving capil which conn ofthe efered payment of paronage refunds oinnest on share cp ‘Sais, donations, legacies, gens, lds and sich elteresistanee fom ary local or frelgn istaon whether pbc or pie Imestment or ap! contibuon by soskades 120, Wat she maximum lnitaton on share capt holdings of member ofa cooperative? & Nomere than 1094 ofthe share capital ofthe cooperative 1h Nomor thn 35 of the she capt he cooperative 6. Nomore thn 2086 of th stare cept th cooperative 4. Nomore than 1596 ofthe shave cpa of te coopers 121, Whatische maximum pu valu of stare of cooperative? f& Nomer than PS Nomore han P1000 Nome tha PIO 4 Nomore than Pt TEESE SP aEEESERTO TT (C8AR = yl Framework for Busnes Tension (RFT 8616) Page 13 of 161m. aoe 123, Boor meee 12s, of be “To wha ypes of anna! aut sal copeniveregiseed under CDA e ube Facial sateen dt Soil et | Perfomance dt i Allott stove i ‘Who shal perform the annual financial statements adit of a cooperative registered under CDA? Independent CPA in good standing with PICPA and accredited by PRC-BOA. Independent socal auditor accredited by CDA, Internal audit ofthe Coopertive. ‘Any of the above, ‘Who shal perfoom the snnval social audit ofa cooperative registered undet CDA? Independent CPA in good sanding with PICPA and acredited by PRC-BOA. Independeat socal auditor secreted by CDA. Imeral auditor ofthe Cooperative ‘Any ofthe above [A member shall have the right o examine the records required tobe kept by th cooperative under Amite $2 Cooperative Code during reasonable hous on business days and he may demand, in writing, fora copy of xcerps fom said records without charge except the cst of production. What are the lga implications of ef by the officer i llow a member to exercise this right? 6 4 b a 27. ‘Such officer sal be lable to such member fo lv damages. ‘Such ofier shall be guilty of ofese or exze punishable by Cooperative Code. Bosh A and B. Neither Amor 3, ‘Wich ofthe folisrng i valid ground for refising to fais the requested records ty a member? ‘The member ba impropery wed any infomation secured Uxough ay prior examinition of the rors of such cooperative. ‘The member isnot ating in good faith in making his demand, ‘The member will tbe wing the recor for legitimate purpose. ‘Any ofthe sbove "sll not be construed as profit but as an exces of payments rade bythe members for the loans borowed, oF the goods and services availed by them from the cooperative er the diffrence of te righfl amu due to the members for ther products soi o services rendered to the cooperative including oter Inflows of assets esling from its other operating activites and which shal be deemed to have been retard to them i the sume is db as prescribed in Cooperative Code, e a we e ‘ vn, e “ 10, Retained eamings ‘Accumulated profis Netsurpins| Contibised capital Hw shall the net surplus of «cooperative be dotermined or compute? By the existing provisions of Corporation Code t By the provisions ofthe by-laws ofthe Coopers, ' BY the provisions of full PAPERS, | By the provisions of PERS for SMES. | I | whats the frst priority nthe distribution ofthe net surplus of cooperative? Reserve fund, Edoction and taining fund Community development fund Optional find Interest on share capital of members and patronage refunds This fund shall be used forthe stability ofthe cooperative and wo matt net losses ints operations but shall not ‘be uted for invesment, ther han thot allowed in the Cooperative Code 6 a ce peor [Education and wainng fund ‘Community development fund | Optional fund | What isthe minimum amount of reserve fond inthe fife year of operation ofa coopecative? [At least $0% of net surplus (atleast 10% of net surplus ‘At east 3% of net surplias. ‘Atleast 796 of net surplus i ee | ' 1 CRAR- La | Page 14 of 16 '| simeanapanlpentntenentbtrviben tr ipa ' eat a te | SAS ov cf et © Aiuto wpa & Ainamren oper + 193,This fond shall provide forthe taining development and similar oer cooperative activites geared towards the growth of ‘the cooperative movemest. 1 Reserve fund ! 1. Bébeation and uaining fund i © Community developeent find 2 Optional fund 134. Whats the maximum aout of edueaton and taining fund ofa cooperative? 1 Notmore than 30% of et surplus 'b Notmore han 10% of et surplus © Notmore han 386 oF et surplus 4 Notmore than 796 of et sls 135:This find shall be se for projects o activites that wil beef the community where the cooperative operate ‘a Reserve fund 1. Eéveation and taining fund sunt of community development fund of x cooperative? ‘Atleast 50% of ne surplus 1. Atleast 10% of et surplus ©. Atleast 38% of er suplus Atleast 7% of nee ruplas i 137. What isthe masimum amouat of options! fund of «cooperative? ‘= Notmore than 0% nt sais 1. Notmore than 1086 of et surplis © Notmore tan 38 oft salud 4 Notmore tan 796 of et Supa 138. What isthe maximum interest on share capltal tat may be disrbuted by a cooperative? ‘a Notmore dan 3% fot surplus 1B. Not more tan 10% of wt rp © Notmore tan 3% of et surplus ‘4 Not more tan the normal eof etm of invesents 139: refers tothe portion of net surplus alceted othe amount returned to individual members who prone the gods end services of the cooperative Is proportion 6 ir indvidua pazenege j 8 Paronage refund 1 mereston hare capt & Dividesd 4 ‘Renn ofinverment 140, Whar the minimum amount of wet surplus allocated as patronage refund? ‘Atleast 309% ofthe ne surplus ater Gedotng the satay reserves based onthe principle of equ Atleast 20% ofthe net surplus afer edctng the stannary reterves based onthe principle of eau. ‘&Ateat 10% of the nt surplus ater deducting the atansry reserves based on he picipe of equi. 4 Atleast 5% ofthe et surplus afer deducting the andory reserves based oo the principe of equity 141-Wha is the masimum amount of wet surplus allocated as patronage refund? "a. Nemore than twice the rate of iterat on share capital. 'bNomore tan the rte of terest on sre capital. 2 Nomore than thrice the rat of intrest on shar opt 4 Nomore tan half the rate of intrest. share capita 12.1 pring of guy wren anol sight of members opp a he oration no euiblysare inte | ‘eer aoting aban ince of Panomage Rfid . Pails of eresce Ses fame ot ompertia 4. PrmaplsotConta 149.tn what fd shall the remaining net surplus be ered after the allowable interest acd the patronage refund have been dedcted? Reserve fond 1 Bésowion and taining funk Conary development find i ‘4 Oprional find eer era (CRAR.— Regulatory Framework for Business Transactions (RFBT 8615) Page 15 0f 1614 cefers to shall refer to the amount availabe ou of the deferred payment of the patonsge refund sad iteest on sre ‘capital ofthe members or by autorized deduction of percentage fom the product ol r per unit of produt banded by the cooperative. 1 Revolving capital Escrow api! © Detered capil Connie capil 14. Which of te following i fund in a cooperative? Revolving fins Defer fund sero find Endowment fund =a 146. What ihe gt aable to member of caopertive who dass 1 coopers ss provided by Cooperative Cae? . reg & Ripterers teat € Rigito widow mebenbip Rips dame ecoopentive 147An whic cooperative acts may a dissenting member of» cooperative exercise his ight to withdraw bis membership end demand the refund ois share captal and interest ka appraisal igh? ‘2 Amendment of Antics of Cooperation or By-laws ‘Merger or Consolidations of two or more cooperative © Ether AcrB Netter A nar 148. The following are coopertve acs that require vote of members wit voting righ fr validity, except ‘© Arendmnent of articles of cooperation or auendzea of corporate bylaws 1b. Merger or consolation of cooperatives ©. Disoluion of «cooperative Removal of decor of cooperative 1468 Which fe following smuemens i false abou the prleges ofa cooperative? ‘Cooperatives engaged in credit services and/x federations shall be ented to loans credit ines, redisountng of thei lon nous, and othe lg papers withthe Bangho Seta ng Pilipinas (BSP) '. A public anspor service cooperative may be ented to financing support for he acquisition andor maintensce of land and sce respon equipment cities and pats tvouph the program ofthe govern financial insatons. I shall hve the preerenual right tote management and operation of public tenaals aud ports woetber land or sea luansport where the cooperative operates and oo securing a Canchise for active or potenti routs fer the public ‘anspor. ©. Cooperatives organized ty fheuty members aud employees of educational instnsions shall have che prelretal ‘ight i tie management ofthe caneen end eter services related t the operation of the dco! instinion ‘where they are employed Provided, That such services are operated wibisthe premises ofthe ai educational 4 The aproprise housing agencies and goverament (anal istiions shall crete a special window for financing ‘boxsing profes undertaken by cooperatives, wi Inter rates and terms egal to, of beter than those given for socalled housing projects. This financing shall be inthe form of blanket lors of longiera wholesale loans 10 ‘ualiied cooperatives, without need for individual procesing 150, Which of te flowing tmemens ts rue? ‘Cooperatives fzanela statements have tbe a aecordasce with Philippine Financial Reporting Standards. . Audion of cooperative sal comply tn aecorance with Pilipine Standards on Aung. © Auditors of cooperative have to be in good standing and’ have to be repstered nly with the Coopertive Development Authority but oot with PRC-Bosrd of Accountancy. None ofthe above. 151.The following ate the incetivs of elec cooperative regiered before Cooperative Development Authority, except 1 The electie cooperatives registered withthe Autborty with existing loans obtained fom NEA afer June 26, 2001 shal eontinae to observe the terms of suck lous ul Ful payment setlement hereof 1, Except 8 provide in lener A, the NEA shall no longer exercise regulary oF supervisory powers on electric cooperatives duly registered withthe CDA, ‘& Elecie cooperatives repsered withthe CDA are outlet congressional allocations, grant subsidiaries aad ober financie!essiance for rural eleci\Gewian which can be coursed tough the Deparonet of Ene), the CDA sandr leal goverment units, The electric oncpeatives registered under Cooperative Code can eall of the finaciel services and technical assance provided by the goveramea! fnarcil institutions and technical development agencies on terms espectng tel ndependence at stenomous cooperatives. ‘Acton mss, ans a er wmcr hl or pat of ote pita fof te ‘lecrie cooperatives and as such, i shall not be Sold, teded nee be divided into shareholdings wt any tne; these loosed capita und shall be valated forthe sole purpose of determining the equity participation ofthe members: ‘Provided, Tat nthe cate of dsoltion ofthe coopernve, sid donated capital sal be subject excel, Bloc cooperatives are not equed to submit audted faanclalsaterems 9 CDA. “Ende TS TFUI SUI aEnDERUREDIEOrEEIEEEEEaEnanreercatrorraneemnnemeammeamrnesermteenl GEAR. 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