COOPERATIVE

FQ 01 - COOPERATIVES
SALAPARE, CHARLENE

Spin is a member of a cooperative who does not patronized the service of the cooperatives which he is a
part of for unreasonable period of time. Can Spin's membership be terminated because of his choice of
not patronizing the services of the cooperative?

A. Yes because membership in the cooperative may be terminated when a member has not patronized
any of the services of the cooperative for an unreasonable period of time as may be previously
determined by the board of director.

B. No, because he has a choice of not patronizing the services of the cooperative.

C. Yes, because it not fair for the cooperative if the member is not patronizing their services.

D. No, because he do whatever he wants to do.

ANSWER:

(A) A. Yes because membership in the cooperative may be terminated when a member has not
patronized any of the services of the cooperative for an unreasonable period of time as may be
previously determined by the board of director.

(L) Under the Article 30 of RA 9520 or the Philippine Cooperative Code of 2008, "Termination of
Membership.

(1) A member of a cooperative may, for any valid reason, withdraw his membership from the
cooperative by giving a sixty (60) day notice to the board of directors. Subject to the bylaws of the
cooperative, the withdrawing member shall be entitled to a refund of his share capital contribution and
all other interests in the cooperative: Provided, That such fund shall not be made if upon such payment
the value of the assets of the cooperative would be less than the aggregate amount of its debts and
liabilities exclusive of his share capital contribution.

(2) The death or insanity of a member in a primary cooperative, and the insolvency or dissolution of a
member in a secondary or tertiary cooperative may be considered valid grounds for termination of
membership: Provided, That in case of death or insanity of an agrarian reform beneficiary-member of a
cooperative, the next-of-kin may assume the duties and responsibilities of the original member

(3) Membership in the cooperative may be terminated by a vote of the majority of all the members of
the board of directors for any of the following causes:

(a) When a member has not patronized any of the services of the cooperative for an unreasonable
period of time as may be previously determined by the board of directors;

(b) When a member has continuously failed to comply with his obligations;

(c) When a member has acted in violation of the bylaws and the rules of the cooperative; and
 COOPERATIVE
(d) For any act or omission injurious or prejudicial to the interest or the welfare of the cooperative.

"A member whose membership the board of directors may wish to terminate shall be informed of such
intended action in writing and shall be given an opportunity to be heard before the said board makes its
decision. The decision of the board shall be in writing and shall be communicated in person or by
registered mail to said member and shall be appealable within thirty (30) days from receipt thereof to
the general assembly whose decision shall be final. The general assembly may create an appeal and
grievance committee whose members shall serve for a period of one (1) year and shall decide appeals
on membership termination. The committee is given thirty (30) days from receipt thereof to decide on
the appeal. Failure to decide within the prescribed period, the appeal is deemed approved in favor of
the member. Pending a decision by the general assembly, the membership remains in force."

(A) In a cooperative, membership can be terminated if the member is not patronizing the services of the
cooperative through the vote of the majority of all members of the board of directors.

(C) Therefore, a membership in the cooperative can be terminated if the member is not patronizing the
services in which the cooperative offers through the vote of the majority of all members of the board of
directors.

FQ 2 - Cooperatives
GARAY, STEPHANIE

SVG Cooperative passes their application requirements to the Cooperative Development Authority to
register their organization as a Cooperative. The Authority denied their application on the 58th day from
the the filing. SVG Cooperative appeal for the denial to the Office of the President. On the 91th day after
filing, there is still no update from the Office of the President. What will happen to the application?

A. The application is deemed approved

B. The application is denied as there is no approval of the Office of the President

C. The application is cancelled

D. SVG Cooperative should file another appeal to the Authority

ANSWER:

A) A. The application is deemed approved

(L) According to ART. 16. Registration. – ‘A cooperative formed and organized under this Code acquires
juridical personality from the date the Authority issues a certificate of registration under its official seal.
All applications for registration shall be finally disposed of by the Authority within a period of sixty (60)
days from the filing thereof, otherwise the application is deemed approved, unless the cause of the
delay is attributable to the applicant: Provided, That in case of a denial of the application for
 COOPERATIVE
registration, an appeal shall lie with the Office of the President within ninety (90) days from receipt of
notice of such denial: Provided, further, That failure of the Office of the President to act on the appeal
within ninety (90) days from the filing thereof shall mean approval of said application.’

(A) In the facts presented, SVG Cooperative passes their application requirements to the Cooperative
Development Authority to register their organization as a Cooperative but the Authority denied their
application. SVG Cooperative appeal for the denial to the Office of the President and on the 91th day
after filing, no update has been received from the Office of the President. As it was said on the Art. 16 of
the Philippine Cooperative Code, ‘the failure of the Office of the President to act on the appeal within 90
days from the filing thereof shall mean approval of said application.’

(C) Therefore the application is deemed approved.

FQ 03- COOPERATIVE
CABAN, CINDY

Read the following statements and determine which of the choices are correct:

Statement 1: A single-purpose cooperative may transform into a MULTI-PURPOSE cooperative or may

create SUBSIDIARIES only AFTER ONE (1) YEAR of operations.

Statement ll: While the minimum paid-up share capital in terms of value is P15,000, the minimum paid
up share capital when it comes to multi-purpose cooperatives is P100,000. Nevertheless, both amounts
must be at least 25% of the subscribed share capital.

a. Both statements are true

b. Both statements are false

c. Only statement l is true

d. Only statement l is false

ANSWER:
FINAL ANSWER:

D. Only statement l is false.

LEGAL BASIS:

According to Article 10 of Philippine Cooperative Code of 2008, par.2 :"Any newly organized primary
cooperative may be registered as multipurpose cooperative only after compliance with the minimum
requirements for multipurpose cooperatives to be set by the Authority. A single-purpose cooperative
may transform into a multipurpose or may create subsidiaries only after at least two (2) years of
operations.
 COOPERATIVE
Additionally, as stated in Article 8 under Section 2 of the Revised Guidelines Governing the Registration
of Cooperative - Capital Requirements;

2.1. All primary cooperatives shall be organized with share capital. The authorized share capital of a
cooperative shall be provided for in its Articles of Cooperation. At least twenty five percent (25%) of the
authorized share capital shall be subscribed by the members and at least twenty five percent (25%) of
the subscribed share capital shall be paid by the members prior to registration.

2.2. The paid up capitalization requirement for primary cooperatives shall not be less than Fifteen
Thousand Pesos (P15,000.00) except for multipurpose cooperative which should have at least One
Hundred Thousand (P100,000.00) or as required by the feasibility study whichever is higher.

APPLICATION:

The statement l is false because a single-purpose cooperative may transform into a multipurpose or may
create subsidiaries only after at least "2 YEARS" of operations. And no cooperative shall be registered as
a multipurpose cooperative unless it has been in operation for at least 2 years.

CONCLUSION:

Therefore, based with the aforementioned articles, the statement l is the only false because it says that
the single-purpose cooperative may transform into a multipurpose cooperative or may create
subsidiaries only after "ONE (1) YEAR" of operations which makes the statement false.

FQ 04- COOPERATIVE
SARDONA, RONALD

What is the quorum necessary for the validity of meeting of Board of Directors of cooperative bank?

A. At least majority of the members of the Board unless the bylaws provide otherwise

B. One-half plus one of all the members of the board of directors

C. At least ¾ of the members of the Board unless the bylaws provide otherwise

D. At least 2/3 of the members of the Board unless the bylaws provide otherwise

ANSWER:
(A) The answer is letter B- One-half plus one of all the members of the board of directors

(L) According to Article 99 of the Cooperative Code, the quorum requirement of Cooperative Bank for
general assembly meetings, whether special or regular, shall be one half plus one of the numbers of
voting shares of all the members in good standing. In the meetings of the board of directors, whether
special or regular, the quorum requirement shall be one-half plus one of all the members of the board of
directors. Each director shall only have one vote.
 COOPERATIVE
(A) A Cooperative Bank provides financial, banking and credit services to cooperative organizations and
to its member. It is one of the types of cooperative. One of its difference from an ordinary cooperative is
that its quorum requirement for the meeting of Board of Directors is one half plus one of all the
members of the board. The same requirement goes to its meeting for the General Assembly. This differs
to the requirement of an ordinary cooperative when it comes to quorum for its meetings of Board of
Director which is at least majority of the members of the Board.

(C) Therefore, the quorum necessary for the validity of meeting of Board of Directors of cooperative
bank is one-half plus one of the members of the Board unless the bylaws provide otherwise.

FQ 05- COOPERATIVE
DIMAYUGA, NICOLE

Which of the following is an invalid cooperative name?

a. Ilocos Farmers Development Cooperative

b. ISABELA ELECTRIC COOPERATIVE (Iselco)

c. Both A & B

d. None of the above

ANSWER:

(A) c. Both A & B

(L) Pursuant to Republic Act No. 6939, the Cooperative Development Authority hereby adopts and
promulgates the following revised guidelines governing the registration of cooperatives and shall be
known as the “Revised Guidelines Governing the Registration of Cooperatives”. Under Section 3 of this
guideline expresses Cooperative Name and Prohibition wherein:

3.1. The word "Cooperative" “Kooperatiba” or “Cooperativa” shall be included in the name of the
cooperative, which name shall likewise specify the type of cooperative in accordance with Article 23 of
RA 9520.

3.2. No cooperative name shall be allowed by the Authority if the proposed name is identical or
deceptively or confusingly similar to that of any existing cooperative, contrary to public policy, moral
and existing laws.

The use of the words “development” and “integrated” in the cooperative name shall be discouraged.

3.3. The use of “Incorporated”, “corporation”, “company”, “incorporation”, partnership, or other similar
connotation and abbreviation shall not be allowed. In addition, the use of the word “federation” and
“union” in the name of the proposed primary cooperative is likewise prohibited except if it is part of the
registered name of association or institution where the members of the proposed cooperative come
from.
 COOPERATIVE
3.4. Name shall not be written in all capital letters except if it is an acronym. Acronym shall be written
after the full name of cooperative.

(A) Any cooperative name who do not adhere to this guideline will make the cooperative name invalid
and hence persons who will formed a cooperative should be aware of this to make the cooperative
name a valid one.

(C) Hence, Ilocos Farmers Development Cooperative and ISABELA ELECTRIC COOPERATIVE (Iselco) are
both invalid since the use of the word development is discouraged (3.2) and cooperative name shall not
be written in all capital letters except if it is an acronym. (3.4).

FQ- 06 Cooperative
CAPINDING, DOMINIQUE

Aling Matrona, a 59 year old widow, wanted to join the XYZ Cooperative. Upon the process of her
application for the registration, the Cooperative Development Authority denied the papers. What can be
the remedy used by the applicant?

a. The applicant may appeal to the Office of the President within 90 days from receipt of the notice of
denial, provided that the failure on the part of the Office of the President to act on the appeal within 90
days from the filling thereof shall mean the approval of the application.

b. The applicant must consult a general assembly meeting of the cooperative wherein her application
shall be valid upon the approval of a one-fourths (1/4) vote of all the members with voting rights,
present and constituting a quorum of each of the constituent cooperatives.

c. The applicant is deemed denied and has no right for processing the application.

d. None of the above.

ANSWER:

Answer:

a. The applicant may appeal to the Office of the President within 90 days from receipt of the notice of
denial, provided that the failure on the part of the Office of the President to act on the appeal within 90
days from the filling thereof shall mean the approval of the application.

Legal Basis:

As provided in Article 16 of the Cooperative Code " Registration. A cooperative formed and organized
under this Code acquires juridical personality from the date the Authority issues a certificate of
registration under its official seal. All applications for registration shall be finally disposed of by the
Authority within a period of sixty (60) days from the filing thereof, otherwise the application is deemed
approved, unless the cause of the delay is attributable to the applicant: Provided, That in case of a denial
 COOPERATIVE
of the application for registration, an appeal shall lie with the Office of the President within ninety (90)
days from receipt of notice of such denial: Provided, further, That failure of the Office of the President to
act on the appeal within ninety (90) days from the filing thereof shall mean approval of said application.
"

Application:

Aling Matrona has the power to make an appeal in order to fix the case of denial for her application.
When she received a notice of denial, she can make an appeal within 90 days to the Office of the
President. This will not ensure to make her application approved since the Office of the President will
still make a decision. But if the filed appeal wasn't accomodated for an action within 90 days , she will be
deemed approved.

Conclusion:

Aling Matrona has the remedy to make an appeal upon processing the approval of her application to the
Office of the President upon within 90 days of the filed appeal. She will have the chance for the approval
of application when it was decided by the Office of the President for her favor.

FQ 07 - COOPERATIVE
PERIABRAS, MICHELLE

What other documents have to be submitted to CDA for purposes of the registration of a cooperative?

A. Financial statements

B. Economic survey

C. Certificate

D. Articles of Cooperation and bylaws

(A) B. Economic survey

(L) According to the Cooperative Code of the Philippines, under "Art. 11 Economic Survey. - Every group
of individuals or cooperatives intending to form a cooperative under this Code shall submit to the
Authority a general statement describing, among others the structure and purposes of the proposed
cooperative: Provided, That the structure and actual staffing pattern of the cooperative shall include a
bookkeeper; Provided, further, That they shall not be allowed to operate without the necessary
personnel and shall also submit an economic survey, indicating therein the area of operation, the size of
membership, and other pertinent data in a format provided by the Authority."

(A) As provided in Art. 11 the document that describes the structure, puposes and economic feasibility
of a cooperative that is being organized, its area and operation, the size of membership and other
pertinent data required to be submitted to the CDA which is an economic survey.

(C) Therefore, the answer is B.

 COOPERATIVE
FQ 08 -COOPERATIVE
ANDAL, VERNADETTE

The general assembly shall have the following exclusive powers which cannot be delegate, except:

A. To determine and approve amendments to the article of cooperation and bylaws.

B To insure against losses of the members

C. To elect and appoint the members of the board of directors and to remove them for cause. However,
in the case of the electric cooperatives registered under this Code, election of the members of the board
shall be held in accordance with its bylaws or election guideline of such electric cooperative.

D. To approve developmental plans of the cooperative.

ANSWER:

(A) B. To insure against losses of the members.

(L) According to Article 33 of the Philippine Cooperative Code- Powers of the General Assembly, it states
that , "the general assembly shall be the highest policy-making body of the cooperative and shall
exercise such powers as are stated in this Code, in the articles of cooperation and in the bylaws of the
cooperative. The general assembly shall have the following exclusive powers which cannot be delegate:

"(1) To determine and approve amendments to the articles of cooperation and bylaws;

"(2) To elect or appoint the members of the board of directors, and to remove them for cause. However,
in the case of the electric cooperatives registered under this Code,election of the members of the board
shall be held in accordance with its bylaws or election guideline of such electric cooperative; and

"(3) To approve developmental plans of the cooperative.

(A) To insure against losses of the members is not one of the exclusive powers of the general assembly
because it falls as one of the purpose why a cooperative organized and registered.

(C) Therefore, to insure against losses of the members is not included in the exclusive powers of the
general assembly which cannot be delegated.

FQ 9 – COOPERATIVES
AGUILA, JAN DARYLL

Membership in the cooperative may be terminated by a vote of the majority of all the members of the
board of directors for any of the following causes except :
 COOPERATIVE
a. When a member has continuously failed to comply with his obligations.

b. When a member has acted in violations of the bylaws and the rules of the cooperative.

c. When a member has patronized any of the services of the cooperative for reasonable period of time
as may be previously determined by the board of directors.

d. For any act or omission injuries or prejudicial to the interest or the welfare of the cooperative.

ANSWER:

[ A ] nswer :

Letter C. When a member has patronized any of the services of the cooperative for reasonable period of
time as may be previously determined by the board of directors.

[ L ] egal Basis :

According to article 30 of the Republic Act 9520 par 3 Membership in the cooperative may be
terminated by a vote of the majority of all the members of the board of directors for any of the
following causes

(a) When a member has not patronized any of the services of the cooperative for unreasonable period
of time as may be previously determined by the board of directors

(b) When a member has continuously failed to comply with his obligations;

(c) When a member has acted in violations of the bylaws and the rules of the cooperative; and

(d) For any act or omission injuries or prejudicial to the interest or the welfare of the cooperative

[ A ] pplication :

Among the foregoing facts the causes are given as the requisites for the termination of membership by a
vote of the majority of all the members of the board of directors except for letter C which clearly
contravenes par 3 letter a which states that in order for a member to be terminated he/she has not
patronized any of the services of the cooperative for unreasonable period of time as may be previously
determined by the board of directors.

[ C ] onclusion :

Therefore the exception is letter C as it contravenes the causes of termination of membership in

accordance to article 30 par 3 of RA 9520

FQ-10 COOPERATIVES
VILLARAMA, RON III
 COOPERATIVE
Romuldo Gutierrez is one of the board of directors from Shangrila Cooperative. His term has already
expired leaving a vacancy to his former position. The appointment for the new board of director
undergo a voting process.

I. The Board of directors are allowed to vote upon choosing a new member for the board.

II. Majority of all the members with voting rights, present and constituting a quorom will elect a new
member of the board.

a. Only I is true.

b. Only II is true.

c. I and II are true.

d. I and II are false.

ANSWER:

Answer:

b. II only is true

Legal Basis:

As provided in the Cooperative Code of the Philippines Article 41 stipulates that "Vacancy in the Board
of Directors. Any vacancy in the board of directors, other than by expiration of term, may be filled by the
vote of at least a majority of the remaining directors, if still constituting a quorum; otherwise, the
vacancy must be filled by the general assembly in a regular or special meeting called for the purpose. A
director is elected to fill a vacancy shall serve only the unexpired term of his

predecessor in office."

Application:

Upon the appointment for the new board of director because of vacancy, majority of all the members
with voting rights, present and constituting a quorum holds the power to elect a new member of the
board. On the other hand, the board of directors do not have the power to vote upon choosing a new
member for the board since it is not stipulated within the article.

Conclusion:

Therefore statement I is false since the board of diretors are not allowed to vote upon choosing a new
member for the board because there is no stipulation with regards within the article.The vacancy of the
board of directors will be exercise by a quorum since there is a quorum there is a power to constitute to
elect a new member of the board. Hence, majority of all the members has voting rights to elect a new
member of the board.
 COOPERATIVE
FQ 11 - COOPERATIVE
ROXAS, KYLA

Rose joined a laboratory cooperative when she was 15 for the purpose of training herself to be prepared
for membeship in regular cooperatives. She turned 18 last month. Is she still qualified as a member of a
laboratory cooperative?

A. Yes, because she was a minor when she entered the laboratory cooperative

B. Yes, because it is a lifetime membership

C. No, because she already reached the age of 18

D. No, because it requires renewal

ANSWER:

(A) C. No, because she already reached the age of 18

(L) According to Sec. 16 titled Termination of Membership on the Guidelines of Laboratory Cooperative,
upon reaching the age of majority (18 years of age), membership will be terminated.

(A) Since Rose turned 18 last month, she is no longer qualified to be a member of a laboratory
cooperative but a regular one.

(C) Therefore, she can no longer be a member of a laboratory cooperative.

FQ 12 - COOPERATIVES
MANALO, NICOLE

A group of individuals desired to organize as a cooperative with an authorized share capital of P200,000.
How much is the minimum subscription and the minimum paid-up capital required?

A. P50,000; P12,500

B. P50,000; P15,000

C. P100,000; P25,000

D. P100,000; P50,000
 COOPERATIVE
ANSWER:
(A) A. P50,000; P12,500

(L) Section 14. Articles of Cooperation. -

(5) No cooperative shall be registered unless the articles of cooperation are accompanied with the
bonds of the accountable officers and a sworn statement of the treasurer elected by the subscribers
showing that at least twenty-five per cent (25%) of the authorized share capital has been subscribed and
at least twenty-five per cent (25%) of the total subscription has been paid: Provided, That in no case
shall the paid-up share capital shall be less than two thousand pesos (P2,000.00).

(A) In the situation above, the Authorized Share Capital of the group is P200,000. Since 25% of it is equal
to P50,000, it is the amount to be subscribed. If the total subscription is P50,000, then at least P12,500
should be paid as it is equivalent to 25% of the total subscription.

(C) Therefore, the subscribed capital of a group of individuals is P50,000 and its minimum paid-up capital
is P12,500.

FQ 13 - COOPERATIVE
MIGUEL, KRISTELLE DAINE

Determine which of the following statements are correct regarding government officers and employees:

Statement I: An officer or employee of the Authority cannot be elected or appointed to any position in a
cooperative.

Statement II: All elective officials of the Government are not allowed to become a member in a
cooperative.

Statement III: An officer or employee of the Authorithy can be a member of a cooperative.

Statement IV: All elective officials of the Government are ineligible to become officers and directors of
cooperative.

A. I, II, and III are correct

B. I, III, and IV are correct

C. Only I is correct

D. Only II is correct

ANSWER:

(A) B. I, III, and IV are correct

(L) According to Article 27 of the Philippine Cooperative Code: Government Officers and Employees.
 COOPERATIVE
(1) Any officer or employee of the Authority shall be disqualified to be elected or appointed to any
position in a cooperative: Provided, That the disqualification does not extend to a cooperative organized
by the officers or employees of the Authority.

"(2) All elective officials of the Government shall be ineligible to become officers and directors of
cooperatives: Provided, That the disqualification does not extend to a party list representative being an
officer of a cooperative he or she represents; and

"(3) Any government employee or official may, in the discharge of is duties as a member in the
cooperative, be allowed by the end of office concerned to use official time for attendance at the general
assembly, board and committee meetings of cooperatives as well as cooperative seminars, conferences,
workshops, technical meetings, and training courses locally or abroad: Provided, That the operations of
the office concerned are not adversely affected.

(A) In this case, I, III, and IV are correct. Elective officials of the Government can be a member of a
cooperative. However, they are not allowed to become officers and directors of a cooperative.

(C) In conclusion, only statement II is false since it is contrary to what is stated under Article 27 of the
Philippine Cooperative Code.

FQ 14 - COOPERATIVE
CATONER, COREEN

Upon the winding up of the cooperative affairs, any asset distributable to any creditor, shareholder, or
member who is unknown or cannot be found shall be given to the:

A. government

B. trustee

C. any federation or union

D. federation or union to which the cooperative is affiliated with.

ANSWER:

[A] Letter D - federation or union to which the cooperative is affiliated with

[L] Article 69 of the Philippine Cooperative Code of 2008 states that upon the winding up of the
cooperative affairs, any asset distributable to any creditor, shareholder or member who is unknown or
cannot be found shall be given to the federation or union to which the cooperative is affiliated with.

[A] Once the life of the cooperative expires due to its own limitation or termination by voluntary
dissolution or through an appropriate judicial proceeding as provided by the law shall nevertheless
continue to exist for 3 years after the time it is dissolved. In case when the cooperative while having the
settlement and closure of its affairs, has any asset to be distributed to an unknown or cannot be found
creditor, shareholder, or member, such undistributed asset shall be given to the federation or union to
 COOPERATIVE
which the cooperative is affiliated with for cooperative development, at the option of the Board of
Liquidators or Trustees.

[C] Therefore, the federation or union to which the cooperative is affiliated with shall be given the
undistributed asset supposedly for an unknown or cannot be found creditor, shareholder, or member.

FQ 15- COOPERATIVES
MATIRA, VANESSA

The majority of all the members of the board of directors in KOOP NA NAMAN, wants to terminate the
membership of Ahr-jay because he is no longer patronizing the services of the cooperative for an
unreasonable period of time. Is this valid?

a. No, because board of directors doesn't have any power over the member.

b. Yes, because the reason is acceptable by law.

c. No, it should be the general assembly, not the board of directors.

d. Yes, the reason is not acceptable by law, but the board of directors is the highest policy-making body.

ANSWER:
(A) b. Yes, because the reason is acceptable by law.

(L) Philippine Cooperative Code under Article 30 states that "Termination of Membership.

[1] A member of a cooperative may, for any valid reason, withdraw his membership from the
cooperative by giving a sixty (60) day notice to the board of directors. Subject to the bylaws of the
cooperative, the withdrawing member shall be entitled to a refund of his share capital contribution and
all other interests in the cooperative: Provided, That such fund shall not be made if upon such payment
the value of the assets of the cooperative would be less than the aggregate amount of its

debts and liabilities exclusive of his share capital contribution.

[2] The death or insanity of a member in a primary cooperative, and the insolvency or dissolution of a
member in a secondary or tertiary cooperative may be considered valid grounds for termination of
membership: Provided, That in case of death or insanity of an agrarian reform beneficiary-member of a
cooperative, the next-of-kin may assume the duties and responsibilities of the original

member

[3] Membership in the cooperative may be terminated by a vote of the majority of all the members of
the board of directors for any of

the following causes:

 COOPERATIVE
a. When a member has not patronized any of the services of the cooperative for an unreasonable period
of time as may be previously

determined by the board of directors;

b. When a member has continuously failed to comply with his obligations;

c. When a member has acted in violation of the bylaws and the rules of the cooperative; and

d. For any act or omission injurious or prejudicial to the interest or the welfare of the cooperative.

A member whose membership the board of directors may wish to terminate shall be informed of such
intended action in writing and shall be given an opportunity to be heard before the said board makes its
decision. The decision of the board shall be in writing and shall be communicated in person or by
registered mail to said member and shall be appealable within thirty (30) days from receipt thereof to
the general assembly whose decision shall be final. The general assembly may create an appeal and
grievance committee whose members shall serve for a period of one (1) year and shall decide appeals
on membership termination. The committee is given thirty (30) days from receipt thereof to decide on
the appeal. Failure to decide within the prescribed period, the appeal is deemed approved in favor of
the member. Pending a decision by the general assembly, the membership remains in force."

(A) Ahr-jay is no longer patronizing their services for an unreasonable period of time and according to
Article 30, paragraph 3, letter a, Membership in the cooperative may be terminated by a vote of the
majority of all the members of the board of directors (a) When a member has not patronized any of the
services of the cooperative for an unreasonable period of time as may be previously determined by the
board of directors.

(C) Therefore the termination of the membership of Ahr-jay by the majority of all the members of the
board of directors is valid.

FQ 16 – COOPERATIVES
GALVEZ, NINA

A group of individuals wanted to organize a multi-purpose cooperative with an Authorized Capital Share
of P1,500,000. How much be the minimum subscription and minimum paid-up capital required?

A. P375,000; P93,750

B. P375,000; P100,000

C. P750,000; P187,500

D. P750,000; P375,000

ANSWER:

(A) B. P375,000; P100,000

 COOPERATIVE
(L) Any newly organized primary cooperative may be registered as multi-purpose cooperative only after
compliance with the minimum requirements for multi-purpose cooperatives to be set by the CDA. A
single-purpose cooperative may transform into a multi-purpose or may create subsidiaries only after at
least 2 years of operations.

Under Article VI of CDA MC 2015-07, except for agriculture cooperatives and agrarian reform
cooperatives, only those cooperatives with a minimum paid-up capital of P100,000.00 or as required in
the feasibility study, whichever is higher, may be allowed to transform into a multi-purpose cooperative.

(A) In the situation above, the Authorized Share Capital of the group is P1,500,000 and its 25% is
P375,000, subscribed capital. The minimum paid-up capital is 25% of the subscribed capital which is
P93,750. But according to provision, the minimum paid-up capital

requirement for a cooperative is P100,000.

(C) Therefore, the subscribed capital of a group of individuals is P375,000 and its minimum paid-up
capital is P100,000.

FQ 17- COOPERATIVES
GARCIA, MARIELLE

The members of XYZ Cooperative and ABC Cooperative are planning to consolidate the two constituent
cooperative. In separate general assembly, 3/4 of the members of each cooperative approved the
consolidation and after filling to authority, issued a certificate of consolidation. Which statement is
correct,?

A. ABC Cooperative will be remain and XYZ cooperative will be absorb.

B. XYZ Cooperative will be remain and ABC cooperative will be absorb.

C. The separate existence XYZ and ABC Cooperative will cease and a new cooperative will come into
existence which is the consolidated cooperative.

D. If XYZ Cooperative has a greater number of member, it will absorb ABC Cooperative and if ABC has a
greater number, it will absorb the XYZ Cooperative.

ANSWER:
(A) C. The separate Existence of XYZ and ABC cooperative will cease and a new cooperative will come
into existence which is the consolidated cooperative.

(L) According to ART. 22, (1) and (2) Effects of Merger and Consolidation. The merger or consolidation of

cooperatives shall have the following effects:

 COOPERATIVE
"1. The constituent cooperatives shall become a single cooperative which, in case of merger, shall be the
surviving cooperative, and, in case of consolidation, shall be the consolidated cooperative;

"2. The separate existence of the constituent cooperatives shall cease, except that of the surviving or
the consolidated cooperative;

"3. The surviving or the consolidated cooperative shall possess al the assets, rights, privileges,
immunities and franchises of each of the constituent cooperatives;

"4. The surviving or the consolidated cooperative shall possess all the assets, rights, privileges,
immunities and franchises of each of the constituent cooperatives; and

"5. The surviving or the consolidated cooperative shall be responsible for all the liabilities and obligation
of each of the constituent cooperatives in the same manner as if such surviving or consolidated
cooperative had itself incurred such liabilities or obligations. Any claim, action or proceeding pending by
or against any such constituent cooperatives may be prosecuted by or against the surviving or
consolidated cooperative, as the case may be. Neither the rights of creditors nor any lien upon the
property of any such constituent cooperatives shall be impaired by such merger or consolidation.

(A) Based on the provision, the separate exisitence of each cooperative will cease and it shall be a single
cooperative, which in case of consilidation, the consolidated Cooperative. In the case above XYZ
Cooperative and ABC had a consolidation it means that thier separte existence will cease and a new
cooperative will come into existence which known as the Consolidated Cooperative.

(C) Therefore, in consolidation, XYZ and ABC Cooperative will be disolve, and the new Cooperative which
is the consolidated cooperative will remain.

FQ 18 - COOPERATIVES
ANONUEVO, VINCENT

ALIW Cooperatives, is an organization operating in Lucena City. Is ALIW Coop, required to submit a list of
officers and completed trainings undertaken as their regular report?

A. Yes

B. No

C. It depends

D. Maybe

ANSWER:
(A) Yes
 COOPERATIVE
(L) According to Article 53 - Reports, Section 2. Required Regular Reports. The following reports shall
submitted to the Authority:

1. Cooperative Annual Performance Report (CAPR);

2. Social Audit Report including its program of activities in pursuance of its socio-civic undertakings
showing its achievements and end of every fiscal year;

3. Performance Report;

4. Audited Financial Statements duly stamped "Received " by the BIR; and

5. List of Officers and Trainings Undertaken /Completed.

(A) Based on the facts presented, ALIW Cooperatives is required to submit a list of officers and
completed trainings undertaken, along with the other reports required by Cooperative Development
Authority.

(C) Therefore, ALIW Cooperatives is required to submit a list of officers and completed trainings
undertaken as their regular report.

FQ 19 - COOPERATIVES
OBAL, JENNELYN

Read the following statements and determine which of these statements is/are correct:

Statement l: Contracts executed between private persons and cooperatives prior to the registration of
the cooperative shall remain valid and binding between the parties and upon registration of the
cooperative.

Statement 2: In the case of members of secondary or tertiary cooperatives, they shall have one (1) basic
vote and as many incentive votes as provided for in the bylaws and may exceed five (5) votes.

A. Both statements are true.

B. Both statements are false.

C. Statement 1 is true, statement 2 is false

D. Statement 1 is false, statement 2 is true

ANSWER:

(A) C. Statement 1 is true, statement 2 is false

(L) According to Article 19, contracts executed between private persons and cooperatives prior to the
registration of the cooperative shall remain valid and binding between the parties and upon registration
 COOPERATIVE
of the cooperative. A formal written contract shall be adopted and made in the cooperative's name or
on its behalf prior to its registration.

Also, based on Article 36, each member of a primary cooperative shall have only one (1) vote. In the
case of members of secondary or tertiary cooperatives, they shall have one (1) basic vote and as many
incentive votes as provided for in the bylaws but not exceed five (5) votes. The votes cast by the
delegates shall be deemed as votes cast by the members thereof. However, the bylaws of a cooperative
other than a primary may provide for voting by proxy. Voting by proxy means allowing a delegate of a
cooperative to represent or vote in behalf of another delegate of the same cooperative.

(A) In the first statement, it is correct that contracts that is entered by private persons and cooperatives
before the registration of cooperative is still valid and effective upon the registration of cooperative. On
the other hand, statement 2 which illustrates the voting system for secondary and tertiary cooperatives,
members should exercised one vote and incentives votes that should not exceed to 5 votes.

(C) Therefore, as supported by Article 19 and Article 36 stated above, first statement is true and second
statement is false.

FQ 19 Cooperatives
AREVALO, MICHAEL

What are the powers of the board of directors in a cooperative?

A. Strategic planning, direction-setting and policy-formulation of the cooperatives.

B. Board of directors shall be the highest policy-making body of the cooperative.

C. Solely to determine and approve amendments to the articles of cooperation and bylaws.

D. To elect or appoint the members of the board of directors, and to remove them for cause.

ANSWER:
[A] Strategic planning, direction-setting and policy-formulation of the cooperatives.

[L] According to Article 38, the board of directors shall be responsible for the strategic planning,
direction-setting and policy-formulation activities of the cooperatives.

[A] Based on Article 38 it clearly points out the powers of the board of directors in a cooperative are
strategic planning, direction-setting and policy-formulation of the cooperatives.

[C] Therefore, Letter A is the correct answer.

FQ 21 - Cooperative
 COOPERATIVE
GO, STEFALIE

Ronald Murillo the director of RMS Cooperative associate with KBS Cooperative to an opportunity that
will help the cooperative to earn greater profit. The officers and members of RMS Cooperative without
any knowledge that Ronald have been keeping all the profit by himself. Is Ronald liable to the
cooperative?

A. No, Ronald was not liable as he communicated with KBS Cooperative for his own benefit and outside
his position as director.

B. Yes, Ronald will be liable to RMS cooperative because he acquires for himself the opportunity that
should belong to the cooperative.

C. Yes, Ronald will be liable for damages and should double the profit by refunding the same.

D. Either B and C.

ANSWER:

(A) D. Either B and C.

(L) According to Art. 48 of the Philippine Cooperative Code of 2008. A director who, by virtue of his
office, acquires for himself an opportunity which should belong to the cooperative shall be liable for
damages and must account for double the profits that otherwise would have accrued to the cooperative
by refunding the same, unless his act has been ratified by a three-fourths (3/4) vote of all the members
with voting rights, present and constituting a quorum. This provision shall be applicable,
notwithstanding the fact that the director used his own funds in the venture.

(A) Based on the scenario, Ronald Murillo, a director of RMS cooperative have given an opportunity by
another cooperative that might help to earned greater income. But, Ronald kept to himself all the profit
without the knowledge of RMS cooperative.

(C) Therefore, A director who acquires for himself an opportunity which should belong to the
cooperative shall be liable for damages and must refund what he have collected.

FQ 22- COOPERATIVES
BATOCABE, CLEO

On January 1, 2019, Jasmine, Rapunzel, and Elsa came to an agreement to organize a cooperative. They
submitted the Articles of Cooperation to the Cooperative Development Authority on March 31, 2019
and the Authority issued a Certificate of Registration under its official seal on April 30, 2019. The parties
commenced commercial operations on May 15, 2019. On what date did the Cooperative acquired
separate juridical personality?
 COOPERATIVE
A. January 1, 2019

B. March 31, 2019

C. April 30, 2019

D. May 15, 2019

ANSWER:

(A) C. April 30, 2019

(L) According to Article 16 of Cooperative Code of the Philippines, A cooperative formed and organized
under this Code acquires juridical personality from the date the Authority issues a certificate of
registration under its official seal. All applications for registration shall be finally disposed of by the
Authority within a period of sixty (60) days from the filing thereof, otherwise the application is deemed
approved, unless the cause of the delay is attributable to the applicant: Provided, That in case of a denial
of the application for registration, an appeal shall lie with the Office of the President within ninety (90)
days from receipt of notice of such denial: Provided, further, That failure of the Office of the President to
act on the appeal within ninety (90) days from the filing thereof shall mean approval of said application.

(A) Based on the given fact above, It is clearly stated that the cooperative can acquire separate juridical
personality from the date Authority issues a certificate of registration under its official seal.

(C) Therefore, April 30, 2019 is the date when the Cooperative acquired separate juridical personality.

FQ 23 - COOPERATIVES
FERRER, JULLIE

XYZ Cooperative held a meeting and 120 members attended the said meeting. Half of them have a
voting rights. What is the quorum to constitute a meeting?

A. 25

B. 15

C. 20

D. 30

ANSWER:

(A) B. 15

(L) Article 35. Quorum. A quorum shall consist of at least twenty-five per centum (25%) of all the
members entitled to vote. In the case of cooperative banks, the quorum shall be as provided in Article
99 of this Code. In the case of electric cooperatives registered under this Code, a quorum, unless
 COOPERATIVE
otherwise provided in the bylaws, shall consist of five per centum (5%) of all the members entitled to
vote.

(A) To constitute a meeting there quorum shall consist at least 25% of all the members entitled to vote.
120 members attended the meeting and half of them have a voting rights, it means that the quorum is
25% of the 60 members who have the right to vote.

(C) Therefore, the quorum to constitute a meeting is 15.

FQ 24- Cooperatives
GARCIA, JOHNYDEL

Which of the following are included in the cooperative principles?

I. Concern for Community

II. Strictly for Rich personality

III. Voluntary and Open Membership

IV. Democrative Member Control

A. I, III, IV

B. I ,II, III

C. None of the above

D. All of the above

ANSWER:

(A) A. I, III, IV

(L) According to ART. 4 of the Cooperative code of the Philippines. "Cooperative Principles. - Every
cooperative shall conduct its affairs in accordance with Filipino culture, good values and experience and
the universally accepted principles of cooperation which include, but are not limited to, the following:

"(1) Voluntary and Open Membership - Cooperatives are voluntary organizations, open to all persons
able to use their services and willing to accept the responsibilities of membership, without gender,
social, racial, cultural, political or religious discrimination.

"(2) Democrative Member Control - Cooperatives are democratic organizations that are controlled by
their members who actively participate in setting their policies and making decisions. Men and women
serving as elected representatives, directors or officers are accountable to the membership. In primary
 COOPERATIVE
cooperatives, members have equal voting rights of one-member, one-vote. Cooperatives at other levels
are organized in the same democratic manner.

"(3) Member Economic Participation - Members contribute equitably to, and democratically control, the
capital of their cooperatives. At least part of that capital is the common property of the cooperative.
They shall receive limited compensation or limited interest, if any, on capital subscribed and paid as a
condition of membership. Members allocate surpluses for any or all of the following purposes:
developing the cooperative by setting up reserves, part of which should at least be indivisible;
benefitting members in proportion to their partonage of the cooperative's bubsiness; and, supporting
other activities approved by the membership.

"(4) Autonomy and Independence - Cooperatives are autonomous, self-help organizations controlled by
their members. If they enter into aggreements with other organizations, including government, or raise
capital from external sources, they shall do so on terms that ensure democratic control of their
members and maintain their cooperative autonomy.

"(5) Education, Training and Information - Cooperatives shall provide education and training for their
members, elected and appointed representatives, managers, and employees, so that they can
contribute effectively and efficiently to the development of their cooperatives.

"(6) Cooperation Among Cooperatives - Cooperatives serve their members most effectively and
strengthen the cooperative movement by working together through local, national, regional and
international structures.

(7) Concern for Community - Cooperatives work for the sustainable development of their communities
through policies approved by their members.

(A) In cooperative principles, everyone had an equal rights to be part of a cooperative. No such
discrimination or labeling must be tolerated. In general view cooperatives are meant for all.

(C) Therefore Strictly for Rich personality is not one of the stated cooperative principles in article 4.

FQ 25 - COOPERATIVE
ROCES, JOANN KRISTINE MAE

Which of the following can a cooperative derive their capital?

I. Member's share capital

II. Loans and borrowings including deposits

III. Member's private property

IV. Revolving Capital

 COOPERATIVE
A. I and II only

B. II, III, and IV

C. I, II and IV

D. III and IV only

ANSWER:
[A] C. I, II, and IV

[L] According to Art. 72

Capital sources- cooperatives registered under this Code may derive their capital from any or all of the
following sources:

(1) Member's share capital

(2) Loans and borrowings including deposits

(3) Revolving capital which consists of the deferred payment of patronage refunds or interest on share
capital.

(4) Subsidies, donations, legacies, grants, aids, and such other assistance from any local or foreign
institution whether public or private: Provided, that capital coming from such subsides, donations,
legacies, grants, aids, and other assistance shall jot be divided into individual share capital holdings at
any time but shall instead form part of the donated capital or fund of the cooperative.

[A] only three of the choices falls under the law which are member's share capital, revolving capital, and
loans and borrowings including deposits. A cooperative cannot derive their capital to their member's
private property unless it became the member's share capital in the cooperative.

[C] Therefore I, II and IV are three of the ways for a cooperative to derive their capital.

FQ 26- COOPERATIVES
ABUSMAN, JOHN KENNETH

On Jan. 1, 2018, a group of individuals came to an agreement to organize a cooperative. They submitted
the Articles of Cooperation to the Cooperative Development Authority on March 31, 2018 and the
Authority issued a Certificate of Registration under its official seal on April 30, 2018. The parties
commenced commercial operations on May 15, 2018. On what date did the cooperative acquired
separate juridical personality?

A. January 1, 2018

B. March 31, 2018

 COOPERATIVE
C. April 30, 2018

D. May 15, 2018

ANSWER:
(A) The answer is letter C

(L) According to Cooperative Code “A cooperative formed and organized under The Cooperative Code
acquires juridical personality from the date the Authority issues a certificate of registration under its
official seal.”

(A) Basically, All applications for registration shall be finally disposed of by the Authority within a period
of sixty (60) days from the filing, otherwise the application is deemed approved, unless the cause of the
delay is attributable to the applicant.

(C) Therefore, the cooperative has given the juridical personality upon the date of issuance of the
certificate of registration under its official seal.

FQ 27 - COOPERATIVE
FLANCIA, ABIGAEL

All of the following are objectives and goals of a Cooperative. Except:

(A) Provide only optimum social and not economic benefits to its members

(B) Teach them efficient ways of doing things in a cooperative manner

(C) Propagate cooperative practices and new ideas in business and management

(D) Cooperate with the government, other cooperatives and people-oriented organizations to further
the attainment of any of the foregoing objectives.

ANSWER:
(A) A. Provide only optimum social and not economic benefits to its members

(L) According to Article 7 of Republic Act 9520, An Act amending the Cooperative Code of the Philippines
to be known as the “Philippine Cooperative Code of 2008, The primary objective of every cooperative is
to help improve the quality of life of its members. Towards this end, the cooperative shall aim to:

"(a) Provide goods and services to its members to enable them to attain increased income, savings,
investments, productivity, and purchasing power, and promote among themselves equitable distribution
of net surplus through maximum utilization of economies of scale, cost-sharing and risk-sharing;

"(b) Provide optimum social and economic benefits to its members;

 COOPERATIVE
"(c) Teach them efficient ways of doing things in a cooperative manner;

"(d) Propagate cooperative practices and new ideas in business and management;

"(e) Allow the lower income and less privileged groups to increase their ownership in the wealth of the
nation; and

"(f) Cooperate with the government, other cooperatives and people-oriented organizations to further
the attainment of any of the foregoing objectives.

(A) As stated above the primary objective of every cooperative is to help improve the quality of life of its
member. , the main purpose of a cooperative is not maximization of profits but service to members.

(C) To conclude, only letter a is not an objective or goal of a cooperative.

FQ 28 - COOPERATIVES
GIRON, JAN ALFRED

Joseph, a director of the cooperative has been removed by the General Assembly due to a certain cause
and subsequently, Nestor has been elected as a director to fill the vacancy of his predecessor. How long
does Nestor will serve as one of the member of the Board of Directors?

a. Only to the unexpired terms of Joseph

b. Two years right after his appointment

c. The unexpired portion of Joseph's term and another two years

d. None of the above

ANSWER:

A - A only to the unexpired terms of Joseph

L- According to Article 41, vacancy in board of directors, any vacancy in the board of directors, other
than by expiration of term, may be filled by the vote of at least a majority of the remaining directors, if
still constituting a quorum; otherwise, the vacancy must be filled by the general assembly in a regular or
special meeting called for the purpose. A director so elected to fill a vacancy shall serve only the
unexpired term of his predecessor in office.

A - Nestor can only satisfy the unexpired portion of Joseph upon his appointment and are not subject to
another 2 years or equal to another one term.

C - Therefore, Nestor are only entitled only to the unexpired portion of his predecessor.
 COOPERATIVE
FQ 27 - COOPERATIVE

LOCREO, DANIELA

Which of the following is not a purpose of a Cooperative unions?

A. To develop the cooperative movement in their respective jurisdictions;

B. To do and perform such other non-business activities as may be necessary to attain the foregoing
objectives.

C. To enter into joint ventures with national or international cooperatives of other countries in the
manufacture and sale of products and/or services in the Philippines and abroad

D. To sponsor studies in the economic, legal, financial, social and other phases of cooperation, and
publish the results thereof

ASNWER:

(A) The answer is C, To enter into joint ventures with national or international cooperatives of other

countries in the manufacture and sale of products and/or services in the Philippines and

abroad

(L) According to the provision of Cooperative Art. 25, " Cooperative Unions.Registered cooperatives and
federations at the appropriate levels may organize or join cooperative unions to represent the interest
and welfare of all types of cooperatives at the provincial, city, regional, and national levels. Cooperative
unions may have the following purposes:

"(a) To represent its member organizations;

"(b) To acquire, analyze, and disseminate, economic, statistical, and other information relating to its
members and to all types of cooperatives within its area of operation;

"(c) To sponsor studies in the economic, legal, financial, social and other phases of cooperation, and
publish the results thereof;

"(d) To promote the knowledge of cooperative principles and practices;

"(e) To develop the cooperative movement in their respective jurisdictions;

"(f) To advise the appropriate authorities on all questions relating to cooperatives;

"(g) To raise funds through membership fees, dues and contributions, donations, and subsidies from
local and foreign sources whether private or government; and

"(h) To do and perform such other non-business activities as may be necessary to attain the foregoing
objectives.
 COOPERATIVE
"Cooperative unions may assist the national and local governments in the latter's development activities
in their respective jurisdiction."

(A) The aboveforementioned article is the list of the purposes of a Cooperative unions and all the the
choices except for letter C are correct. It was stated in Article 24 that one of the functions of a
Federation of Cooperatives is to enter into joint ventures with national or international cooperatives of
other countries in the manufacture and sale of products and/or services in the Philippines and abroad

(C) Therefore, the answer is absolutely correct.

FQ 30 – Cooperative
SALVADOR, PATRICK

Which of the following statements is/are true regarding the termination of the membership in a
cooperative?

Statement I: The death, insanity, insolvency or dissolution of a member shall be considered an automatic
termination of membership.

Statement II: A member of a cooperative may, for any reason, withdraw his membership from the
cooperative by giving a sixty (60) day notice to the board of directors.

Statement III: The membership can be terminated when a member has acted in violation of the bylaws
and the rules of the cooperative.

Statement IV: The membership can be terminated for any act or omission injurious or prejudicial or the
interest or the welfare of the cooperative.

A.I and II only

B. II and III only

C. I, II, and III only

D. All of the above

ANSWER:

(A)It is letter “D” all of the above

(L)It is enumerated in the Art. 31. that the termination of Membership can only be allowed on the
following grounds and situation:

(1)A member of a cooperative may, for any reason, withdraw his membership from the cooperative by
giving a sixty (60) day notice to the board of directors. The withdrawing member shall be entitled to a
refund of his share capital contribution and all other interests in the cooperative: Provided, That such
refund shall not be made if upon such payment the value of the assets of the cooperative would be less
than the aggregate amount of its debts and liabilities exclusive of his share capital contribution. (2) The
 COOPERATIVE
death, insanity, insolvency or dissolution of a member shall be considered an automatic termination of
membership.

(3)A member may be terminated by a vote of the majority of all the members of the board of directors
for any of the following causes: (a) When a member has not patronized the services of the cooperative
for an unreasonable period of time as may be fixed by the board of directors; (b) When a member has
continuously failed to comply with his obligations; (c) When a member has acted in violation of the
bylaws and the rules of the cooperative; and (d) For any act or omission injurious or prejudicial or the
interest or the welfare of the cooperative.

Moreover, a member whose membership the board of directors may wish to terminate shall be
informed of such intended action in writing and shall be given an opportunity to be heard before the
said board makes its decision. The decision of the board shall be in writing and shall be communicated in
person or by registered mail to the member and shall be appealable, within thirty (30) days after the
decision is promulgated, to the general assembly whose decision therein, whether in a general or special
session, shall be final. Pending a decision by the general assembly, the membership remains in force.

(A)All of the statements above are correct regarding to the termination of the membership in a
cooperative. The membership of the death, insanity, insolvency or dissolution will lead to automatic
termination of membership. They may also withdrew their membership for any reason provided that
there should be a sixty (60) day noticed to the board of directors. Also, The membership can be
terminated when a member has acted in violation of the bylaws and the rules of the cooperative and
when a member has acted in violation of the bylaws and the rules of the cooperative, but this must be
done with due process in accordance with the law.

(C)Hence, as enumerated in Article 31 in the Republic Act No. 6938, all of the statement are true
regarding the termination of the membership.

FQ 31 Cooperatives
MARTINEZ, CHRISTINE

Which of the following statements are true about the effects of merger or consolidation of
cooperatives?

(I) The constituent cooperatives shall become a single cooperative which, in case of merger, shall be the
consolidated cooperative, and, in case of consolidation, shall be the surviving cooperative.

(II) The separate existence of the constituent cooperatives shall cease, except that of the surviving or the
consolidated cooperative.

(III) The surviving or the consolidated cooperative shall possess all the assets, rights, privileges,
immunities and franchises of each of the constituent cooperatives.
 COOPERATIVE
a. Statements I and II are correct

b. Statements I and III are correct

c. Statements II and III are correct

d. All of the statements are correct

ANSWER:

(A) The answer is letter c, only statements II and III are correct.

(L) As stated in Philippine Cooperative Code of 2008 Article 22, the merger or consolidation of
cooperatives shall have the following effects:

(1) The constituent cooperatives shall become a single cooperative which, in case of merger, shall be the
surviving cooperative, and, in case of consolidation, shall be the consolidated cooperative;

(2) The separate existence of the constituent cooperatives shall cease, except that of the surviving or the
consolidated cooperative;

(3) The surviving or the consolidated cooperative shall possess all the assets, rights, privileges,
immunities and franchises of each of the constituent cooperatives; and

(5) The surviving or the consolidated cooperative shall be responsible for all the liabilities and obligation
of each of the constituent cooperatives in the same manner as if such surviving or consolidated
cooperative had itself incurred such liabilities or obligations. Any claim, action or proceeding pending by
or against any such constituent cooperatives may be prosecuted by or against the surviving or
consolidated cooperative, as the case may be. Neither the rights of creditors nor any lien upon the
property of any such constituent cooperatives shall be impaired by such merger or consolidation.

(A) It is stated in statement I that the constituent cooperatives shall become a single cooperative which,
in case of merger, shall be the consolidated cooperative, and, in case of consolidation, shall be the
surviving cooperative. In order for it to be correct, it must be the other way around. In case of merger it
shall be the surviving cooperative and in case of consolidation, it shall be the consolidated cooperative.

(C) By the given facts it can be inferred that only statements II and II are correct because it is clearly
stated in the article 22 of the Philippine Cooperative Code of 2008.

FQ 32 - Cooperatives
SOMBILLA, TRISTAN JOSH

J cooperatives was registered as a primary cooperative having 13 members only. J cooperatives was
desperately finding new members. Unfortunately, after a year of operation J cooperatives did not gain
new members and CDA found out that J cooperatives have 13 members only. What will happen to J
cooperatives?
 COOPERATIVE
A. J cooperatives will pay fines and able to continue its operation.

B. J cooperatives will be dissolved.

C. J cooperatives will able to continue its operation.

D. None of the above.

ANSWER:

(A) B. J cooperatives will be dissolved.

(L) According to Art. 67 under R.A. 9520, it was stated that "Dissolution by Order of the Authority. The
Authority may suspend or revoke, after due notice and hearing, the certificate of registration of a
cooperative on any of the following grounds:

"(1) Having obtained its registration by fraud;

"(2) Existing for an illegal purpose;

"(3) Willful violation, despite notice by the Authority, of the provisions of this Code or its

bylaws;

"(4) Willful failure to operate on a cooperative basis; and

"(5) Failure to meet the required minimum number of members in the cooperative."

(A) Based in the facts, J cooperatives was already violated a rule that there must be atleast 15 members
in the cooperative. Furthermore, J cooperatives did not gain new members and did meet the minimum
number of members which leads to dissolution by order of the authority.

(C) In conclusion, J cooperatives will be dissolved because they did not achieve the minimum number of
the members in the first place. They violated a law which CDA can revoke their registration.

FQ 33 COOPERATIVES
CAPUNO, LADY KAYLA

Which statement is correct?

Statement I: 2 votes for primary cooperative and more than 5 incentive votes for secondary and tertiary
cooperatives

Statement II: 1 vote for primary cooperative and more than 5 incentive votes for secondary and tertiary
cooperatives
 COOPERATIVE
Statement III: 2 votes for primary cooperative and a maximum of 5 incentive votes for secondary and
tertiary cooperatives

Statement IV: 1 vote for primary cooperative and a maximum of 5 incentive votes for secondary and
tertiary cooperatives

A. II only

B. IV only

C. I and III

D. II and IV

ANSWER:

[A] Letter B. IV only

[L] Under Article 36, Each member of a primary cooperative shall have only one (1) vote. In the case of
members of secondary and tertiary cooperatives, they shall have (1) basic vote and as many incentive
votes as provided for in the bylaws but not exceed five (5) votes. The votes cast by the delegates shall be
deemed as votes cast by the members thereof.

[A] In the facts presented, Primary cooperatives shall have only one (1) vote and a maximum of five (5)
incentive votes for secondary and tertiary cooperatives

[C] Therefore, statement IV is the correct statement about the voting system of the primary, secondary
and tertiary cooperatives.

FQ 34 – COOPERATIVES
DE GUZMAN, CHARLENE

A type of coop that caters different services such as lending, savings, marketing, etc.

A.) Multi-purpose Cooperative

B.) Producers Cooperative

C.) Credit Cooperative

D.) Producers Cooperative

ANSWER:

[A] The answer is letter A. Multi-purpose Cooperative.

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[L] Based from the legal provisions, under Article 23 of Republic Act 9520 otherwise known as
"Philippine Cooperative Code of 2008," "Type and Categories of Cooperatives subsection (f)
Multipurpose Cooperative is one which combines two (2) or more of the business activities of these
different types of cooperatives;"

[A] As for the facts presented above, it covers a type of cooperative who does various of services where
it fulfills what a multi-purpose cooperative is.

[C] Therefore, a cooperative that caters different services or one which combines two (2) or more of the
business activities of these different types of cooperatives.

FQ 35 - COOPERATIVES
RAMOS, YSA

Which of the following is included to must conduct affairs by every cooperative in accordance to
universally accepted principles of cooperation?

I. Voluntary and Open Membership

II. Democrative Member Control

III. Member Economic Participation

IV. Cooperation Among Cooperatives

a. II only

b. II and IV only

c. I, II and III only

d. All of the above

ANSWER:
(A) d. All of the above

(L) As stated in Article 4. Cooperative Principles. - Every cooperative shall conduct its affairs in
accordance with Filipino culture, good values and experience and the universally accepted principles of
cooperation which include, but are not limited to, the following:

"(1) Voluntary and Open Membership - Cooperatives are voluntary organizations, open to all persons
able to use their services and willing to accept the responsibilities of membership, without gender,
social, racial, cultural, political or religious discrimination.

"(2) Democrative Member Control - Cooperatives are democratic organizations that are controlled by
their members who actively participate in setting their policies and making decisions. Men and women
serving as elected representatives, directors or officers are accountable to the membership. In primary
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cooperatives, members have equal voting rights of one-member, one-vote. Cooperatives at other levels
are organized in the same democratic manner.

"(3) Member Economic Participation - Members contribute equitably to, and democratically control, the
capital of their cooperatives. At least part of that capital is the common property of the cooperative.
They shall receive limited compensation or limited interest, if any, on capital subscribed and paid as a
condition of membership. Members allocate surpluses for any or all of the following purposes:
developing the cooperative by setting up reserves, part of which should at least be indivisible;
benefitting members in proportion to their partonage of the cooperative's bubsiness; and, supporting
other activities approved by the membership.

"(4) Autonomy and Independence - Cooperatives are autonomous, self-help organizations controlled by
their members. If they enter into aggreements with other organizations, including government, or raise
capital from external sources, they shall do so on terms that ensure democratic control of their
members and maintain their cooperative autonomy.

"(5) Education, Training and Information - Cooperatives shall provide education and training for their
members, elected and appointed representatives, managers, and employees, so that they can
contribute effectively and efficiently to the development of their cooperatives.

"(6) Cooperation Among Cooperatives - Cooperatives serve their members most effectively and
strengthen the cooperative movement by working together through local, national, regional and
international structures.

(7) Concern for Community - Cooperatives work for the sustainable development of their communities
through policies approved by their members.

(A) I, II, III and IV statements are all included to must conduct affairs by every cooperative in accordance
to universally accepted principles of cooperation as it can be seen in the Article 4 of the Philippine
Cooperative Code.

(C) Therefore all of the statement mentioned above are considered included in the universally accepted
principles of cooperation.