Enabling Business, Empowering Consumers

GUIDELINES ON
FORMATION OF
FEDERATIONS

Series of 2013
 Enabling Business,
Empowering Consumers

WHAT IS A FEDERATION?

A federation is a union of several groups

working for a common purpose and action.
 Enabling Business,
Empowering Consumers

BASIC ORGANIZATIONAL
REQUIRMENT

The organization must

be incorporated, have
adopted by-laws and
be Organized and
operated to pursuance
thereof.
 Enabling Business,
Empowering Consumers

VOTING MEMBERSHIP
The voting membership
exercising basic legal
control of the
organization should be
defined in the legal
papers.

The membership should

be representative of the
consumer sector.
 Enabling Business,
Empowering Consumers
Voting…continuation…page 2

It should elect a board which will:

• Reflect the will of the organizing
members
• Possess the power of amendment to
constitution and by-laws
• Have an annual meeting with an
adequate information about matters to
be acted upon.
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Empowering Consumers

GOVERNING ARRANGEMENTS
The organization
should operate on a
defined area of
needs. The goals
should be specified
and conduct its
programs to achieve
the goals.
 Enabling Business,
Empowering Consumers
Governing…continuation…page 2

The organization should have an orderly plan for periodic

evaluation to review its program vis-à-vis its goals and
objectives. To be able to do this, the organization should
have the following:

A. Board with adequate number of members

◊ The Board should meet regularly to ensure that the
main functions are carried out/implemented and to
provide a sound basis for decisions and actions.

◊ The Board should meet at least 4 times annually with

average attendance of at least 50%.
 Enabling Business,
Empowering Consumers
Governing…continuation…page 3

◊ The Board should formulate/establish policies

and supervise operations and finances. (Board
members shall serve without compensation
except for reimbursement of expenditures for
fulfilling responsibilities.
◊ The Board should provide specified plan for
turnover or other arrangements for new
members.
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Empowering Consumers

OFFICE STAFF / PERSONNEL

The organization should have an office and

employ a secretarial staff to take care of its day-
to-day administrative operations/transactions.
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Empowering Consumers

BUDGET

◊ The organization should operate on an approved annual

budget on a defined procedure of expenditures.
◊ Manage expenditures according to approved budget. Any
changes on budgetary expenditures should be authorized
by the Board.
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Empowering Consumers

ACCOUNTING / FINANCIAL
MANAGENMENT

◊ The organization should maintain proper book of accounts to

record all financial transactions and have its account audited
periodically.
◊ Personnel who will handle the finances should be bonded.
 Enabling Business,
Empowering Consumers

EVALUATION / CHECK POINT

The organization should have an orderly plan for periodic

evaluation. Evaluation should be undertaken to review its
program in the light of its goals and objectives.
 Enabling Business,
Empowering Consumers
MEMBERSHIP
MEMBERSHIP FORM

NAME OF CONSUMER ORGANIZATION:

________________________________________

Address of Consumer Organization:

________________________________________

Contact Number : ______________________________________

OFFICERS OF THE ORGANIZATION

President ________________________________________________

Vice-President __________________________________________

Secretary ________________________________________________

Treasurer ________________________________________________

_____________________________________________
Name of Authorized Representative

Position in the Organization: ________________________________

Brief Profile of the Organization:
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
Enabling Business,
Empowering Consumers