(Republic Act 9520)

Advocacy Cooperative Laboratory Cooperative Guardian Cooperative

Promotes cooperation through Managed principally by Cooperative which a
socially oriented projects. minors. Ages 7-18. laboratory is affiliated with.

Functions of a Federation Cooperative Purposes of a Cooperative Union

 To carry on  To acquire
 To perform  To sponsor studies
 To enter into joint ventures  Member organizations
 Member cooperative

Prescription Period Amendment Voting Threshold

Original Articles of Cooperation 60 days At least 2/3 of all the members with
By-laws (submitted same time) 30 days VOTING rights
Special: Cooperative Bank At least ¾ of all members w/ voting right

Administration of Cooperative Termination or Withdrawal

Delegation of powers from GA to BOD ¾ Withdrawal 60 day notice
Ratification of Contract w Self Dealing Dir. ¾ Termination MBOD
Removal of Elected Officer/Director ¾  Appeal by GA Within 30 days
Voluntary Dissolution. No affected creditors ¾  Grievance committee Within 30 days
Division/Merger of Cooperative ¾ Failure to act, decision in favor of member.
 General Assembly Board of Directors

Quorum
Meetings held at least annually. Meetings held at least monthly.
Ordinary Cooperative 25% Ordinary Cooperative 50% + 1 or Bylaws
Electric Cooperative 5% Cooperative Bank 50% + 1
Cooperative bank 50% + 1

Voluntary Dissolution Grounds for Suspension

No creditors are affected Obtained registration by fraud
Creditors are affected Existing for illegal purpose
Involuntary Dissolution Willful violation of corporation code
Violation of any law Willful failure to operate on a cooperative basis
Insolvency Failure to meet minimum required members

Distribution of Net Surplus – Reserve fund at least 50% in the first 5 years. 10% after.
 education and training – not more than 10% of net surplus
 community development – not less than 3% of net surplus
 optional fund – not exceed 7% of net surplus
 remainder – interest on share capital not exceeding normal rate of return