ARTICLES OF COOPERATION

OF

ILIGAN AGRI-RAINBOW PRODUCERS COOPERATIVE

(Name of Cooperative)

KNOW ALL MEN BY THESE PRESENTS:

We, the undersigned Filipino citizens all of legal age and residents of the Philippines, have on this
day agreed to form a primary Agricultural Cooperative, under the laws of the Republic of the
Philippines.
AND WE HEREBY CERTIFY:
ARTICLE I
NAME OF THE COOPERATIVE
That the name of this Cooperative shall be ILIGAN AGRI-RAINBOW PRODUCERS
COOPERATIVE.
ARTICLE II
OBJECTIVES
That the objectives for which this Cooperative is formed are:
Primary
1. To encourage thrift and savings mobilization among the members;
2. To provide goods and services and other requirements of the members;
3. To undertake re-lending activities;
4. To promote the cooperative as a Way of Life for improving the social and economic
well-being of the people;
5. To do any related activity of the members, improve social and/or economic well being
under a truly just democratic society;
6. To work with the cooperative movement, non-governmental and government
organization/entities in the promotion and development of cooperatives and in carrying
out government policies;
7. To undertake other activities for the effective and efficient implementation of the
provision of the Cooperative Code.
Secondary
In addition to the objectives and purposes provided for under Republic Act No. 6938 which are
hereby made an integral part of this Articles of Cooperation, this Cooperative adopts the following
secondary objectives:

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Page 1

1. To actively support the government and other concerned organizations, both local and
foreign, in promoting cooperatives as a practical means towards sustainable socioeconomic development under a truly just and democratic society;
2. To develop the knowledge of the members on the principles and practices of
cooperatives to enable them to actively and competently participate in managing the
affairs of the Cooperative;
3. To institutionalize a dynamic savings mobilization and capital build-up schemes to
sustain its development activities and long-term investments, thereby ensuring
optimum economic benefits to the members, their families and the general public;
4. To implement policy guidelines that will ensure transparency, equitable access to its
resources and services and promote the interest of their members; and
5. To adopt such other plans as may help the welfare of the members, their families and
the community.
ARTICLE III
POWERS AND CAPACITIES
In the furtherance of and not in limitation to the powers and capacities conferred by Republic Act
No. 6938, this Cooperative shall have the following juridical powers and capacities:
1. To draw, make, accept, endorse, guarantee, execute and issue promissory notes, bills of
exchange, debentures, bonds, drafts, warrants, certificates and all other kinds of
obligations and instruments in connection with its lawful business operations;
2. To contract indebtedness and/or enter into joint ventures with local or foreign entities in
order to achieve its goals and economic plans and programs;
3. To purchase, receive, take or grant, hold, convey, sell, lease, pledge, mortgage, and
otherwise deal with such real and personal property as the transaction of its lawful
affairs may reasonably and necessarily require, subject to the limitations prescribed by
law and the Constitution of the Philippines;
4. To exercise such other powers as may be essential and necessary to carry out its
objectives in accordance with law.

ARTICLE IV
AREA OF OPERATION
That this Cooperative shall operate within and its principal office shall be located at City
Agriculturist Office, IBJT-North, Hinaplanon, Iligan City.

ARTICLE V
TERM OF EXISTENCE
That the term for which this cooperative shall exist is FIFTY (50) years from the date of its
registration with the Cooperative Development Authority.

ARTICLE VI
COMMON BOND OF MEMBERSHIP

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That the common bond of membership of this Cooperative is Associational and shall be open to
all natural persons who are Filipino citizens, of legal age, with the capacity to contract, possess all
the qualifications, and none of the disqualification, provided for in the By-Laws.

ARTICLE VII
NAME, NATIONALITY AND ADDRESS OF COOPERATORS
NAME
1. Pio Reyno D. Gerona
2. Erlinda N. Halibas
3. Marivic A. Mabayo
4. Rosabella J. Mendoza
5. Remedios A. Uy
6. Walter O. Lituan
7. Conrado L. Arejola
8. Salem Arellano
9. Victoire I. Rovira
10. Mario Maghinay
11. Teresa D. Sicad
12. Cornelio L. Dagaas, Sr.
13. Hanri Tinggas
14. Herlando Gutierrez
15. Leonor P. Laude
16. Juliana A. Opiniano
17. Alexander E. Branzuela
18. Marie Grace N. Halibas
19. Jovito Branzuela
20. Richie N. Lozano

NATIONALITY
Filipino
Filipino
Filipino
Filipino
Filipino
Filipino
Filipino
Filipino
Filipino
Filipino
Filipino
Filipino
Filipino
Filipino
Filipino
Filipino
Filipino
Filipino
Filipino
Filipino

ADDRESS
Gerona, Hinaplanon, Iligan City
Sta. Filomena, Iligan City
Del Carmen, Iligan City
Kiwalan, Iligan City
Olas, Tipanoy, Iligan City
Pala-o, Iligan City
Lumbatin, Iligan City
Pugaan, Iligan City
Kiwalan, Iligan City
Digkilaan, Iligan City
Pugaan, Iligan City
Tambo, Hinaplanon, Iligan City
Bunawan, Iligan City
Bunawan, Iligan City
Kiwalan, Iligan City
Del Carmen, Iligan City
Sta. Filomena, Iligan City
Sta. Filomena, Iligan City
Hinaplanon, Iligan City
Hinaplanon, Iligan City

ARTICLE VIII
BOARD OF DIRECTORS
That the number of directors of this Cooperative shall be FIVE (5) and the names, citizenship, and
residence of the founding directors who are to serve until their successors shall have been elected
and qualified as provided in the By-Laws are:
NAME
1.
2.
3.
4.
5.

Pio Reyno B. Gerona

Erlinda N. Halibas
Salem Arellano
Walter O. Lituan
Conrado L. Arejola

CITIZENSHI
P
Filipino
Filipino
Filipino
Filipino
Filipino

ADDRESS
Gerona, Hinaplanon, Iligan City
Sta. Filomena, Iligan City
Pugaan, Iligan City
Pala-o, Iligan City
Lumbatin, Pugaan, Iligan City

ARTICLE IX
CAPITALIZATION
That the authorized Share Capital of this Cooperative is Two Hundred Fifty Six Thousand Pesos
(P256,000.00) and said capital is divided into Two Thousand Five Hundred Sixty (2,560) shares
with a par value of One Hundred Pesos (P100.00) each.

ARTICLE X
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SUBSCRIBED AND PAID-UP SHARE CAPITAL

That at least twenty-five percent (25%) of the authorized share capital has been subscribed and at
least twenty-five percent (25%) of the total subscription has been paid by the following membersubscribers:

Name

a)
b)
c)
d)
e)
f)
g)
h)
i)
j)
k)
l)
m)
n)
o)
p)
q)
r)
s)
t)

Pio Reyno B. Gerona

Erlinda N. Halibas
Marivic A. Mabayo
Rosabella J. Mendoza
Remedios A. Uy
Walter O. Lituan
Conrado L. Arejola
Salem Arellano
Victoire I. Rovira
Mario Maghinay
Teresa D. Sicad
Cornelio L. Dagaas, Sr.
Hamri Tinggas
Herlando Gutierrez
Leonor P. Laude
Juliana A. Opiniano
Marie Grace N. Halibas
Alexander H. Branzuela
Jovito Branzuela
Richie M. Lozano

Amount of
Subscribed
Capital

Number of
Shares
Subscribe
d

Amount
Shares
Paid

Number
of Shares
Paid

Membership
Fee

P3,200.00
P3,200.00
P3,200.00
P3,200.00
P3,200.00
P3,200.00
P3,200.00
P3,200.00
P3,200.00
P3,200.00
P3,200.00
P3,200.00
P3,200.00
P3,200.00
P3,200.00
P3,200.00
P3,200.00
P3,200.00
P3,200.00
P3,200.00

32
32
32
32
32
32
32
32
32
32
32
32
32
32
32
32
32
32
32
32

P800.00
P800.00
P800.00
P800.00
P800.00
P800.00
P800.00
P800.00
P800.00
P800.00
P800.00
P800.00
P800.00
P800.00
P800.00
P800.00
P800.00
P800.00
P800.00
P800.00

8
8
8
8
8
8
8
8
8
8
8
8
8
8
8
8
8
8
8
8

P200.00
P200.00
P200.00
P200.00
P200.00
P200.00
P200.00
P200.00
P200.00
P200.00
P200.00
P200.00
P200.00
P200.00
P200.00
P200.00
P200.00
P200.00
P200.00
P200.00

ARTICLE XI
TREASURER
That ROSABELLA MENDOZA has been elected as Treasurer of this Cooperative to act as such
until his/her successor shall have been duly elected/appointed and qualified in accordance with the
By-Laws. As such, he/she has been authorized to receive payments and issue receipts for
membership fees, share capital, subscriptions and other revenues for and in the name of this
Cooperative.

WE, the undersigned cooperators of the Cooperative hereby declare under the penalties of
perjury that this form has been accomplished in good faith, verified by us and to the best of our
knowledge and belief is true. That any misrepresentation made thereon, upon verification shall
be ground for automatic revocation of the Certificate of Registration issued in connection
therewith.

IN WITNESS WHEREOF, we have hereunto signed our names on this 26th day of January,
2009 in Iligan City, Philippines.

NAME AND SIGNATURE OF COOPERATORS

PRINTED NAME

SIGNATURE

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1. Pio Reyno B. Gerona

2. Erlinda N. Halibas
3. Marivic A. Mabayo
4. Rosabella J. Mendoza
5. Remedios A. Uy
6. Walter O. Lituan
7. Conrado L. Arejola
8. Salem Arellano
9. Victoire I. Rovira
10. Mario Maghinay
11. Teresa D. Sicad
12. Cornelio L. Dagaas, Sr.
13. Hamri Tinggas
14. Herlando Gutierrez
15. Leonor P. Laude
16. Juliana A. Opiniano
17. Alexander H. Branzuela
18. Marie Grace H. Halibas
19. Jovito Branzuela
20. Richie M. Lozano
SIGNED IN THE PRESENCE OF:

Rogelio A. Englatiera
Division Chief
ENDEV, CDLO
Signature over Printed Name

Lilibeth Y. Razo
Acting Division Chief
TRADE, CDLO
Signature over Printed Name

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CDA EXPRESSLANE FORM NO. 2

BY-LAWS OF THE
ILIGAN AGRI-RAINBOW PRODUCERS COOPERATIVE

KNOW ALL MEN BY THESE PRESENTS:

We, the undersigned Filipino citizens, all of legal age and residents of the Philippines,
representing at least majority of the members of the above-named cooperative, do
hereby adopt the following code of By-Laws.

ARTICLE I
OBJECTIVES
Section 1. Objectives. The objectives and purposes of this Cooperative are those
set forth in its Articles of Cooperation.

ARTICLE II
MEMBERSHIP
Section 2. Membership. This Cooperative shall have regular members only. A
Regular member is one who is entitled to all rights and privileges of membership as
provided in this By-Laws.
Section 3. Qualifications for Membership. The membership of this Cooperative
is open to any natural person, Filipino citizen, of legal age, with capacity to contract,
working and/or residing in the area of operation as stated in the Articles of
Cooperation, and has the following qualifications:
a) Completed the prescribed pre-membership education training;
b) Undertook to uphold the By-Laws, policies, guidelines, rules and regulations
promulgated by the Board of Directors and the General Assembly;
c) Paid the prescribed membership fee of P200.00.
Section 4. Application for Membership. An applicant for membership shall file a
duly accomplished form with the Board of Directors who shall accept or deny it in
accordance with the prescribed guidelines.
Section 5. Share Capital Subscription. An applicant whose membership has
been approved shall subscribe at least Thirty Two (32) shares and pay the value of at
least 8.00 shares.
Section 6. Appeal. All applicant whose application was denied by the Board of
Directors may appeal to the General Assembly by giving notice to the Secretary of
the Cooperative within thirty (30) days before the next General Assembly meeting,
whose decision on the matter shall be final.
Section 7. Duties and Responsibilities of a Member. Every member shall have
the following duties:
a) Pay the installment of his share capital subscription as it falls due and to
participate in the capital build-up and mobilization activities of the
Cooperative;
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b) Patronize the Cooperatives businesses and services;

c) Participate in the membership education programs;
d) Attend and participate in the deliberation of all matters taken during
General Assembly meetings;
e) Observe and obey all lawful orders, decisions, rules and regulations adopted
by the Board of Directors and the General Assembly; and
f) Promote the goals and objectives of the Cooperative, the success of its
business, the welfare of its members and the cooperative movement in
general.
Section 8. Member Entitled to Vote.
conditions is a member entitled to vote:

Any member who meets the following

a) Paid the membership fee and the value of at least eight (8) shares;
b) Not delinquent in the payment of his share capital subscriptions and other
accounts or obligations;
c) Not violated any provision of this By-Laws; the terms and conditions of the
subscription agreement; and the decisions, guidelines, rules and
regulations promulgated by the Board of Directors and the General
Assembly;
d) Completed the basic orientation training program prescribed by the Board
of Directors; and
e) Participates in the affairs of the Cooperative and patronizes its businesses.
Section 9. Rights of a Regular Member Entitled to Vote. A member entitled to
vote shall have the following rights:
a) Participate and vote on all matters deliberated upon during general
assembly meetings;
b) Seek any elective or appointive position, subject to the provisions of this
By-Laws and the Cooperative Code of the Philippines;
c) Avail himself of the services of the Cooperative, subject to certain
conditions as may be prescribed by the Board of Directors;
d) Inspect and examine the books of accounts, the minutes, the share
register, and other records of the Cooperative during office hours; and
e) Such other rights and privileges as may be provided by the General
Assembly.
Section 10. Liability of Members. A member shall be liable for the debts of the
Cooperative only to the extent of his subscribed share capital.
Section 11. Suspension of Membership. A member who is delinquent in the
payment of his share subscription and for other causes detrimental to the interest of
the cooperative may be suspended in accordance with the guidelines on suspension
of members prescribed by the Board of Directors duly approved by the General
Assembly.
Section 12. Termination of Membership. Termination of membership may be
automatic, voluntary or involuntary. It shall have the effect of extinguishing all
rights of a members in the Cooperative subject to the provisions of Section 13 of this
By-Laws as may be provided by the General Assembly.
Any member whose membership in the cooperative was terminated shall be entitled
to a refund of his share capital pursuant to Article 31 of the Cooperative Code.

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Section 13. Manner of Terminating Membership and Refund of Share Capital

Contribution. Within fifteen (15) days from registration of these By-Laws, the
Board of Directors shall prescribe guidelines relative to the manner of terminating
and suspension of membership and refund of share capital contribution of members
in accordance with the provisions of the Cooperative Code.
ARTICLE III
GOVERNMENT
Section 14. The General Assembly. The General Assembly is composed of all the
members entitled to vote and is the highest governing body of the Cooperative.
Section 15. Powers of the General Assembly. Subject to the Provisions of the
Cooperative Code of the Philippines and the rules issued thereunder, the General
Assembly duly assembled shall have the following powers:
a) To adopt and amend its Article of Cooperation and By-Laws in accordance
with law;
b) To elect, appoint or remove for cause any member of the Board of
Directors, officer or committee member of the Cooperative;
c) To review, approve, modify or reject development plans and programs of
the Cooperative including the annual budget;
d) To review and pass upon the reports of the Board of Directors, Officers and
committees;
e) To review, approve, modify or reject any substantial change in the financial
and operational policies of the Cooperative;
f) To adopt a Cooperative seal and exercise all other powers as may be
authorized by law.
Section 16. Meetings. Meetings of the General Assembly, Board of Directors and
committees may be regular or special. All proceedings and businesses undertaken at
any meeting of the General Assembly or Board of Directors, if within the powers or
authority of the Cooperative, there being a quorum, shall be valid.
Section 17. Regular General Assembly Meeting. The General Assembly shall
hold its annual regular meeting every second Saturday of February at City
Agriculturist Office, IBJT-North, Hinaplanon, Iligan City, or any place within the
Philippines on the date fixed by the Board of directors, provided that, such date shall
be within ninety (90) days after the close of each fiscal year. The fiscal year of this
Cooperative shall commence on the first day of January and ends at the last day of
December and every year thereafter.
Section 18. Special General Assembly Meeting. The Board of Directors may, by
a majority vote of all its members, call a special general assembly meeting at any
time to consider urgent matters requiring immediate membership decision. The
Board of Directors may likewise call a special general assembly meeting in
accordance with Article 35(2) of the Cooperative Code.
Section 19. Notice of Meeting. All notices of meetings shall be issued by the
Secretary of the Cooperative specifying in writing the date, time, place and the
agenda thereof.
Section 20. Agenda. As far as practicable, the order of business of a regular
general assembly meeting shall be:
a) Call to Order;
b) Roll Call;
c) Proof of Due Notice;
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d) Declaration of Presence of Quorum;

e) Consideration of the Minutes of the Last Regular General Assembly Meeting;
f) Matters Arising from the Minutes;
g) Consideration of the Consolidated Report of the Board of Directors, officers,
and the committees including audited financial statements of the
Cooperative;
h) Unfinished business;
i) Election of Directors and Committee Members;
j) New business;
k) Other matters; and
l) Adjournment.
Section 21. Quorum. During regular or special general assembly meeting, a
majority (1/2 plus 1) of the total number of members entitled to vote shall constitute
a quorum.
Section 22. Voting System. Only members entitled to vote shall be qualified to
participate and vote in any general assembly meeting. A member is entitled to one
vote only regardless of the number of shares he owns.
Election or removal of Directors and Committee members shall be by secret ballot.
Action on all matters shall be in any manner that will truly and correctly reflect the
will of the membership. No proxy and/or cumulative voting shall be allowed.
ARTICLE IV
BOARD OF DIRECTORS
Section 23.
Composition of the Board of Directors.
The conduct and
management of the affairs of the Cooperative shall be vested in the Board of
Directors, which shall be composed of five (5) members.
Section 24. Qualifications. No member shall be elected as a member of the
Board of Directors or any committee unless he is a member entitled to vote and has
the following qualifications:
a) Member in good standing for at least one (1) year;
b) Not delinquent in the payment of their loans and other obligations to the
cooperative; and
c) Must be present during the general assembly and the election of officers so
that they can personally attest to their willingness or unwillingness to serve
the cooperative.
Section 25. Disqualifications. Any member who is under any of the following
circumstances shall be disqualified to be elected as a member of the Board of
Directors or any committee, or to continue as such:
a) Holding any elective position in the government, except that of barangay
officials;
b) Having served as director of the Cooperative for three (3) consecutive
terms;
c) Having direct or indirect personal interest with the business of the
Cooperative;
d) Having been absent for three (3) consecutive regular meetings without
reasonable cause;
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e) Being an official or employee of the Cooperative Development Authority;

and
f) Having been disqualified by law, to wit:
1) Any person finally convicted judicially of an offense involving moral
turpitude, fraud, embezzlement, theft, estafa, counterfeiting,
misappropriation, forgery, false oath or other fraudulent act or
transgression;
2) Any person judicially declared to be insolvent;
3) Convection by final judgment of an offense punishable for a period
exceeding six (6) years.
Section 26. Election of Directors. The members of the Board of Directors shall
be elected by secret ballot by members entitled to vote during the annual regular
general assembly meeting. Unless earlier removed for cause, or have resigned or
become incapacitated, they shall hold office for a term of two (2) years or until their
successors shall have been elected and qualified; Provided, that majority of the
elected directors obtaining the highest number of votes during the first election after
registration shall serve for two (2) years, and the remaining directors for one year.
Thereafter, all directors shall be elected for a term of two (2) years; the term of the
incorporating directors shall expire upon the election of their successors in the first
regular general assembly after registration.
Section 27. Election of Officers. The Board of Directors shall convene within ten
(10) days after the regular general assembly to elect by secret ballot from among
themselves the Chairman, and the Vice Chairman, and to appoint or elect the
Secretary and Treasurer from outside of the Board. The elected/appointed officers
shall hold office for a term of two (2) years or until their successors shall have been
elected/appointed and actually assumed the functions of their positions. No two (2)
or more persons with relationships up to the third civil degree of consanguinity or
affinity shall hold any elective or appointive position in the same Board or
Committee.
Section 28. Meeting of Directors. The regular meeting of the Board of Directors
shall be held at least once a month. However, the Chairman or, in his absence, the
Vice-Chairman, or majority of the directors may at any time call a special Board
meeting to consider urgent matters. Notice shall be given in writing to all the
members at least three (3) days prior to such meeting by the director/s calling such
meeting.
Any decision or action taken by the Board of Directors constituting a majority (1/2
plus 1) of members shall constitute a quorum in a meeting duly assembled shall be a
valid cooperative act.
Section 29. Vacancies. Any vacancy occurring in the Board of Directors by reason
of death, incapacity, removal or resignation may be filled by a majority vote of the
remaining directors, if still constituting a quorum; otherwise, such vacancy shall be
filled by the general assembly in a regular or special meeting called for the purpose.
The elected director shall serve only for the unexpired term of his predecessor in
office.
Section 30. Removal of Directors and Committee Members. Any director or
committee member elected by the general assembly may be removed from office for
cause by a vote of at least two-thirds (2/3) of the members entitled to vote present
and constituting a quorum in a regular or special general assembly meeting called for
the purpose after having been given the opportunity to be heard.
An officer elected or appointed by the Board of Directors or any committee may be
removed from office for cause by a majority vote of all the members of the Board or
Committee as the case may be.
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Section 31. Powers and Duties of the Board. The Board of Directors shall direct
and supervise the business, manage the property of the Cooperative and may, by
resolution, exercise all such powers of the Cooperative as are not reserved for the
general assembly under this By-Laws and the Cooperative Code of the Philippines.
ARTICLE V
COMMITTEES
Section 32. Audit, Election, Credit, Conciliation and Education Committees.
An Audit, Election, Credit and Conciliation Committees are hereby created and shall
be composed of three (3) members each to be elected during a general assembly
meeting and shall hold office for a term of two (2) years or until their successors
shall have been elected and qualified. Within ten (10) days after their election, they
shall elect from among themselves a Chairman. Except the Education Committee, no
member of the committees shall hold any other position within the Cooperative
during his term of office and no member of the committees shall be related to each
other up to third degree of consanguinity or affinity.
Each Committee shall promulgate rules and regulations that shall govern the conduct
of Committee affairs to be approved by the Board of Directors and ratified by the
General Assembly.
The Audit Committee shall provide internal audit service, maintain a complete
record of its examination and inventory, and submit an audited financial report
quarterly or whenever required by the Board and the General Assembly. As far as
practicable, members of the Audit Committee shall have a background in accounting
and/or bookkeeping.
The Election Committee shall be vested with the powers to pass upon the
qualifications of candidates, supervise the conduct of elections, canvass and certify in
writing the returns, proclaim the winning candidates, and hear and decide all election
protests. Election protests filed by or against the Election Committee member shall
be decided by the Board of Directors.
The decision of the Election Committee is appealable to the Board of Directors within
15 days from receipt thereof and shall decide the case within thirty (30) days after
receipt to the records of the case. The decision of the Board can be elevated to the
Cooperative Development Authority within 15 days from receipt of said decision for
mediation/conciliation proceeding.
The Credit Committee shall be responsible for the credit management of the
cooperative. In the performance of its functions, it shall process, evaluate and act
upon loan application and withdrawal of deposits, except when the applicant is a
member of the committee, in which case, the application shall be acted upon by the
Board of Directors; and exercise general supervision, including collection over all
loans to members.
The Conciliation Committee shall have the following powers and functions: to
conciliate, hear and decide all intra-cooperative disputes between and/or among
members, officers, directors and the community; subject to the approval of the
general assembly, to issue supplemental rules and procedures concerning conciliation
processes as may be deemed necessary; and to exercise such other powers as may
be necessary to ensure speedy, just, equitable and inexpensive settlement of
disputes within the Cooperative.
The Education Committee is hereby created with the Vice-Chairman of the Board of
Directors as its Chairman and such number of members as the Board may deem
feasible.
It shall be responsible for the planning and implementation of the
information, educational and human resource development programs of the
Cooperative for its members, officers and communities within its area of operation.
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Section 33. Other Committees. The Board of Directors may form such other
committees as may be deemed necessary for the smooth operation of the
Cooperative.
ARTICLE VI
OFFICERS OF THE COOPERATIVE
Section 34. Officers and their Duties. The cooperative shall have a Chairman,
Vice-Chairman, Treasurer and a Secretary who shall serve according to the functions
of their respective officers as follows:
Chairman the Chairman shall:
a) Preside over all meetings of the cooperative and of the Board of Directors;
b) Sign all share certificates revolving fund certificates, contracts and other
instruments or papers essential to the operations of the Cooperative; and
c) Perform such other necessary functions, subject to the restrictions as may
be imposed by the Board of Directors or the general assembly.
Vice-Chairman The Vice-Chairman shall, in the absence or incapacity of the
Chairman, discharge the duties and responsibilities of the Chairman; provided,
however, that in case of death, resignation, removal or permanent incapacity of the
Chairman, the Board of Directors may elect a new Chairman. The Vice-Chairman of
the Board shall serve as ex-officio chairman of the Education and Training
Committee.
Treasurer The Treasurer shall:
a) Take custody of all monies, securities and papers acquired by the
cooperative, and maintain a complete records of all its functions;
b) Keep a complete record of its cash transactions for the establishment of
proof of his cash position at any given time and date;
c) Pay all financial obligations incurred by the Cooperative as approved by the
Manager and/or the Board of Directors;
d) Render report and certify the correctness of the cash position of the
Cooperative in all financial statements and other reports submitted to the
Board of Directors, the general assembly and the Cooperative Development
Authority;
e) Turn over to his successor all monies, securities, papers, books and other
properties belonging to the Cooperative in his possession upon the
expiration/termination of his term of office;
f) Act as Secretary in case of the latters absence or incapacity to perform his
duties; and
g) Perform such other duties as the Board of Directors may prescribe.
Secretary The Secretary shall:
a) Keep and maintain a complete registry of all members and records/minutes
of all meetings of the Board of Directors and the General Assembly;
b) Give notice of all meetings called;
c) Keep and maintain the Share and Transfer book and serve as the custodian
of the corporate seal of the cooperative;
d) Turn over to his successor all books, records and other properties belonging
to the cooperative in his possession upon the expiration/termination of his
term of office; and

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e) Act as Treasurer in case of the latters absence or inability to perform his

duties, and perform such other duties as the Board of Directors may
prescribe.
Section 35.
Liabilities of Directors, Officers & Committee Members.
Directors, officers and committee members who willfully and knowingly vote for or
assent to patently unlawful acts or who are guilty of gross negligence or bad faith in
directing the affairs of the Cooperative or acquire any personal or pecuniary interest
in conflict with their duties as directors, officers or committee members shall be
liable jointly and
When a director, officer or committee member attempts to acquire or acquires,
violation of his duties, any interest or equity adverse to the Cooperative in respect to
an matter which has been reposed in him in confidence, he shall, as a trustee for the
Cooperative, be liable for damages or loss of profits which otherwise would have
accrued to the Cooperative.
Section 36. Management Staff.
The Board of Directors shall appoint the
members the Management Staff, fix their Compensation and tenure of office.
The General Manager No person shall be appointed to the position of general
manager unless he possesses the following qualifications and none of the
disqualifications herein enumerated:
a) He must be familiar with the business operations of the Cooperative;
b) He must have at least two (2) years experience in the operations of
Cooperative or related business;
c) He must not be engaged directly or indirectly in any activity similar to the
business of the Cooperative;
d) He must not have been convicted of any administrative, civil or criminal
case involving moral turpitude, gross negligence or grave misconduct in the
performance of his duties;
e) He must not be addicted to any form of gambling or immoral or vicious
habits;
f) At the time of his appointment he must have no pending administrative,
civil or criminal case involving financial and/or property accountabilities;
and
g) He must be willing to undergo pre-service and/or in service training.
The General Manager shall have the following duties:
a) Have general charge of all the phases of the business operations of the
Cooperative, subject to the policies and guidelines set by the Board of
Directors and the General Assembly;
b) Maintain records and accounts of the Cooperative in such manner that the
true condition of its business may be ascertained therefrom at any time;
c) Render reports monthly, annually or as may be required by the board of
Directors or the general assembly, and preserve the books, documents,
correspondence and records of whatever nature concerning the operation
of the Cooperative which may come into his possession;
d) Subject to the policies set by the Board of Directors, employ, supervise and
or dismiss any agent or employee in the management force; and perform
such other duties as the Board of Directors may prescribe, and turn over to
the successor all properties belonging to the Cooperative in his possession
over which he has control upon the expiration/termination of his services.

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The Accountant/Bookkeeper. No person shall be appointed to the position of

accountant/bookkeeper unless he possesses the following qualifications and none of
the disqualifications enumerated below:
a) He must be knowledgeable in accounting and bookkeeping and must have
at least two (2) years experience in Cooperative or related business;
b) He must not be engaged directly or indirectly in any activity similar to the
business of the Cooperative;
c) He must not be convicted of any administrative civil or criminal case
involving moral turpitude, gross negligence or grave misconduct in the
performance of his duties;
d) He must not be addicted to any form of gambling or immoral or vicious
habits;
e) He must be willing to undergo pre-service and/or in-service trainings in
accounting; and
f) At the time of his appointment, he must have no pending administrative,
civil or criminal case involving financial and/or property accountabilities.
The Accountant of the Cooperative, who shall be under the supervision and
control of the General Manager shall have the following duties:
a) Install an adequate and effective accounting system within the Cooperative;
b) Render reports on the financial condition and operations of the Cooperative
monthly, annually or as may be required by the Board of Directors and/or
the general assembly;
c) Provide assistance to the Board of Directors in the preparation of annual
budget;
d) Keep, maintain and preserve all books of accounts, documents, vouchers,
contracts and other records concerning the business of the Cooperative and
make them available for auditing purposes to the Chairman of the Audit
Committee; and
e) Perform such other duties as the Board of Directors may require.
Section 37. Compensation. Subject to the approval of the general assembly, the
members of the Board and Committees may, in addition to per diems for actual
attendance to board and committee meetings, and reimbursement of actual and
necessary expenses while performing functions in behalf of the Cooperative, be given
regular compensation; Provided, that no additional compensation other than the per
diems shall be paid during the first year of existence of the Cooperative.
ARTICLE VII
CAPITAL STRUCTURE
Section 38. Source of Funds. The cooperative may derive its funds from any or
all of the sources provided in Article 73 of the Cooperative Code.
Section 39. Revolving Capital and Continuous Capital Build-Up. In order to
strengthen the capital structure of the Cooperative, the general assembly may
authorize the Board of Directors to raise a revolving capital by deferring the payment
of patronage refunds and interest on share capital, or such other schemes as may be
legally adopted. To implement this provision, the Board of Directors shall issue a
Revolving Capital Certificate with serial number, name, rate of interest, date of
retirement, and such other rights and privileges or restrictions as may be deemed
just and equitable.
Section 40.

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Section 41.
Section 42.
Section 43.

ARTICLE X
SETTLEMENT OF DISPUTES
Section 44. Conciliation Procedures. As far as practicable, all intra-cooperative
disputes shall be settled within the Cooperative. For this purpose, the Board of
Directors within fifteen (15) days from registration hereof with CDA shall prescribe
appropriate Rules of Conciliation Procedure for the proper and orderly disposition of
cooperative dispute.
ARTICLE X
MISCELLANEOUS
Section 45. Investment of Capital. The Cooperative may invest its capital in any
manner authorized by law upon approval by the general assembly.
Section 46. Accounting System. The Cooperative shall keep, maintain and
preserve all its books of accounts and other financial records in accordance with
generally accepted accounting principles and practices applied consistently from year
to year, and subject to existing rules and laws.
Section 47. External Audit. At least once a year, the Board of Directors shall in
consultation with the Audit Committee cause the audit of the books of accounts of
the Cooperative by an independent Certified Public Accountant.
Section 48. Annual Report. During the annual regular general assembly meeting,
the Cooperative shall submit a report of its operations to the general assembly
together with the audited financial statements. The annual report shall be certified
by the Chairman, Treasurer, Manager and other responsible officers of the
Cooperative as true and correct in all aspects to the best of their knowledge. The
audited financial statements shall be certified by an independent Certified Public
Accountant. Copy of the annual report and audited financial statements shall be
submitted to the Cooperative Development Authority within 60 days from the end of
every fiscal year.
ARTICLE XII
AMENDMENTS
Section 49. Amendments. Amendments to the Article of Cooperation and this Bylaws may be adopted by at least two-thirds (2/3) votes of all members entitled to
vote at any regular or special general assembly called for the purpose without
prejudice to the rights of the dissenting members to withdraw their membership
under the provisions of the Cooperative Code of the Philippines.

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ILIGAN AGRI-RAINBOW PRODUCERS COOPERATIVE

City Agriculture Office, IBJT North Hinaplanon
Iligan City

CERTIFICATION
TO WHOM IT MAY CONCERN:
This is to certify that the ILIGAN AGRI-RAINBOW PRODUCERS COOPERATIVE
located at City Agriculture Office, IBJT-North, Hinaplanon, Iligan City, is using the
standard charts of accounts for provident, credit, and other types of Cooperative with
provident/credit services.
This is issued upon the request of the above-named cooperative for whatever
purposes it may serve best.
Issued this ____ day of March, 2013, at the City Agriculture Office, IBJT-North,
Hinaplanon, Iligan City.
Prepared by:

MARIVIC MABAYO
Secretary
Noted by:

WALTER O. LITUAN
Chairman

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