Article 14: Articles of Cooperation

Register articles of cooperation to CDA The articles of cooperation shall include:

name of the cooperative Purpose/s & scope of business Term of existence Area of operation & postal address Names, nationality & postal addresses of registrants Common bond of membership Names of directors Amount of its share capital, names & residences of contributors & statement whether it is primary, secondary or tertiary in accordance w/ Article 23

Articles of cooperation may contain any other provisions not inconsistent w/ this code or any related law Submit 4 copies of each of proposed articles of cooperation, by laws & general statement reqd under Article 11to CDA Bonds of the accountable officers & sworn statement of the treasurer that at least 25% of authorized share capital has been subscribed & at least 25% of total subscription has been paid

Article 15: By laws

By laws shall be filed at the same time as the articles of cooperation By laws of each cooperative shall provide:

Qualifications for membership & payment to be made or interest to be acquired Rights & liabilities of membership Circumstances under which membership is acquired, maintained & lost Procedure in case of termination of membership Conditions for transfer of share or interest of the members Rules & procedures in relation to business affairs of the gen. assembly, board of directors & committees

General conduct of the affairs of the cooperative Manner of raising the capital and purpose of utilization Mode of custody & investment of net surplus Accounting & auditing system Manner of loaning & borrowing including limitations Method of distribution of net surplus Manner of adopting, amending, repealing & abrogating by laws Conciliation of mediation mechanism for the amicable settlement of disputes Other matters incident to purposes & activities of cooperative

Article 16: Registration

A cooperative formed or organized under this code acquires juridical personality upon the issuance of certificate of registration.

Article 17: Certificate of Registration

Issued by CDA Conclusive evidence of registration

Article 18: Amendment of Articles Cooperation & By Laws

of

May be amended by 2/3 vote of all members w/ voting rights

Article 19: Contracts Executed Prior to Registration & Thereof.

Effects

Contracts executed between private persons & cooperatives prior to registration will remain valid & binding between the parties & upon registration of the cooperative.

Article 20: Division of Cooperatives

Resolution approved by 2/3 votes of members eligible to vote New cooperatives become legally established upon registration with CDA

PROVIDED:
All requirements set in this code have been complied by the new cooperatives & that no division of a cooperative in fraud of creditors shall be valid.

Article 21: Merger & Consolidation Cooperatives

of

2 or more cooperative can merge into single cooperative Approved by 2/3 of all members eligible to vote of each of constituent coop at separate gen. assembly meetings CDA issue guidelines of procedures for merger/ consolidation/ cooperatives Becomes effective upon the issuance of certificate of merger of consolidation

Article 22: Effects of Merger and Consolidation

Constituent coop. becomes a single coop. Separate existence of constituent coop. shall cease Surviving or consolidated coop. will possess all the rights, privileges, immunities & powers & subject to all duties & liabilities of a coop. Surviving or consolidated coop. will possess all assets, rights, privileges, immunities & franchises of each of the constituent coop. & become responsible for all liabilities & obligations of each of the constituent coop.

Article 23: Types & Categories of Cooperatives

Types of Cooperatives:

Credit Cooperatives Consumers Cooperative Producers Cooperative Marketing Cooperative Service Cooperative Multi-Purpose Cooperative

Categories of Cooperative:
In terms of membership:
Primary Secondary Tertiary

In terms of territory:

Areas of operations

Article 24: Federation of Cooperatives

Members are primary &/or secondary coop. w/ single line or multi-purpose business activities:
Primary Purpose
carry on any cooperative enterprise authorized under Article 6

Secondary Purpose

carry on, encourage & assist educational & advisory work Render services designed to encourage simplicity, efficiency & economy

Print, publish & circulate any newspaper or other publication Coordinate & facilitate activities of its member cooperatives Enter joint ventures w/ national or international coops. Perform such other functions

Registered cooperatives may organize a federation at the provincial, city, regional & national levels according to the type of business carried on

Article 25: Cooperative Unions

Represent its member organizations Acquire, analyze & disseminate economic, statistical & other information relating to its members & all types of coop within its area of operation Sponsor studies in the economic, legal, financial, social & other phases of cooperation Promote cooperatives principles & practices

Develop the cooperative movement in their respective jurisdictions Advise the appropriate authorities on all questions relating to cooperatives Raise funds through membership fees, dues & contributions, donations & subsidies from local & foreign sources whether private or government Do & perform such other activities as may be necessary to attain the objectives