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ARTICLE IV
CAPITAL STRUCTURE
A) Share Capital
B) Revolving Capital
C) Retains
D) Capital Reserves
E) Loan Capital
F) Subsidies, Grants, Donations
G) Other source of funds as maybe authorized by law
Section 2. Continuous Capital Build-Up- Every member shall invest in the share
capital of the cooperative;
A) At least Two Hundred Pesos (P200.00) monthly subscription shall be paid until
the subscribed capital stock have been fully paid.
B) A t least 10 percent (10%) of his annual interest on capital and patronage refund
Section 3. Borrowing- The cooperative, through the Board of Directors with the
approval of the general assembly may borrow money from any source at the best terms
and conditions available and in such amount that maybe needed.
Section 4. Revolving Capital- The general assembly may authorized the Board of
Directors to raise a revolving capital by retaining deferring the payments of the
patronage refund and interest on share capital. The Board of Directors shall issue
revolving capital certificates with serial number, name, amount and rate of interest to be
paid upon retirement.
Section 6. Share Capital and Stock Certificate- The term share refer to a unit of
capital the par value of which is One Hundred Pesos (P100.00)
The shares may be purchased, owned or held only by the person who are eligible for
membership. Interest may be paid only on the paid share capital at the rate prescribed
by the CDA and such interest maybe in cash, or credited towards payment of
subscription, outstanding accounts, or additional shares or the revolving fund of the
cooperative. Due and unpaid share capital shall be subject to a fine of two percent (2%)
as determined by the Board of Directors for very month of delinquency.
(1) The cooperative shall have the first option to buy any share offered for sale. The
amount to be paid for such shares shall be the par value of book value whichever
is lower;
(2) If the cooperative is not in the position or otherwise refuses to purchase such
shares, the member shall have the right to sell them to any person eligible for
membership in the cooperative;
(3) Any member shall not transfer any share held by him or the interest in the
cooperative or any part thereof, unless;
a) He/ She has held such shares or interest for at least one (1) year;
b) The transfer is made to a member of the cooperative or to a person who
falls within the field of the membership of the cooperative provided that
the said person is acceptable to the cooperative;
c) The Board has approved such transfer.
(4) Transfer of shares shall not be binding to the cooperative until such transfer has
been registered in its stock and transfer book. No transfer shall be completed
until the olds certificate shall be endorsed, surrendered and a new certificate is
issued. The last transferee, if a new member, shall pay the required membership
fee. A transfer fee ONE HUNDRED PESOS (P 100.00) shall be charged.
(5) In case of loss or destruction of a certificate of stock, another may be issued in its
place to the owner after executing an affidavit in triplicate setting forth the
following;
ARTICLE V
OPERATION
Section 1. The cooperative shall procure the production inputs and supplies, consumer
goods, machinerys other equipments and their spare parts of its members and the
community in bulk from the best sources possible through a cooperative purchasing
system to achieve economy and efficiency, and shall make these goods available
regularly at the right quality and quantity at reasonable price.
Section 2. All members shall procure their goods and other requirements from the
cooperative.
Section 3.The cooperative shall endeavor to have sizable portion of the retail trade
and/or services towards stabilizing prices of these goods / services. In this regard, the
cooperative shall endeavor to serve as the direct link between the producers and the
consumers/users to minimize the factor of merchandising and bring down prices of a
commodity.
Section 4. All members shall execute a marketing and/or service agreement and/or
provide the needed services in the usual and customary manner, or in any manner it
may see fit under the circumstance, having in mind the interest and welfare of the
members.
Section 5. The cooperative based on the need of its member an/or sound economic
consideration shall acquire, lease, maintain and operate pool of machinery and
equipment for its pre and post harvest activities, warehouse and other facilities.
Section 6. The cooperative shall mobilize the resource of the member for capital
formation toward financing and other services needed by them and the community.
Section 7. Conditions of Loan- The board of directors shall prescribe the and
conditions for the granting of loans, the maximum amount that may be granted to a
member , the relate of interest, fines of payment in default, maximum period of
repayment, and all other factors as well, to facilitate the loans in operations and
safeguard the interest of the members and the borrowers.
In determining the rate of interest, the Board of Directors shall be guided by the
overriding principle of service over and above profit.
Section 9 Application of Loans- A loan application shall state specifically the purpose
or purposes for which the money is to be used. Any false representation or statement
made in the application shall be ground for the cancellation of the loans or if the money
has been used for a purpose other than those for which it was granted, the loan shall at
once become due And demandable
Section 11. Appeal- An appeal from the decision of the Credit Committee for abuse of
discretion or violation of any existing policy of the Board of Directors and the audit and
Inventory Committee whose decision on the matter shall be final
Section 12. The Cooperative shall be mobilize the resource of its member for capital
formation toward financing other services needed by them and community.
Section 13. Service over and above profit shall be the overriding consideration of the
cooperative in the pursuit of its goal and in the operation of its business.
ARTICLE VI
Section 1. At the end of the fiscal year, the cooperative shall distribute its net surplus as
follows:
Any change of this reserve fund shall require prior approval of the general
assembly. Any sum recovered on items previously charged to the reserve fund
shall be accredited to this reserve fund.
b) The reserve fund shall not be utilized for investment, other than authorized in
the cooperative code. Such sum of the reserve fund in excess off share
capital maybe used at anytime for any projects that would expand the
operations of the cooperative upon the resolution of the general assembly.
c) Upon the dissolution of the cooperative, the reserve fund shall not be
distributed among the members.
A subsidiary ledger of this land and building fund must be maintained by the
cooperative to record the individual proportionate share contributed by the
member. As soon as the purpose is achieved the fund shall be reverted to the share
capital of the individual contributors to the fund appearing on ledger.
4) The remaining net surplus shall be made available to the members in the form of
interest on share capital and patronage refund computed in accordance with the
Rule 4 of the cooperative code of the Philippines.
The sum allocated for patronage refund shall be made available at the
same rate to all person, including non-members, of the cooperative in proportion
to their individual patronage; Provided that:
ARTIVEL VII
MISCELLANEOUS
Section 3.Audit- At least one a year, the Board of Directors shall in consultation with
the Audit and Inventory Committee, cause the Audit of the books of the cooperative by
an independent Auditor.
Section 4. Annual Report- The Board of Directors shall make annual report of the
affairs of the cooperative to the members at the general assembly together with audited
financial statement. The report and statement shall be certified by the chairman,
treasurer, manager and other responsible officers of the cooperatives a true and correct
in all aspects to the best of their knowledge.
Copy of the annual report together with the audited financial statements shall be
submitted to the CDA within 60 days from the end of the fiscal year.
If the dispute is involving one complicated question of law and fact, the parties
involved may refer the same to the CDA.
ARTICLE VIII
ARTICLE IX
AMMENDMENTS
The amendments shall take effect upon the issuance of the corresponding
Certificate of registration by the Cooperative Development Authority
Voted and adopted this 26th day of January 2008, at Barobo, Surigao del Sur,
NAMES SIGNATURE
Witness Witness
We, the undersigned, constituting the majority of the Board of Directors of the BAROBO
hereby CERTIFY that foregoing instrument is the Code of By-Lays of the said
cooperative.
ROSALINDA C. VILLAMOR
Director