Cooperative Code

A

What is the title of Republic Act No. 9520?

a. Philippine Cooperative Code of 2008
b. Cooperative Code of the Philippines of 2004
c. Cooperative Law of the Philippines of 2006
d. Philippine Cooperative Law of 2010

B

It is an autonomous and duly registered association of persons, with a common bond of interest, who have voluntarily joined together to achieve their social, economic, and cultural needs and aspirations by making equitable contributions to the capital required, patronizing their products and services and accepting a fair share of the risks and benefits of the undertaking in accordance with universally accepted cooperative principles.

a. Corporation
b. Cooperative
c. Joint Venture
d. Association

C

Which of the following is not a cooperative principle?

a. Democratic Member Control
b. Autonomy and Independence
c. Involuntary and Close Membership
d. Concern for Community

D

Which of the following is not a cooperative principle?

a. Education, Training and Information
b. Cooperation among Cooperatives
c. Member Economic Participation
d. Taxability of Cooperatives

B

This cooperative principle means that Cooperatives are voluntary organizations, open to all persons able to use their services and willing to accept the responsibilities of membership, without gender, social, racial, cultural, political or religious discrimination.

a. Democratic Member Control
b. Voluntary and Open Membership
c. Autonomy and Independence
d. Concern for Community

C

It refers to the government agency created by Cooperative Code entrusted with the supervision and regulation of cooperatives in the Philippines.

a. Securities and Exchange Commission (SEC)
b. Bangko Sentral ng Pilipinas (BSP)
c. Cooperative Development Authority (CDA)
d. Insurance Commission (IC)

A

It refers to a type of audit wherein the cooperative assesses its social impact and ethical performance vis-à-vis its stated mission, vision, goals and code of social responsibility for cooperatives to be established by the CDA in consultation with the cooperative sector.

a. Social Audit
b. PerformanceAudit
c. Financial Statements Audit
d. Compliance Audit

B

It refers to a type of audit on the efficiency and effectiveness of the cooperative as a whole; its management and officers; and its various responsibility centers as basis for improving individual team or overall performance and for objectively informing the general membership on such performance.

a. Social Audit
b. PerformanceAudit
c. Financial Statements Audit
d. Compliance Audit

A

It refers to a type of cooperative that is undertaking activities which are related to its main line of business or purpose.

a. Single-Line or Single-Purpose Cooperative
b. Service Cooperative
c. Multi-Purpose Cooperative
d. Subsidiary Cooperative

B

It is a type of cooperative that promotes cooperativism among its members and the public through socially-oriented projects, education and training, research and communication, and other similar activities to reach out to its intended beneficiaries.

a. Education Cooperative
b. Advocacy Cooperative
c. Training Cooperative
d. Learning Cooperative

B

It is a type of cooperative that promotes and undertakes savings and lending services among its members. It generates a common pool of funds in order to provide financial assistance to its members for productive and provident purposes.

a. Insurance Cooperative
b. Credit Cooperative
c. Cooperative Bank
d. Financial service Cooperative

D

It is a type of cooperative that is organized for the primary purpose of engaging in savings and credit services and other financial services.

a. Insurance Cooperative
b. Credit Cooperative
c. Cooperative Bank
d. Financial service Cooperative

C

It is a type of cooperative the primary purpose of which is to procure and distribute commodities to members and non-m embers.

a. Marketing Cooperative
b. Producers Cooperative
c. Consumers Cooperative
d. Client Cooperative

A

It is a type of cooperative that combines two (2) or more of the business activities of these different types of cooperatives.

a. Multi-purpose Cooperative
b. Single-line Cooperative
c. Dual-purpose Cooperative
d. No-purpose Cooperative

A

It is a type of cooperative the members of which are natural persons.

a. Primary Cooperative
b. Secondary Cooperative
c. Tertiary Cooperative
d. Intermediate Cooperative

D

It is a type of cooperative that engages in medical and dental care, hospitalization, transportation, insurance, housing, labor, electric light and power, communication, professional
and other services.

a. Consumers Cooperative
b. Producers Cooperative
c. Credit Cooperative
d. Service Cooperative

A

It is a type of cooperative organized for the primary purpose of undertaking power generations, utilizing renewable energy sources, including hybrid systems, acquisition and operation of subtransmission or distribution to its household members.

a. Electric Cooperative
b. Insurance Cooperative
c. Water Service Cooperative
d. Dairy Cooperative

B

It is a type of cooperative organized to assist or provide access to housing for the benefit of its regular members who actively participate in the savings program for housing. It is co-owned and controlled by its members.

a. Transport Cooperative
b. Housing Cooperative
c. Workers Cooperative
d. Fishermen Cooperative

C

It is a type of cooperative organized by workers, including the self-employed, who are at same time the members and owners of the enterprise. Its principal purpose is to provide employment and business opportunities to its members and manage it in accordance with cooperative principles

a. Transport Cooperative
b. Housing Cooperative
c. Workers Cooperative
d. Fishermen Cooperative

A

It is a type of cooperative whose members are engaged in the production of fresh milk which may be processed and/or marketed as dairy products.

a. Dairy Cooperative
b. Meat Cooperative
c. Vegetable Cooperative
d. Fruits Cooperative

D

The following are the purposes of a cooperative, except

a. To encourage thrift and savings mobilization among the members
b. To generate funds and extend credit to the members for productive and provident purposes
c. To encourage among members systematic production and marketing
d. To promote monopoly and restraint of trade

A

Which of the following is a purpose of a cooperative?

a. To promote and advance the economic, social and educational status of the members
b. To discriminate against non-members of a cooperative
c. To discourage self-help or self-employment as an engine for economic growth and poverty alleviation
d. To provide goods and services and other requirements to the non-members

A

Which of the following is the purpose of a cooperative?

a. To encourage thrift and savings mobilization among the members
b. To maximize the control of wealthy people of businesses
c. To acquire land for development as condominium projects for commercial purposes
d. To advocate strike, rally and boycott

D

Which of the following is not a purpose of a cooperative?

a. To promote and advance the economic, social and educational status of the members
b. To encourage and promote self-help or self-employment as an engine for economic growth and poverty alleviation
c. To generate funds and extend credit to the members for productive and provident purposes;
d. To create monopoly or business considered as restraint of trade

A

Which of the following is an objective of a cooperative?

a. To provide goods and services to its members to enable them to attain increased income, savings, investments, productivity, and purchasing power, and promote among themselves equitable distribution of net surplus through maximum utilization of economies of scale, cost-sharing and risk-sharing
b. To teach members of inefficient ways of doing things in a cooperative manner
c. To allow the higher income and more privileged groups to increase their ownership in the wealth of the nation
d. To provide minimal social and economic benefits to its members

F

The following are the functions of a Federation of Cooperatives, except

a. To carry on any cooperative enterprise that complements augments, or supplements but does not conflict, complete with, nor supplant the business or economic activities of its member cooperatives.
b. To carry on, encourage, and assist educational and advisory work relating to its member cooperatives.
c. To render services designed to encourage simplicity, efficiency, and economy in the conduct of the business of its member cooperatives and to facilitate the implementation of their bookkeeping, accounting, and other
systems and procedures.
d. To print, publish, and circulate any newspaper or other publication in the interest of its member cooperatives
and enterprises.
e. To coordinate and facilitate the activities of its member cooperatives.
f. To develop the cooperative movement in their respective jurisdictions.

G

The following are the purposes of Cooperative Unions, except

a. To represent its member organizations.
b. To acquire, analyze, and disseminate, economic, statistical, and other information relating to its members and to all types of cooperatives within its area of operation.
c. To sponsor studies in the economic, legal, financial, social and other phases of cooperation, and publish the results thereof.
d. To develop the cooperative movement in their respective jurisdictions.
e. To advise the appropriate authorities on all questions relating to cooperatives.
f. To raise funds through membership fees, dues and contributions, donations, and subsidies from local and foreign sources whether private or government.
g. To enter into joint ventures with national or international cooperatives of other countries in the manufacture and sale of products and/or services in the Philippines and abroad.

D

Which of the following statements is true if a cooperative complies with the provisions of Philippine Cooperative Code of 2008?

a. Such cooperative shall be deemed a conspiracy or combination in restraint of trade.
b. Such cooperative shall be implied an illegal monopoly.
c. Such cooperative shall be considered an attempt to lessen competition or to fix price arbitrarily.
d. None of the above.

E

The following are the qualifications of organizers or cooperators of a prospective cooperative, except

a. They are 15 or more natural persons.
b. They are all Filipino citizens.
c. They are all actually residing or working in the intended area of operation.
d. They have a common bond of interest.
e. They must be incapacitated persons.

A

What is the number of cooperators or founders of a primary cooperative?

a. 15 or more natural persons
b. Not less than 5 but not more than 15 natural persons
c. 5 but not more than 10 natural persons
d. 10 or more natural persons

D

What is the maximum foreign investment or ownership in a cooperative?

a. 100%
b. 40%
c. 30%
d. 0%

A

It shall refer to a cooperative duly recognized by the Authority, formed and managed principally by minors and is affiliated with another registered cooperative which is called the guardian cooperative.

a. Laboratory Cooperative
b. Guardian Cooperative
c. Student Cooperative
d. Youth Cooperative

E

The following are the purposes of laboratory cooperative, except

a. To serve as a training ground for its members to prepare them for membership in regular cooperatives
b. To teach the value of thrift and saving mobilization among its members
c. To instil cooperative values, principles, financial discipline and leadership skills among its members
d. To promote and advance Filipino social and cultural values, ecological awareness and sustainable development.
e. To accumulate or to raise fund for the setting of guardian cooperative

B

It shall refer to duly registered cooperative to which a laboratory cooperative is affiliated with.

a. Laboratory Cooperative
b. Guardian Cooperative
c. Student Cooperative
d. Youth Cooperative

D

The following are the qualifications of organizers or founders of a laboratory cooperative, except

a. Fifteen (15) or more minors
b. They are all Filipino citizens.
c. They are actually residing in the community or enrolled in an educational institution within or near the area of operation of the Guardian Cooperative or out of school minor actually residing in the community.
d. They are all gainfully employed.

A

What is the age of members of laboratory cooperative?

a. At least 7 years old but below 18 years of age
b. At least 12 years old but below 18 years of age
c. At least 15 years old but below 18 years of age
d. At least 10 years old but below 18 years of age

B

What is the minimum years of operation of a single-purpose cooperative in order to transform into a multi-purpose cooperative or in order for a single-purpose cooperative to create a subsidiary cooperative?

a. At least one year of operations
b. At least two years of operations
c. At least three years of operations
d. At least four years of operations

B

It refers to the document signed and acknowledged before a notary public by the organizers of a cooperative that will be filed to CDA in order for the prospective cooperative to be created.

a. Articles of Co-Partnership
b. Articles of Cooperation
c. Articles of Incorporation
d. Articles of Association

D

Each cooperative to be registered before CDA shall adopt by-laws not inconsistent with the provisions of Cooperative Code. When shall the cooperative by-laws be filed to the CDA?

a. Within 30 days from the issuance of CDA of Certificate of Registration of the Cooperative
b. Within 20 days from the issuance of CDA of Certificate of Registration of the Cooperative
c. Within 10 days from the issuance of CDA of Certificate of Registration of the Cooperative
d. At the same time the Articles of Cooperation is submitted to the CDA.

B

What is the minimum prescriptive period to lapse from the filing of application for registration as a new cooperative for the inaction of CDA to be considered an implied approval of the registration?

a. At least 30 days
b. At least 60 days
c. At least 90 days
d. At least 120 days

A

What is the minimum prescriptive period to lapse from the filing of application for amendment of articles of cooperation or by laws for the inaction of CDA to be considered an implied approval of the amendment?

a. At least 30 days
b. At least 60 days
c. At least 90 days
d. At least 120 days

?

When shall the amendments of Articles of Cooperation and By-Laws of the Cooperative take effect?

a. Upon its approval by the CDA or
b. Upon the lapse of 30 days from law from the date of filing amendment of articles or cooperation or by-laws if not acted upon by the CDA for a cause not attributable to the cooperative.
c. Either A or B
d. Neither A nor B

A

What is the minimum subscribed shares before a prospective cooperative be registered with CDA?

a. At least 25% of authorized share capital
b. At least 1/3 of authorized share capital
c. At least 3⁄4 of authorized share capital
d. At least majority of authorized share capital

B

What is the minimum paid-up capital before a prospective cooperative be registered with CDA?

a. At least 25% of the actual total subscription or P5,000, whichever is higher.
b. At least 25% of the actual total subscription or P15,000, whichever is higher.
c. At least 50% of the actual total subscription or P5,000, whichever is higher.
d. At least 75% of the actual total subscription or P15,000, whichever is higher.

A

What is the voting requirement for registration or formation of an electric cooperative with Cooperative Development Authority?

a. At least 20% of all members in good standing
b. At least 25% of all members in good standing
c. At least 5% of all members in good standing
d. At least 10% of all members in good standing

C

When does a cooperative formed and organized under Cooperative Code acquire juridical personality?

a. From the date of execution of Articles of Cooperation by the members.
b. From the date of submission of Articles of Cooperation to CDA.
c. From the date of issuance by CDA of Certificate of Registration under it sofficial seal.
d. From the date of meeting of minds among the members.

C

What is a conclusive evidence of juridical personality of a cooperative and its due registration with CDA unless it is proved that such registration has been cancelled?

a. Articles of Cooperation signed by the members
b. Cooperative By-laws signed by the members
c. Certificate of Registration issued by CDA under its official seal
d. Certificate ofRegistration issued by BIR under its official seal

A

What is the required vote for amendment of the provisions of Articles of Cooperation of a Cooperative?

a. At least 2/3 of all members with voting rights
b. At least 2/3 of all regular members and associate members
c. At least majority of all members with voting rights
d. At least 3⁄4 of all members with voting rights

A

What is the required vote for amendment of the provisions of By-Laws of a Cooperative?

a. At least 2/3 of all members with voting rights
b. At least 2/3 of all regular members and associate members
c. At least majority of all members with voting rights
d. At least 3⁄4 of all members with voting rights

C

What is the nature of liability of Cooperative duly registered under CDA?

a. Absolute liability
b. Unlimited liability
c. Limited liability
d. Supreme liability

D

What is the term of a cooperative?

a. A cooperative shall exist for a term not exceeding 20 years from the date of registration unless sooner dissolve or unless said period is extended but the term is subject to unlimited renewals at a period not exceeding 20 years in any single instance provided that no extension can be made earlier than 2 years prior to the original or subsequent expiry date/dates unless there are justifiable reasons for an earlier extension as may be determined by CDA.
b. A cooperative shall exist for a term not exceeding 30 years from the date of registration unless sooner dissolve or unless said period is extended but the term is subject to unlimited renewals at a period not exceeding 30 years in any single instance provided that no extension can be made earlier than 3 years prior to the original or subsequent expiry date/dates unless there are justifiable reasons for an earlier extension as may be determined by CDA.
c. A cooperative shall exist for a term not exceeding 40 years from the date of registration unless sooner dissolve or unless said period is extended but the term is subject to unlimited renewals at a period not exceeding 40 years in any single instance provided that no extension can be made earlier than 4 years prior to the original or subsequent expiry date/dates unless there are justifiable reasons for an earlier extension as may be determined by CDA.
d. A cooperative shall exist for a term not exceeding 50 years from the date of registration unless sooner dissolve or unless said period is extended but the term is subject to unlimited renewals at a period not exceeding 50 years in any single instance provided that no extension can be made earlier than 5 years prior to the original or subsequent expiry date/dates unless there are justifiable reasons for an earlier extension as may be determined by CDA.

A

He is a type of a cooperative member who has complied with all the membership requirements and entitled to all the rights and privileges of membership. Common shares shall only be issued to this type of member. Therefore, this type of member may invest in common shares and/or preferred shares.

a. Regular member
b. Common member
c. Ordinary member
d. Normal member

A

He is a type of a cooperative member who has no right to vote nor be voted upon and shall be entitled only to such rights and privileges as the bylaws may provide. This type of member can only invest in preferred share.

a. Associate member
b. Probationary member
c. Preferred member
d. Extraordinary member

D

What is the required vote for the termination of a membership in a cooperative for any of the valid causes enumerated by Cooperative Code?

a. At least 2/3 of all the members of the cooperative with right to vote
b. At least 3⁄4 of all the members of the cooperative with right to vote
c. At least 3⁄4 of all the members of the board of directors of the cooperative
d. At least majority of all the members of the board of directors of the cooperative

D

The following are the requirements before an associate member shall be considered a regular member, except

a. He has met the minimum requirements of regular membership.
b. He continues to patronize the cooperative for at least two years.
c. He signifies his intention to remain a member.
d. He has been elected a director of the cooperative.

C

What is the extent or nature of liability of a member of a cooperative for the latter's debts to third persons?

a. He is liable prorata and subsidiarily up to the extent of his separate assets.
b. He is liable solidarily and subsidiaraly up to the extent of his separate assets.
c. He is liable up to the extent of his contribution to the share capital of the cooperative.
d. He is liable equally and subsidiarily up to the extent of his separate assets.

A

What is the minimum number of days of giving notice to the board of directors before a member may withdraw his membership from the cooperative for any valid reason?

a. 60 days notice
b. 30 days notice
c. 90 days notice
d. 120 days notice

A

What is the right of a withdrawing member of a cooperative?

a. He shall been titled to are fund of his share capital all other interests in the cooperative.
b. He shall be entitled to a refund of his share capital only.
c. He shall be entitled to a refund of the fair market value of his share capital.
d. He shall not be entitled to any refund.

B

What is the capital structure of a cooperative before a refund be given to a withdrawing member?

a. The value of the assets of the cooperative must be equal its liabilities before the refunding.
b. The value of the assets of the cooperative must be equal or exceed its liabilities after the refunding.
c. The value of the assets of the cooperative must be less than its liabilities before the refunding.
d. The value of the assets of the cooperative must be less than its liabilities after the refunding.

C

Which of the following may be considered ground for termination of membership of a member in a primary cooperative?

a. Death of a member
b. Insanity of a member
c. Either A or B
d. Neither A nor B

C

Which of the following may be considered ground for termination of membership of a member in a secondary or tertiary cooperative?

a. Insolvency of a cooperative member
b. Dissolution of a cooperative member
c. Either A or B
d. Neither A nor B

A

What is the required vote for termination of membership of a member of a cooperative?

a. At least majority vote of all members of board of directors
b. At least majority vote of all members of board of directors and ratification by at least 2/3 of cooperative members with voting rights
c. At least majority vote of all members of board of directors and ratification by at least 3/4 of cooperative members with voting rights
d. At least 3⁄4 vote of all cooperative members with voting rights

E

The following are grounds for termination of membership of a member in a cooperative, except

a. When a member has not patronized any of the services of the cooperative for an unreasonable period of time as may be previously determined by the board of directors.
b. When a member has continuously failed to comply with his obligations.
c. When a member has acted in violation of the bylaws and the rules of the cooperative.
d. For any act or omission injurious or prejudicial to the interest or the welfare of the cooperative.
e. When a member of a cooperative engages in another employment or business.

A

It shall be the highest policy-making body of the cooperative and shall exercise such powers as are stated in the Cooperative Code, in the articles of cooperation and in the bylaws of the cooperative.

a. General Assembly
b. Board of Directors
c. Board of Trustees
d. Executive Committee

A

What is the composition of General Assembly of the cooperative?

a. The general assembly shall be composed of such members who are entitled to vote under the articles of cooperation and bylaws of the cooperative.
b. The general assembly shall be composed of regular members and associate members.
c. The general assembly shall be composed of associate members.
d. The general assembly shall be composed all members whether with voting rights or without voting rights.

D

The General Assembly may delegate some cooperative powers to the Board of Directors. However, the following are exclusive powers that cannot be delegated by General Assembly to the Board of Directors, except

a. To determine and approve amendments to the articles of cooperation and bylaws.
b. To elect or appoint the members of the board of directors, and to remove them for cause.
c. To approve developmental plans of the cooperative.
d. To determine the strategic planning, direction-setting and policy-formulation activities of the cooperatives.

A

What is the required vote for the valid delegation by the General Assembly of some of its delegable powers to a smaller body of the cooperative for purposes of prompt and intelligent decision-making?

a. At least three-fourths (3/4) vote of all its members with voting rights, present and constituting a quorum.
b. At least three-fourths (3/4) vote of all its members, present and constituting a quorum.
c. At least three-fourths (2/3) vote of all its members with voting rights, present and constituting a quorum.
d. At least three-fourths (2/3) vote of all its members, present and constituting a quorum.

A

How often shall the regular meeting by the general assembly of a cooperative be held?

a. At least annually
b. At least monthly
c. At least quarterly
d. At least weekly

A

In the absence of a date fixed in the cooperative by-laws, when shall the regular meeting by the general assembly of the cooperative be held?

a. Any date within 90 days after the close of each fiscal year
b. Any day of April
c. April 15
d. Any day of December

B

What is the quorum in the meeting of the general assembly of an ordinary cooperative?

a. At least majority of all the members entitled to vote
b. At least 25% of all the members entitled to vote
c. At least 3⁄4 of all the members entitled to vote
d. At least 5% of all the members entitled to vote

D

What is the quorum in the meeting of the general assembly of an electric cooperative?

a. At least majority of all the members entitled to vote
b. At least 25% of all the members entitled to vote
c. At least 3⁄4 of all the members entitled to vote
d. At least 5% of all the members entitled to vote

A

As a general rule, what is the quorum in the regular or special meeting of general assembly of a cooperative bank?

a. At least one half plus one of the number of voting shares of all the members in good standing
b. At least 25% of all members entitled to vote
c. At least 5% of all members entitled to vote
d. At least 3/4 of all members with voting rights present and constituting a quorum

D

As an exception to general rule of quorum in a cooperative bank, what is the quorum in the meeting of general assembly of a cooperative bank for the amendment of its articles of cooperation or by-laws?

a. At least one half plus one of the number of voting shares of all the members in good standing
b. At least 25% of all members entitled to vote
c. At least 5% of all members entitled to vote
d. At least 3/4 of all members with voting rights present and constituting a quorum

A

What is the number of vote that a regular member of a primary cooperative has?

a. Only one vote
b. Based on the number of shares held
c. Number of shares held multiplied by sits in Board of Directors
d. None

B

What is the voting rights of the members of a cooperative bank?

a. Each individual member shall have only one vote.
b. The voting rights of the members shall be proportionate to the number of their paid-up shares.
c. Each individual member shall have one (1) basic vote and as many incentive votes as provided for in the bylaws but not exceed five (5) votes.
d. Each individual member shall have five (5) basic votes.

A

What is the number of vote that member cooperatives of a secondary or tertiary cooperative have?

a. They shall have one (1) basic vote and as many incentive votes as provided for in the bylaws but not exceed five (5) votes.
b. They shall have two (2) basic votes and as many incentive votes as provided for in the bylaws but not exceed ten (10) votes.
c. They shall have three (3) basic votes and as many incentive votes as provided for in the bylaws but not exceed fifteen (15) votes.
d. They shall have four (4) basic votes and as many incentive votes as provided for in the bylaws but not exceed twenty (20) votes.

B

It shall be the body in a cooperative responsible for the strategic planning, direction-setting and policy-formulation activities of the cooperatives.

a. General Assembly
b. BoardofDirectors
c. Board of Trustees
d. Executive Committee

A

What is the composition of board of directors of a cooperative?

a. not less than (5) nor more than (15) members
b. not less than (3) nor more than (12) members
c. not less than (4) nor more than (10) members
d. not less than (10) nor more than (25) members

B

What is the term of office of directors of a cooperative?

a. One year
b. Two years
c. Three years
d. Five years

A

What is the quorum necessary for validity of meeting of Board of Directors of ordinary cooperative?

a. At least majority of the members of the Board unless the bylaws provide otherwise
b. One-half plus one of all the members of the board of directors
c. At least 3/4 of the members of the Board unless the bylaws provide otherwise
d. At least 2/3 of the members of the Board unless the bylaws provide otherwise

B

What is the quorum necessary for validity of meeting of Board of Directors of cooperative bank?

a. At least majority of the members of the Board unless the bylaws provide otherwise
b. One-half plus one of all the members of the board of directors
c. At least 3/4 of the members of the Board unless the bylaws provide otherwise
d. At least 2/3 of the members of the Board unless the bylaws provide otherwise

A

The members of the board of directors of a cooperative shall not hold any other position directly involved in the day to day operation and management of the cooperative. Which of the following positions in a cooperative may be held concurrently of a director of a cooperative?

a. Chairman or Vice-chairman of the Board of Directors of the Cooperative
b. President of the Cooperative
c. Secretary of the Cooperative
d. Treasurer of the Cooperative

A

What reason of vacancy in the Board of Directors of a cooperative will disqualify the remaining directors despite constituting quorum to fill-up the vacancy, thus, requiring the general assembly to fill-up such vacancy?

a. Expiration of term of a director
b. Death of a director
c. Disqualification of a director
d. Resignation or abandonment of office by a director

C

There are ten sits in the Board of Directors of a particular cooperative. Three sits are vacant due to death, resignation and disqualification of a director. How may the three vacancies be filled-up?

a. By the vote of at least a majority of the remaining directors, if still constituting a quorum
b. By the general assembly in a regular or special meeting called for the purpose
c. Either A or B
d. Neither A nor B

B

There are nine sits in the Board of Directors of a particular cooperative. Five sits are vacant due to death, resignation, abandonment, disqualification or removal of a director. How shall the five vacancies be filled-up?

a. By the vote of at least a majority of the remaining directors even not constituting quorum
b. By the general assembly in a regular or special meeting called for the purpose
c. Either A or B
d. Neither A nor B

B

There are five sits in the Board of Directors of a particular cooperative. One sit is vacant due to expiration of term of such director. How shall the vacancy be filled-up?

a. By the vote of at least a majority of the remaining directors, if still constituting a quorum
b. By the general assembly in a regular or special meeting calledfor the purpose
c. Either A or B
d. Neither A nor B

A

How may an executive committee in a cooperative be created?

a. By provision in the by-laws
b. By mere resolution of board of directors despite no authorization in the by-laws
c. Either A or B
d. Neither A nor B

C

How may the powers of the executive committee in a cooperative be delegated to it?

a. By provision in the by-laws
b. By a majority vote of all the members of the board of directors
c. Either A or B
d. Neither A nor B

D

As a general rule, the directors, officers and committee members are not personally liable for the liabilities of the cooperative. The following are the exceptional cases wherein directors, officers and committee members shall be liable jointly and severally for all damages or profits resulting therefrom to the cooperative, members, and other persons, except

a. They willfully and knowingly vote for or assent to patently unlawful acts.
b. They are guilty of gross negligence or bad faith in directing the affairs of the cooperative.
c. They acquire any personal or pecuniary interest in conflict with their duty as such directors, officers or committee members.
d. They exercise business judgment bonafide to operate the cooperative.

A

In the absence of provision in the by-laws fixing their compensation, to what extent of benefits are directors of a cooperative entitled to?

a. Reasonable per diems
b. Compensation
c. Salary
d. Employee benefits

A

What is the required vote in order for directors of a cooperative to be exceptionally entitled to compensation other than reasonable per diems?

a. At least majority vote of the members with voting rights
b. At least 2/3 vote of the members with voting rights
c. At least 3/4 vote of the members with voting rights
d. Unanimous vote of the members with voting rights

A

In case there is a provision in the by-laws fixing compensation of directors, to what extent of benefits are directors of a cooperative entitled to during the first year of existence of any cooperative?

a. Reasonable per diems
b. Compensation
c. Both A and B
d. Neither A nor B

D

In case there is a provision in the by-laws fixing compensation of directors, to what extent of benefits are directors of a cooperative entitled in the current year when the cooperative reported net loss in the preceding year or when the cooperative reported a dividend rate less than the official inflation rate for the same year?

a. Reasonable per diems
b. Compensation
c. Both A and B
d. Neither A nor B

C

When are the directors of a cooperative not entitled to any reasonable per diems and compensation?

a. When the cooperative reported net loss in the preceding year
b. When the cooperative reported a dividend rate less than the official inflation rate for the same year
c. Either A or B
d. Neither A nor B

A

How shall the compensation of officers of cooperatives as well as members of the committees be fixed?

a. It may be fixed in the bylaws.
b. It must be fixed by at least majority vote of the members with voting rights.
c. It must be fixed by at least majority vote of the members of board of directors.
d. It must be provided in the articles of cooperation.

D

How shall the compensation of other employees of cooperatives be fixed?

a. It may be fixed in the bylaws.
b. It must be fixed by at least majority vote of the members with voting rights.
c. It must be fixed by at least majority vote of the members with and without voting rights.
d. It may be fixed by at least majority vote of the members of board of directors present in a meeting
with quorum.

A

How often shall the regular meeting of the board of directors of a primary cooperative be held?

a. At least monthly
b. At least weekly
c. At least annually
d. At least quarterly

A

The following are considered valid grounds for removal of an officer of a cooperative, except

a. Mere loss of confidence
b. Loss of confidence in the honesty and integrity as evidenced by acts or omissions
c. Such officer has a relative within third civil degree of consanguinity or affinity who is also an officer of the
same cooperative.
d. Such officer has conflict of interest with employing cooperative.
e. Such officer is engaged in a business similar to that of his employing cooperative.

A

As a general rule, what is the status of contract entered into by the cooperative with one or more of its directors, officers or committee members also known as contract with self-dealing directors or officers?

a. Voidable on the part of the cooperative
b. Unenforceable
c. Void
d. Rescissible

B

What is the required vote for ratification of voidable contract entered by a cooperative with a self-dealing director?

a. At least 2/3 of members with voting rights, present and constituting a quorum
b. At least 3/4 of members with voting rights, present and constituting a quorum
c. At least majority of members with voting rights, present and constituting a quorum
d. At least 25% of members with voting rights, present and constituting a quorum