RA 9520 IRR CERTAIN PROVISIONS

Rules and Regulations Implementing Certain Provisions of the Philippine Cooperative Code of 2008

Alternative Dispute Resolution

shall refer to any process or procedure used to resolve a dispute or controversy, other than by adjudication of a presiding Judge of Court or an officer of a government agency, in which a neutral third party participates to assist in the resolution of issue, which includes arbitration, mediation, conciliation, early neutral evaluation, mini trial, or any combination thereof.

Arbitrator

shall refer to the person appointed to render an Award/Decision, alone or with others, in a dispute that is the subject of an Arbitration Agreement

Area of Business Operation

shall refer to the principal place of business of a cooperative where the cooperative conducts its business as provided for in their Articles of Cooperative and By-laws.

Area of Operation

shall refer to the area where the cooperative members come from as provided for in their Articles of Cooperation and By-laws

Associate Member

shall refer to member of a cooperative who has no right to vote or be voted upon and shall be entitled only to such rights and privileges as the By-laws may provide

Authority

shall refer to the Cooperative Development Authority (CDA)

Authorized Share Capital

shall refer to the capitalization of the cooperative as prescribed in the Articles of Cooperation

Award/Decision

shall refer to any partial or final decision by an Arbitrator in resolving the issue in a controversy

Board of Liquidators/Trustees

shall refer to the body appointed by the Board of Directors or elected by the General Assembly that shall cause the liquidation of the cooperative in case of voluntary dissolution or appointed by the Authority/Court in case of involuntary dissolution of a cooperative

Bond of Membership

shall refer to the conditions where members associate themselves to attain their common goals and objectives which may either be residential, occupational, associational, and institutional.

Capital

shall refer to the sum total of member's share capital including deposits, revolving capital, subsidies, donations, legacies, grants, aids, land structures, plants, equipment facilities, machines and other assets of a cooperative.

Certificate of Merger

shall refer to the document issued by the Authority evidencing registration of merger

Code

shall refer to the Republic Acts No. 9520, otherwise known as the Philippine Cooperative Code of 2008

Conciliation

shall refer to the process whereby a neutral third party takes a vigorous and active role in assisting disputants to formulate between and among them an acceptable solution in order to reach an amicable settlement.

Conservator

shall refer to any person appointed by the Authority empowered to take charge of the assets, liabilities, and the management of the cooperative, after finding that the cooperative is in the state of continuing illiquidity or unwillingness to maintain a condition of liquidity which is deemed adequate to protect the interest of members and creditors of the cooperative.

Consolidation

shall refer to a union of two or more existing cooperatives belonging to the same category to a form a new cooperative called the consolidated cooperative.

Constituent Cooperatives

shall refer to two or more existing cooperatives which are parties to a merger or consolidation

Cumulative Interest

shall refer to the interest due to a member that must be added to in future interest if it is not paid when due

Delay in the submission of reports

shall refer to the failure of the cooperatives to submit a report on time.

Dispute

shall refer to intra/inter cooperative controversy or grievance from any violation or disagreement over any provisions, including any violations of the rights and conditions of membership provided in the cooperative By-laws and/or in the Cooperative Code, which may be the subject of a formal or informal request for conciliation/mediation or arbitration assistance sought by either one or both parties.

Dissenting Member

shall refer to a member present during the meeting and who actually voted against the proposed activity/project of a cooperative.

Division

shall refer to the act of spiting a single cooperative into two or more cooperatives, wherein the original cooperative shall be dissolved and the resulting cooperatives shall acquire separate and distinct juridical personalities.

Donated Capital

shall refer to the subsidies, grants, donations and aids received by the cooperative from any person, whether natural or juridical, local or foreign both government and private

Escheat

shall refer to the right of the State to succeed to property either real or personal, when no heir or rightful claimant can be found through an appropriate legal proceeding

Equity

shall refer to the excess of cooperative assets over liabilities

Financial Statements

shall refer to the means by which the financial information accumulated and processed in financial accounting, is periodically communicated to those who use it

Financial Service Cooperative (FSC)

shall refer to one organized for the primary purpose of engaging in saving and credit services and other financial services regulated by the Bangko Sentral ng Pilipinas (BSP)

General Assembly

shall refer to the full membership of the cooperative duly assembled for the purpose of exercising all the rights and performing all the obligations pertaining to cooperatives, as provided by this Code, its Cooperation and By-laws

Guardian Cooperative

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

Internal Control

shall refer to all the system and procedures adopted to safeguard the cooperative's assets, check the accuracy and reliability of its accounting data, promote operational efficiency and encourage adherence to prescribed managerial policies

Involuntary Dissolution

shall refer to the termination of the juridical personality of the cooperative through an appropriate judicial proceeding or by Order of the Authority.

Laboratory Cooperative

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

Liquidation

shall refer to the process of settlement and closure of the cooperative affairs, disposition, conveyance and distribution of its assets

Mediation

shall refer to the process in which a mediator, selected by the disputing parties, facilities a communication and negotiation, and assists the parties in reaching a voluntary agreement regarding a dispute

Merger

shall refer to a union of two or more existing cooperatives belonging to the same category whereby the surviving cooperative, retaining its identity, absorbs one or more constituent cooperatives/s.

Minor

shall refer to an individual below eighteen (18) years of age but at least seven (7) years old

Multipurpose Cooperative

shall refer to a cooperative, which combines two (2) or more of the business activities of the different types of cooperatives as enumerated under Art. 23 of the Code.

Net worth

shall refer to equity inclusive of member's equity, donations, grants and reserve funds less un-booked allowance for probable losses on loans, investment and other assets and other capital adjustments as may be required by the CDA

Numerous and Dispersed Membership

shall refer to a cooperative whose membership are in large number and geographically scattered/distributed by reason of geographical location, work shift or other similar conditions making it impossible and difficult to conduct their general assembly meeting

Paid-up Share Capital

shall refer to the portion of the subscribed share capital, which has been paid by the members of the cooperative.

Parent Cooperative

shall refer to a cooperative, which initiates the organizational of another cooperative called a subsidiary cooperative and provides technical, managerial, and financial assistance thereto.

Patronage Refund

shall refer to the amount returned to individual members who patronize the goods and services of the cooperative in proportion to their individual patronage

Plan of Merger or Consolidation

shall refer to a written document containing the proposed merger or consolidation of cooperatives duly approved by the General Assembly of each of the constituent cooperatives at separate General/Representative Assembly Meetings

Primary Cooperative

shall refer to a cooperative, the members of which are natural persons

Receiver

shall refer to any person of recognized competence appointed by the Authority empowered to take charge of all the assets and liabilities of the cooperative administer the same for the benefit of its creditors and exercise such other powers as provided under the Revised Rules of Court

Registration

shall refer to the operative act gaining juridical personality to a proposed cooperative as evidenced by a Certificate of Registration

Representative Assembly

shall refer to the full membership of the body of representatives elected by each of the sectors, chapters or districts of the cooperative duly assembled for the purpose of exercising such powers lawfully delegated unto them by the general assembly in accordance with its By-laws

Reports

shall refer to any documents or statement required from cooperatives to be submitted to the Authority on a regular basis

Representative/Delegate

shall refer to a member duly elected during the sector, chapter or district meetings who shall represent his/her sector, chapter or district to the representative assembly meeting

Revolving Capital

shall refer to the amount available out of the deferred payment of the patronage refund and interest on share capital of the members or by authorized deduction of a percentage from the product sold or per unit of product handled by the cooperative. The Board of Director shall issue revolving capital certificates with serial number, name, amount, and rate of interest to be paid and shall distinctly set forth the time of retirement of such certificates and the amounts to be returned.

Risk Asset

shall refer to the total assets minus cash on hand, evidences of indebtedness, loans to the extent covered by hold-outs or assignments of deposits, lands owned used for operations, buildings and land improvements net of depreciation, furniture and fixtures and equipment net of depreciation, real estate mortgage loan and other non-risk items as the Authority may, from time to time, authorized to be deducted from total assets

Sanctions

shall refer to the penalties provided for in the cooperative bylaws, these rules, and other administrative issuances, the Code and other related laws

Secondary Cooperative

shall refer to a cooperative the members of which are primaries

Sector, Chapter or District

shall refer to a division of a cooperative, which may be by reason of geographical location, scope of operation, cluster, work shift or such other similar sub-groupings.

Settlement

shall refer to any compromise or arrangements between the disputants to settle the matters in dispute and thus dispose of controversy. The term may be used in the sense of "payment" or "adjustment" depending upon the circumstances under which, and the connection in which, use of the term is made.

Sequential Election of Representative/Delegate

shall refer to the election of the representatives during the meetings held, one after the other, in different days and/or at various venues, by several sectors, chapters or districts of a cooperative for the purpose of electing their respective Representatives/Delegates to the representative assembly meeting

Share Capital

shall refer to the money paid or required to be paid by the members for the conduct of the operations of the cooperative

Simultaneous Election of Representatives/Delegates

shall refer to the election of the representatives during the meetings held, on the same day and at various venues, by several sectors, chapters, or districts of a cooperative for the purpose of electing their respective Representatives/Delegates to the representative assembly meeting

Submission Agreement

shall refer to the written agreement signed by the disputing parties to submit the dispute to voluntary arbitration

Subsidiary Cooperative

shall refer to any organization all or minority of whose membership or shareholders come from a cooperative called a parent cooperative, organized for any other purpose different from that of, and receives technical, managerial, and financial assistance from the said parent cooperative

Tertiary Cooperative

shall refer to a cooperative, the members of which are secondary cooperative

Total Average Share Month

shall refer to the sum total of the average share month, which is determined by adding the monthly ending balances of the member's share capital and dividing the sum by twelve (12) months. 1avvphi

Unpaid Subscription

shall refer to the subscribed share capital, which is not yet fully paid by a member.

Voluntary Arbitration

shall refer to a dispute resolution process wherein any intra/inter cooperative dispute is settled by a voluntary arbitrator/s chosen by the disputing parties from a list of qualified and accredited arbitrators, who shall decide on the merits of the case by rendering an award

Voluntary Arbitrator/Arbitrators

shall refer to any authorized employee of the Authority or an accredited private individual chosen by the parties to hear, decide, and render an award in a dispute

Voluntary Dissolution

shall refer to the termination of the juridical personality of the cooperative at its own initiative or instance after complying with the requirements set forth in the Code and these rules