• Headlines
  • City/Region News
    • Baguio City
    • CAR
    • Nation
  • Sectoral news
    • Elections
      • Elections – 2022
      • Elections – 2019
    • Agriculture, Fishery and Pets
    • Business & Livelihood
    • Education, Arts & Culture
    • OFW | Migration
    • Environment and Disaster Management
    • Science and Technology
    • Tourism, travel and Events
    • Other Lifestyle
    • Police Beat
  • Health
    • Covid-19 Advisory and Updates
  • Opinion
    • Editorial
    • Columns
    • Timek Ti Umili
  • Sports
  • Other sections
    • Features
    • Photos/Videos
      • Photos
      • Videos
    • Words for reflection
    • Sponsored articles
    • Jobs in Baguio
    • Elections
  • Ads & Notices
    • Obituaries
  • About Us
    • About Us
    • Directory
    • Contribute
    • Advertise
    • Cookie Policy
    • Contact Us
HERALD EXPRESS | News in Cordillera and Northern Luzon
ADVERTISEMENT
  • Headlines
  • City/Region News
    • Baguio City
    • CAR
    • Nation
  • Sectoral news
    • Elections
      • Elections – 2022
      • Elections – 2019
    • Agriculture, Fishery and Pets
    • Business & Livelihood
    • Education, Arts & Culture
    • OFW | Migration
    • Environment and Disaster Management
    • Science and Technology
    • Tourism, travel and Events
    • Other Lifestyle
    • Police Beat
  • Health
    • Covid-19 Advisory and Updates
  • Opinion
    • Editorial
    • Columns
    • Timek Ti Umili
  • Sports
  • Other sections
    • Features
    • Photos/Videos
      • Photos
      • Videos
    • Words for reflection
    • Sponsored articles
    • Jobs in Baguio
    • Elections
  • Ads & Notices
    • Obituaries
  • About Us
    • About Us
    • Directory
    • Contribute
    • Advertise
    • Cookie Policy
    • Contact Us
No Result
View All Result
  • Headlines
  • City/Region News
    • Baguio City
    • CAR
    • Nation
  • Sectoral news
    • Elections
      • Elections – 2022
      • Elections – 2019
    • Agriculture, Fishery and Pets
    • Business & Livelihood
    • Education, Arts & Culture
    • OFW | Migration
    • Environment and Disaster Management
    • Science and Technology
    • Tourism, travel and Events
    • Other Lifestyle
    • Police Beat
  • Health
    • Covid-19 Advisory and Updates
  • Opinion
    • Editorial
    • Columns
    • Timek Ti Umili
  • Sports
  • Other sections
    • Features
    • Photos/Videos
      • Photos
      • Videos
    • Words for reflection
    • Sponsored articles
    • Jobs in Baguio
    • Elections
  • Ads & Notices
    • Obituaries
  • About Us
    • About Us
    • Directory
    • Contribute
    • Advertise
    • Cookie Policy
    • Contact Us
No Result
View All Result
HERALD EXPRESS | News in Cordillera and Northern Luzon
No Result
View All Result
Home Columns

Cooperative Membership and Capital Subscription

Lotes P. Lab-oyan by Lotes P. Lab-oyan
February 15, 2015
in Columns
245
0
82
SHARES
1.4k
VIEWS
Share on FacebookShare on Twitter

Joining cooperative is fun and full of excitements. As a member, you meet people from all walks of life without discrimination against gender, religion, race, social class, political belief or affiliations. It is one form of social enterprise that brings together people to pool their resources with the end goal of achieving a common bond of interest.

In this issue, we will share information related to membership and capital subscription. In order for us to have a common understanding, let us look into some provisions about membership under Philippine laws. Article 5 of Republic Act 9520 (RA 9520), otherwise known as Philippine Cooperative Code of 2008, defined a member and I quote “Member includes a person either natural or juridical who adhering to the principles set forth in this Code and the Articles of Cooperation has been admitted by the cooperative as a member.”

Additionally, Section 26 of RA 9520 provided the kinds of membership when it stated “A cooperative may have two kinds of members, to wit: (1) regular members and (2) associate members. A regular member is one who has complied with all the membership requirements and entitled to all the rights and privileges of membership. An associate member is one who has no right to vote nor be voted upon and shall be entitled only to the rights and privileges as the by-laws may provide.”

This definition reminds me of my first encounter in the early 90’s when I assisted cooperatives in Benguet as an NGO worker. It is worth reminiscing to honestly disclose that my understanding on cooperatives was limited. Though I had some units in Extension subjects related to cooperatives, it was not enough gear to do fieldwork related to cooperatives. However, when I became a cooperative member, my knowledge started to grow and until now, I am still learning and studying the dynamics of cooperatives.

The definition above and as clearly stated in most cooperative by-laws provided that only regular members are entitled to vote and be voted upon, hence, they constitute the General Assembly. Also, regular members are entitled to subscribe common and preferred shares in the case of primary cooperatives. Regular members apply to all types and categories of cooperatives and serve as the basis in determining the quorum.

In the case of electric and water service cooperatives, some provisions on associate members have been provided under the implementing rules and regulations. Associate members can subscribe to preferred shares only and they may attend General Assembly Meetings but can only exercise their rights and privileges as provided in the by-laws of their respective cooperatives. In some cooperatives, associate members are mere observers during business meetings.

For new cooperative members and stakeholders, we can easily determine when a cooperative has regular and associate members by looking into the approved registration documents of the cooperative specifically under the Articles of Cooperation on the heading or Article on Authorized Capitalization. The amount for common shares and preferred shares are provided and the succeeding title or heading presents the subscribed and paid-up capital. When percentage of the Authorized Capitalization is offered for subscription as preferred shares, it is one indication that the cooperative has associate members.

In addition, provisions on the kinds of membership, qualifications, minimum share capital subscription, duties of members, members entitled to vote, liabilities of members, termination of membership and refund of share capital contributions are found in the by-laws usually under the title “Article II-Membership”. To our readers who are not familiar with the provisions of cooperatives, Articles of Cooperation, and By-laws, you can find some model forms in the CDA website: www.cda.gov.ph.

Further, membership in cooperative requires minimum subscription. The payment to the said subscription is often referred to as paid-up share capital.  This usually receives interest at the end of the year when results of operation is favorable. As pointed out earlier, only regular members can subscribe common and preferred shares. The amount of subscription varies from one cooperative to another but the Code provided a 10% limitation on share capital holdings (Article 73, RA 9520).

In 2013, when CDA issued a directive to inspect all registered cooperatives, I noticed that most of the inspected cooperatives don’t have Subscription Agreement Forms issued to members who pay their respective share capital contributions. During the exit conference, the findings and observations were presented to the officers and management. One of the recommendations presented was for cooperatives to adopt a system of monitoring cooperative membership and come up with Membership Subscription Agreement, Membership Registry and Share Book. Likewise, RA 9520 and its Implementing Rules and Regulations have a special provision for associate members that complied and met the requirements of regular membership. After two years of membership, they may signify their intentions to become regular members.

As of this writing, the Supervisory and Examination of CDA-CAR is currently preparing notices to various cooperatives that failed to comply with CDA issuances on amendment. Part of the provisions to be amended is on membership and subscription specified in the by-laws to be reconciled with provisions in the Articles of Cooperation. We encourage those affected cooperatives to comply with the notice and recommendations of our inspectors concerning this issue. We have technical persons assigned in each province and we urge every cooperative to approach them. Another option is to visit our CDA-CAR Regional Office for us to assist and guide you in the amendment of your Articles of Cooperation and by-laws.

Furthermore, cooperative members, officers, management and staff must ensure that the amendments to their respective Articles of Cooperation and by-laws be approved by 2/3 vote of all members with voting rights. The provisions for amendment must be presented to the members in a Regular or Special General Assembly Meeting called for the purpose.

Lastly, we heard that Benguet State University MPC and Lagawe Multi-purpose Development Cooperative (LMDC) will have their General Assembly Meetings on February 28, 2015. La Trinidad Vegetable Trading Post MPC slated its General Assembly on March 7, 2015 while Bad-ayan Buguias Development MPC is on March 14, 2015.To all regular members, you must attend your GA Meeting in order to participate, be informed, vote and be voted upon. As members, your presence is crucial for the growth of the cooperative.

Previous Post

Downtown Bombers

Next Post

P9.4 million marijuana plants destroyed in Benguet

Next Post

P9.4 million marijuana plants destroyed in Benguet

ADVERTISEMENT

Recent News

NGCP readies for upcoming 2022 national elections

Transmission rates down in May 2025 electric bills

May 21, 2025
Bagong Pag-asang hatid ng Social Security Act of 2018

SSS OFW coverage program 

May 21, 2025
Worker’s Safety Remains a Top Priority- DOLE-Kalinga 

Worker’s Safety Remains a Top Priority- DOLE-Kalinga 

May 21, 2025
Board of canvassers proclaims Tabuk’s newly elected officials 

Board of canvassers proclaims Tabuk’s newly elected officials 

May 21, 2025
ADVERTISEMENT
ADVERTISEMENT
HERALD EXPRESS | News in Cordillera and Northern Luzon

Herald Express is a news organization based in Baguio City that has a weekly publication and an online news portal. The newspaper is circulated in the different provinces of Northern Luzon. The name of the fastest-growing publication in town is coined from the word ‘quick messenger’ which is self-explanatory.

Follow Us

Search

No Result
View All Result

© 2024 Baguio Herald Express | Website Design and Development by Neitiviti Studios

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
Cookie SettingsAccept All
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT

Add New Playlist

No Result
View All Result
  • Headlines
  • City/Region News
    • Baguio City
    • CAR
    • Nation
  • Sectoral news
    • Elections
      • Elections – 2022
      • Elections – 2019
    • Agriculture, Fishery and Pets
    • Business & Livelihood
    • Education, Arts & Culture
    • OFW | Migration
    • Environment and Disaster Management
    • Science and Technology
    • Tourism, travel and Events
    • Other Lifestyle
    • Police Beat
  • Health
    • Covid-19 Advisory and Updates
  • Opinion
    • Editorial
    • Columns
    • Timek Ti Umili
  • Sports
  • Other sections
    • Features
    • Photos/Videos
      • Photos
      • Videos
    • Words for reflection
    • Sponsored articles
    • Jobs in Baguio
    • Elections
  • Ads & Notices
    • Obituaries
  • About Us
    • About Us
    • Directory
    • Contribute
    • Advertise
    • Cookie Policy
    • Contact Us

© 2024 Baguio Herald Express | Website Design and Development by Neitiviti Studios