Section 2. Audit and Election Committees.

Elective positions in the Audit and Supervisory Committees consist of three (3) members each, elected at-large from among qualified delegates. Their term of Office shall be two years; provided, that during the first elections, the two (2) members obtaining the highest voter shall serve for two (2) years, and the remaining member for one (1) year. Thereafter, all shall be elected for a term of two (2) years.

Section 3. Simultaneous Elections. The members of the Board of Directors and members of the Audit and Supervisory Committee shall be elected simultaneously through secret ballots.

Section 4. Officers of the Board and Committees.

a. Within ten (10) days after election, the Board of Directors shall elect, by secret ballot and from among themselves, the Chairperson and Vice-Chairperson. It shall appoint, from outside the Board, a Secretary and a Treasurer.

b. Within ten (10) days after election, the Committees shall elect, by secret ballot and from among themselves, the Chairperson, the Vice-Chairperson and Secretary.

Section 5. Position Without Candidate. In case no candidate filed for any position, the same shall be filled-up by the Board of Directors immediately.

RULE VII. QUALIFICATIONS OF CANDIDATES

Section 1. Qualifications for Member-Electric Cooperatives. Pursuant to the provisions of Section 8. Member Entitled to Vote, Article II. Membership, of the PHILFECO By-laws, any Regular Member who meets the following conditions is a Member Entitled to Vote:

a. Paid the Membership fee and the value of at least Sixty (60) shares;b. Updated status in the payment of its share capital subscriptions and current in

its other accounts and obligations;c. Not violated any provision of the By-Laws, the term and conditions of the

subscription agreement, and the decisions, guidelines, rules and regulations promulgated by the Board of Directors and the General Assembly;

d. Its Officers and Staff have completed the continuing education program prescribed by the Board of Directors, the Code, its IRR and other issuances by the CDA;

e. Actively participates in the affairs of the Federation and patronizes its businesses; and

f. It is not in the process of dissolution or liquidation.

In addition to the foregoing, the Member-EC should not have subsisting financial obligations with the Federation within one (1) month before the holding of the elections, as certified by the Screening Committee.

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