OTHER PROVISIONSImplementing Rules and Regulations

RULE I -REPRESENTATIVE ASSEMBLY

APPLICABILITY: NUMEROUS- AT LEAST 1,000

MEMBERS DISPERSED MEMBERSHIP:

GEOGRAPHICAL LOCATION SCOPE OF OPERATION CLUSTER, WORK SHIFT OTHER SIMILAR CONDITION AND THE CONDUCT OF GENERAL ASSEMBLY BECOMES EXTREMELY DIFFICULT  

AMENDMENT OF BY LAWS. Matters to be specified in the by-laws , such as :   1. The basis for dividing the coop into sector, chapter or district; 2. The minimum number of regular members to compose each sector, chapter, or district; 3. The quorum required in the sector, chapter, or district; 4. The number of representative/s or delegate/s to be elected to represent the total number of the regular

members in the sector, chapter, or district; 5. The term of office of the representative or delegate; 6. The qualifications and disqualifications of the representative or delegate; 7. The powers, functions, and responsibilities of the representative or delegate; 8. The election of the sector, chapter or district representative or delegate; 9. Vacancy in the sector, chapter, or district representative or delegate; 10. The resignation or removal as well as the appeal of the sector, chapter or district representative or

delegate; 11. The sector, chapter, or district assembly meetings; 12. The quorum required in the representative assembly meeting; 13. The powers of the representative assembly; 14. The conduct of representative assembly meeting; 15. The eligibility of the representative or delegate to be elected as officers of the cooperative; and 16. Other matters relevant to the conduct of representative assembly meeting.  

PROCEDURE:   In the general assembly meeting the ff: shall be done : Approval of the amendments of coop By-laws for a representative

assembly meeting ( Sec. 2 ); Division of the coop into sector/chapter/ district ; Election of the sector/chapter/ district (local) election committee. After approval of the CDA of the amendments of the coop by-Laws, the

Board of Directors directs the local election committee to conduct the sector/chapter/ district assembly meeting to be held 60 day before the scheduled date of the regular representative assembly meeting as provided for in the bylaws; 

Local election committee conduct the regular sector/chapter/ district representative meeting for election of the sector/chapter/district representative/delegates to the representative assembly meeting;  

Conduct of the regular representative assembly meeting.

SECTOR/CHAPTER /DISTRICT REPRESENTATIVE/DELEGATE:

Term of Office. As provided for in the by-laws but not exceed 2 years. Qualification and Disqualification. Shall possess all the qualifications

and none of the disqualifications as provided for in the by-laws. Powers and functions: To represent the sector. chapter or district in the representative

assembly meeting; To decide for and in behalf of the sector, chapter or district he/she

represents in the representative assembly meeting; and To inform his/her sector, chapter or district of what transpired during

the representative assembly meeting. Vacancy. Shall be filled up in accordance with the provisions of the

coop by-laws. The representative or delegate elected/appointed shall serve only the unexpired term of his/her predecessor.

Resignation. Voluntary resignation Reason: Valid cause. Time Frame: Board shall act within 60 days from resignation,

otherwise resignation deemed approved. Removal   Grounds: 1. Failure to attend the immediate preceding

representative assembly meeting for unjustifiable cause; 2. Non-performance of any functions and responsibilities stated in

the by-laws 3. Any violation of the provisions of the code, coop by-laws and

other issuances of CDA; and 4. Any acts or omissions inimical or prejudicial to the interest of

the coop.  Required Vote: ¾ votes of all members with voting rights present

and constituting a quorum at a sector/chapter/district meeting called for the purpose.

Eligibility. To become an officer of the cooperative to be elected during the representative assembly meeting with a term fixed in the buy-laws but not to exceed 2 years.

TERM OF OFFICE OF OFFICERS OF THE COOPERATIVE AT THE TIME OF ADOPTION OF REPRESENTATIVE ASSEMBLY shall expire in the first regular representative assembly meeting.

RULE 2 - SUBSIDIARY COOPERATIVEPARTIES INVOLVED : Parent Cooperative and the

subsidiary cooperative Membership . All or majority shall come from

the Parent Cooperative.  GENERAL REQUIREMENTS to organized s

subsidiary cooperative.   Parent coop shall be In operation for at least 2

years , no losses for the last 2 preceding years of operation;

Parent coop shall have a net worth of at least 10M as shown in the latest audited Financial Statements ;

All or majority of the members of the Parent Coop are willing to become members of the subsidiary;

Business of subsidiary is different from the business of the parent cooperative; and

The creation of a subsidiary coop and the technical, managerial and financial assistance to be given by the parent coop shall be approved by at least ¾ votes of the members of the parent coop with voting right s present and constituting a quorum in the regular/special general/representative assembly meeting called for the purpose. 

CONDITIONS to be considered in the registration: Only technical managerial and financial assistance shall be

provided by parent coop to subsidiary coop; Directors or officers of parent coop cannot be directors or

officers of subsidiary coop but parent coop thru the general assembly can appoint its representative to act as ex-officio member of the board of directors of the subsidiary coop;

The management staff of the parent cannot be the management staff of the and subsidiary coop;

Transfer of shares of members and other related interests from parent coop to subsidiary coop and vice versa are prohibited; and

The subsidiary coop cannot be a recipient of any grant, donation or other interests from the parent coop and vice versa. In case of dissolution.

ALLOWED ASSISTANCE. The financial assistance of parent coop to be given to its subsidiary shall not to exceed 10% of the net worth of the parent coop. The technical and managerial assistance shall depend upon the needs of the subsidiary coop.

RULE 3- MULTI-PURPOSE COOPERATIVE

COVERAGE. (1) All types of newly organized primary cooperatives with combined two or more business activities of different types of cooperatives (2) single purpose coop desiring to transform itself into a multi-purpose coop after at least 2 years of operation.

MINIMUM CAPITALIZATION REQUIREMENTS. Minimum paid up capital of P100, 000.00 or as required by the feasibility study whichever is higher.

BOOKS OF ACCOUNTS. The new and existing coops transformed into a MPC are required to maintain separate books of accounts for each business activity.

RULE 4- DIVISION OF COOPERATIVES

PROCEDURE:   Approval of the Plan to Divide; Formulation of Paln of Division; Presentation and approval of the Plan to General

Assembly; Posting and publication of the Notice of Division; Written Notification to Creditors; Filing of the required documents with the CDA; Issuance of Certificate of Registration.

PROPOSAL OF DIVISION. Majority members of the Board of Directors or at least 10% of the members with voting rights may propose for division, which just be approved by at least majority of the coop with voting rights, present and constituting a quorum in general or representative assembly called for the purpose. Upon approval, a committee to formulate the plan shall be constituted by the General/Representative Assembly.

  APPROVAL OF PLAN. The plan of division shall be approved

by ¾ votes of all members with voting rights, present and constituting a quorum in a general/representative assembly meeting called for the purpose.

PUBLICATION. The plan of division shall be published once a week in newspaper of general circulation or alternatively by posting in at least 3 conspicuous places for for 3 weeks within its area of operation. It may be also supplemented by radio and television announcements.

OBJECTION . Objection may be filed within 15 days from posting or last day of publication which maybe decided within 60 days from receipt of objection hereof. If meritorious, the plan of division may be deferred or disapproved.

ISSUANCE OF CERTIFICATE OF REGISTRATION shall be issued to the new cooperatives. The old certificate of registration shall be surrendered to the CDA for cancellation.

RULE 5- MERGER OR CONSOLIDATION

PARTIES INVOLVED. Coops belonging only to same category . i.e Primary to primary, secondary to secondary and tertiary to tertiary coops.

  PROPOSAL TO MERGE OR CONSOLIDATE. The proposal may be

made by the Board of Directors or by at least 10% of the members with voting rights and shall be approved by a least majority of the members of each of the constituent cooperatives with voting rights , present and constituting a quorum in separate general or representative meeting called for the purpose.

ARTICLES OF COOPERATION AND BY-LAWS. In case of merger, the articles of cooperation and by -laws shall be amended while in consolidation; new articles of cooperation and by laws shall be filed.

PROCEDURE:  

Approval of Proposal to merge or consolidate ; Formulation of Plan of Merger or Consolidation; Presentation to and approval of the Plan to the General

Assembly of each constituent coops; Formulation of the amendment or new Articles of

Cooperation and By-laws; Posting /publication of Merger or Consolidation ; Written Notification to creditors; Filing of the required documents with the CDA; and Issuance of Certificate of Registration of Merger

/Consolidation.  

APPROVAL OF PLAN OF MERGER/CONSOLIDATION. The affirmative vote of at least ¾ of all members with voting rights, present and constituting a quorum of each of the constituent cooperatives at a separate general or representative assembly called for the purpose shall be necessary.

POSTING/PUBLICATION. Announcement of merger or consolidation may be done thru publication in a newspaper of general circulation once a week for 3 consecutive weeks or by posting in at least 3 conspicuous places in their respective area of operation. This may be supplemented by radio and television announcements or any electronic means of communication.

NOTOCE TO CREDITORS AND INVESTORS may be sent thru letters by registered mail with return card announcing such merger or consolidation.

OBJECTION BY THIRD PARTY. A third party may file an objection or opposition to the plan of merger or consolidation within 15 days after the date of posting or from last day of publication which shall be decided 60 days from receipt of the objection or opposition. If meritorious, the CDA may cause the deferment or disproval of the merger or consolidation.

CERTIFICATE OF MERGER OR CERTIFICATE OF REGISTRATION. The CDA shall issue a Certificate of Merger in case of merger, and a new certificate of registration, in case of consolidation.

RULE 6- LABORATORY COOPERATIVES

MINOR shall refer to 7 years old but below 18 years of age. 

ORGANIZATION. (1) 15 or more minors, Filipino citizens, actually residing in community or enrolled in an educational institution within or near the area of operation of the guardian coop or out of school minors actually residing in a community.

CAPITALIZATION. No required capitalization but program of continuous capital builds up to be included in its by-laws.

AFFILIATION. Must be affiliated with a duly registered cooperative known as Guardian Coop.

A laboratory coop primarily composed of: -students from a particular school shall be affiliated with school’s

coop. -out of school minors shall be affiliated with its choice within or

nearest its area of operation. In absence of a duly registered coop in the area or refusal of a duly

coop to accept the affiliation of a laboratory coop, the CDA nearest office may identify a possible guardian coop for the laboratory coop. 

CONDITION FOR TERMINATION OF MEMBERSHIP. Upon reaching the age of majority (18 years of age); Those provided under Art. 30 of the Code; and Such other conditions as may be provided for in the by-laws’

REFUND OF SHARE. Upon termination, the former member shall be entitled to refund of his share capital contribution and other interest in accordance with Art. 31 of the Code.

  OPTION OF MEMBER WHO REACHES THE AGE OF

MAJORITY. May opt to join the guardian coop upon compliance with the requirements of membership.

CERTIFICATE OF RECOGNITION shall be issued by the CDA under its official seal upon compliance of all the requirements set forth under this Rule. However, the issuance of certificate of recognition does not bestow juridical personality to a laboratory coop.

RULE 7- FUNCTIONS, RESPONSIBILITES AND TRAINING REQUIREMENTS OF DIRECTORS, OFFICERS AND COMMITTEE MEMBERS 

OFFICERS OF THE COOPERATIVE:  Members of the Board of Directors; Members of the different committees

created by the General Assembly; General Manager or Chief Executive Officer; Secretary; Treasurer; and Members holding other positions as may be

provided in the by-laws.

COMMITTEES OF COOPERATIVE PROVIDED IN THE BY-LAWS:

Audit Committee; Election Committee; Mediation and Conciliation Committee; Ethics Committee; and Other Committee as may be necessary

for the conduct of the affairs of the coop.

TRAINING . 

Training shall be conducted by cooperative, federation and/or other trainers or training institutions duly accredited by CDA.

Training program should contain minimum requirements in the module/curriculum as prescribed by CDA.

The initial courses or any equivalent substitute thereof must be undertaken.

BOARD OF DIRECTORSA. Basic Cooperative Course primarily on:1. 1. Articles and By-laws2. 2. cooperative Vision3. 3. Cooperative Mission4. 4. Cooperative Strategic Plan5. 5. Fundamentals of Cooperative6. 6. Policies and Programs of Cooperatives7. 7. Cooperative Code of 2008 (RA 9520)8. 8. Implementing Rules and Regulations of RA

9520

BOARD OF DIRECTORSB. Cooperative Management and GovernanceC. Policy DevelopmentD. Financial ManagementE. Conflict ManagementF. Parliamentary ProcedureG. Leadership and Values Re-orientationH. Strategic PlanningI. Orientation on Labor and Other Related

Laws

SECRETARY1. Basic Cooperative Course2. Records Management for Non

Financial Transactions3. Parliamentary Procedures4. Basic Computer Programs

TREASURER1. Basic Cooperative Course2. Records Management (Financial

Transactions)3. Basic Accounting for Non Accountants4. Cooperative Standards5. Investment and Banking Procedures6. Financial Management

AUDIT COMMITTEE Basic Cooperative Course Auditing Management Records Management Basic Accounting for Non Accountants Cooperative Standards Internal Control including Inventory

System Basic Computer Program

ELECTION COMMITTEE Basic Cooperative Course Records Management Rules Formulation Leadership and Values Re-orientation Basic Computer Program

ETHICS COMMITTEE Basic Cooperative Course Leadership and Values Re-orientation Conflict Management Records Management Basic Computer Program

MEDIATION – CONCILIATION COMMITTEE Basic Cooperative Course Leadership and Values Re-orientation Conflict Management Records Management Effective Communication Basic Computer Program

GENERAL MANAGER/ CHIEF EXECUTIVE OFFICER

Basic Cooperative Course Cooperative Management and Governance Cooperative Standards Human Resource Management Effective Communication Skills Entrepreneuerial & Basic Management course Labor and Other Related Laws Leadership and Values Re-orientation Computer Literacy Course Strategic Planning and Management

COMPLIANCE. The training is required for all officers of coop. In cases where the incumbent has not undergone the required training program, he/ she shall undergo such training within 12 months from the effectivity of this Rule. Non-compliance with the required trainings shall be considered grounds for disqualification for future election or appointment until such time that he/she has complied with all the trainings required for the position.

DURATION OF TRAININGS ATTENDED. All trainings attended by coop officers shall be valid compliance with the intent of this Rule for a period of 5 years from the date of issuance of the Certificate of Training. 

TRANSITORY PERIOD. All cooperatives are given 2 years from the effectivity of this Rule to comply with the training requirements.

RULE 8-REPORTS REQUIRED FOR COOPERATIVES

ANNUAL REPORTS TO BE SUBMITTED TO CDA: Cooperative Annual Performance Report (CAPR); Social Audit including the program of activities in

pursuance of its socio-civic undertakings showing its achievements at the end of every fiscal year;

Performance Report; Audited Financial Statement duly stamped “

received” by the BIR; List of Officers and Training

Undertaken/Completed.

ADDITIONAL REPORTS FOR FEDERATION AND UNIONS: 

List of Cooperatives which have remitted their respective coop education and training funds ( CETF);

Business Consultancy Assistance to include the nature and cost; and

Other training activities undertaken specifying the nature, participants and cost of each activity.

WHEN AND HOW TO FILE. A copy of the above required reports shall be filed with the CDA either thru personal, registered mail, courier, or electronic means within 120 days from the end of every calendar year.

PREPARATION OF REPORTS. Reports shall be typewritten or printed in form prescribed by the CDA certified by the Chairperson and General Manager.

FAILURE TO SUBMIT REPORTS ON TIME shall be considered delay or default.

  The following fortuitous events shall not considered

delay provided the CDA shall be officially notified of the occurrence of such fortuitous events:

Fire and other natural calamities; Public disorders including strike or lock out ; or National emergency which affects the operation of

the cooperative.

When delay or default shall commence. Delay or default shall commence on the day following the last day required fro the submission of the reports. Should the last day falls on a non-working day in the locality where the reporting cooperative is located, delay or default shall start to run on the day following the next working day.

DATE OF FILING. The date of acknowledgement by CDA appearing on the copies of such reports filed or submitted or mailing postmarked on the envelope/ date of registry or special delivery receipt, or the date the electronic mail was sent as the case may be shall be considered the date of filing.

SANCTION FOR DELAYED SUBMISSION

FINE. P 100.00/ REPORT / DAY OF DELAY. A request for reconsideration on grounds of fortuitous events and court litigation/order within 30 days from receipt of statement of accounts which shall be acted upon within 60 calendar days otherwise the sanctions shall be deemed lifted.

The decision of the CDA shall be final and executory.

Dissolution/ revocation after due process of the cooperative to operate as such;

RULE 9- LIQUDATION OF COOPERATIVES

COVERAGE. (1) Cooperatives whose charter expires by its own limitation;

(2) Cooperatives whose existence is terminated by voluntary dissolution; and

(3) Cooperatives whose existence is terminated by appropriate judicial proceedings.

MODE OF LIQUIDATION: 

Liquidation by cooperative itself through a Board of Liquidators elected from among the member entitled to vote of the cooperative

By conveying all the cooperative assets to trustee/trustees who will take charge of liquidation.

PROCEDURE:

Constitution of the Board of Liquidators / Trustees. Inventory of Assets and Liabilities of the coop; Payment of creditors in accordance with the provision of

the Civil Code on the Preference and Concurrence of Credits.

Transfer of the Statutory Funds to the intended beneficiaries.

Distribution of the remaining assets; Submission of the Board of Liquidators/Trustees of the

Liquidator’s Final Report. Cancellation of the Certificate of Registration and delisting

of name of the cooperative in the Cooperative Registry.

DONATED CAPITAL. Subsidies, donations, legacies, grants, aids and such other assistance from any local or foreign institutions whether public or private shall be subject to escheat.

  UNDISTRIBUTABLE ASSETS. After winding up of the affairs

of the cooperative, the assets distributable to creditor or member whose whereabouts is unknown or cannot be found shall be given to the federation/union to which the cooperative is affiliated with, the distribution shall be done in proportion to their share capital.

In case of non-affiliation, the undistributed assets shall be given to the community where the cooperative operated.

ALLOWED TIME FOR THE WINDING UP OF THE AFFAIRS OF THE COOP. The cooperative shall continue to exist for a period of 3 years from the issuance of Order of Dissolution. The purpose is not to continue the business for which it was established but for the purpose of prosecuting and defending suits filed by or against the cooperative, settlement and closure of its affairs, disposition, conveyance and distribution of its assets.  

Nevertheless, at any time during the said three year period, the cooperative is authorized and empowered to convey all its properties to trustees for the benefit of tis members, creditors, and other persons in interest, after which, all interests which the cooperative had in its properties are terminated. 

SUBMISSION OF BOARD OF LIQUIDITOR’S REPORT. Final Report to the members of the liquidated cooperative, CDA, and

Federation /Union to which the coop is affiliated with. After which, the Liquidators/Trustees shall be released from their duties and functions. 

For failure to submit the Final Report, the Board of Liquidators/Trustees shall not be released form their duties and functions, hence, no clearance shall b issued by the CDA.

SUMMARY PROCEEDINGS. The CDA may choose to initiate summary proceedings for coops with assets of not more than P 100,000.00 as shown in the audited Financial Statements by submitting the ff: documents to CDA:

Schedule of Assets; Proposal of Distribution of Assets to its Members; List of intended beneficiaries of the statutory funds; Affidavit of No Creditors; and Audited Financial Statements.  After evaluation, the CDA shall issue a written authority to

the Board of Directors to distribute the assets of the coop, after which the Board of Directors shall submit a final report.

EXCEPTION. OUTRIGHT CANCELLATION OF CERTIFICATE OF REGISTRATION. The CDA may outrightly cancel the certificate of registration which has been proven to have no assets or in case the cooperative can no longer be located despite the best efforts to locate the same. Such facts shall be stated in the Order of Cancellation.

RULE 10- CAPITALIZATION AND ACCOUNTING PROCEDURES OF COOPERATIVES 

CAPITAL SOURCES OF COOPERATIVE. Capitalization of coop may be derived from the ff:

Member’s share capital; Loans and borrowings including deposits; Revolving Fund which consists of the deferred payment

of patronage refunds, or interest on share capital; Subsidies, donations, legacies, grants , aids, and such

other assistance from any local or foreign institutions whether public or private, provided those coming from such shall not divided into individual share capital holdings at any time but shall instead from part of the donated capital or fund of the cooperative. 

SHARE CAPITAL.

Par value may be fixed at any figure not more than P1, 000.00.

Consist of: Common share capital and preferred share capital if the latter is provided under the coop’s articles of cooperation and by- laws. 

CAPITAL BUILD- UP. The by-laws of the coop shall provide for a reasonable and realistic member capital build-up program to allow the continuing growth of the member’s investment in their cooperative as their own economic conditions continue to improve.

LIMITATION ON SHARE CAPITAL On Primary cooperative. No member of

a primary coop other than a coop itself shall own or hold more than 10% of the share capital of the coop.

  On secondary or tertiary coop,

members should own not more than 10% of the share capital of the coop.

FINES ON UNPAID SUBSCRIBED SHARE CAPITAL. The by-laws of a coop shall prescribe a fine on unpaid subscribed share capital provided such fine is fair and reasonable under the circumstances as determined by the Board of Directors.

ASSIGNMENT OF SHARE CAPITAL CONTRIBUTION OR INTEREST . Subject to the provisions of R.A. 9520, no member shall transfer his/her shares or interest in the coop or any part hereof unless:

He/she has held such share capital contribution or interest for not less than 1 year;

The assignment is made to the coop or to a member of the coop or to a person who falls within the field of membership of the coop; and

The Board of Directors has approved such assignment.

INTEREST ON SHARE CAPITAL. Interest on share capital shall not exceed the Rate of Return on Investment. No allocation of interest on share capital shall be made without the approval of the Board of Directors No cumulative interest shall be allowed for any kind or class of shares issued by the coop. Share capital shall receive strictly limited rate of interest.

Unless otherwise provided in the by-laws, share capital shall earn interest, the rate of interest shall be computed as follows:

Rate of Interest = x ( Net Surplus less Statutory Reserves) ______________________________Total Average Share Month

PATRONAGE REFUND. The principle of patronage refund is a principle of equity wherein an equal right of members to participate in the organization and to equitably share in the benefits accruing is established. Under the principle, the net surplus shall not be construed as profit, but as excess payments made by them from the coop and which shall be deemed to have been returned to them if the same is distributed as prescribed by the Code and by this Rule.

The amount allocated for patronage refund shall not be less than 30% of the net surplus after deducting the statutory reserves based on the principle of equity. In no case shall the rate of patronage refund be more than twice the rate of interest on share capital.

ACCOUNTING PROCEDURE. The accounting system to be installed/maintained in the coop shall be accordance with the generally accepted accounting principles and practices, taking into consideration cooperative principles and practices. The cooperative shall use the Standard Chart of Accounts and its accompanying Accounting Manual prescribed by the CDA.

RULE 11- SOCIAL AUDIT COOPERATIVES

COVERAGE. All registered coops regardless of types and categories shall be subject to social audit. 

OBJECTIVES/ USES OF SOCIAL AUDIT.   It validates the support of the cooperative to the 7th coop

principles on the concern for community and determines whether the coop work for the community’s sustainable development thru policies approved by their members.

The audit focuses not only to the economic side of the coop but also the social aspect of the organization and appraises the coop performance as value based organization usually participative, user and community oriented and non-profit but service organization and how its social responsibility for its members and the community as a whole was fulfilled.

COMPONENTS AND SOCIAL AUDIT INDICATORS. Social Audit of the coops shall consist of but not limited to the ff: major components/categories with its membership: 

Membership; Assets Building; Community Involvement and Solidarity; Information Accessing and dissemination; Gender, Youth, Elderly, Children and Persons with

Disability; and Leadership and organization management. 

SOCIAL AUDIT MANUAL The CDA shall develop a Social Audit Manual that will be used for the purpose.

APPLICABILITY. All registered coops shall submit to the Authority the annual Social Audit Report as conducted by an independent Social Auditor accredited by the Authority.

SANCTIONS. The failure of the coops to submit to the CDA of the required Social Audit Report conducted by the accredited independent Social Auditor shall mean non-compliance with the required reports and will meted with corresponding penalties in accordance with RA 9520.

TRANSITORY PERIOD. All cooperatives are given 2 years from the effectivity of this Rule to comply with the Social Audit Requirements as provided by this Rule.

RULE 12 - FINANCIAL SERVICE COOPERATIVE ( FSC)

COVERAGE. (1) All FSC organized for the primary purpose of engaging in savings and credit services and other financial services, and (2) Existing cooperatives with savings and credit facilities which has formally notified the CDA of their intention to exercise enhanced functions and satisfied the requirements of CDA for conversion to FSC.

REGISTRATION. The Articles of Cooperation and By-laws of any FSC or any amendment thereto, shall be registered with the CDA only if accompanied by a Certificate of Authority issued by the BSP under its official seal.

Existing cooperative engaged in credit and MPC activities, after it has notified the CDA of its decision to exercise enhanced functions and satisfied the requirements for the conversion of FSC shall register its amended Articles of Cooperation and By-Laws to the CDA upon approval of the CDA and favorable certification of the BSP. 

MINIMUM CAPITALIZATION. Only coops with minimum paid-up capital of at least P 10M shall qualify to register as FSC without prejudice to additional capital requirements that may be prescribed by BSP for a particular financial service regulated by the BSP that will be offered by the FSC.

MANUAL OF RULES AND REGULATIONS. The CDA shall develop a Manual that will cover:

The Rules and Regulations for the safe and sound conduct of operations of FSC;

Rules and Regulations for the appointment of conservator or a receiver as may be necessary in coordination with the BSP; and

The BSP shall develop the appropriate prudential Rules and Regulations applicable to the FSC.

PROHIBITION. The terms “Credit Cooperatives”, FSC and FSC Federation shall be used exclusively by those who are duly registered under the Code, and no person, group of persons, or organization shall use the said terms unless duly registered with CDA.

Violations of this prohibition shall be punishable in accordance with Art. 140 of the Code.

RULE 13- VOLUNTARY ARBITRATION 

COVERAGE. All intra/inter cooperative disputes not resolved in accordance with the conciliation-mediation mechanisms embodied in the by-laws of a cooperative shall be governed by this Rule.

COMMENCEMENT OF ACTION. Any party of a dispute not resolved thru conciliation/mediation proceeding in the primary and union/federation level can commence an action by filing a verified Complaint with the CDA.

In case of primary coop affiliated with any federation/union, the complaint shall be accompanied by a Certificate of Non-Settlement issued by the said federation/union to which the primary coop is affiliated with.

In the case of a primary coop not affiliated with any federation/union, the complaint shall be accompanied by a Certificate of Non- Settlement issued by the Mediation-Conciliation Committee of such primary coop together with a certificate of Non-Affiliation with any federation/union signed by the chairperson of the Board of Directors of the same coop.

VENUE OF ACTION. All complaints shall be filed with CDA Extension Office having administrative jurisdiction over the coops. For coops registered with the Central Office said complaints shall be filed with the latter.

CONTENTS OF COMPLAINT

The names and addresses of the complainant/s and respondent/s.

A brief description of the complaint and documentary evidences, if any; and

The relief prayed for.

CONTENTS OF COMPLAINT.

PARTIES TO THE COMPLAINT.

Complainant/s – the party who filed the complaint.

Respondent/s- the party complained of.

PROCEDURE:

Upon receipt of complaint, the CDA shall issue a Notice/Summons to the respondent/s to file an Answer/Comment.

Upon receipt of Answer /Comment, the preliminary conference shall be scheduled.

Notice indicating the time and date of preliminary conference shall be sent to all parties concerned.

Signing of Submission Agreement. Arbitration Proceedings. Rendering of Decision /Award. Enforcement /Execution of the decision/award. Appeal to the Office of the President within 15 days from receipt

of decision/award.

CONTENTS OF SUBMISSION AGREEMENT.  

The agreement to submit to vol. arbitration; The specific issue/s or dispute /s to be submitted for

resolution; The name of the vol. arbitrator/s chosen by the parties; The manner of paying the cost of arbitration

proceedings including the arbitrator’s fee; The name of the public official who the parties may

designate to execute the final decision or award, if necessary ; and

The agreement to perform or abide by the decision/award.

EXTENT OF THE DECISION/AWARD. The voluntary arbitrator/s shall have only the power to decide the matters which have been submitted for arbitration.

COST OF ARBITRATION AND ARBITRATION FEE. Unless agreed otherwise, the parties shall mutually share the cost of the proceedings including the arbitrator’s fee

ACCREDITATION OF VOLUNTARY ARBITRATOR/S. The CDA shall issue guidelines concerning the accreditation and de-listing of Voluntary Arbitrator/ s as well as the list of qualified Voluntary Arbitrator/s.

THANK YOU !!!