COOPERATIVES

Sat, Dec 7, 2019 at 10:41

Ara Huertazuela <huertazuelaara@gmail.com>
PM
To: Breyndavila28@gmail.com

AGUILAR, ANNE JOHNETTE V.

Which of the following statements is/are correct about merger and consolidation of
cooperatives?
I. Two (2) or more cooperatives may merge into a single cooperative which shall either be
one of the constituent cooperatives or the consolidated cooperative.

II. No merger or consolidation shall be valid unless approved by a one-half (1/2) vote of all
the members with voting rights, present and constituting a quorum of each of the constituent
cooperatives at separate general assembly meetings. The dissenting members shall have the
right to exercise their right to withdraw their membership pursuant to Article 30.

a. I only
b. II only
c. Both I and II
d. Neither I nor II

Answer: A. I only

Legal Basis: According to Article 21 of Republic Act 9520 (1) Two (2) or more cooperatives may merge
into a single cooperative which shall either be one of the constituent cooperatives or the consolidated
cooperative.

(2) No merger or consolidation shall be valid unless approved by a three-fourths (3/4) vote of all the
members with voting rights, present and constituting a quorum of each of the constituent
cooperatives at separate general assembly meetings. The dissenting members shall have the right to
exercise their right to withdraw their membership pursuant to Article 30.

(3) The Authority shall issue the guidelines governing the procedure of merger or consolidation of
cooperatives. In any case, the merger or consolidation of cooperatives. In any case, the merger or
consolidation shall be effective upon the issuance of the certificate of merger or consolidation by the
Authority.

Application: Statement I is correct because it is stated in the provisions of the law. On the other hand,
statement II is incorrect because no merger or consolidation shall be valid unless approved by a three-
fourths (3/4) vote of all the members with voting rights, not "one-half"

Conclusion: The statement "Two (2) or more cooperatives may merge into a single cooperative which
shall either be one of the constituent cooperatives or the consolidated cooperative" is correct about
merger and consolidation of cooperatives. On the other hand, the statement "No merger or
consolidation shall be valid unless approved by a one-half (1/2) vote of all the members with voting
rights, present and constituting a quorum of each of the constituent cooperatives at separate general
assembly meetings. The dissenting members shall have the right to exercise their right to withdraw
their membership pursuant to Article 30" is incorrect.

ANILAO, ELIJAH JOYCE M.

There are five sits in the Board of Directors of JTC Cooperative. One sit is vacant due to term
expiration of such director. How shall the vacancy be filled-up?
A. By remaining directors only
B. By general assembly only
C. Either A or B
D. Neither A nor B
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The vacany should be filled-up by the general assembly only.

Purusant to Article 41 of the Republic Act No. 9520, "Any vacancy in the board of directors,
other than by expiration of term, may be filled by the vote of at least a majority of the
remaining directors, if still constituting a quorum; otherwise, the vacancy must be filled by
the general assembly in a regular or special meeting called for the purpose."
In accordance with the law, vacancy should be filled by the vote of the remaning directors, if
still constituted a quorum. In this case, since the remaining directors didnt constitute a
quorum, henceforth the general assembly has the power to filled the vacancy in a regular of
special meeting called for the purpose.
Therefore, the general assembly should fill the vacancy.

AQUINO, ERIKA JOY L.

I. Fifteen (15) or more juridical or natural persins who are Filipino Citizens, of legal age, having
a common bond of interest and are actually residing or working in the intemded area of
operation, may organize a primary cooperative.
II. Prospective member of a primary cooperative must have completed a Pre-Membership
Education Seminar (PMES)
A. Only I is true
B. Only II is true
C. Both are true
D. Both are false.

The answer is letter B.

According to Article 10 of the Philippine Cooperative Code, Fifteen (15) or more natural
persons who are
Filipino citizens,of legal age, having a common bond of interest and are actually residing or
working in the intended area of operation, may organize a primary cooperative under this
Code:
Provided, That a prospective member of a primary cooperative must have completed a Pre-
Membership Education Seminar (PMES).
"Any newly organized primary cooperative may be registered as multipurpose cooperative
only
after compliance with the minimum requirements for multipurpose cooperatives to be set by
the Authority. A single-purpose cooperative may transform into a multipurpose or may create
subsidiaries only after atleast two (2) years of operations.

It is explicitly provided that "a prospective member of a primary cooperative must have
completed a Pre-
Membership Education Seminar (PMES)." On the other hand, the same article stipulates that
"a common bond of interest and are actually residing or working in the intended area of
operation, may organize a primary cooperative under this Code."

Therefore, the statement I is wrong stating "juridical or natural", while statement II is correct
since it conforms with the stipulation stated therein.

ARANILLA, CAREN JOY D.

When did an applicant for membership in a cooperative deemed to be a member?

a. When the application has been submitted to the Board of Directors.
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b. When the application has been approved by the Board of Directors.

c. When the applicant made payments for the membership.
d. When he represents himself as a member.
The answer is letter b, When the application has been approved by the Board of Directors.

According to Article 28 of tge Cooperative Law, An applicant for membership shall be deemed a
member after approval of his membership by the boadof directors and shall exercise the rights of
member after having made such payments to the cooperative in respect to membership or acquired
interest in the cooperative as may be prescribed in the bylaws. In case membership is refused or
denied by the board of directors, an appeal may be made to the general assembly and the latter’s
decision shall be final. For this purpose, the general assembly may opt to create an appeal and
grievance committee, the members of which, shall serve for a period of one (1) year and shall decide
appeals on membership application within thirty (30) days upon ‘receipt thereof. If the committee
fails to decide with the prescribed period, the appeal is deemed approved in favor of the applicant.

Thus, a person commence to be a member of a cooperative when the Board of Directors approved
such application. In addition, such person will have the right and privilege of a member when he made
such payments to the cooperative.

So, a person will be one as a member at the approval of the directors.

BASE, CRISSA MAE A.

Any officer or employee of the Authority is qualified to be elected or appointed to any

position in a cooperative.
All elective officials of the Government shall be ineligible to become officers and directors of
cooperatives.

Statement I is true; Statement II is false

Statement I is false; Statement II is true
Both are true
Both are false

A: The answer is B, Statement I is false while statement II is true.

L: Article 27 of the Cooperative Code states that “(1) Any officer or employee of the Authority
shall be disqualified to be elected or appointed to any position in a cooperative: Provided,
That the disqualification does not extend to a cooperative organized by the officers or
employees of the Authority.

"(2) All elective officials of the Government shall be ineligible to become officers and directors
of cooperatives: Provided, That the disqualification does not extend to a party list
representative being an officer of a cooperative he or she represents”

A: Under the law, any person holding job and position at the CDA and those elective officials
of the government are not qualified to be elected in any position in a cooperative. This to
avoid conflict of interest in the operations and management of the cooperative.

C: Therefore, the statements given are false and true respectively.

COMISO, JR., RICARDO B.

The primary objective of every cooperative is to help improve the quality of life of its
members. Towards this end, the cooperative shall aim to:
a. Provide goods and services to its members to enable them to attain increased income,
savings, investments, productivity, and purchasing power, and promote among themselves
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equitable distribution of net surplus through maximum utilization of economies of scale, cost-
sharing and risk-sharing
b. Cooperate with the government, other cooperatives and people-oriented organizations to
further the attainment of any of the foregoing objectives.
c. Teach them efficient ways of doing things in a cooperative manner
d. All of the above
(A) d. All of the above
(L) All of the choices are correct because those enumerated can be found in Article 7 of the
Philippine Cooperative Code of the Republic Act No. 9520. It provides that “the primary
objective of every cooperative is to help improve the quality of life of its members. Towards
this end, the cooperative shall aim to:
a. 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. Provide optimum social and economic benefits to its members;
c. Teach them efficient ways of doing things in a cooperative manner;
d. Propagate cooperative practices and new ideas in business and management;
e. Allow the lower income and less privileged groups to increase their ownership in the wealth
of the nation; and
f. Cooperate with the government, other cooperatives and people-oriented organizations to
further the attainment of any of the foregoing objectives.
(A) The enumerated items are the primary objective of every cooperative is to help improve
the quality of life of its members. This are the benefits of a members can get on cooperative.
(C) Therefore, all the choices are the primary objective of every cooperative member can get,
so each members must know of it’s to acquire them.

DAVILA, JOHN BRAIN A.

In Iron Cap Cooperative, the board is composed of: Janine as the Chairperson, Christine as
the Vice Chairperson and, Jericho, Jezel, Josiah, Regina, Wences, Wencelle, Pia, Princess,
Veronica and Angeli are the other directors of the cooperative. If Pia cannot attend a board
meeting, can Gelyn attend as a proxy of Pia?
A. Yes, If Gelyn is a relative of Pia.
B. Yes, If Gelyn is the personal attorney of Pia.
C. Yes, if Gelyn is known by the other directors.
D. No, Gelyn cannot attend as a proxy of Pia.

(Answer) The answer is D. No, Gelyn cannot attend as a proxy of Pia

(Legal Basis) According to article 40 of the Republic Act No. 9520, known as the Philippine Cooperative
Code of 2008, stating the Meeting of the Board and Quorum Requirement.

(1) In the case of primary cooperatives, regular meetings of the board of directors shall be held at
least once a month.

(2) Special meetings of the board of directors may be held at any time upon the call of the chairperson
or a majority of the members of the board: Provided, That written notices of the meeting specifying
the agenda of the special meeting shall be given to all members of the board at least one (1) week
before the said meeting.
(3) A majority of the members of the Board shall constitute a quorum or the conduct of business,
unless the bylaws proved otherwise.
(4) Directors cannot attend or vote by proxy at board meetings.

(Application) The Board of Directors composing of Chairperson Janine, Vice Chairperson Christine,
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Jericho, Jezel, Josiah, Regina, Wences, Wencelle, Pia, Princess, Veronica and Angeli are not allowed to
have a proxy during board meetings. Even if Gelyn will attend as proxy for a director is a relative of
the Pia, a personal attorney of Pia or even if Pia is known by the other directors, Gelyn is prevented
to attend board meetings as proxy.

(Conclusion) Therefore, with the guidance of Article 40, Gelyn cannot attend as a proxy for Pia because
directors, when absent, are not allowed to have a proxy.

DE LEON, THEODORE EBELLO A.

It means the operative act granting juridical personality to a proposed cooperative and is
evidenced by a certificate of registration.
A. Incorporation
B. Dissolution
C. REgistration
D. Winding up

Letter C. Registration

Article 5 of the RA 9520 defines registration as “the operative act granting juridical personality to a
proposed cooperative and is evidenced by a certificate of registration.”

As defined in the code, the word itself shall embody its definition.

Thus, making Letter C (Registration) the answer.

DE ROSAS, JOHN BRIEN F.

The following statements are included to the function/s of a federation of cooperative:
I.To carry on, encourage, and assist educational and advisory work relating to its member
cooperatives
II.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
III.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
a)Only statements I and III are included.
b)Only statements I and II are included.
c)Only statements II and III are included
d)All of the statements are included.

Answer: B. Only statements I and II are included.

Legal Basis: according to Art. 24 of the Cooperative Code of the Philippines, Functions of a
federation of cooperative. These functions included are To carry on, encourage, and assist
educational and advisory work relating to its member cooperatives and To render services
designed to encourage simplicity, efficiency, and in the conduct of the business of its member
cooperatives and to facilitate the implementation of their bookkeeping, accounting, and
other systems procedures. The third statement represent the purpose of the union of
cooperative.

Application: a function of a federation of cooperative is to help other member to encourage

and assist educational and advisory work relating to its member. To perform such other
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functions as may be necessary to attain its objectives.

A federation of a cooperative may be registered by carrying out the formalities of for

registration of cooperative.

Conclusion: therefore I concluded that Statements 1 and 2 are the only possible answer
according to Art 24 of the Cooperative code of the Philippines. The third statement is one of
the purposes of cooperative union.

DIALA, MARY JOY L.

Barry is an associate member in the cooperative. Which of the following statements is not
true?
A. Barry can vote and be voted.
B. Barry is entitled to preference in the payment of interest as provided for in the bylaws of
the cooperative.
C. Common Share capital shall not be issued to Barry.
D. All of the statements are true.

ANSWER:
A. "Barry can vote and be voted."

LEGAL BASIS:
Based on Article 26 of the Republic Act. 9520 also known as "Philippine Cooperative Code of 2008", a
cooperative may have two (2) 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 such rights and privileges as the bylaws may provide"

APPLICATION:
As to the law, an associate member of the cooperative does not have all the rights and privileges
which the regular member is entitled. Barry, being an associate member, may only have certain rights
and privileges upon the provision of the bylaws. However, he should not be eligible to vote nor be
voted on account of such shareholdings.

CONCLUSION:
Hence, Barry cannot vote and be voted under the one-man, one vote principle of the cooperative.

EBREO, ERICA B.
Cooperative union have the following purposes, except:
A. To sponsor studies in the economic, legal, financial, social and other phases of cooperation,
and publish the results thereof
B. To promote the knowledge of cooperative principles and practices
C. To carry on, encourage, and assist educational and advisory work relating to its member
cooperatives
D. To develop the cooperative movement in their respective jurisdictions

Answer : C. To carry on, encourage, and assist educational and advisory work relating to its
member cooperatives
Legal Basis: According Republic Act No. 9520
Article 25, Registered cooperatives and federations at the appropriate levels may organize or
join cooperative unions to represent the interest and welfare of all types of cooperatives at
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the provincial, city, regional, and national levels. Cooperative unions may have the following
purposes:
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 promote the knowledge of cooperative principles and practices;
E. To develop the cooperative movement in their respective jurisdictions;
F. To advise the appropriate authorities on all questions relating to cooperatives;
G. To raise funds through membership fees, dues and contributions, donations, and subsidies
from local and foreign sources whether private or government; and
H. To do and perform such other nonbusiness activities as may be necessary to attain the
foregoing objectives.
Application: Letter C is not included in Article 25, but is included in Article 24, the Functions
of Federation of Cooperatives.
Conclusion : Therefor, to carry on, encourage, and assist educational and advisory work
relating to its member cooperatives is not included in the purpose of cooperative union.

ECHEVARRIA, WINCEL MAE E.

Membership in the cooperative may be terminated by a vote of the majority of all the
members of the board of directors for any of the following causes, except?

When a member has acted in violation of the bylaws and the rules of the cooperative.
When a member has continuously complied with his obligations.
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.
For any act or omission injurious or prejudicial to the interest or the welfare of the
cooperative.

The answer is letter B. When a member has continuously complied with his obligations.
According to the third paragraph of Article 30 of Philippine Cooperative Code of 2008,
“Membership in the cooperative may be terminated by a vote of the majority of all the
members of the board of directors for any of the following causes:
(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; and
(d) For any act or omission injurious or prejudicial to the interest or the welfare of the
cooperative.”
In the facts presented, all statement are grounds for termination except if the member has
continuously complied with his obligations which is the duty and responsibility of a member.
He can’t be terminated if continues to patronize the cooperative and signifies his/her
intention to remain as a member.
Therefore, as proven by the facts presented under article 30 of Philippine Cooperative
Code of 2008, a member who complied with all his obligation cannot be subject to
termination.
FORMAREJO, CHRISTINE S.
Tin Cute is a cooperative registered under republic act no. 9520.Which is true about their
powers, rights and capacities?
A.To sue and be sued
B.To sue only
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C.To be sued only

D.It depends

Answer:A

Legal Basis:"ART. 9. Cooperative Powers and Capacities. A cooperative registered under this Code shall
have the following powers, rights and capacities:
"(1) To the exclusive use of its registered name, to sue and be sued;
"(2) Of succession;
"(3) To amend its articles of cooperation in accordance with the provisions of this Code;
"(4) To adopt bylaws not contrary to law, morals or public policy, and to amend and repeal the same
in accordance with this Code;
"(5) To purchase, receive, take or grant, hold, convey, sell, lease, pledge, mortgage, and otherwise
deal with such real and personal property as the transaction of the lawful affairs of the cooperative
may reasonably and necessarily require, subject to the limitations prescribed by law and the
Constitution;
"(6) To enter into division, merger or consolidation, as provided in this Code;
"(7) To form subsidiary cooperatives and join federations or unions, as provided in this Code;
"(8) To avail of loans, be entitled to credit and to accept and receive grants, donations and assistance
from foreign and domestic sources, subject to the conditions of said loans, credits, grants, donations
or assistance that will not undermine the autonomy of the cooperative. The Authority, upon written
request, shall provide necessary assistance in the documentary requirements for the loans, credit,
grants, donations and other financial support;
"(9) To avail of preferential rights granted to cooperatives under Republic Act No. 7160, otherwise
known as the Local Government Code, and other laws, particularly those in the grant of franchises to
establish, construct, operate and maintain ferries, wharves, markets or slaughterhouses and to lease
public utilities, including access to extension and on-site research services and facilities related to
agriculture and fishery activities;
"(10) To organize and operate schools in accordance with Republic Act No. 9155, Governance of Basic
Education Act of 2001 and other pertinent laws; and
"(11) To exercise such other powers granted by this Code or necessary to carry out its purpose or
purposes as stated in its Articles of cooperation.

Application:A cooperative registered under republic act no. 9520 like Tin Cute in any cases of default
can be sued and at the same time they can sue others as a cooperative.

Conclusion:Therefore to excercise this right a cooperative must be registered in republic act no. 9520
as it is deem to be provided in the provision.

GARBIDA, JANE CARLA C.

When does a corporation acquire its juridical personality?
upon issuance of certificate of registration under the Authority’s unofficial seal
upon isssuance of certificate of registration under the Authority’s official seal.
upon filing of articles of incorporation
upon completing the by-laws

The correct answer is letter b.

According to the ART. 16. Registration. - A cooperative formed or organized under this Code
acquires juridical personality from the date the Authority issues a certificate of registration
under its official seal.
Registration means the operative act granting juridical personality to a proposed cooperative
and is evidenced by a certificate of registration. The certificate of registration issued by the
Cooperative Department Authority bestow the legal existence of a cooperative and shall give
the cooperative juridical personality.
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Hence, the cooperative’s juridical personality exists upon issuance of the certificate of
registration under the Authority’s official seal.

GONO, ROUBELYN A.
A cooperative that is organized for the primary purpose of providing a wide range of financial
services to cooperatives and their members is:
A. Cooperative Bank
B. Credit Cooperative
C. Financial Service Cooperative
D. Service Cooperative

Answer: Letter A. Cooperative Bank is the answer

Legal Basis: It is mentioned in Article 23 paragraph i which states that "Cooperative Bank is one
organized for the primary purpose of providing a wide range of financial services to cooperatives and
their members".

Application: A cooperative bank allows its members ask the cooperative to provide them financial
services while Credit Cooperative, Financial Service Cooperative, and Service Cooperative has
different purposes like financial assistance for productive and provident purposes, credit services, and
dental and medical services.

Conclusion: There are about 20 types of cooperatives but the one that is pertaining to having a primary
purpose of providing a wide range of financial services to cooperatives and their members is what we
call a Cooperative Bank.

HUERTAZUELA, ARA B.
If the member of cooperative dies, what will happen to his share?
A. The directors will be entitled to his shares
B. The remaining members will be entitled to the share
C. The heir of the dead member will be entitled to his share
D. Nothing will happened

Answer: C. The heir of the dead member will be entitled to his share

Legal Basis: According to Article 73, Limitation on Share Capital Holdings.- No member of primary
cooperative other than cooperative itself shall own or hold more than ten per centum (10%) of the
share capital of the cooperative.

"Where a member of cooperative dies, his heir shall be entitled to the shares of the decedent:
Provided, That the total share holding of the heir does not exceed ten per centum (10%) of the share
capital of the cooperative; Provided, further, That the heir qualify and is admitted as members of the
cooperative: Provided finally , That where the heir fails to qualify as a member or where his total share
holding exceeds ten per centum (10%) of the share capital , the share or shares excess will revert to
the cooperative upon payment to the heir of the value of such shares.

Application: In the above situation, the qualified heir shall be admitted as members of the cooperative
and his total share shall not exceed 10% of the share capital of the cooperative shall be entitled to the
share of the dead member. On the other hand, if it exceeds ten per cent (10 per cent) of the share
capital, the surplus of the share or share shall be returned to the cooperative upon payment to the
heir of the value of the shares.

Conclusion: Therefore, the heir shall be entitled to the share of the dead member.

LINGCORAN, JAIRA KYLA M.

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The following may be the powers, rights and capacities of a cooperative:

I. Exclusive use of its registered name, to sue and not be sued
II. Succession
III. To amend its articles of incorporation not in accordance with the Philippine Cooperative
Code.
IV. To form subsidiary cooperatives and join federations or unions
Which of the following is incorrect?
A. II and IV
B. II and III
C. I and III
D. I and IV

A: The answer is C, statements I and III are incorrect.

L: According to Article 9 of Republic Act 9520, Cooperative Powers and Capacities, “A cooperative
registered under this Code shall have the following powers, rights and capacities:

"(1) To the exclusive use of its registered name, to sue and be sued;
"(2) Of succession;
"(3) To amend its articles of cooperation in accordance with the provisions of this Code; "(4) To adopt
bylaws not contrary to law, morals or public policy, and to amend and
repeal the same in accordance with this Code;
"(5) To purchase, receive, take or grant, hold, convey, sell, lease, pledge, mortgage, and otherwise
deal with such real and personal property as the transaction of the lawful affairs of the cooperative
may reasonably and necessarily require, subject to the limitations prescribed by law and the
Constitution;
"(6) To enter into division, merger or consolidation, as provided in this Code;
"(7) To form subsidiary cooperatives and join federations or unions, as provided in this Code;
"(8) To avail of loans, be entitled to credit and to accept and receive grants, donations and assistance
from foreign and domestic sources, subject to the conditions of said loans, credits, grants, donations
or assistance that will not undermine the autonomy of the cooperative. The Authority, upon written
request, shall provide necessary assistance
in the documentary requirements for the loans, credit, grants, donations and other financial support;
"(9) To avail of preferential rights granted to cooperatives under Republic Act No. 7160, otherwise
known as the Local Government Code, and other laws, particularly those in the grant of franchises to
establish, construct, operate and maintain ferries, wharves, markets or slaughterhouses and to lease
public utilities, including access to extension
and on-site research services and facilities related to agriculture and fishery activities;
"(10) To organize and operate schools in accordance with Republic Act No. 9155, Governance of Basic
Education Act of 2001 and other pertinent laws; and
"(11) To exercise such other powers granted by this Code or necessary to carry out its purpose or
purposes as stated in its Articles of cooperation.”

A: Based on the article above, it is evident that statements II and IV, respectively are the 2nd and 7th
powers, rights, and capacities of a cooperative. Statement I , which states that the power of a
cooperative is to the exclusive use of its registered name, to sue and not be sued, is contrary to the
first line of Article 9. A cooperative also has the the power, right, and capacity to be sued. Lastly,
Statement II, “To amend its articles of incorporation not in accordance with the Philippine Cooperative
Code”, is also contrary to the law, specifically to the third line of the said article. Amending a
cooperative’s articles of cooperation must be in accordance with the provisions of the Philippine
Cooperative Code.

C: Therefore, statements I and III are incorrect since they are contrary to the law.

MAGSOMBOL, RHEALYN R.
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The board of directors shall composed not less than five(5) nor more than fifteen (15)
members elected bt hte general assembly and has the term of:
a. 4 years
b. 6 years
c. 2 years
d. 1 year
Answer : C
Legal Basis: According to Art 37 of Republic Act 9520 Composition and Term of the Board of
Directors. – Unless otherwise provided in the bylaws, the direction and management of the
affairs of a cooperative shall be vested in a board of directors which shall be composed of not
less that five (5) nor more than fifteen (15) members elected by the general assembly for a term of
two (2) years and shall hold office until their successors are duly elected an qualified, or until duly
removed for caused.

Application: Based on the Article mentioned above, the board of directors shall the the positon and
the office for 2 years until their successors are duly elected an qualified ,or until duly removed for
caused.

Conclusion: therefore the letter C is the answer because it is the accurate term for the board of
directors to be in that position.

MARAÑO, DONITA MAE P.

What is the liability of director or officer, or an associate of a director or officer, who, for his
benefit or advantage or that of an associate, make use of confidential information that, if
generally known, might reasonably be expected to adversely affect the operation and viability
of the cooperative?

A. Such director or officer shall be liable to compensate the cooperative for the direct losses
suffered by the cooperative as a result of the illegal use of information
B. Such director or officer shall be accountable to the cooperative for any direct benefit or
advantage received or yet to be received by him or his associate, as a result of the transaction.
C. Both A and B
D. Neither A nor B

C. Both A and B.
According to par. 2 under Article 45 of the Republic Act No. 9520, when a director, officer or
committee member attempts to acquire or acquires, in violation of his duty, any interest or
equity adverse to the cooperative in respect to any matter which has been reposed in him in
confidence, he shall, as a trustee for the cooperative, be liable for damages and shall be
accountable for double the profits which otherwise would have accrued to the cooperative.
From the foregoing facts, any director, officer or an associate who for his own benefit
acquires monetary interest in conflict with his duty such as making use of confidential
information which if generally known, might reasonably be expected to adversely affect the
operation and viability of the cooperative, will be liable to pay damages for the losses suffered
by it. They shall bring the profits to the cooperative that they have obtained from their act
which otherwise would have obtained and benefited the organization.
Therefore, both statements A and B constitutes the liability of directors, officers or associates
violating their duty as the trustee of the cooperative.
MENDOZA, VINCE MICHAEL L.
A contract entered into by the cooperative with one or more of its directors, officers,
and committee is voidable. However, there are condition that will make it valid except;
Presence of such director in the board meeting wherein contract was approved was not
necessary to constitute a quorum for such meeting.
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The vote of such director was not necessary for the approval of the contract.
The contract is fair and reasonable under the circumstances.
All of them will make it valid
(Answer) Letter D all of the choices will make it valid.
(Legal Basis) According to Sec. 47 of the Republic Act No. 9520 also known as the “Philippine
Cooperative Code of 2008, Dealings of Directors, Officers, or Committee Members. – A
contract entered into by the cooperative with one (1) or more of its directors, officers, and
committee members is voidable, at the option of the cooperative, unless all the following
conditions are present.
(1) That the presence of such director in the board meeting wherein contract was approved
was not necessary to constitute a quorum for such meeting;
(2) That the vote of such director was not necessary for the approval of the contract;
(3) That the contract is fair and reasonable under the circumstances; and
(4) That in the case of an officer or committee member, the contract with the officer or
committee member has been previously authorized by the general assembly or by the board
of directors.
"Where any of the first two conditions set forth in the preceding paragraph is absent, in the
case of a contract with a director, such contract may be ratified by a three-fourths (3/4) vote
of all the members with voting rights, present and constituting a quorum in a meeting called
for the purpose: Provided, that full disclosure of the adverse interest of the directors involved
is made at such meeting, and that the contract is fair and reasonable under the
circumstances.
(Application) the given choices are aligned on what the law says. The involve directors,
officers, or committee to a contract with the cooperative itself is considered valid if their
participation/presence will not affect the approval of the contract given that the contract is
fair and reasonable.
(Conclusion) Therefore, the choices given does not include any exception but all valid
condition.

MERCADO, ANGELO T.
A member shall have the right to examine the records required to be kept by the cooperative
during reasonable hours on business days and he may demand, in writing, for a copy of the
excerpts from the said records without charge except the cost of production. What are the
legal implications of refusal by the officer to allow a member to exercise this right?

A. Such officer shall be liable to such member for damages.

B. Such officer shall be guilty of offense punishable by Cooperative Code.
C. Both A and B.
D. Neither A nor B.

Both A and B. Such officer shall be held liable for the damages and be guilty of offense
punishable by Cooperative Code.

Pursuant to Article 83 of the Republict Act No. 9520, a member shall have the right to examine
the records required to be kept by the cooperative under Article 52 of this Code during
reasonable hours on business days and he may demand, in writing, for a copy of excerpts
&om said records without charge except the cost of reproduction. Any officer of the
cooperative who shall refuse to allow any member of the cooperative to examine and copy
COOPERATIVES

excerpts from its records shall be liable to such member for damages and shall be guilty of an
offense which shall he punishable under Article 140 of this Code.

Provided, that if such refusal is pursuant to a resolution or order of the board of directors,
the liability under this article shall be imposed upon the directors who voted for such refusal.

Therefore, if the member's right to examine the records during reasonable hours was refused
by the officer, latter shall be held liable for the damages and be guilty of offense punishable
by Cooperative Code.

PAGANA, FIONALYN F.
All of the following are purposes of cooperatives, 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 only
D. To provide goods and services and other requirements to the members
[A] The correct answer is letter C. To encourage among members systematic production only

[L] Under section 2, article 6 of Republic act No. 9520 "Purposes of Cooperatives. – A
cooperative may be organized and registered for any or all of the following purposes: "(1) To
encourage thrift and savings mobilization among the members;
"(2) To generate funds and extend credit to the members for productive and provident
purposes"(3) To encourage among members systematic production and marketing;
"(4) To provide goods and services and other requirements to the members;
"(5) To develop expertise and skills among its members;
"(6) To acquire lands and provide housing benefits for the members;
"(7) To insure against losses of the members;
"(8) To promote and advance the economic, social and educational status of the members;
"(9) To establish, own, lease or operate cooperative banks, cooperative wholesale and retail
complexes, insurance and agricultural/industrial processing enterprises, and public markets;
"(10) To coordinate and facilitate the activities of cooperatives;
"(11) To advocate for the cause of the cooperative movements;
"(12) To ensure the viability of cooperatives through the utilization of new technologies;
"(13) To encourage and promote selfhelp or selfemployment as an engine for economic
growth and poverty alleviation; and
"(14) To undertake any and all other activities for the effective and efficient implementation
of the provisions of this Code."

[A] All of the choices were included in section 2, article 6 of Republic Act No. 9520. Letter C.
is incorrect because it lacks in content, it should be "To encourage among members
systematic production and marketing" as what is stated in the law.

[C] The only exemption in the purposes of cooperatives is letter c, it lacks content that made
it incorrect therefore, it is the answer.
Manage

PENTINIO, ANGEL M.
Which one of the following is correct about the membership in a cooperative?
I. An associate who meets the minimum requirements of regular membership, continues to
patronize the cooperative for two (2) years, and signifies his/her intention to remain a
member shall be considered a regular member.
COOPERATIVES

II. A cooperative organized by minors may not be affiliated with a registered cooperative.
A. Only statement I is true.
B. Only statement II is true.
C. Both statement are true.
D. Both statement are false.
[A] A. Only statement I is true.
[L] According to Article. 26, 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 such rights and privileges as
the bylaws may provide: Provided, That an associate who meets the minimum requirements
of regular membership, continues to patronize the cooperative for two (2) years, and signifies
his/her intention to remain a member shall be considered a regular member.
"A cooperative organized by minors shall be considered a laboratory cooperative and
must be affiliated with a registered cooperative. A laboratory cooperative shall be governed
by special guidelines to be promulgated by the Authority.
[A] Only statement I is true, where an associate who meets the minimum requirements of
regular membership, continues to patronize the cooperative for two years, and signifies
his/her intention to remain a member shall be considered a regular member. While
statement II is false because as provided by the given article above that, a cooperative that is
organized by minors shall be considered a laboratory cooperative and must be affiliated with
a registered cooperative.
[C] Therefore, statement I is true, while the statement II is false.
RED, TRISHA MAE D.
Objectives and Goals of a Cooperative:
I. Provide optimum social and economic benefits to its members.
II.Allow the higher income and less privileged groups to increase their ownership in the
wealth of the nation.
A. Statement I is true, while statement II is false.
B.Statement I is false, while statement II is true.
C. Both statement is true.
D. Both statement is false.

The answer is letter A, Statement I is true, while statement II is false.

As states in Article 7 of Republic Act No. 9520 "PHILIPPINE COOPERATIVE CODE OF 2008" Objectives
and Goals of a Cooperative. The primary objective of every cooperative is to help improve the quality
of life of its members. Towards this end, the cooperative shall aim to:
"(a) 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) Provide optimum social and economic benefits to its members;
"(c) Teach them efficient ways of doing things in a cooperative manner;
"(d) Propagate cooperative practices and new ideas in business and management;
"(e) Allow the lower income and less privileged groups to increase their ownership in the wealth of
the nation; and
"(f) Cooperate with the government, other cooperatives and people-oriented organizations to further
the attainment of any of the foregoing objectives.

In the statement mentioned above, as you noticed in statement II it is said to allow higher income
instead of lower income.
COOPERATIVES

Therefore, the second statement is false and the first statement is true as to article 7.
RESTITUTO, EVE JEREMY Q.
Cooperative, other than a cooperative union, will not be registered unless their articles of
cooperation is accompanied with:

I. Bonds of accountable officers

II. Sworn statements of the auditor elected by the subscribers
III. Statements sworn by the elected treasurer of the subscribers
IV. By-laws of the cooperstive
V. A copy of the general statement

Which documents shall accompany the Articles of Cooperation?

a. I only
b. II, III, V
c. I, III
d. I, III, IV

FINAL ANSWER: C

A cooperative, other than a cooperative union, shall have the bonds of accountable officers
and a sworn statement of the treasurer elected by the subscribers accompanying their article
of cooperation for their entity to be registered with CDA.

According to Article 14 paragraph 5 of the Philippine Cooperative Code of 2008, RA 9520, "No
cooperative, other than a cooperative union as described under Article 25 hereof, shall be
registered unless the articles of cooperation is accompanied with the bonds of the
accountable officers and a sworn statement of the treasurer elected by the subscribers..."

All cooperatives that are not cooperative unions will not be registered unless they bring with
them these two documents. The bonds of the accountable officers and a sworn statement by
the treasurer. What lies within the sworn statement was a manifestation that at least 25% of
the cooperative's authorized capital has been subscribed and 25% of the total subscription
has been paid, provided, that the paid-up capital shall not be less than 15,000 pesos.

Therefore, for any type of cooperative, other than a cooperative union, to be registered with
the Cooperative Development Authority the Articles of Cooperation that they have
completed must be accompanied by these two important documents: (1) bonds of the
accountable officers and (2) a sworn statement by the treasurer elected by the subscribers of
the cooperative.

URSOLINO, JOHNPOL B.
Provided in the REPUBLIC ACT 9520 or "PHILIPPINE COOPERATIVE CODE OF 2008", which
among the following definition is incorrect?
Member includes a person either natural or juridical who adhering to the principles set forth
in this Code and in the Articles of Cooperative, has been admitted by the cooperative as
member;
General Assembly shall mean that body entrusted with the management of the affairs of the
cooperative under its articles of cooperation and bylaws;
Board of Directors shall mean the full membership of the cooperative duly assembled for the
purpose of exercising all the rights and performing all the obligations pertaining to
COOPERATIVES

cooperatives, as provided by this Code, its articles of cooperation and bylaws: Provided, That
for cooperatives with numerous and dispersed membership, the general assembly may be
composed of delegates elected by each sector, chapter or district of the cooperative in
accordance with the rules and regulations of the Cooperative Development Authority;
Committee shall refer to anybody entrusted with specific functions and responsibilities under
the bylaws or resolution of the general assembly or the board of directors;
Articles of Cooperation means the articles of cooperation registered under this Code and
includes a registered amendment thereof;
Bylaws means the bylaws registered under this Code and includes any registered amendment
thereof;

All of the above

V and VI
II and III
I and II
Answer C. II and III
According to REPUBLIC ACT 9520 or "PHILIPPINE COOPERATIVE CODE OF 2008", "ART. 5.
Definition of Terms. The following terms shall mean:

"(1) Member includes a person either natural or juridical who adhering to the principles set
forth in this Code and in the Articles of Cooperative, has been admitted by the cooperative
as member;

"(2) General Assembly shall mean 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 articles of cooperation and bylaws: Provided, That
for cooperatives with numerous and dispersed membership, the general assembly may be
composed of delegates elected by each sector, chapter or district of the cooperative in
accordance with the rules and regulations of the Cooperative Development Authority;

"(3) Board of Directors shall mean that body entrusted with the management of the affairs of
the cooperative under its articles of cooperation and bylaws;

"(4) Committee shall refer to any body entrusted with specific functions and responsibilities
under the bylaws or resolution of the general assembly or the board of directors;

"(5) Articles of Cooperation means the articles of cooperation registered under this Code and
includes a registered amendment thereof;

"(6) Bylaws means the bylaws registered under this Code and includes any registered
amendment thereof;
Using the Article 5 of the Philippine Cooperative Code, by stating the definition of terms the
II and III are incorrect because General Assembly shall mean 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 articles of cooperation
and bylaws: Provided, That for cooperatives with numerous and dispersed membership, the
general assembly may be composed of delegates elected by each sector, chapter or district
of the cooperative in accordance with the rules and regulations of the Cooperative
Development Authority and Board of Directors shall mean that body entrusted with the
management of the affairs of the cooperative under its articles of cooperation and bylaws.
COOPERATIVES

Therefore, I conclude that in accordance with the mentioned section of The Philippine
Cooperative Code, II General Assembly and III Board of Directors their definition is incorrect
as if it didn’t match to the definition of terms provided in the Law.

VARGAS, FLORLIE MAE B.

It is a type of cooperative that promotes and undertakes savings and lending services among
its members and generates a common pool of funds in order to provide financial assistance
to its members for productive and provident purposes.
a. Multipurpose Cooperatives
b. Cooperative Bank
c. Credit Cooperative
d. Consumers Cooperative

Answer: C
Legal Basis:
ART. 23. Type and Categories of Cooperatives. (1) Types of Cooperatives Cooperatives may
fall under any of the following types:

"(a) Credit Cooperative is one 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;

"(b) Consumers Cooperative is one of the primary purpose of which is to procure and distribute
commodities to members and non-members;
….

"(f) Multipurpose Cooperative is one which combines two (2) or more of the business activities of
these different types of cooperatives;

…
"(i) Cooperative Bank is one organized for the primary purpose of providing a wide range of financial
services to cooperatives and their members;

Application:
In accordance to our legal basis, the question matches the definition of a credit cooperatives.

Conclusion:
Therefore, we can conclude that the correct answer is credit cooperatives in letter C.

VELASCO, JUAN PAULO MARIE S.

Who can be considered members of a primary cooperatives?
I. Natural Person
Ii. Primary Cooperatives
III. Secondary Cooperatives
IV. Tertiary Cooperatives
A) I only
B) I and II
C) I and III
D) all of the statements are true

The answer is A, only natural person can be members of a Primary Cooperative. According to
article 26 of RA 6938, only natural persons may be admitted as members of a primary
cooperatives. Hence letter A is the answer.
COOPERATIVES

VILLADIEGO, JIZELLE J.
Rhealyn, an associate member who wants to become a regular member of KML
Cooperative, a multi-purpose type of cooperative in Uzacat. To be considered as regular
member, Rhealyn needs to:
meet the maximum requirements of regular membership, continues to patronize the
cooperative for two (2) years, and does not signifies her intention to remain a member.
meet the minimum requirements of regular membership, continues to patronize the
cooperative for three (3) years, and signifies her intention to remain a member.
meet the minimum requirements of regular membership, continues to patronize the
cooperative for two (2) years, and does not signifies her intention to remain a member.
meet the minimum requirements of regular membership, continues to patronize the
cooperative for two (2) years, and signifies her intention to remain a member.

ANSWER
The answer is letter d, Rhealyn needs to meet the minimum requirements of regular
membership, continues to patronize the cooperative for two (2) years, and signifies her
intention to remain a member.
LEGAL BASIS
According to Article 26, kinds of membership of Republic Act no. 9520, a cooperative may
have two (2) 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 such rights and privileges as the bylaws
may provide: Provided, THAT AN ASSOCIATE MEMBER WHO MEETS THE MINIMUM
REQUIREMENTS OF REGULAR MEMBERSHIP, CONTINUES TO PATRONIZE THE COOPERATIVE
FOR TWO (2) YEARS, AND SIGNIFIES HIS/HER INTENTION TO REMAIN A MEMBER SHALL BE
CONSIDERED A REGULAR MEMBER. A cooperative organized by minors shall be considered a
laboratory cooperative and must be affiliated with a registered cooperative. A laboratory
cooperative shall be governed by special guidelines to be promulgated by the Authority.
APPLICATION
To be considered as regular member, Rhealyn needs to meet the minimum requirements of
regular membership, continues to patronize the cooperative for two (2) years, and signifies
her intention to remain a member as stated in the Article 26. If Rhealyn complied with this,
she is entitled to all the rights and privileges of membership, including the right to vote and
be voted upon.
CONCLUSION
Therefore, an associate member like Rhealyn will become a regular member if she complies
on the requirements as stated in the Article 26, kinds of membership.