Issues arise concerned with consilidating departments

"(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) Credit Cooperative is one that promotes and undertakes savings and lending services among its members.

The committee is given thirty (30) days from receipt thereof to decide on the appeal. All sums computed in accordance with the bylaws to be due from a cooperative to a former member shall be paid to him either by the cooperative or by the approved transferee, as the case may be, in accordance with this Code." CHAPTER IV ADMINISTRATION "ART. "If the board fails to call a regular or a special meeting within the given period, the Authority, upon petition of ten per centum (10%) of all the members of the cooperative who are entitled to vote, and for good cause shown, shall issue an order to the petitioners directing them to call a meeting of the general assembly by giving proper notice as required in this Code or in the bylaws; "(3) In the case of a newly approved cooperative, a special general assembly shall be called, as far as practicable, within ninety (90) days from such approval; "(4) The Authority may call a special meeting of the cooperative for the purpose of reporting to the members the result of any examination or other investigation of the cooperative affairs; and "(5) Notice of any meeting may be waived, expressly or impliedly, by any member. In the case of electric cooperatives registered under this Code, a quorum, unless otherwise provided in the bylaws, shall consist of five per centum (5%) of all the members entitled to vote. The votes cast by the delegates shall be deemed as votes cast by the members thereof. 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. "(4) Any person engaged in a business similar to that of the cooperative or who in any way has a conflict of interest with it, is disqualified from election as a director of said cooperative. "(3) A majority of the members of the Board shall constitute a quorum or the conduct of business, unless the bylaws proved otherwise. A director so elected to fill a vacancy shall serve only the unexpired term of his predecessor in office. Loss of confidence shall not be a valid ground for removal unless evidenced by acts or omission causing loss of confidence in the honesty and integrity of such officer. "(2) The bylaws shall provide for the creation of an audit, election, mediation and conciliation, ethics, and such other committees as may be necessary for the conduct of the affairs of the cooperative.

Failure to decide within the prescribed period, the appeal is deemed approved in favor of the member. "However, the bylaws of a cooperative other than a primary may provide for voting by proxy. "(4) Directors cannot attend or vote by proxy at board meetings. No two (2) or more persons with relationships up to the third civil degree of consanguinity or affinity nor shall any person engaged in a business similar to that of the cooperative nor who in any other manner has interests in conflict with the cooperative shall serve as an appointive officer. The members of both the audit and election committee shall be elected by the general assembly and the rest shall be appointed by the board.

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. (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. In case membership is refused or denied by the board of directors, an appeal may be made to the general assembly and the latters decision shall be final. A member shall be liable for the debts of the cooperative to the extent of his contribution to the share capital of the cooperative. "(2) The death or insanity of a member in a primary cooperative, and the insolvency or dissolution of a member in a secondary or tertiary cooperative may be considered valid grounds for termination of membership: Provided, That in case of death or insanity of an agrarian reform beneficiary-member of a cooperative, the next-of-kin may assume the duties and responsibilities of the original member "(3) 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. The general assembly shall have the following exclusive powers which cannot be delegate: "(1) To determine and approve amendments to the articles of cooperation and bylaws; "(2) To elect or appoint the members of the board of directors, and to remove them for cause. (1) Any member of a cooperative who under the bylaws of the cooperative, has the right to vote and who possesses all the qualifications and none of the disqualifications provided in the laws or bylaws shall be eligible for election as director.

"A cooperative organized by minors shall be considered a laboratory cooperative and must be affiliated with a registered cooperative. "(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; and "(3) Any government employee or official may, in the discharge of is duties as a member in the cooperative, be allowed by the end of office concerned to use official time for attendance at the general assembly, board and committee meetings of cooperatives as well as cooperative seminars, conferences, workshops, technical meetings, and training courses locally or abroad: Provided, That the operations of the office concerned are not adversely affected. 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. "A member whose membership the board of directors may wish to terminate shall be informed of such intended action in writing and shall be given an opportunity to be heard before the said board makes its decision. The general assembly shall be composed of such members who are entitled to vote under the articles of cooperation and bylaws of the cooperative. However, in the case of the electric cooperatives registered under this Code, election of the members of the board shall be held in accordance with its bylaws or election guideline of such electric cooperative; and "(3) To approve developmental plans of the cooperative. (1) A regular meeting shall be held annually by the general assembly on a date fixed in the bylaws, or if not so fixed, on any dated within ninety (90) days after the close of each fiscal year: Provided, That notice of regular meetings shall be sent in writing, by posting or publication, or through other electronic means to all members of record. "(2) The cooperative may, by resolution of its board of directors, admit as directors, or committee member one appointed by any financing institution from which the cooperative received financial assistance solely to provide technical knowledge not available within its membership.

"A federation of cooperatives may be registered by carrying out the formalities for registration of a cooperative. 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 non-business activities as may be necessary to attain the foregoing objectives. A cooperative may have two (2) kinds of members, to wit: (1) regular members and (2) associate members. (1) A member of a cooperative may, for any valid reason, withdraw his membership from the cooperative by giving a sixty (60) day notice to the board of directors.