SECTION 1. Title. These rules, regulations and guidelines shall be known as the “Rules and Regulations Implementing Certain Provisions of the Cooperative Code of the Philippines.”
SECTION 2. Definition of Terms. As used in these Rules and Regulations, the following terms are defined as follows:
ANNUAL REPORT shall refer to the organized written report on the state of affairs of a cooperative at the end of its fiscal year.
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 by-laws may provide.
AUTHORITY shall refer to the Cooperative Development Authority (CDA).
AUTHORIZED SHARE CAPITAL is the amount of capitalization of the cooperative as prescribed by the articles of cooperation.
CALL shall refer to a written notice or demand made by the cooperative to its members to pay their dues and unpaid share capital, in accordance with their membership or subscription agreement, the policies and actions of the board of directors and general assembly.
CAPITAL shall include but not limited to the sum total of members’ share capital, loans and borrowings including deposits, revolving capital, subsidies, donations, legacies, grants, aids, lands, structures, plants, equipments, facilities, machines and other assets of cooperative as may be utilized to attain its purposes and objectives.
CODE shall refer to Republic Act. No.6938, otherwise known as the Cooperative Code of the Philippines.
CONSOLIDATION shall refer to an amalgamation by agreement between two (2) or more cooperatives whereby their purposes, rights, obligations, franchises, privileges and properties are combined in a single, new cooperative.
CUMULATIVE INTEREST shall mean the interest that must be added to future interest if it is not paid when due.
DIVISION shall mean the act of splitting a single cooperative into two or more cooperatives, wherein the original cooperative shell be dissolved and the resulting cooperative shell be dissolved and the resulting cooperatives shall acquire separate and distinct juridical personalities.
DONATED CAPITAL shall include but not be limited to subsidies, grants, donations and aids received from any person, whether natural or juridical, local or foreign.
FIXED DEPOSIT is the amount actually paid by a member as his contribution to the capitalization of the cooperative.
GUARDIAN COOPERATIVE shall refer to a cooperative duly registered with the Authority with which a laboratory cooperative is affiliated.
INTEREST shall refer to an amount paid for the use of money.
LABORATORY COOPERATIVE shall refer to a cooperative formed and managed principally by minors and which is affiliated with a registered cooperative.
LIQUIDATION shall refer to the process of winding up the affairs of the cooperative and the subsequent cancellation of the certificate of registration of a cooperative.
MEMBERS’ EQUITY is the residual ownership of members in the assets of a cooperative which is the excess of assets over liabilities, capital from external sources, statutory reserves and other necessary funds as may be provided for in the articles of cooperative and by-laws of the cooperative.
MERGER shall refer to the absorption of one or more existing cooperatives by another cooperative which continues the combined purposes of the adsorbed cooperatives.
MINORS shall refer to natural persons who are Filipino citizen below eighteen (18) years of age.
NON-CUMULATIVE INTEREST shall mean the interest that is not added to future interests if not paid when due.
OUT-OF-SCHOOL MINORS shall refer to those who are not enrolled in any formal education during the current schoolyear.
PAID-UP SHARE CAPITAL is that portion of the authorized share capital which has actually been paid by the members.
PUBLICATION shall refer to the posting of the annual report in conspicuios public places within the area of operations of the cooperative or its publication in a newspaper and its distribution to all members of record.
REVOLVING CAPITAL is an amount raised by the cooperative to strengthen its capital structure by deferring the payment of the patronage refund and interest on share capital of the members or by authorized deduction of a percentage from the products sold or per unit of product handled by the members. It shall also include the amount received from the issuance of cooperative bonds and/or certificates of indebtedness.
SHARE CAPITAL is the money paid or required to be paid by the members for the conduct of the operations of the cooperative.
SUBSCRIBED SHARE CAPITAL is the portion of the authorized share capital which the members pledge or agree to pay as their share capital in the cooperative.
TOTAL AVERAGE SHARE MONTH shall refer to the sum total of the average share moth which is determined by adding the monthly ending balances of the member’s share capital and dividing the sum by twelve (12) months. The monthly ending balances shall include share capital during the first seven (7) days of the month.
UNPAID SUBSCRIPTION shall refer to the pledged share capital which is not yet paid by a member.
WINDING UP OF AFFAIRS shall refer to the final settlement of the liabilities, the disposal of reserves and the return to the members of their share capital and any remaining assets of a cooperative.