Midterm: Quiz 1 Cooperative

• 1. What are the powers of the General Assembly?

  a)Determining the capitalization of the cooperative

  b) Appointment of officers of the cooperative

  c) Approval of annual budget and plans

  d) All of the above
• Which type of membership is entitled to all the rights and privileges of membership?

  Regular member
• What is a regular member of a cooperative?

  A member who has complied with all membership requirements and entitled to all the rights and privileges of membership
• What document must be filed with the Authority by the cooperative applying for registration?

  Articles of Cooperation
• What is the common bond of interest required for individuals to organize a primary cooperative?

  Same interest or purpose
• What does "degree of relationship" refer to in the organizational structure?

  The extent to which members of the cooperative are related to each other
• How is the net surplus distributed?

  Based on the decision of the General Assembly
• Which type of membership has no right to vote or be voted upon?

  Associate member
• How are vacancies in the Board of Directors filled?

  By appointment of the remaining directors
• What is the minimum number of members required to be present in a General Assembly meeting for it to be considered a quorum?

  25% of the total membership
• What reports are required from cooperatives?

  a)Regular reports on financial and operational performance

  b) Reports on compliance with government regulations

  c) Reports on capitalization and net surplus distribution

  d) All of the above
• Who approves an applicant's membership in a cooperative?

   board of directors
• What is the maximum period for a cooperative to exist?

   50 years
• How can membership in the cooperative be terminated?

  By the Board of Directors with a vote of the majority of all the members
• What is the effect of a certificate of registration issued by the Authority under its official seal?

  It is conclusive evidence that the cooperative is duly registered
• What is the purpose of bonding accountable officers?

  To protect the cooperative from losses due to fraud or dishonesty
• How is the net surplus of a cooperative determined?

  By subtracting the cost of goods and services availed by members from payments and mandated funds by the gov't made by members
• What is the purpose of the register of members?

  To serve as evidence of membership and ownership of share capital
• Which of the following is a potential challenge of allowing relationships by consanguinity or affinity within a cooperative?

  Potential conflicts of interest arising from familial relationships
• What are the powers of the Board of Directors?

  a)Determining the compensation of officers

  b) Approving annual reports and financial statements

  c) Approving loans and investments

  d) All of the above
• What is the limitation on share capital holdings?

  Members are not allowed to hold more than 10% of the total share capital
• Can any provision or matter stated in the articles of cooperation and by-laws be amended?

  Yes, as long as it is approved by a two-thirds (2/3) vote of all the members with voting rights
• What is the required age for individuals to organize a primary cooperative?

  18 years old
• Which of the following is an example of a relationship by affinity in a cooperative?

  Two members who are married to each other
• What is meant by "relationship by consanguinity" in the cooperative governance?

  A relationship based on blood or descent
• Who is disqualified to be elected or appointed to any position in a cooperative?

  An elective official of the Government
• Can a government employee or official use official time for attendance at the general assembly, board and committee meetings of cooperatives, as well as cooperative seminars, workshops, technical meetings, and training courses locally or abroad?

  Yes, for all the mentioned meetings and events
• What is the requirement for individuals to complete before becoming members of the cooperative?

  Pre-Membership Education Seminar (PMES)
• Can a member withdraw his/her membership from the cooperative?

  Yes, by giving a sixty-day notice to the board of directors
• Is a member liable for the debts of the cooperative?

  Yes, to the extent of their contribution to the share capital of the cooperative