Midterm: #3 Capital, Property, Funds

• CAPITAL

  • The capitalization of cooperative and the  accounting procedures shall be governed by  the provisions of this Code and the  regulations which shall be issued.
• SHARE CAPITAL

  The term ‘share’ refers to a unit in a primary  cooperative the par value of which may be fixed at any  figure not more than 1000 pesos.
• The share capital of the cooperative is the money  paid or required to be paid for the operations of the  cooperative.
• The share capital consist of:

  • Common share capital-issued to regular members
  • Preferred share capital-issued to associate members
• CAPITAL SOURCES

  Cooperative registered under this Code may derive  their capital from any or all of the following sources:

  1. Members’ share capital
  2. Loans and borrowings including deposits
  3. Revolving capital which consists of the deferred  payment of patronage refunds or interest on share  capital
  4. Subsidies, donations, legacies, grants, aids and such  other assistance from any local or foreign institution  whether public or private.
• LIMITATION ON SHARE CAPITAL  HOLDINGS

  No member of a primary cooperative other  than a cooperative itself shall own or hold more  than 10% of the subscribed share  capital of the cooperative.
• ASSIGNMENT OF SHARE CAPITAL  CONTRIBUTION OR INTEREST

  No member shall transfer his shares or interest in  the cooperative or any part thereof unless:

  • He has held such share capital contibution or  interest for not less than 1 year
  • The assignment is made to the cooperative or to  a member of the cooperative
  • The board of directors shall approve such  assignment.
• CAPITAL BUILD-UP

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