RESPONSIBILITIES, RIGHTS AND PRIVILEGES OF COOPERATIVES

Summary

This video discusses the rights, responsibilities, and privileges of cooperatives in the Philippines, focusing on their legal obligations, documents, and procedures. Key topics include maintaining an official postal address, ensuring transparency through accessible financial records, and the privileges of members, such as tax exemptions and the right to inspect books. The video also highlights the preferential treatment cooperatives receive in areas like government contracts, public markets, and tax exemptions for transactions with members. It explains the importance of proper documentation and provides insights on the benefits cooperatives enjoy under Philippine law.

Takeaways

• 😀 Every cooperative must have an official postal address for notices and communications, which must be registered with the relevant authority.
• 😀 Cooperatives are required to keep various documents accessible for inspection by their members and relevant authorities, including books of accounts, articles of cooperation, bylaws, and financial statements.
• 😀 Members of a cooperative have the right to inspect the cooperative's books and documents, including the minutes of meetings, financial statements, and the register of members.
• 😀 Cooperatives must prepare regular reports on their activities, showing progress and achievements, at the end of each fiscal year.
• 😀 Certified copies of cooperative records are admissible as evidence in legal proceedings, provided they comply with the rules of evidence.
• 😀 Directors, officers, and employees handling funds, securities, or property for the cooperative must be covered by a surety bond to ensure the faithful performance of their duties.
• 😀 Cooperatives have a preferential right to the raw materials, products, and property produced by members, and any sale or transfer of these assets requires prior approval from the cooperative.
• 😀 Members of a cooperative can authorize their employer to deduct a portion of their salary or benefits to settle debts owed to the cooperative.
• 😀 Cooperatives that only transact with their members are exempt from income taxes and other national tax laws, while those dealing with non-members may be subject to taxes on transactions with non-members.
• 😀 Cooperatives with accumulated reserves and undivided net savings of less than 10 million pesos are exempt from certain local taxes and duties, including VAT, and may also enjoy exemptions on imports of machinery and equipment.
• 😀 Cooperatives enjoy various privileges, such as free use of government spaces, the right to supply government institutions with specific products, and preferential treatment in public market management and the allocation of government resources.

Q & A

Why is it important for cooperatives to have an official postal address?

An official postal address ensures that all notices and communications are sent to a registered and accessible location. This helps in verifying the cooperative's existence and location, and provides a point of contact in case of fraudulent transactions or legal issues.

What rights do cooperative members have regarding the cooperative's books and records?

Cooperative members have the right to inspect the cooperative's key documents, such as the register of members, financial statements, minutes of meetings, and other business records, during reasonable office hours.

What type of reports must cooperatives prepare annually?

Cooperatives must prepare regular reports at the end of each fiscal year detailing their activities, including progress and achievements in social and civic undertakings.

What is the significance of the register of members in a cooperative?

The register of members serves as prima facie evidence of the cooperative's membership, showing the dates when individuals were registered as members and when they ceased to be members.

How are certified copies of cooperative documents treated legally?

Certified copies of cooperative documents, such as the certificate of stock or minutes of meetings, are admissible as evidence in legal proceedings if certified according to the rules of evidence.

What is required of cooperative officers and employees handling funds or property?

Cooperative officers and employees who handle funds, securities, or property must be covered by a surety bond issued by a registered bonding company to ensure the faithful performance of their duties.

What kind of preferential rights do cooperatives have regarding members' debts?

Cooperatives have a preferential right to claim debts from their members, particularly with respect to raw materials, production inputs, and products produced by the cooperative.

How do salary or wage deductions work for cooperative members?

Cooperative members may authorize their employer to deduct a portion of their salary to pay for debts owed to the cooperative. The employer must remit the deducted amount to the cooperative within a specified time frame.

What tax exemptions do cooperatives enjoy under the cooperative code?

Cooperatives that do not transact business with non-members are exempt from national taxes, such as income tax, sales tax, and documentary stamp taxes. Cooperatives transacting with non-members may still be exempt from certain taxes on transactions with members.

What privileges do cooperatives have when engaging in legal matters or dealings with the government?

Cooperatives are exempt from paying court and sheriff's fees for legal cases under the cooperative code. They also enjoy preferential treatment in government transactions, including loans, credit lines, and the allocation of government contracts.