Membership in Cooperative

Summary

This lecture on Chapter 3 of the Cooperative Code of the Philippines delves into membership types, specifically regular and associate members. It outlines the requirements and rights associated with each, including voting privileges for regular members. The discussion extends to the implications of membership for foreign nationals and government employees, as well as the limited liability of members regarding debts. Termination of membership, both voluntary and involuntary, is also addressed. The session emphasizes the cooperative's structure and the importance of understanding membership rights and responsibilities.

Takeaways

• 😀 There are two kinds of membership in cooperatives: regular and associate members.
• 😀 Regular members fulfill all membership requirements and have voting rights.
• 😀 Associate members do not have voting rights but can become regular members after meeting specific criteria.
• 😀 Membership requirements may include economic equity contributions and participation in educational seminars.
• 😀 Foreigners can potentially join cooperatives if legislation allows it, promoting investment.
• 😀 Government employees and officials can join cooperatives but cannot hold officer positions within them.
• 😀 Membership termination can be voluntary or involuntary, with conditions outlined in the cooperative's bylaws.
• 😀 Members are liable for the cooperative's debts only up to their capital contributions.
• 😀 If a member withdraws, they are entitled to a refund of their contributions after settling any obligations.
• 😀 Applications for membership must be acted upon by the board within 30 days; otherwise, they are automatically approved.

Q & A

What are the two types of membership defined in the Cooperative Code of the Philippines?

The two types of membership are regular members and associate members.

What does the term 'may' indicate regarding membership types in cooperatives?

'May' indicates that cooperatives have the option to adopt either one or both types of membership in their bylaws.

What are the primary requirements for becoming a regular member of a cooperative?

Regular members must comply with all membership requirements outlined in the cooperative's articles and bylaws, including an economic equity contribution.

What rights do regular members possess that associate members do not?

Regular members have the right to vote and to be voted upon, whereas associate members do not have these rights.

Under what conditions can an associate member become a regular member?

An associate member can become a regular member after meeting minimum requirements for two years and demonstrating continued patronage.

Can foreigners be members of cooperatives under current Philippine law?

Generally, only Filipino citizens can be members, but proposed amendments aim to allow foreigners for investment purposes, provided local control is maintained.

Are government employees allowed to be members of cooperatives?

Yes, government employees can be members, but they are disqualified from being elected or appointed as officers in the cooperative.

What liability do members have regarding the debts of the cooperative?

Members are only liable for the debts of the cooperative up to the extent of their contribution to the share capital.

What are the two types of membership termination mentioned in the cooperative code?

The two types are voluntary termination (resigning with notice) and involuntary termination (due to specific conditions like non-compliance).

What happens to a member's contributions upon voluntary termination of membership?

Upon voluntary termination, members are entitled to a refund of their share capital contributions and any other interests in the cooperative.