RULES AND REGULATION IMPLEMENTING CERTAIN PROVISIONS OF THE PHILIPPINE COOPERATIVE CODE OF 2008 (REPUBLIC ACT NO. 9520)
Pursuant to the provision of Art. 139 of Republic Act No. 952 otherwise known as the Philippine Cooperative Code of 2008, the Cooperative Development Authority hereby issues the following rules and regulations implementing certain provisions of the said Code.
TITLES AND DEFINITIONS
Section 1. Title. These Rules shall be known as the "Rules and Regulations Implementing Certain Provisions of the Philippine Cooperative Code of 2008."
Section 2. Definition of Terms. For the purpose of these Rules and regulations, the following terms are defined as follows:
(1) Alternative Dispute Resolution - shall refer to any process or procedure used to resolve a dispute or controversy, other than by adjudication of a presiding Judge of Court or an officer of a government agency, in which a neutral third party participates to assist in the resolution of issue, which includes arbitration, mediation, conciliation, early neutral evaluation, mini trial, or any combination thereof.
(2) Arbitrator - shall refer to the person appointed to render an Award/Decision, alone or with others, in a dispute that is the subject of an Arbitration Agreement.
(3) Area of Business Operation - shall refer to the principal place of business of a cooperative where the cooperative conducts its business as provided for in their Articles of Cooperative and By-laws.
(4) Area of Operation - shall refer to the area where the cooperative members come from as provided for in their Articles of Cooperation and By-laws.
(5) Articles of Cooperation - shall refer to the Articles of Cooperation registered under the Code, with includes a registered amendment thereto, if applicable.
(6) Associate Member - shall refer to member of a cooperative who has no right to vote or be voted upon and shall be entitled only to such rights and privileges as the By-laws may provide.
(7) Authority - shall refer to the Cooperative Development Authority (CDA).
(8) Authorized Share Capital - shall refer to the capitalization of the cooperative as prescribed in the Articles of Cooperation
(9) Award/Decision - shall refer to any partial or final decision by an Arbitrator in resolving the issue in a controversy.
(10) Board of Liquidators/Trustees - shall refer to the body appointed by the Board of Directors or elected by the General Assembly that shall cause the liquidation of the cooperative in case of voluntary dissolution or appointed by the Authority/Court in case of involuntary dissolution of a cooperative.
(11) Bond of Membership - shall refer to the conditions where members associate themselves to attain their common goals and objectives which may either be residential, occupational, associational, and institutional.
(12) By-Laws - shall refer to the By-laws registered under the Code which includes any registered amendments thereto.
(13) Capital - shall refer to the sum total of member's share capital including deposits, revolving capital, subsidies, donations, legacies, grants, aids, land structures, plants, equipment facilities, machines and other assets of a cooperative.
(14) Certificate of Merger - shall refer to the document issued by the Authority evidencing registration of merger.
(15) Code - shall refer to the Republic Acts No. 9520, otherwise known as the Philippine Cooperative Code of 2008.
(16) Conciliation - shall refer to the process whereby a neutral third party takes a vigorous and active role in assisting disputants to formulate between and among them an acceptable solution in order to reach an amicable settlement.
(17) Conservator - shall refer to any person appointed by the Authority empowered to take charge of the assets, liabilities, and the management of the cooperative, after finding that the cooperative is in the state of continuing illiquidity or unwillingness to maintain a condition of liquidity which is deemed adequate to protect the interest of members and creditors of the cooperative.
(18) Consolidation - shall refer to a union of two or more existing cooperatives belonging to the same category to a form a new cooperative called the consolidated cooperative.
(19) Constituent Cooperatives - shall refer to two or more existing cooperatives which are parties to a merger or consolidation.
(20) Credit Cooperative - shall refer to one that promotes and undertakes savings and lending services among its members. It generates a common pool of funds in order to provide financial assistance and other related financial services to its members for productive and provident purposes.
(21) Cumulative Interest - shall refer to the interest due to a member that must be added to in future interest if it is not paid when due.
(22) Delay in the submission of reports - shall refer to the failure of the cooperatives to submit a report on time.
