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Applicability of provisions.
SEC. 127. Applicability of provisions.—The special provisions under this Chapter are applicable only to co-operative wholesale societies registered under this Act and the other provisions of this Act will apply to them only in so far as they are not against the express provisions contained in this Chapter.
Objects.
SEC. 128. Objects.— The objects of co-operative-wholesale societies are to facilitate the operation of consumers and producers co-operatives in particular and retailers in general by being a source of steady supply and disposal of domestic requirements of their members, and The Philippine Co-operative Wholesale Society may— Purchase, produce and supply in wholesale quantities through the provincial co-operative wholesale societies, if in existence, to the affiliated co-operatives with goods which they require for domestic purposes of their members and to retailers and their associations or corporations who have become members; Enter into retail trade as far as it is necessary; Import goods from other countries and as far as possible through the Co-operative Movement of other countries; Establish branches in each province where no provincial co-operative wholesale society exists, with a view to convert such branches into provincial co-operative wholesale societies; Undertake to distribute essential commodities to the people in case of emergencies, under the control of the Government; Stand guarantee for the affiliated co-operatives; Market the products manufactured including articles of handicrafts and small industry by the affiliated co-operatives, either by the outright purchase or on commission basis; Provide training of its employees and the employees of the affiliated co-operatives and spread knowledge as to why and how the consumers should organize themselves; Protect the interests of the consumers and producers co-operatives in the sphere of legislation; and Carry on all other objects as may be prescribed in the regulations. The provincial co-operative wholesale societies may, in addition to the objects noted in clauses (b), (e), (f), (g) and (h) of subsection (1) of this section, may— Act as agent of The Philippine Co-operative Wholesale Society; and Carry on all other objects as may be prescribed in the regulations.
Registration.
SEC. 129. Registration.—No co-operative wholesale society shall be registered by the Administrator, unless the articles of incorporation and the by-laws of such cooperative wholesale society have been approved by the Secretary of Commerce and Industry and the co-operative wholesale society satisfies all the provisions for registration of federations of co-operatives. There may be registered one co-operative wholesale society at the national level to serve as the chief source of supply and marketing of goods required and produced by the affiliated co-operatives and one provincial co-operative wholesale society in each province.
Name and jurisdiction.
SEC. 130. Name and jurisdiction.—The co-operative wholesale society at the National level may be known as "The Philippine Co-operative Wholesale Society" with its jurisdiction all over the country and headquarters at Manila. The co-operative wholesale societies at the provincial level may be known as "The Provincial Co-operative Wholesale Society" and shall include in their names the name of the province for which they are registered. The jurisdiction of the provincial co-operative wholesale societies shall extend to the province for which each one is registered unless necessary sanction is obtained under subsection (3) of Section twenty five of this Act and their headquarters shall be in the capital or any city of the province concerned as determined by the Administrator.
Membership.
SEC. 131. Membership.—Membership of co-operative wholesale societies may consist of consumers and producers co-operatives together with their federations and retailers or their associations or corporations and shall include all those of the above description who join in the articles of incorporation of any co-operative wholesale society and all those of the above description admitted to membership by the board of directors of such co-operative wholesale society after registration. Affiliated co-operatives shall be known as class "A" members and retailers and their associations or corporations shall be known as class "B" members.
Voting.
SEC. 132. Voting.—Each member attending the general assembly shall have one vote as a member and shall have as many votes in addition according to the scale to be prescribed in the by-laws, giving weight for the business done with the co-operative wholesale society concerned.
Board of directors.
SEC. 133. Board of directors.—The general assembly of every co-operative wholesale society shall elect a board of directors, whose number and proportionate representation between class "A" and class "B" members shall be determined from time to time by the Secretary of Commerce and Industry in the regulations or by special order in writing. Each class of members shall exercise their right to elect their share of representatives in the board of directors. The President, Secretary, Treasurer and Manager of every co-operative wholesale society shall be appointed, their salaries determined and paid by the Philippine Government in consultation with the board of directors of the co-operative wholesale society concerned and the Administrator, until such time as, but not earlier than five years after registration of, the cooperative wholesale society concerned through a resolution of its general assembly, express to the Secretary of Commerce and Industry that it can elect or appoint, as the case may be, all or any of the said persons and pay their or his salary out of its fund without jeopardizing its financial stability and thereafter the Secretary of Commerce and Industry shall withdraw all or any of the persons appointed by him and requested to be withdrawn by the co-operative wholesale society and allow the co-operative wholesale society to fill in the post according to its by-laws. The persons appointed by the Secretary of Commerce and Industry, the Administrator or his representative and the General Manager of the National Marketing Corporation or his representative so long as the National Marketing Corporation exists, shall be ex officio directors of the board and ex officio members of the Executive committee, if any, created. The President shall be the chairman of the general assembly, board and the executive committee.
Manager.
SEC. 134. Manager.—The Manager of the co-operative wholesale society shall be responsible for the day-to-day management of the business in accordance with the decisions of the board and the executive committee. The duties of the manager shall be specified in the by-laws of every co-operative wholesale society.
Budget control.
SEC. 135. Budget control.—The board of directors shall not recommend a budget to the general assembly nor shall the general assembly approve a budget which shall involve an expenditure exceeding such percentage of the gross earnings of the previous year or the anticipated realizable gross earnings of the next year whichever is lower as shall be determined by the Administrator.
Borrowing.
SEC. 136. Borrowing.—Subject to the regulations, the general assembly shall fix a maximum limit of borrowings for each year. As far as possible, all the banking transactions shall be done with the co-operative banks.
Terms of business.
SEC. 137. Terms of business.—All sales to members shall be on cash basis: Provided, however, That the members may order supplies on indent basis with a deposit of a percentage of the value as determined by the board of directors at the time of order and payment of the balance on delivery: Provided, further, That when a member refuses to receive and pay for the supplies after order, the said deposit may be forfeited in whole or in part at the discretion of the board.
Capital.
SEC. 138. Capital.— The Philippine Co-operative Wholesale Society shall have an authorized capital of ten million pesos (P10,000,000) divided into shares of one hundred pesos par value each. The shares shall be divided into two groups marked series "A" and series "B". Series "A" shall comprise of five million pesos (P5,000,000) to be subscribed for by the Government of the Philippines. On registration of the Philippine Co-operative Wholesale Society the Government shall pay towards subscription of the said amount one million pesos (P1,000,000) and the balance shall be paid in each year on a fund-matching basis with the owned capital of the Philippine Co-operative Wholesale Society. The owned capital shall include paid up share capital under clause (b) of this section, reserve fund and other funds set apart under this Act and excludes payments received from the Government under this clause. The shares held by the Government shall not be entitled to any interest or votes. Series "B" shall comprise of five million pesos (P5,000,000) to be subscribed for by the members of the co-operative wholesale society. Each provincial co-operative wholesale society shall have an initial authorized capital of one million pesos (Pl,000,000) divided into two groups marked series "A" and series "B". Series "A" shall comprise of five hundred thousand pesos (P500,000) to be subscribed for by the Government of the Philippines. On registration of each provincial co-operative wholesale society, the Government shall pay towards subscription of the said amount one hundred thousand pesos (P100,000) and the balance shall be paid in each year on a fund matching basis with the owned capital of the provincial co-operative wholesale society. The owned capital shall be as mentioned in clause (a) of subsection (1). The shares held by the Government shall not be entitled to any interest or votes. Series "B" shall comprise of five hundred thousand pesos (P500,000) to be subscribed for by class "A" and class "B" members. The proportion of shares to be purchased by members in relation to their membership, paid-in capital and the business done with the co-operative wholesale society, as the case may be, shall be specified in the by laws.
Warehouse financing.
SEC. 139. Warehouse financing.—The Government of the Philippines through any of its agencies may provide long term loans to any or all co-operative wholesale societies or authorize them to issue debentures to finance the building of warehouses, provided that such co-operative wholesale societies finance at least twenty per centum of the cost of the warehouse. The security for the loans or the debentures shall be the warehouse built.
Audit.
SEC. 140. Audit.—Subject to the provisions of Section eighty six the general assembly of every co-operative wholesale society shall also make separate arrangement for audit of their accounts and shall appoint an auditor to audit the accounts of the co-operative wholesale society and to submit report to the board of directors and the general assembly as often as is required by them.
Distribution of savings.
SEC. 141. Distribution of savings.—The provisions under Chapter VIII—Allocation and Distribution of Savings—of this Act shall apply to the distribution of savings of co-operative wholesale societies except that the Reserve Fund to be set aside shall at least be twenty-five per cent of the net savings.
Liquidation.
SEC. 142. Liquidation.—Subject to the provisions of Chapter XI, every co-operative wholesale society shall seek liquidation when one half of its paid-capital has been lost. The Philippine Government shall have first charge on the assets of the co-operative wholesale society under liquidation.
Privileges.
SEC. 143. Privileges.—In addition to the privileges granted in Chapter VI, the co-operative wholesale societies shall be granted the following privileges:— The Government of the Philippines may provide sufficient facilities for import and export of goods and the necessary exchange of currency for the business operation; The National Marketing Corporation shall at progressive stages transfer its trade to the co-operative wholesale societies and in the meanwhile treat the co-operative wholesale societies as its agents and extend better concessions to them than shown to individuals, retailers or their associations or corporations; and The Government of the Philippines may give preference in procuring its requirements through or from the co-operative wholesale societies as far the terms of supply of co-operative wholesale societies are equal to that of any individual or corporations.
Provisions on this page are reproduced verbatim from official open data. See the attribution line.
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).