Qualifications of members.
SEC. 26. Qualifications of members.—
Any natural person, co-operative or any nonprofit group shall be eligible for membership in a co-operative if the applicant meets the qualifications prescribed in the regulations and the by-laws. An applicant for membership shall be deemed a member after approval of his membership by the board of directors and shall exercise the rights of a member after having made such payment to the co-operative in respect of membership or acquired interest in the co-operative as may be prescribed by the regulations and the by-laws.
Notwithstanding the provisions of any law or regulation, officers or employees of the Government shall be eligible for membership in any co-operative if he meets the qualifications therefor and he shall not be precluded from being elected to any elective position in the cooperative of which he is a member and to hold office therein, or from receiving compensation therefor: Provided, That elective officers of the Government shall be ineligible to become officers and directors of any co-operative. For this purpose, individual permission need not be obtained from the proper head of office: Provided, however, That this authority shall not be construed to permit the use of official time.
Membership in a co-operative shall be voluntary and open to all persons residing in the area of operation and falling within the field of membership, provided they meet the qualifications prescribed in the by-laws and are admitted as members by the board of directors: Provided, however, That no person shall be eligible to borrow from more than one co-operative. In case membership is refused or denied by the board of directors, an appeal may be made to the general assembly of the co-operative, the decision of which shall be final.
Members to furnish information.
SEC. 27. Members to furnish information.—A statement of assets and liabilities duly certified to be correct and true, in such form as may be prescribed, shall be furnished under oath:
By an applicant for membership of a co-operative with unlimited liability at the time of his admission to membership, at the close of each fiscal year, and at any other time as may be required by the co-operative;
By a member of a co-operative with unlimited liability when required to do so by the Administrator or any person authorized by him;
By a member of any other co-operative at the time of any application for a loan or credit line or for acceptance as surety.
Liability of member.
SEC. 28. Liability of member.—
In the case of a co-operative with limited liability a member shall be liable for the debts of the co-operative to the extent of the unpaid amount of his subscription to the capital stock or to the membership capital.
In the case of a co-operative with unlimited liability a member shall, upon the liquidation of the co-operative, be jointly and severally liable for the debts of a co-operative.
Liability of past member.
SEC. 29. Liability of past member.—The liability of a past member for the debts incurred by a co-operative, as they existed at the date of his ceasing to be a member shall continue for a period of two years from the said date.
Withdrawal and expulsion of members.
SEC. 30. Withdrawal and expulsion of members.—
A member may withdraw from a co-operative effective at the end of any fiscal year by giving a minimum of sixty days notice, with the approval of the board of directors. A resolution of the board of directors disapproving the application for withdrawal may be appealed to the general assembly of the members.
The death, dissolution, insanity, interdiction or expulsion of a member shall be considered an automatic withdrawal from membership.
A member may be expelled by a vote of a majority of the members entitled to vote in a special or a regular general assembly of members for any of the following causes:
when a member has failed to patronize the business of the co-operative for an unreasonable period of time as may be specified in the by-laws,
when a member has continually refused to comply with his obligations,
when a member has acted in violation of the by-laws and the rules of the co-operative, and
for any attempted, frustrated or consummated act injurious or prejudicial to the interest or the welfare of the co-operative,
Provided, That the member against whom the charges are to be preferred shall be informed thereof in writing at least ten days in advance of the assembly and shall be given an opportunity to be heard in the said assembly.
Nomination of beneficiary.
SEC. 31. Nomination of beneficiary.—A member of a co-operative may nominate a person in whose favor the co-operative shall dispose of the share or interest of such member on his death without prejudice to the rights of other persons as provided under existing laws affecting the estate of a deceased person. The nominated beneficiary of the deceased member may apply for membership and pay the required entrance fee, but the board of directors shall have the right to approve or reject the said application. If the application is rejected the co-operative shall return his entrance fee and repurchase his shares or interest, provided that the latter can be done without jeopardizing the solvency of the co-operative. In case the co-operative cannot do so upon request, the beneficiary shall have the right to dispose of the share or interest to any person who is acceptable as a member to the board of directors of the said co-operative.
Disposal of sums due to a withdrawing member.
SEC. 32. Disposal of sums due to a withdrawing member.—All sums calculated in accordance with the regulations and by-laws to be due from a co-operative to a withdrawing member, shall be paid to him either by the co-operative or by the approved transferee, as the case may be, in accordance with this Act.
Bar to claims.
SEC. 33. Bar to claims.—All payments and transfers made by a co-operative in accordance with this Act shall be valid and effectual against any demand made upon the co-operative by any other person.
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
