Penal Provisions.
Article 124
ART. 124. Penal Provisions. — The following acts or omissions affecting cooperatives are hereby prohibited: The use of the word "cooperative" by any person or of persons or organizations, domestic or foreign, unless duly registered as a cooperative under this Code. In case of violation hereof, the individual or individuals concerned, or in the case of an organization, its officers and directors shall, upon conviction, each suffer the penalty of imprisonment for one (1) year and a fine not exceeding One thousand pesos (P1, 000.00) or both at the discretion of the court; Direct or indirect interference or intervention by any public official or employee into the internal affairs of a cooperative of which he is not a member, such as, but not limited to, the following: Influencing the election or appointment of officers, directors, committee members and employees through public or private endorsement or campaign for or against any person or group of persons; Requiring prior clearance for any policy or decision within the cooperative; Requesting or demanding for the creation of positions or organizational units, or recommending ally person for appointment, transfer, or removal from his position; or Any other acts inimical or adverse to the autonomy and independence of cooperatives. In case of violation of any provision of this subsection, the individual or individuals, and in the case of organizations, its officers and directors shall, upon conviction by a court, each suffer a penalty of not less than one (1) year but not more than five (5) years imprisonment or a fine in the amount of not less than Five thousand pesos (P5,000.00), or both at the discretion of the court; A director, Officer or committee member who violated the provisions of Article 47 (liability of directors, officers and committee members), Article 50 (disloyalty of a director) and Article 51 (illegal use of confidential information) shall upon conviction suffer a fine of not less than Five thousand pesos (P5,000.00) nor more than Five hundred thousand pesos (P500, 000.00) or imprisonment of not less than five (5) years but not more than ten (10) years or both at the court's discretion; Any violation of any provision of this Code for which no penalty is imposed shall be punished by imprisonment of not less than six (6) months nor more than one (1) year and a fine of not less than One thousand pesos (P1,000.00), or both at the discretion of the court.