RFBT
Topic: Key Concepts in Cooperative Law
Part 1 of 2
In a cooperative with 200 members, the
presence of 50% (25%) constitutes a quorum,
and 38 (75%) members of those present may
remove a director after the observance of due
process. The same goes for the ratification of
contracts with self-dealing and interlocking
directors and mergers.
When a director is removed, he or she may be
replaced by the remaining directors, still
constitute the majority.
A quorum required for the general assembly
meeting of an electric cooperative is at least 5%
A cooperative’s articles of cooperation or
bylaws may only be amended by a 2/3 vote of
all its voting members. The vote of the board of
directors is not necessary.
Proxy voting by members of a cooperative is
only prohibited in primary cooperatives.
If a member inherits capital stock from a co-
member, he can only receive the portion that
will not make him exceed 10% of the capital
stock. The excess has to be acquired by the
cooperative by paying the fair values of the
excess shares
The prior written notice of special board
meetings in cooperatives is at least one week.
The quorum required for the general assembly
meeting of cooperatives is generally at least
25%.
The term of directors in a cooperative is two
years
The quorum required for the general assembly
meeting of cooperative banks is at least
majority.
RFBT
Topic: Key Concepts in Cooperative Law
Part 2 of 2
If a member inherits capital stock from a co-
member, he can only receive the portion that
will not make him exceed 10% of the capital
stock. The excess has to be acquired by the
cooperative by paying the fair value of the
excess shares.
When a cooperative is dissolved and liquidated,
the assets distributable to an unknown member
shall be given to the federation or union to
which the cooperative is affiliated with.
A member cannot own more than 10% of the
capital stock in a cooperative.
The minimum paid-up capital for single-purpose
cooperatives is P15,000. For multipurpose
cooperatives, it is P100,000.
If there is no fixed date of the cooperative’s
general assembly regular meeting, it shall be
held within 90 days from the close of its fiscal
year.
A quorum required for the general assembly
meeting of cooperatives is generally at least
25%.
A cooperative may issue preferred shares if
provided in the bylaws, and it cannot exceed
25% of its total authorized capital stock.
A laboratory cooperative does not have a
juridical personality.
The par value of shares in a cooperative cannot
be less than P100, but not more than P1,000.

A quorum required for the general assembly

meeting of electric cooperatives is at least 5%.