Cooperative

A Lecture for Narvacan National High School MPC

August9, 2013
 Management
Definition1
Manipulation of resources to achieve objectives
Resources: 7Ms
1. Money
2. Machine
3. Men
4. Market
5. Materials
6. Measurements
7. Methods
Definition Management
The process of
getting activities
completed efficiently
and effectively with
and through other
people.
ORGANIZATIONAL
STRUCTURE OF
COOPERATIVE
Organizational
General Assembly
Structure
Election
Audit Committee Board of Directors
Committee

Mediation/ Ethics Other

Conciliation
Committee Secretary Treasurer
Committee Committees

Management
Staff
MC 2011-07
COMPOSITION OF THE GENERAL
ASSEMBLY

The General Assembly shall be

composed of such members who are
entitled to vote under the Articles of
cooperation and By-laws of the
cooperative.
POWERS OF THE GENERAL ASSEMBLY
The General Assembly shall be the highest policy-
making body of the cooperative. The general assembly
shall have the following powers:

•To determine and approve amendments to the

articles of cooperation and by-laws

•To elect or appoint the members of the board of

directors, and to remove them for cause.

•To approve developmental plans of the cooperative

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MEETINGS
A regular meeting shall be held by the general
assembly on a date fixed in the by-laws, or if not so
fixed, on any date within ninety (90) days after the
close of each fiscal year. Provided, that notice of
regular meetings shall be sent in writing, by posting
or publication, or through other electronic means to
all members of record.

Whenever necessary, a special meeting of the

general assembly may be called at any time by a
majority of the board of directors or as provided for
in the by-laws.
QUORUM

A quorum shall consist of at least twenty-five

percent (25%) of all the members entitled to vote.

VOTING SYSTEM
Each member of a primary cooperative shall
have only one (1) vote. (one man-one vote policy)
 GA Resolution
• Development Plan
• Annual Plan and Budget
• Acceptance of AFS
• Hiring of External Auditor
 As far as practicable, the order of business of
a regular general assembly meeting shall be:
a. Call to order;
b. Declaration/Consideration of presence of
quorum;
c. Reading, consideration and approval of the
minutes of the previous meeting;
d. Presentation and approval of the reports of the
board of directors, officers, and the committees,
including audited financial statements of the
Cooperative;
e. Unfinished business;
f. New business;
i. Election of directors and committee
members
ii. Approval of Development and/or
annual Plan and Budget
iii. Hiring of External Auditor
iv. Other related business matters
g. Announcements; and
h. Adjournment
Direction and Management
of the affairs
The direction and management of the
affairs of a cooperative shall be vested in a board
of directors which shall be composed of not less
than five (5) nor more than fifteen (15) members
elected by the general assembly for a term fixed in
the by-laws but not exceeding a term of two (2)
years and shall hold office until their successors
are duly elected and qualified, or until duly
removed for cause.
POWERS OF THE BOARD OF DIRECTORS
The board of directors shall be
responsible for the strategic planning,
direction-setting and policy-formulation of
the cooperatives.
QUALIFICATION
Any member of a cooperative , who has the right to vote
and possess all the qualifications provided in the by-laws
shall be eligible for election as director.

The members of the board of directors shall not hold any

other position directly involved in the day to day
operation and management of the cooperative.

Any person engaged in a business similar to that of the

cooperative or who in any way has a conflict of interest
with it, is disqualified from election as a director of said
cooperative.
MEETING OF THE BOARD AND QUORUM
REQUIREMENTS
Regular meetings of the board of directors shall be held
at least once a month.

Special meetings of the board of directors may be held

at any time upon the call of the chairperson or a majority
of the members of the board.

A majority of the members of the board shall

constitute a quorum for the conduct of business.

Directors cannot attend or vote by proxy at board

meetings.
VACANCY IN THE BOARD OF DIRECTORS
Any vacancy in the board of directors, other
than expiration of term, may be filled by the vote
of at least a majority of the remaining directors.

Otherwise, the vacancy must be filled by the

general assembly in a regular or special meeting
called for the purpose.

A director so elected to fill a vacancy shall serve

only the unexpired term of his predecessor in
office.
OFFICERS OF THE COOPERATIVE
The board of directors shall elect from among
themselves the chairperson and vice-chairperson
and elect or appoint other offices of the
cooperative from outside of the board.

No two (2) or more persons with relationships

up to the third degree of consanguinity or affinity
nor shall any person engaged in business similar to
that of the cooperative shall serve as an
appointive office.
OFFICERS OF THE COOPERATIVE
The officers of the cooperative shall include:

• Members of the board of directors

• Members of the different committees created by
the general assembly
• General manager
• Secretary
• Treasurer
• Other positions as maybe provided for in the by-laws

MC 2011-04 LEGAL INTERPRETATION OF ARTICLE42 OF the PHILIPPINE

JCOOPERATIVE CODE OF 2008 (REPUBLICACT NO. 9520)
COMMITTEES OF COOPERATIVES
The By-laws shall provide for the creation of the
following committees:

1. Audit committee - elected by GA

2. Election committee - elected by GA
3. Mediation and Conciliation committee - appointed
4. Ethics committee - appointed by BOD
5. Education committee - appointed by BOD
6. Other committees as may be necessary for the
conduct of the affairs of the cooperative (ex. Credit
committee)
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Implementation of the Training
Requirements for Cooperative Officers
MC 2011-27
To rationalize the implementation of Rule 7 of the
Implementing Rules and Regulations of RA 9520
MC 2013-02 | Supplemental Rules on
the Training Requirements of
Cooperative Director, Officers and
Committee Members

Inclusion in the election guidelines that

requiring all officers to comply with the
mandatory trainings and person
responsible to ensure compliance thereof
REMOVAL OF ELECTED OFFICERS
All complaints for the removal of any elected officer
shall be filed with the board of directors.

Such officer shall be given the opportunity to be

heard. Upon finding of a prima facie evidence of guilt,
the board shall present its recommendation for
removal to the general assembly.

An elective officer may be removed by ¾ votes of

the regular members present and constituting a
quorum, in a regular or special general assembly
meeting called for the purpose.
 Strategic Plan Preparation
Development Plan (DP)
 Annual Plan
Social Development Plan (SDP)
Education and Training Plan (ETP)
Succession Plan (HRD Plan)
Note: - Annual plan is lifted from
the Development Plan
- SDP and ETP can be incorporated
in the DP
 Board Resolutions
 Oversight functions
 Performance evaluation/appraisal
 Election guidelines
 Distribution of net surplus (Rate of
Interest and patronage refund)
 Provisions and funding for statutory
reserves
 Utilization of statutory reserves
 Provisions of funding for Retirement
fund
 Policy/Board Resolutions

 Monetary benefits (Performance Bonus, 13th

Month Pay, SSS, Phil Health, Pag-ibig)
 Non Monetary Benefits (Rice subsidy,
uniforms)
 Membership subscription of capital
 Compliance limitation of shares
Deposit for share capital subscription
 Issuance of ISC/PR
 Policy/Board Resolutions
• Conflict management – officers, employees,
members
Conflict management – officers,
• Associate members members
employees,
• Laboratory
 Associate
cooperatives
members
• Subsidiary
Laboratory
coop cooperatives
 Subsidiary coop
COMPENSATION
In the absence of any provision in the by-
laws fixing their compensation, the directors
shall not receive any compensation except for
reasonable per diems.
General Manager. The General Manager shall:
i. Oversee the overall day-to-day business operations
of the cooperative by providing general direction,
supervision, management and administrative control
over all the operating departments subject to such
limitations as may be set forth by the BOD or the GA;
ii. Formulate and recommend in coordination with
the operating departments under his/her
supervision, the Cooperative’s Annual and Medium
Term Development Plan, programs and projects, for
approval of the BOD and ratification of GA;
General Manager. The General Manager shall:
iii. Implement the duly approved plans and programs of
the cooperative and any other directive or instruction of
the BODs;
iv. Provide and submit to the BODs monthly reports on the
status of the coop’s operation vis-a-vis its target and
recommend appropriate policy or operational changes, if
necessary;
v. Represent the cooperative in any agreement, contract,
business dealings, and in any other official business
transaction as may be authorized by the BODs;
vi. Ensure compliance with all administrative and other
requirements of regulatory bodies; and
vii. Perform such other functions as may be prescribed in
the By-laws or authorized by the GA.
 Functions Of Management
Planning
Get the job Devise short-range and long-range
done on time plans and set goals to help achieve the
plans
Within Organizing
budget How to use resources
Satisfactorily Staffing
Using choosing the right person for the job
available Directing
resources Guiding employees to perform their
work
Controlling
Monitoring progress towards goals
Manager Skills

• Conceptual
• Design (Technical)
• Human
• Decision making
• Problem Solving
 Managerial Skills

Top Level Conceptual / Design

Middle
Design / Human Skills

First Line Operations

 Conceptual Skills

Ability to see the

‘big picture’, to Creation Phase :
Establish positive
recognize and thinking
understand Develop creative ideas
significant Combine
Refine
elements in a Re-arrange
situation. Simplify
 Technical Skills
Development of your
Knowledge of technical skills as an
and integral part of your
proficiency in personal
activities development
involving
Strong technical skills
methods,
can save you time
processes and
and increase income
procedures.
 Human Skills

Ability to work  HR is most important

with people. career skill
Creation of an  One’s ability to get
along is the single
environment in
most important
which people factor affecting
feel secure and chances of success in
free to express the workplace
their opinions.
 Decision Making Skill
Simple tips:
Ability to solve - get all the facts
problems that - weigh
will benefit - decide
enterprise. Also - act
Post Implementation:
ability to design a - monitor
workable solution - verify results
to the problems - document
and to avoid - celebrate success
them in future
Problem Solving
Prevention Principle

– Solve problem @ the source.

Live by the 1 – 10 – 100 rule

Practice Principle
Problem Solving

•If problem is not fixed

when it occurs it will 1– 10 – 100 Rule
become costlier to fix later
– money and time 100

Fix Problem
Cost After it Goes to
Customer

Fix Problem
10
Before it Reaches
1 Customer

Prevent Problem

Time
Lately in public administration
POSDECoRB

Managerial Function

1 Planning
2 Organizing
3 Staffing
4 Directing/Influencing
5 Coordinating/Reviewing
6 Budgeting
 Level of Management

Top Level
Management

Middle Level

Operation
High level
(strategic)
Long-range
view
Planning

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Middle level
(tactical)
Responsible for
working out
strategies and
plans to
implement
decisions and
policies made
by top level
managers.
Low level
(operational)
Supervisor
Directing and
controlling
Responsible for
ensuring work is
done according
to plans.
 Task Assignment and Training

T1 T3
Worker Worker

Manager

T2 T4
Worker Worker

Continued Supervision, Coordination, and Planning by Manager

Manager

T1 T3
Worker Worker

T2 T4

Worker Worker
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 Workers

People who work directly on a job or

task and have no responsibility for
work of others.
Managerial Functions
45

25
TOP
20
5

35 30
20 15 MIDDLE

Leading 50
Organizing
30
15 FIRST
Plan
Coordinating
5
 10 Managerial Roles
A. Interpersonal Roles (figurehead, liaison,
leads)
 10 Managerial Roles
B. Decision Maker ( entrepreneur,
disturbance handler, resource allocator,
negotiator)
 10 Managerial Roles

C. Informational Roles (monitors,

disseminator, spokesperson)
REPORTS REQUIRED FOR
COOPERATIVE
REQUIRED REGULAR REPORTS
The following reports shall be submitted to the
Authority:

1. Cooperative Annual Performance Report (CAPR)

2. Audited Financial Statement duly stamped
“Received "by BIR
3. Socio Audit Report
4. Performance Report
5. List of Officers and Trainings
undertaken/completed

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REQUIRED REGULAR REPORTS

1.Cooperative Annual
Performance Report (CAPR)
2013-13 Revised CAPR
Template

55
REQUIRED REGULAR REPORTS
2. Audited Financial Statement duly stamped “Received
"by BIR
MC 2013-08 | Supplemental Policy on the
Submission of Audited Financial Statements Duly
Stamped "Received" by the BIR Pursuant to Section
2 (4), Rules 8 of Rules and Regulations
implementing Certain Provisions of R.A. 9520
Show proof within 30ndays that the cooperative have
submitted AFS to BIR however failure of the cooperative to
show proof will be construed the cooperative has not
submitted its AFS with BIR

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REQUIRED REGULAR REPORTS

3. Socio Audit Report

2013-16 Guidelines on Social Audit

in Cooperatives

57
REQUIRED REGULAR REPORTS

4. Performance Report

5. MC 2013-15 Guideline on
Performance Standard for
Cooperatives

58
REQUIRED REGULAR REPORTS
5.List of Officers and Trainings
undertaken/completed
FILING
All registered cooperatives shall file
with the Authority a copy of the
required reports either through
personal, registered mail, courier
or electronic means, within 120
days from the end of every
calendar year.
PENALTY
P 100 per report per day
COOPERATIVE AS A
BUSINESS ENTITY
 As a business...
• They follow all business norms like:
– Compliance with all business requirements
such as but not limited to business permits;
registration with BIR; social legislation and
labor laws;
– Adherence to local laws;
– Healthy competition;
– Open trade;
– Cash trading
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 As a business...
• They follow all business norms like:
–Selling at market price
–Avoid destructive competition among
coops
–Adequate capitalization
–Adherence to business governance

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 As a business...
• Constant expansion
• Quality Standardized Goods
• Minimize Expenditures
• Comply with basic
requirements of a business
enterprise.

65
 As a business...
• Constant expansion
• Quality Standardized Goods
• Minimize Expenditures
• Comply with basic requirements of
a business enterprise.
 As a business...
1. BIR REGISTRATION
• Articles of Cooperation and By-
laws
• Certificate of Registration from
CDA

2. Tax Identification Number

(TIN)
 As a business...
3. Book of Accounts
- yearly, on or before the last
working day of December
- 2 Columnar, Cash Receipt,
Cash Disbursement,
Ledger, Journal
 As a business...
4. Certificate of Tax Exemption
* Certified true copy of Articles of
Cooperation, By-laws and
Certificate of Registration
* Application Letter
* BIR Registration
* TIN of member or cedula