(4) Autonomy and independence – Cooperatives are autonomous self-help organizations controlled by their members. When they enter into agreements with other organizations, including the government, or raise capital from external sources, they do so on terms that ensure democratic control of their members and maintain their cooperative autonomy. „ART. 94. Organization and registration. Under this Code, agricultural reform cooperatives can only be organized and registered after prior written verification by the DAR that this is necessary and desired by the beneficiaries; The results of a study carried out adequately indicate the economic feasibility of its organization and that it will be economically viable in its activities; and that they can now be organized and registered in accordance with the requirements of this Code. „ART. 45. Liability of directors, officers and committee members.
Directors, officers and committee members who intentionally and knowingly agree or agree to engage in manifestly unlawful acts or who are guilty of gross negligence or bad faith in the management of the affairs of the cooperative or who acquire personal or financial interests that conflict with their duty as directors, Officers or members of the Committee are jointly and severally liable for all Damages or benefits resulting therefrom for the Cooperative, the members and other persons. `(14) Appoint a custodian or receiver to the extent necessary, subject to the rules and regulations to be adopted by the Authority in consultation with the GNP, taking into account the grounds, powers and procedures provided for in Articles 29 and 30 of Republic Act No 7653, which may be considered appropriate for financial services cooperatives.` Art. 118. Transformation of credit unions into financial services cooperatives. Existing credit unions and multi-purpose cooperatives with savings and credit facilities shall formally inform the Authority of their intention to continue to carry out their current tasks. Where such cooperatives decide to exercise extended functions, they shall inform the Authority thereof and comply with the requirements relating to the conversion of financial services into a cooperative. „(3) Any official or official of the State, in the exercise of his functions as a member of the cooperative, may be authorized until the end of his duties to use the official time to participate in the general assembly, the meetings of the boards and committees of the cooperatives, as well as seminars, conferences, workshops, technical meetings and training in the country or abroad: provided that the functioning of the office in question is not affected. `(4) Grants, gifts, legacies, grants, subsidies and any other support from national or foreign entities, public or private: provided that the capital derived from such grants, gifts, legacies, grants, subsidies and other aid is never divided into individual share capital, but forms part of the donated capital or fund of the cooperative.` (2) Elect or appoint the members of the Board of Directors and dismiss them for cause. However, in the case of electricity cooperatives registered under this Code, the election of the members of the board of directors shall be in accordance with the articles or electoral directives of the electricity cooperative; and „(13) Performance audit refers to an audit of the efficiency and effectiveness of the cooperative as a whole; its management and officers; and its various responsibility centres as a basis for improving the individual performance of the team or the whole and for objectively informing all members of this performance; `2. Any other requirement imposed by the other competent public authorities. If there are two (2) or more applicants for the same public service concession or certificate of public convenience and necessity, all things being identical, preference is given to a public cooperative. c) In the case of an unaffiliated patron, his amount in proportion to the reimbursement of the patronage is set aside in a general fund for these patrons and allocated to individual non-member guests only on request and on presentation of proof of the amount of his patronage. The amount thus allocated is credited to this patron for the payment of the minimum capital contribution for membership.
If, within a period specified in the articles of association, an amount equal to that amount has accumulated at any time, that patron shall be deemed to be a member of the cooperative and, if he accepts it or requests and complies with the provisions of the articles of membership; and „ART. 122. Promulgation of Rules and Regulations. The GNP shall determine, in consultation with the Authority, the relevant prudential rules and regulations applicable to financial services cooperatives. `Any newly organised primary cooperative may be registered as a multi-purpose cooperative only after compliance with the minimum requirements for multi-purpose cooperatives to be laid down by the authority. A single-purpose cooperative may only become a multi-purpose cooperative or establish subsidiaries after at least two (2) years of operation. „ART. 51. Address. Each cooperative has an official postal address to which all communications and communications must be sent.
This address and any change of address shall be registered with the Authority. „ART.75. Capital Assets.- The articles of each cooperative must provide for a reasonable and realistic program to build the capital accumulation of the members in order to allow the continued growth of the members` investments in their cooperative as their economic conditions continue to improve.“ Art. 4 Principles of cooperation. Each cooperative conducts its business in accordance with Filipino culture, good values and experience, as well as generally accepted principles of cooperation, which include, but are not limited to: „(2) The Articles of Association provide for the establishment of an audit, election, mediation and arbitration, ethics and other committees necessary for the conduct of the affairs of the cooperative. The members of the audit and election committees are elected by the General Assembly and the others are appointed by the Board.