I. Title: A Draft Policy On Voluntary Termination of Members of CSMPC
1. To provide goods and services to its members to enable them to attain increased income, savings, investments, productivity and purchasing power, and promote among themselves equitable and distribution of net surplus through maximum utilization of economies of scale, cost-sharing and risk-sharing (Article 7 (a) Objectives and Goals of a Cooperative);
2. To provide optimum social and economic benefits to its members (Article 7 (b) of R. A. 9520) (Article 7 (b) Objectives And Goals of Cooperatives);
3. To ensure that all cash collections are deposited in accordance with the policies set by the Board of Directors (Article V, Section 7 (3) (a) of the Cooperative Bylaws);
4. To ensure that the Treasurer shall have the custody of all funds, securities, and documentations relating to all assets, liabilities, income and expenditures and such other functions as may be prescribed in the Bylaws or authorized by the General Assembly (Article V, Section 7 (3) (b-f) of the Cooperative Bylaws);
A. Definition of Terms:
1. Voluntary Termination refers to the termination of membership of a registered member; 2. Refund of Share Capital Contribution refers to the amount of money to be refunded to the member notwithstanding to the provision of Article III, Section 9; 3. Share Capital refers to the unit of capital, the value of which is stated in the Articles of Cooperation (Article IX, Section 7 of the Cooperative Bylaws); 4. Members shall refer to the legally registered members of the cooperative as provided in Article III, Section 1 of the Articles of Cooperation of CSMPC); 5. CRECOM shall refer to the committee to check and validate the share capital and accounts payable by the members; 6. Bookkeeper refers to the person who is in-charge in updating the cooperative books of accounts; 7. Manager shall refer to the Chief Executive Officer of the entire operations of the cooperative (Article V, Section 14 of the Cooperative Bylaws); 8. BOD, Chairman shall refer to the head of the Board of Directors who formulates policies in the cooperative; 9. Social Audit refers to the Cooperative Committee to assess the cooperative social impact and ethical performance vis-à-vis stated mission, vision, goals and code of social responsibility. 10. Treasurer refers to the surety bonded person of the cooperative who is in-charge of all cash collections and disbursements’ transactions.
B. IMPLEMENTING Guidelines and Procedures:
1. A member, for any reason withdraw his/her membership from the cooperative by giving a sixty (60) day notice to the Board of Directors (Article III, Section 9 (b) of the Cooperative By-Laws); 2. The CRECOM Chairman shall check the member’s share capital, deposits, and all financial accountabilities such data shall be forwarded to the Chairman of the Boar of Directors (BOD); 3. The BOD shall approve the voluntary termination of a member in a majority vote, provided that he/she has no pending obligation with the cooperative over and above his/her share capital and deposits (Article III, Section 9 (b)); 4. The BOD shall disapprove the voluntary termination of a member in a majority vote if said member has any pending obligation with the cooperative over and above his/her share capital and deposits shall not be allowed for refund or transfer of his/her share capital including withdrawal of deposits and interest thereof unless he/she settles first such obligation (Article III, Section 9 (b)); 5. The BOD shall render its decision in writing within thirty (30) days which is certified by the Secretary and attested by the Chairman of the BOD and such decision letter shall be personally hand-carried by the Secretary to the applicant or by a registered mail; 6. Every termination of member from the cooperative shall be decided by the Board of Directors in a majority vote; 7. In case of a member whose membership is terminated he/she shall be entitled to a refund of his/her share capital contribution and all other interest in the cooperative less outstanding loan obligation and other financial accountabilities (Article III, Section 11); 8. Such refund shall not be made if upon payment, the value of assets of the cooperative would be less than the aggregate amount of its debts and liabilities exclusive of his/her share capital contribution. In which case, the terminated member shall continue to be entitled to the interest of his/her share capital contributions, patronage refund and the use of the services of the cooperative until such time that all his/her interest and share capital in the cooperative shall have been duly paid by the treasurer (Article III, Section 11); 9. The Voluntary Termination Clearance (VTC) shall be fully signed by the member applicant, CRECOM, Bookkeeper, BOD Secretary, BOD Chairman, Manager and the Treasurer. Such clearance shall be produced in three (3) copies: One (1) copy for the Member Applicant, one (1) copy for the CRECOM, and one (1) copy for the BOD Secretary; 10. The terminated member and the treasurer shall both sign the Cash Disbursement Voucher (CDV) stating the reason: Share Capital Withdrawal with its exact amount including its interest, provided that the member applicant shall turn over first his/her passbook, Share Capital Certificates and other documents pertaining to the cooperative – to the Treasurer; 11. Upon the acceptance of his/her withdrawal of share capital or approval of his/her right to attend, participate and vote in any meeting of the Board of Directors or the general assembly.
C. Penalty of Violation:
Anybody who violates this policy shall be liable for Written Reprimand in the first offense; Oral Reprimand in the Second Offense; and Suspension from Work in one regular working day without pay in the Third Offense. Beyond these violations stated is subject for Involuntary Termination as stipulated in Article III, Section 9 (c) (ii) and (iii) that state … When he/she has continuously failed to comply with his/her obligations and when he/she has violated any provision of this By-laws and the rules promulgated by the cooperative as provided by Republic Act 9520.
IV. Separability Clause:
Should any part of this policy is found inconsistent with existing laws, rules, and regulations, the remaining guidelines and procedures hereof shall remain in full force and effect.
The General Manager shall 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 Board of Directors or the General/Representative Assembly (Rule 7, Section 4.9).
This policy shall take effect fifteen (15) days following the approval of the Board of Directors and posting of this policy in three (3) public areas where the cooperative operates.
Article 7 (a) Objectives and Goals of a Cooperative Article 7 (b) Objectives And Goals of Cooperatives Article V, Section 7 (3) (a) of the Cooperative Bylaws Article V, Section 7 (3) (b-f) of the Cooperative Bylaws Article III, Section 9 Article IX, Section 7 of the Cooperative Bylaws Article III, Section 1 of the Articles of Cooperation of CSMPC Article V, Section 14 of the Cooperative Bylaws Article III, Section 9 (b) of the Cooperative By-Laws Article III, Section 9 (b) Article III, Section 11) Article III, Section 9 (c) (ii) and (iii) Rule 7, Section 4.9 Republic Act 9520
Approved and adopted per Board Resolution No. __, s. 2014 dated __________, 2014.