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July 18, 2011 as approved by theCooperative Development Authority
A cooperative an autonomous and duly registeredassociation of persons, with a common bond ofinterest, who have voluntarily...
•The main benefit is economic since members get a share of thecooperative’s net surplus by patronizing its services. A cer...
That the objectives and purposes for which this cooperative is formed are:1.To encourage thrift and savings mobilization a...
•It serves as the training ground for its members in simple businessoperation, democratic leadership and responsible citiz...
GENERAL ASSEMBLY                              BOARD OF                    ELECTIONAUDIT COMMITTEE                         ...
Duties and Responsibilities of Committees:Election CommitteeImplement election rules and guidelines duly approved by the G...
Reggie Zarzuela   Rocky Casas   Ludy Villamin   Leny Abanes   Carmi Rivera                                                ...
Duties and Responsibilities of a Membera) Pay the installment of his share capital subscription as it falls due and topart...
Rights of a Regular Member Entitled to Vote.A member entitled to vote shall have the following rights:a)Participate and vo...
Withdrawal of a Member: A member may, for any reason, withdraw his membership from the Cooperative by giving a written not...
SLF – SINGLE LOAN FACILITY                                                WHICHEVER IS LOWER              ADI        Capit...
EXPRESS LOANSpecial Express Loan is offered to members with insufficient capacity-to-pay inthe amount of Php5,000.00 payab...
Notes:• Re-structure is allowed for Express loan and SLF after 25% payment  deduction from the system.• Members can fully ...
ST. PETER PLAN LOAN              1st Year Principal & Amortization*    2nd to 5th Year Principal &  Plans                 ...
COMPUTER LOAN            Terms               Interest         Service Fee          1 Year to pay             0%           ...
OTHER ADEMC BUSINESSES                         17
Note: Ordering thru ADEMC office or you may callPrinza Phone # :046897457                                                 ...
Section 2 of ADEMC By-Laws, states:Section 2. Deposit – The cooperative shall receive two kinds of deposits:Savings Deposi...
 All members shall have the right to open and maintain a savings deposit  account. A minimum of Two Hundred Pesos (P200....
 Regular Savings Deposit shall earn a corresponding  interest rate quarterly, based on the average daily  balance during ...
 Savings account withdrawal can be made by filling up  “ADEMC Withdrawal Slip” until 3PM only to allow reconciliation  of...
Patronage Refund and Interest on Share CapitalDefinition of terms:Patronage Refund - shall refer to the amount returned to...
 All payments of interest and patronage refund must be made on the annual generalassembly or such other date after the ca...
Statutory Reserve FundReserve Fund – Ten percent (10%) of the net surplus. The reserve fund shall be usedfor the stability...
SAMPLE COMPUTATION OF INTEREST      ON CAPITAL OR DIVIDEND and PATRONAGE REFUND:Dividend = Average Share X Dividend RatePa...
SAMPLE COMPUTATION OF INTEREST      ON CAPITAL OR DIVIDEND and PATRONAGE REFUND:Computation of Patronage RefundPatronage R...
Net Income:    Less Appropriations:        General Reserved Fund (10% x NI)        Education & Training (5% x NI)        L...
Notes:Service Fee1% for Express loan2% for SLFMembership FeeP20 for new membersP100 for re-members and Initial Share of P2...
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Revised pre membership ademc multipurpose

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Revised pre membership ademc multipurpose

  1. 1. July 18, 2011 as approved by theCooperative Development Authority
  2. 2. A cooperative an autonomous and duly registeredassociation of persons, with a common bond ofinterest, who have voluntarily joined together to achievetheir social, economic, and cultural needs and aspirationsby making equitable contributions to the capitalrequired, patronizing their products and services andaccepting a fair share of the risks and benefits of theundertaking in accordance with universally acceptedcooperative principles.
  3. 3. •The main benefit is economic since members get a share of thecooperative’s net surplus by patronizing its services. A certain % of thenet surplus is returned to the members after a period of one year usuallyduring the annual general assembly. It is called patronage refund.•Patronage refund shall be distributed to the members in proportion totheir patronage to the services of the cooperative. The distribution shallbe in accordance with their cooperative policies based on thecooperative law, the RA 9520. Through the patronage refund, membersare actually saving while using the services of the cooperative.•Those who do not patronize the services of the cooperative are notentitled to patronage refund, only the interest on their share capitalinvested in the cooperative.
  4. 4. That the objectives and purposes for which this cooperative is formed are:1.To encourage thrift and savings mobilization among the members for capital formation;2.To create funds in order to grant loans for productive and providential purposes to itsmembers;3.To promote the cooperative as a way of life for improving the social and economic well-being of the people;4.To undertake other activities for the effective and efficient implementation of the provisionsof the Cooperative Code.5.To deposit operational fund to any commercial or cooperative banks and gain interestbased on the current prevailing interest rates6.To invest any excess, unutilized funds including the General Reserved Fund in any gainfulinvestment sites such as but not limited to Commercial Banks, Cooperatives, MutualFunds, Government Guaranteed Placements like Treasury Bills, Special DepositAccounts, etc.7. To provide members with services such as bills payment cell phone loading, booking and ticketing, easy access to quality medicines and such other services that members might need in the future. 4
  5. 5. •It serves as the training ground for its members in simple businessoperation, democratic leadership and responsible citizenship.•It offers opportunities to its member’s potential capabilities in productivepurposes which may redound to their material benefits and progress.•It teaches its members self-discipline, self-reliance and other desirableattitudes, which make every member a better individual and a bettermember of society. 5
  6. 6. GENERAL ASSEMBLY BOARD OF ELECTIONAUDIT COMMITTEE DIRECTORS COMMITTEE SECRETARY TREASURER MED-CON ETHICS CREDIT TRAINING & EDUC.COMMITTEE COMMITTEE COMMITTEE COMMITTEE MANAGEMENT STAFF 6
  7. 7. Duties and Responsibilities of Committees:Election CommitteeImplement election rules and guidelines duly approved by the General/RepresentativeAssembly.Audit CommitteeReview continuously and periodically the books of account and other financial records toensure that these are in accordance with the cooperative principles and generally acceptedaccounting procedures.Mediation and Conciliation CommitteeFormulate and develop the Program and ensure that it is properly implemented.Ethics CommitteeDevelop Code of Governance and Ethical Standards to be observed by the members, officersand employees of the cooperative subject to the approval of the Board of Directors andratification of the General/Representative Assembly.Credit CommitteeHave the power to review all loan requests, determine whether or not a given loan wouldbenefit the applicant, and whether or not the security offered is sufficient and the termsappropriates;(NOTE: Election and Audit committee are elected by members while the rest are 7appointed by BOD’s)
  8. 8. Reggie Zarzuela Rocky Casas Ludy Villamin Leny Abanes Carmi Rivera 8 Secretary Secretary Staff Staff Staff
  9. 9. Duties and Responsibilities of a Membera) Pay the installment of his share capital subscription as it falls due and toparticipate in the capital build-up and savings mobilization of the Cooperative;b) Patronize the Cooperative’s businesses and services;c) Participate in the membership education programs;d) Attend and participate in the deliberation of all matters taken during generalassembly meetings;e) Observe and obey all lawful orders, decisions rules and regulationsadopted by the Board of Directors and the general assembly; andf) Promote the goals and objectives of the Cooperative, the success of itsbusiness, the welfare of its members and the cooperative movement ingeneral. 9
  10. 10. Rights of a Regular Member Entitled to Vote.A member entitled to vote shall have the following rights:a)Participate and vote on all matters deliberated upon during generalassembly meetings;b)Seek any elective or appointive position, subject to the provisions of this By-laws and the Philippines Cooperative Code of 2008;c)Avail himself of the services of the Cooperative, subject to certain conditionsas may be prescribed by the Board of Directors;d)Inspect and examine the books of accounts, the minutes books, the shareregister, and other records of the Cooperative during office hours;e)Participate in the continuing education and other training programs of thecooperative; andf)Such other rights and privileges as may be provided by the General Assembly. 10
  11. 11. Withdrawal of a Member: A member may, for any reason, withdraw his membership from the Cooperative by giving a written notice to the Board of Directors at least thirty (30) days prior the effectivity date of his termination. However, no member shall be allowed to withdraw or terminate his membership during any period in which he has any pending obligation with the Cooperative. Expulsion of a Member:A member may be terminated by a vote of the majority of all the members of the Boardof Directors for any of the following causes:a)When he has not patronized any of the services of the Cooperative for anunreasonable period of time as may be previously determined by the Board of Directors;b)When he has continuously failed to comply with his obligations;c)When he has violated any provision of this By-laws and the rules promulgated by theCooperative; andd)For any act or omission injurious or prejudicial to the interest or the welfare of the Cooperative. 11
  12. 12. SLF – SINGLE LOAN FACILITY WHICHEVER IS LOWER ADI Capital ShareCategory Payment Term Tenure Limit Loanable Amount Capacity-To-Pay Limit Limit 6 mos. 1,000 to 25,000 CS x 2SLFCat1 to below 5 yrs. 25,001 and up CS + 25,000 1,000 to 1,000,000 = Take Home Pay = 1 year or 2 years or 3 40% Basic Pay years 5 yrs. 1,000 to 50,000 CS x 2SLFCat2 to below 10 yrs. 50,001 and up CS + 50,000 1,000 to 1,000,000 = 10 yrs. CAPITAL SHARE x 3 up to 1 million Take Home Pay =SLFCat3 1 year or 2 years or and above pesos only. 40% Basic Pay 3 years or 4 years 12
  13. 13. EXPRESS LOANSpecial Express Loan is offered to members with insufficient capacity-to-pay inthe amount of Php5,000.00 payable in 6 months. PROVIDED, that the takehome pay is not less than ten percent (10%) of the basic pay after thededuction of Special Express Loan. 13
  14. 14. Notes:• Re-structure is allowed for Express loan and SLF after 25% payment deduction from the system.• Members can fully pay the remaining loan balance for Express loan, SLF , Computers loan, St. Peter Plan.• Submission of loan applications and release of loans must be in the following schedules: Date of Submission of Loan Date of Processing of Date of Releasing of Loans Loans Applications Loans Thru Check or ATM SLF and EL Within the 1st working day On the 2nd working day On the 3rd working day 14
  15. 15. ST. PETER PLAN LOAN 1st Year Principal & Amortization* 2nd to 5th Year Principal & Plans Amort.** Principal Semi-Mo. Principal Semi-Mo. Amort. Amort.St. Francis 6,840.00 285.00 7,592.40 316.35 St. Paul 10,000.00 416.67 11,100.00 462.50 St. John 22,000.00 916.67 24,420.00 1,017.50St. James 11,500.00 479.17 12,765.00 531.88 St. Jude 16,500.00 687.50 18,315.00 763.13 15
  16. 16. COMPUTER LOAN Terms Interest Service Fee 1 Year to pay 0% 1% 2 Years to pay 9% 2% COD 0% 2%Note: 9% interest for 2 years is only specific for Accent Micro. 9% per annumwill apply on other appliance center. 16
  17. 17. OTHER ADEMC BUSINESSES 17
  18. 18. Note: Ordering thru ADEMC office or you may callPrinza Phone # :046897457 18
  19. 19. Section 2 of ADEMC By-Laws, states:Section 2. Deposit – The cooperative shall receive two kinds of deposits:Savings Deposits – Any member, in addition to his share capitalinvestment, may open a saving deposit, the rate of interest of which shall bedetermined by the Board at the beginning of each fiscal year in no case toexceed the rate prescribed by Bangko Sentral ng Pilipinas.Savings deposit not falling below P 1,000.00 during any calendarmonth shall be entitled to interest to be computed quarterly based on thelowest monthly balance outstanding during the period. The interest shall becredited to the depositor’s account, and the same shall earn interest from thedate it is credited, at the same rate as savings deposits.The Board of Directors shall prescribe the rules and regulations governingwithdrawals from the savings deposits.TIME deposit – Second kind of deposit , still for review of the Board 19
  20. 20.  All members shall have the right to open and maintain a savings deposit account. A minimum of Two Hundred Pesos (P200.00) shall be required as a maintaining balance for the member’s savings account. The required minimum maintaining balance could not be withdrawn as long as he/she is a member of ADEMC. Savings deposit not falling below P1,000.00 average daily balance shall be entitled to interest to be computed quarterly. Quarterly is based on the calendar year. Savings deposit shall be done through payroll deduction or over the counter. A member will fill up “Increase/Decrease Savings Deposit Form” (as in the current practice of doing the capital share contribution) to initiate the process of payroll deduction. The total deductions to be made from an employee’s salary shall be submitted by ADEMC to ADI payroll at least two (2) weeks before the payroll period, which shall include the authorized amount for the member’s savings deposit. Over-the counter deposits can be made at the Cashier at the start of office hours by filling up the Savings Deposit Slip while observing the cut off time of 3PM. 20
  21. 21.  Regular Savings Deposit shall earn a corresponding interest rate quarterly, based on the average daily balance during the period. The rate of interest on savings deposit shall be two percent (2%) per annum or as may be determined by the majority of the Board of Directors prior the beginning of each calendar year. Savings deposit not falling below P1,000.00 average daily balance shall be entitled to interest to be computed quarterly. Quarterly is based on the calendar year. 21
  22. 22.  Savings account withdrawal can be made by filling up “ADEMC Withdrawal Slip” until 3PM only to allow reconciliation of transactions received by ADEMC within the day. A member shall only be allowed single withdrawal per day. Release of cash and check withdrawals should be acknowledged by the member or his authorized representative upon receipt.Note: Implementation –April 11, 2013 22
  23. 23. Patronage Refund and Interest on Share CapitalDefinition of terms:Patronage Refund - shall refer to the amount returned to individual members whopatronize the goods and services of the cooperative in proportion to their individualpatronage.Interest on Share Capital - Interest on Share Capital shall not exceed the Rate ofReturn on Investment.Total Average Share Month - shall refer to the sum total of the average share month,which is determined by adding the monthly ending balances of the member’s sharecapital and dividing the sum by twelve (12) months. 23
  24. 24.  All payments of interest and patronage refund must be made on the annual generalassembly or such other date after the calendar year as may be determined by theBoard of Directors. Total Patronage Refund to be returned to individual members who patronize thegoods and services shall not be less than 30% but not more than 66.67%. Interest on share capital shall not be less than 33.33% but not more than 70%. Patronage Refund for credit services = 50% of the allocation or 50% of the interestpaid for loans whichever is lower. Allocation of Patronage Refund for other services shall be determined by the Boardof Directors. 24
  25. 25. Statutory Reserve FundReserve Fund – Ten percent (10%) of the net surplus. The reserve fund shall be usedfor the stability of the Cooperative and to meet net losses in its operations.Education and Training Fund – Five percent (5%) of the net surplus. Half of theamount allocated to the education and training fund may be spent by the cooperativefor education and training purposes; while the other half may be remitted to a union orfederation of which the cooperative is a member.Community Development Fund – Three percent (3%) shall be used for projects andactivities that will benefit the community where the cooperative operates.Optional Fund – One percent (1%) shall be set aside for Optional Fund for land andbuilding fund, and any other necessary expenses 25
  26. 26. SAMPLE COMPUTATION OF INTEREST ON CAPITAL OR DIVIDEND and PATRONAGE REFUND:Dividend = Average Share X Dividend RatePatronage Refund = Interest Paid by member X Patronage Refund RateTo compute your average share: Ex. Member with P54,000 cap. share with P400monthly contribution Months Monthly Balances FY2012 The Board of Directors, January Php54,000.00 February 54,400.00 based on the computation, declared April 54,800.00 4.74% for dividend and 37.12% for May 55,200.00 June 55,600.00 Patronage Refund July 55,800.00 August 56,000.00 September 56,400.00 October 56,800.00 November 57,200.00 December 57,400.00 Total Php613,600.00 Average Share (divided by 12) Php51,133.33 Dividend (Ave. Share X 4.74%) Php2,423.72 26
  27. 27. SAMPLE COMPUTATION OF INTEREST ON CAPITAL OR DIVIDEND and PATRONAGE REFUND:Computation of Patronage RefundPatronage Refund = Interest Paid by member in 2012 X PatronageRefund RateIf a member paid total interest of Php5,500 on his loans, his PatronageRefund would be:Patronage Refund = Php5,500.00 X 37.12%Patronage Refund = Php2,041.12Member’s Total Dividend and Patronage Refund to receive:Php4,465.32 27
  28. 28. Net Income: Less Appropriations: General Reserved Fund (10% x NI) Education & Training (5% x NI) Land & Building Fund (1% x NI) Officers Bonus Payable (2% x NI) Net Income To Be Distributed to members Allocations: Patronage Refund (50% of net income to be distributed to members) Dividend (50% of net income to be distributed to members)Allocation of Patronage Refund for other services shall be determined by the Board of Directors. 28
  29. 29. Notes:Service Fee1% for Express loan2% for SLFMembership FeeP20 for new membersP100 for re-members and Initial Share of P200Bereavement AssistanceP10 per deceased immediate family members and siblings. In-laws not allowed.2K – from ADEMC for non memberShare Capital1 share = P20 29
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