Revised pre membership ademc multipurpose 7-03


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Revised pre membership ademc multipurpose 7-03

  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 of interest,who have voluntarily joined together to achieve theirsocial, economic, and cultural needs and aspirations bymaking equitable contributions to the capital required,patronizing their products and services and accepting afair share of the risks and benefits of the undertaking inaccordance with universally accepted cooperativeprinciples.
  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 its members;3.To promote the cooperative as a way of life for improving the social and economic well-being ofthe people;4.To undertake other activities for the effective and efficient implementation of the provisions ofthe Cooperative Code.5.To deposit operational fund to any commercial or cooperative banks and gain interest based onthe 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, Mutual Funds,Government Guaranteed Placements like Treasury Bills, Special Deposit Accounts, etc.7. To provide members with services such as bills paymentcell 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 business operation,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 better memberof society. 5
  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. General Assembly (ADEMC Members) Board of Directors Audit Committee Election Committee Leigh Perez Froilan Beratio Tess Vaenzuela Jane Aguila Rhoda Gorospe Lina Abad Raymond Tana Secretary Chairperson Treasurer Treasurer Chairperson Chairperson Chairperson Annie Franklin Karell Aquino Dona Cabrera Hernandez Dang Salcedo Carrie Vallespin Evelyn Tarra Rolly Davila Maricel De Asis Edwin Perez Cadavicio Member Member Member Vice Chairperson Member Vice Chairperson Secretary MemberVice Chairperson Secretary Operation Team Ferdinand Arnel Barongan Jhun Bayrante Jojo Caranto Concepcion Jess Gadugdug Member Member Member Member Member Louie Habitan Gen. Mgr. Credit Committee Ethics Committee Education & Training Conciliation & Mediation Jericho Betzy Tagle Lota Reyes Tony Alinea Tonelada Bong Pimentel Supervisor Chairperson Chairperson Vice Chairperson Chairperson LyndonEderlyn Guleng Lolit Catarig Reggie Zarzuela Enero Policarpio Rocky Casas Mercy Meriales Gina Cabral DelaPaz Ludy Villamin Leny Abanes Carmi Rivera 8 Secretary Vice Chairperson Secretary Vice Chairperson Secretary Member Secretary Vice Chairperson 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 regulations adopted by theBoard of Directors and the general assembly; andf) Promote the goals and objectives of the Cooperative, the success of its business,the welfare of its members and the cooperative movement in general. 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 general assemblymeetings;b)Seek any elective or appointive position, subject to the provisions of this By-lawsand the Philippines Cooperative Code of 2008;c)Avail himself of the services of the Cooperative, subject to certain conditions asmay be prescribed by the Board of Directors;d)Inspect and examine the books of accounts, the minutes books, the share register,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 theBoard of 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 ofDirectors;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 promulgatedby the Cooperative; 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 = 1 Take Home Pay = 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 = 1 10 yrs. and CAPITAL SHARE x 3 up to 1 million Take Home Pay =SLFCat3 year or 2 years or 3 above pesos only. 40% Basic Pay 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. COMPUTER LOAN Terms Interest Service Fee1 Year to pay 0% 1%2 Years to pay 9% 2% COD 0% 2% 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
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  18. 18. 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. 18
  19. 19.  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. 19
  20. 20. 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 20
  21. 21. SAMPLE COMPUTATION OF INTEREST ON CAPITAL OR DIVIDEND Month ACCUMULATED CS BALANCE AVERAGE SHARE January 79,328,813.72 / 12 6,610,734.48 February 80,610,376.61 / 12 6,717,531.38 March 81,858,510.54 / 12 6,821,542.55 April 83,144,889.19 / 12 6,928,740.77 May 85,064,788.06 / 12 7,088,732.34 June 86,400,348.94 / 12 7,200,029.08 July 87,237,043.54 / 12 7,269,753.63 August 88,649,816.28 / 12 7,387,484.69 September 89,638,069.41 / 12 7,469,839.12 October 90,688,130.23 / 12 7,557,344.19 November 91,139,504.90 / 12 7,594,958.74 December 92,407,271.01 / 12 7,700,605.92 TOTAL AVERAGE SHARE 86,347,296.87 TOTAL EFFECTIVE SHARE @ P20/SHARE 4,317,364.84Patronage Refund for credit services = 50% of the allocation and the other 50% is for Interest onshare capitalAllocation of Patronage Refund for other services shall be determined by the Board of Directors. 21
  22. 22. Net Income: 12,559,634.80Less Appropriations: General Reserved Fund (10% x NI) 1,255,963.48 Education & Training (5% x NI) 627,981.74 Land & Building Fund (1% x NI) 125,596.35 Officers Bonus Payable (2% x NI) 251,192.70 2,260,734.26Net Income To Be Distributed to Members 10,298,900.54Allocations:Patronage Refund (50% of net income to be distributed to members) 5,149,450.27Dividend (50% of net income to be distributed to members) 5,149,450.27 10,298,900.54Dividends Per Share ( 5,149,450.27 / 4,317,372.27 shares) 1.192 22
  23. 23. Month ACCUMULATED CS BALANCE AVERAGE SHAREJanuary 1,000.00 / 12 83.33February 2,000.00 / 12 166.67March 3,000.00 / 12 250.00April 4,000.00 / 12 333.33May 5,000.00 / 12 416.67June 6,000.00 / 12 500.00July 7,000.00 / 12 583.33August 8,000.00 / 12 666.67September 9,000.00 / 12 750.00October 10,000.00 / 12 833.33November 11,000.00 / 12 916.67December 12,000.00 / 12 1,000.00TOTAL AVERAGE SHARE 6,500.00 TOTAL EFFECTIVE SHARE @ P20/SHARE 325.00 Dividend (1.192 X 325 eff. Share) 387.40 Patronage Refund: SLF Principal amount of P50,000.00 - interest rate = 9% Interest from Loan = 4,500.00 Term - 12 months X 50% Patronage Refund 2,250.00 Total Dividend and Patronage Refund due to Member 2,637.40 (Note: Patronage Refund may be vary depends on the Income) 23
  24. 24. 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 Releasing of Loans Thru Loans Date of Processing of Loans Applications Check or ATM SLF and EL Within the 1st working day On the 2nd working day On the 3rd working day 24
  25. 25. Notes:Service Fee1% for Express loan2% for SLFMembership FeeP20 for new membersP100 for re-members and Initial Share of P200Bereavement Assistance – P10 per deceased immediate family membersand siblings. In-laws not allowed.2K – from COOP for non member 25
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