MEMBERSHIP

UE CALOOCAN MULTI-PURPOSE COOPERATIVE

MEMBERSHIP POLICY

 

OBJECTIVE

This policy provides guidelines governing membership in the UE Caloocan Multi-Purpose Cooperative drawn from CDA Regulations, pertinent provisions of UECMC By-laws and policies and procedures approved by the Board of Directors for the implementation of Cooperative programs and services.

WHO CAN BECOME A MEMBER

Membership in the UE Caloocan Multi-Purpose Cooperative is a privilege extended to active employees of UE Caloocan whether regular, probationary and contractual employment status.

BENEFITS

Cooperative members are entitled to earn dividends on their paid-up capital, receive patronage refund for the availment of loan products and services offered by the Cooperative.

RIGHTS & DUTIES OF MEMBERS

1.       Commit to contribute to a sustainable capital build-up through semi-monthly salary deduction for members of   5 years and above and through 4% retention capital for every loan availed in the cooperative.

2.       Patronize the Cooperative's business.

3. Share in the net surplus earned by the Cooperative in the form of Interest on share capital based on their paid up capital and Patronage Refund for patronizing the Cooperative’s products and services.
4. To attend meetings and participate in the parliamentary affairs of the Cooperative.

5.       Obey rules and regulations and policies of the Cooperative.

6.       Inspect and examine financial records, and other records of the Cooperative.

HOW TO BECOME A MEMBER

Active UE employees of the University of the East Caloocan can apply for membership through the following procedure:

1. Fill out a Membership Application Form
2. Submit the following requirements together with the properly filled out application form:

For Regular and Probationary Employee:

a.       Photocopy of the original appointment in UE

b.       Back-to-back photocopy of UE Identification Card

For Newly hired Faculty employee with Sem-to-Sem Status:

a.       Photocopy of Fist Day of Service. (contract of employment to follow)

b.       Any Government issued ID (UE ID to follow)

3. Attend a Pre-Membership Education Seminar.

4.       Upon approval of the application for membership, pay a one-time membership fee of ₱500.00 and required initial capital of ₱1,000.00 upon application for membership.

5.       The member who resigned from the cooperative in less than a year will incur a penalty of ₱200.00

SHARE CAPITAL

The main source of funds of the Cooperative comes from members' share capital contributions. One share has a par value of ₱100.00.

1. Every member is required to subscribe to at least ten (10) shares with a total value of ₱1,000.00 in order to become a bona-fide member entitled to avail of the Cooperatives’ loan facilities.

2.       The By-laws of the UE Caloocan Multi-Purpose Cooperative require all members to commit to sustainable capital build-up through semi-monthly salary deduction for members of   5 years and above and through 4% retention capital for every loan availed in the cooperative.

3. It is standard practice among Cooperatives to use paid-up share capital to determine the loan entitlement of regular members. However, the Cooperative is allowing its member to avail the desired loan bracket and any deficiency with their share capital requirement can be deducted outright from their approved loan proceeds provided he/she has qualified the said loan bracket.
4. At the end of the year, numbered stock certificates are issued to members for every additional share capital they have contributed during the year.
5. At any time, members have the right to request for a print out of their paid-up share capital ledger or request for a certification of share capital balance.

CALCULATION AND PAYMENT OF DIVIDEND AND PATRONAGE REFUND

1. Upon completion of the Audited Financial Statement and in compliance with the CDA policy, the Cooperative deducts the mandatory reserve requirements (10% General Reserves, 10% Cooperative Education Training Fund, 7% Optional Fund, 3% Community Development Fund) from the Annual Net Surplus to determine the Surplus Available for Distribution. 
2. A proposal dividing the Surplus Available for Distribution into the Interest on Share Capital and Patronage Refund is approved by the Board of Directors. This ratio determines the amount that will be paid out as Dividend and the amount to be paid out as Patronage Refund.
3. Dividend Rate: The Surplus Available for Distribution as Dividend is then divided by the Total Average Share Capital to get the dividend rate.

4.          Total Average Share Capital:

a.       Total Share Months: This is computed by adding the monthly balances of each member's share capital for 12 months

b.       Average Share Capital: This is computed by dividing the Total Share Months by 12.     

c.        Total Average Share Capital: The Average Share Capitals of all members are added to get the Total Average Share Capital.

6.       The Patronage Refund Rate is computed by dividing the Surplus Available for Distribution as Patronage Refund by the Interest Income less rebates, service fee derived from loans plus the income from commission income from sales.

7.       Members who terminate their membership from January 01 to June 30 will not be entitled to dividends/patronage refund of the current year.

TERMINATION OF MEMBERSHIP

Any member, who withdraws, terminates or resigns his membership from the Cooperative implies that he ceases to be interested in the business of the Coop. Termination of membership can be effected through the following procedure:

1. Submit a resignation letter address to the Board of Directors stating his/her reason for resignation.
2. Surrender the original stock certificate received from the cooperative.  Any loss certificates will be charged by ₱150.00 cancellation fee and affidavit of loss will be issued to the coop.

3. As a standard procedure, the Coop processes the termination request upon full payment of loan/s and receipt of in transit remittances from UE for loan payments and share capital. Hence, timeline for resignation can be done within 30 days upon submission of written notification to the UECMC office.
4. Resigned members who continue to be employees of UE may re-apply six months after his/her resignation. No re-application is allowed for any member who resigned for a second time.

5.       The member who resigned from the cooperative in less than a year will incur a penalty of ₱200.00

EXTENDED MEMBERSHIP

Pursuant to the amended By-Laws of the UECMC, retired/resigned UE Employee that opts to continue his/her membership with the Cooperative will now be allowed subject to the implementing rules of this policy. 

Mandatory Accounts to be maintained by Members with extended Membership:

1.       Share Capital - Members with extended membership should maintain at least One Thousand Pesos (₱1,000) of Share Capital but not exceeding to Fifty Thousand Pesos (₱50,000).  In cases wherein their paid-up capital exceeds ₱50,000 the excess amount will be refunded to the member and considered as buy-back or treasury shares subject to reissuance of share certificate to update their current shareholdings in the cooperative.  However, if the member patronized the services/business of the cooperative by availing loans and products during the first year of his/her being as an  extended member, his/her share capital will be allowed to increase and exceed the  ₱50,000 limit by 10% of the total borrowed amount. This will also apply to the succeeding years, every time he will patronize the cooperatives’ product and services he/she will be entitled to increase his/her share capital the following year.

2.       Savings Deposit – They should maintain their savings deposit of at least Ten Thousand Pesos (₱10,000) to be replenished yearly. Membership dues will be collected and will be deducted from their savings deposit account subject to the issuance of written authorization to UECMC office.  All members with extended membership will be obligated to contribute in Membership dues regardless whether they have been enjoying the exemption from membership dues contribution for staying in the coop for 5 years and above.    Unclaimed Interest on Share Capital and Patronage Refund will be credited directly to their savings deposit account.

Rights to avail Loans offered by the Cooperative:

Members with extended membership have the right to avail the loans offered by the cooperative up to Eighty Percent (80%) of their share capital only.  Provided however, they will issue post-dated checks for their loan amortization.   Only regular loans such as Short Term Loan (STL) and Long Term Loan (LTL) will be granted to them.

Duties and Responsibilities of a Member  

Every member shall have the following duties:

a.       Pay the instalment of his share capital subscription as it falls due and to participate in the capital build-up and savings mobilization activities 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 general assembly meetings;

e.       Observe and obey all lawful orders, decisions, rules and regulations adopted by the Board of Directors and the general assembly;  and

f.        Promote the purposes and goals of the Cooperative, the success of its business, the welfare of its members and the cooperative movement in general.

Rights and Privileges of Members

A member shall have the following rights and privileges:

a.       Attend during general membership meetings;

b.      Avail himself of the services of the Cooperative, subject to certain conditions as may be prescribed by the Board of Directors;

c.       Inspect and examine the books of accounts, the minutes books, the share register, and other records of the Cooperative during reasonable office hours;

d.      Secure copies of cooperative records/documents pertaining to the account information of the concerned member;

e.             Has preference in the payment of interest on share capital and in the distribution of the net assets of the Cooperative in case of liquidation.

Member Entitled to Vote

Any  member who meets the following conditions is a member entitled to vote:

a.       Paid the membership fee and the value of the minimum shares required for membership;

b.      Not delinquent in the payment of his share capital subscriptions and other accounts or obligations;

c.       Not violated any provision of this By-laws,  the terms and conditions of the subscription agreement;  and the decisions, guidelines, rules and regulations promulgated by the Board of Directors and the general assembly;

d.      Completed the continuing education program prescribed by the Board of Directors;  and

e.       Participated in the affairs of the Cooperative and patronized its businesses in accordance with cooperative’s policies and guidelines.

Failure of the member to  meet any of the above qualifications shall mean loss of right to vote as declared by the Board of Directors.

Rights of 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 assembly meetings;

b.      Seek any elective or appointive position, subject to the provisions of this By-laws and the Philippine Cooperative Code of 2008;

c.       Avail himself of the services of the Cooperative, subject to certain conditions as may 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.       Such other rights and privileges as may be provided by the General Assembly; and

f.        Participate in the continuing  education and other training programs of the cooperative.

Termination of Membership

Termination of membership may be automatic, voluntary or involuntary, which shall have the effect of extinguishing all rights of a member in the Cooperative, subject to refund of share capital  contribution under Section 14 hereof.

a.       Automatic Termination of Membership.  The death, insanity, permanent incapacity or judicial declaration by a competent court or the insolvency of a member shall be considered an automatic termination of his membership in the Cooperative.

b.      Voluntary Termination.  A member may, for any reason, withdraw his membership from the Cooperative by giving a sixty (60) day notice to the Board of Directors.  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.

c.       Involuntary Termination.  A member may be terminated by a vote of the majority of all the members of the Board of Directors for any of the following causes:

                                    i.        When he has not patronized the services/businesses of the Cooperative for more than twelve (12) consecutive months or  as provided for in the policies approved by the general assembly;

                                  ii.        When he has continuously failed to comply with his obligations as provided for in the policies approved by the general assembly;

                                iii.        When he has violated any provision of this By-laws and the policies promulgated by the Board of Directors as approved by the general assembly;  and

                                 iv.        For any act or omission injurious or prejudicial to the interest or the welfare of the Cooperative.