Membership Policy

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REPUBLIC OF THE PHILIPPINES

PROVINCE O CAMARINES NORTE


MUNICIPALITY OF LABO
oOo
BARANGAY BAUTISTA ABRICULTURE COOPERATIVE
Purok 3, Barangay Bautista Labo, Camarines Norte
CDA Reg. No.9520-100500035297

MEMBERSHIP POLICY

Article I
DECLARATION OF POLICY
This policy paper provides guidelines governing membership in the Barangay Bautista
Agriculture Cooperative drawn from CDA regulations, pertinent provisions of BBAC Bylaws, and
other policies and procedures as approved by the Board of Directors.

Article II
WHO CAN BECOME A MEMBER
Membership of BBAC is a privilege extended to farmers of Labo Camarines Norte, particularly
to the farmers of barangay Bautista with the following conditions:

 Regular Members - only land owner, tenant, farm worker and agricultural products
vendor are qualified to become Regular Members of the Cooperative.

Article III
ENTITLEMENT OF MEMBERS
Section 1. Entitlements of Regular Members.

1. Participate in the capitalization of the Cooperative through capital build-up.


2. Fully enjoy the loan products of the Cooperative.
3. Share in the surplus earned by the Cooperative through dividends.
4. Be paid patronage refund proportionate to their use of the business of the Cooperative.
5. Attend meetings and participate in the parliamentary affairs of the Cooperative.

Article IV
HOW TO BECOME A MEMBER
Land Owner, tenant, farm worker and agricultural product vendor from Labo Camarines Norte
can apply for membership through the following procedure:

1. Attend a Pre-Membership Education Seminar (PMES) given by the Cooperative.


2. Fill-up the Membership Application Form
3. Subscribe to at least 30 shares equivalent to P3,000.00 (payable through the monthly
share capital build-up).
4. Deposit an initial share capital of P500.00 equivalent to 5 shares.
REPUBLIC OF THE PHILIPPINES
PROVINCE O CAMARINES NORTE
MUNICIPALITY OF LABO
oOo
BARANGAY BAUTISTA ABRICULTURE COOPERATIVE
Purok 3, Barangay Bautista Labo, Camarines Norte
CDA Reg. No.9520-100500035297

5. Commitment to a monthly share capital build-up of at least P100.00.


6. Commitment to a monthly savings deposit of at least P100.00.
7. Payment of a one-time membership fee of P200.00.
8. Commitment to patronize the products of the Cooperative.

Article V
DUTIES OF A MEMBER
Every member shall have the following duties:

1. Fully pay the capital stock subscribed and participate in the continuous capital build-up
of the Cooperative.
2. Patronize the Cooperative business.
3. Participate in its parliamentary affairs (for Regular Members).
4. Attend membership meetings.
5. Obey rules, regulations, and policies set by the Board, the BBAC Bylaws, the General
Assembly, and the Cooperative Development Authority.
6. Pay cooperative obligations (e.g mandatory monthly capital build-up, savings, loan
payments, etc.) without the need for reminder.
7. Promote the aims and purposes of the Cooperative and the success of its business.

Article VI
SHARE CAPITAL
The main source of funds of the Coop comes from members’ share capital contributions. One
share has a par value of P100.00.

1. Every member is required to subscribe to at least 10 shares with a total value to


P1,000.00.
2. All members are required to commit to sustained capital build-up. A monthly share
capital contribution of P100.00 will be paid by the member until the minimum required
subscription of 30 shares has been paid up.
3. Any member is entitled to increase his/her capital in the Cooperative at any time subject
to the prescribed minimum and maximum share capital contribution.
4. Partial withdrawal of share capital in the Cooperative is not allowed. Share capital can
only be withdrawn upon termination of membership.
5. It is standard practice among Cooperatives to use paid-up share capital to determine the
loan entitlement of Regular Members. Thus, share capital cannot be paid through loan
borrowed from the Cooperative.
6. At the end of the year, numbered stock certificates are issued to members for the shares
they have paid-up during the year.
7. Members have the right to request for the print out of their paid-up share capital ledger
anytime.
REPUBLIC OF THE PHILIPPINES
PROVINCE O CAMARINES NORTE
MUNICIPALITY OF LABO
oOo
BARANGAY BAUTISTA ABRICULTURE COOPERATIVE
Purok 3, Barangay Bautista Labo, Camarines Norte
CDA Reg. No.9520-100500035297

At year-end, the Coop shall send members a statement to confirm his/her outstanding balance
of loans and paid-up share capital contribution. This confirmation is also in preparation for the
annual computation of dividends on share capital and patronage refund.

Article VII
DIVIDENDS AND PATRONAGE REFUND

1. Upon completion of the external audit, the Board of Directors deducts the mandatory
reserves (10% General Reserve Fund, 1% Education Fund, 3% Community
Development Fund, 3% Optional Fund for land and building) from the annual surplus to
determine the net surplus for distribution.
2. Dividing the net surplus available for distribution into dividend and patronage refund is
presented for approval of the Board of Directors. This ratio determines the amount that
will be paid out as dividends and the amount that will be paid out as patronage refund.
3. Dividends Rate is computed in the following manner:

Total average share capital is computed by calculating the following:

1.
 Total Share Months – this is computed by adding the monthly balances of
each member’s share capital for 12 months.
 Average Share Capital – this is computed by dividing the Total Share
Months by 12.
 Total Average Share Capital – the average share capital of all members
are added together.
 Dividend Rate- the net surplus available for distribution as dividend is
then divided by the Total Average Share Capital to get the dividend rate.

4. The Patronage Refund Rate is computed by dividing the net surplus available for
distribution as patronage refund by interest income from loans.
5. Patronage refund paid to each member is calculated by computing the interest members
paid on all loans for the entire year. Patronage Refund Rate is applied to Interest
payment.
6. Coop Bylaws provide that dividend and patronage refund can be paid out or retained.
7. Actual payment of dividends and patronage refund is affected at such time as the Board
of Directors may designate.
8. Members with past due loans may receive dividends and patronage refund but will be
deposited directly to their Share Capital.
9. Members who terminate their membership will be entitled to receive dividends on a pro-
rated basis. Unclaimed dividends and patronage refund are closed to the General
Reserve Fund after the 4-year prescription period provided by law.
REPUBLIC OF THE PHILIPPINES
PROVINCE O CAMARINES NORTE
MUNICIPALITY OF LABO
oOo
BARANGAY BAUTISTA ABRICULTURE COOPERATIVE
Purok 3, Barangay Bautista Labo, Camarines Norte
CDA Reg. No.9520-100500035297

Article VIII
TERMINATION OF EMPLOYMENT/MEMBERSHIP
Membership Status to the Cooperative is changed by either of the following:

1. Withdrawal of Membership with BBAC Any member desiring to terminate his/her


membership with the Cooperative must submit the Termination Membership Form 30
days prior to his/her intended last day of membership.

2. Expulsion – 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:
a. When a member has not patronized the products of the Cooperative for an
unreasonable period of time as may be fixed by the Board.
b. When a member has continuously failed to comply with his obligations.
c. When a member has acted in violation of the Bylaws and the rules of the
Cooperative.
d. For any act or omission injurious or prejudicial to the interest or the welfare of the
Cooperative.

Prepared by:

Ma. Lourdes V. Rafer


Secretary
BBAC

Signed by:

_____________ __________________
Andy B. Rocas Camilo P. Relaga
BOD BOD

______________________ _______________________
Gerry Vic L. Villaluz Lope P. Villaluz
BOD BOD

_____________________
Isabe B. Valenzuela
Chairman of the Board

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