RA 9520 Voting Requirements

Amendments in the Articles and By-laws of Cooperative

 2/3 votes of all members with voting rights

 Dissenting members have the right to withraw their membership

Division of Cooperatives

 three-fourths (3/4) votes of all the members with voting rights, present and constituting a
quorum, resolve to divide itself into the two (2) or more cooperatives

Merger and Consolidation of Cooperatives

 three-fourths (3/4) votes of all the members with voting rights, present and constituting a quorum
of each of the constituent cooperatives at separate general assembly meetings
 Dissenting members have the right to withraw their membership

Membership Termination

1. Voluntary withdrawal, must give 60-day notice to the BOD

2. Death, insanity, insolvency or dissolution
3. Vote of the majority of all the members of the board of directors, for the following causes: (due
process must be followed)
1. member has not patronized any of the services of the cooperative for an
unreasonable period of time
2. a member has continuously failed to comply with his obligations
3. member has acted in violation of the bylaws and the rules of the cooperative
4. any act or omission injurious or prejudicial to the interest or the welfare of the
cooperative

ART. 59. Primary Lien. - Notwithstanding the provision of any law with the contrary, a cooperative
shall have primary lien upon the capital, deposits or interest of a member for any debt due to the
cooperative from such a member.

ART. 72. Capital Sources.- Cooperatives registered under this Code may derive their capital from
any or all of the following sources:

(1) Member’s share capital;

(2) Loans and barrowings including deposits;

(3) Revolving capital which consists of the deferred payment of patronage refunds, or
interest on share capital; and
(4) Subsidies, donations, legacies, grants, aids and such other assistance from any local or
foreign institution whether public or private: Provided, That capital coming from such
subsides, donations, legacies, grants, aids and other assistance shall not be divided into
individual share capital holdings at any time but shall instead form part of the donated
capital or fund of the cooperative.

Upon dissolution, such donated capital shall be subject to escheat.