Date: June 29, 2010

To: All Members of the General Assembly

From: Eufemio S Sillo
Board Secretary
Subject: Amendments to the Articles of Cooperation (AOC) and By-laws

The Board during its meeting held last June 29, 2010, endorsed for your ratification, the following
amendments to the ACDI Article of Cooperation and By-laws. In harmony with the RA 9250, hereunder are the
amendments to the Articles of Cooperation and By-laws.
Moreover, the name of ACDI Savings and Credit Cooperative will be changed to ACDI Multipurpose Cooperative.
Additional provisions will be incorporated to the Articles of Cooperation and By-laws to effect this change. The
purpose of changing the name of the cooperative from a savings and credit to a multipurpose cooperative is to
position ACDI to engage in various business opportunities in the future. While savings and credit maybe its main
business for the meantime, it will look for other ventures that improve its operation and provide more benefits to its
members.

ARTICLES OF COOPERATION

PRESENT PROVISIONS PROPOSED PROVISIONS REMARKS

We, the undersigned Filipino citizens and residents
of the Republic of the Philippines, have on this day
voluntarily associated ourselves for the purpose of
forming a [primary savings and credit cooperative]
under the laws of the Republic of the Philippines,
more particularly the Philippine Cooperative Code of
2008 otherwise known as [R.A. 6938.
We, the undersigned Filipino citizens and residents
of the Republic of the Philippines, have on this day
voluntarily associated ourselves for the purpose of
forming a primary multipurpose cooperative under
the laws of the Republic of the Philippines, more
particularly the Philippine Cooperative Code of
2008 otherwise known as RA 9520

ARTICLE I. NAME OF THE COOPERATIVE

That the name of the Cooperative shall be [ACDI That the name of the Cooperative shall be ACDI
SAVINGS AND CREDIT COOPERATIVE. MULTIPURPOSE COOPERATIVE.

ARTICLE II. PURPOSES

ARTICLE II – OBJECTIVES AND PURPOSES ARTICLE II PURPOSES

That the objectives and purposes for which this That the purposes for which this Cooperative is
Cooperative is formed are: formed are:
1. [To encourage thrift and savings 1. To encourage thrift and savings
mobilization among the members; mobilization among the members;
2. To create funds and grant loans to 2. To generate funds and grant loans to
members for productive and providential members for productive and
purposes; providential purposes;
3. To provide related services to enable 3. To provide related services to enable

1
 4. To promote the spirit of cooperativism
as a way of life for improving the social
and economic well being of the people;
5. To undertake any related activity for the
members’ self government, improve
social and/or economic well being under
a truly just and democratic society;
6. To advance the cooperative movement
and work with government and non-
government organizations/entities in the
promotion and development of
cooperatives and in carrying out
government policies;
7. To conduct publicity and research work
for the promotion of the cooperative
movement to educate the members and
the community in general; and
8. To undertake other activities for the
effective and efficient implementation of
the provisions of the Cooperative Code.]
4. To invest funds in business activities
that provide a steady stream of
income for the Cooperative such as:
real estate development and
marketing, consumer services,
agribusiness, franchising, insurance
transportation/communication,
chartering, travel and tours,
restaurant/catering, wellness
projects/spa and others as may be
determined appropriate by the Board
of Directors ;
4. To engage in aviation education and
training services to support the
development of the aviation industry;
5. To promote the spirit of
cooperativism as a way of life for
improving the social and economic
well-being of the people;
6. To undertake any related activity for
the member self (government)
governance, improve social or
economic well-being under a truly
just and democratic society;
7. To advance the cooperative
movement and work with the
government and non-government
organizations/entities in the
promotion and development of
cooperatives and in carrying out
government policies;
8. To conduct publicity and research
work for the promotion of the
cooperative movement, to educate
the members and the community in
general, and
9. To undertake other activities for the
effective and efficient implementation
of the provisions of the Cooperative
Code.

ARTICLE III. AREA OF OPERATION

That the area of operation is national That the area of operation is national
(branches in all existing Philippine Air Force bases, branches in all existing military
military bases/camps/stations, and international bases/camps/stations, and international airports
airports where airport authorities exist in the where airport authorities exist in the Philippines)

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Philippines) and the principal/head office shall be at
Blk 2, Lot 8, Diego Silang St., AFPOVAI Subdivision,
Taguig City and branch at Villamor Air Base, Pasay
City and other branches where PAF bases or military
camps/stations will be located in the future.
and the principal/head office shall be at Blk 2, Lot
8, Diego Silang St., AFPOVAI Subdivision, Taguig
City and branch at Villamor Air Base, Pasay City
and other branches where PAF bases or military
camps/stations will be located in the future.

ARTICLE VI. BOND OF MEMBERSHIP

That the common bond on membership of this
Cooperative is institutional and the field of
membership shall be open to all natural persons who
are of legal age, with capacity to enter into contract
or heads of the families who are active or retired
officer, enlisted personnel, civilian personnel and
dependent of officers, enlisted personnel and
pensioners of the Armed Forces of the Philippines in
general, and the Philippine air Force in particular and
who are residing or working within the area of
operation as defined in Article III hereof;
That the common bond on membership of this
Cooperative is institutional and the field of
membership shall be open to all natural persons
who are of legal age, with capacity to enter into
contract or heads of the families who are active or
retired officer, enlisted personnel, civilian
personnel and dependent of officers, enlisted
personnel and pensioners of the Armed Forces of
the Philippines who are residing or working within
the area of operation as defined in Article III
hereof;

ARTICLE VIII. CAPITALIZATION

That the authorized share capital of the That the authorized share capital of the
Cooperative is [ONE BILLION PESOS Cooperative is TWO BILLION PESOS (P
(P1,000,000,000.00]) and said capital is divided into: 2,000,000,000.00) and said capital is divided into:

a. [FORTY MILLION (40,000,000) share a. FIFTEEN MILLION (15,000,000)

capital contribution with a par value of
TWENTY PESOS (P20.00).]
b. TWENTY THOUSAND (20,000) preferred
share capital (preferred shares) with par
value of One Hundred Pesos (P100.00)
common share capital contribution with
a par value of ONE HUNDRED PESOS
(P 100.00) per share;
b. FIVE MILLION (5,000,000) preferred
share capital (preferred shares) with par
value of One Hundred Pesos (P100.00)
per share.

That the Board of Directors shall determine That the Board of Directors shall
the stratification of common shares and preferred determine the stratification of common shares and
shares. preferred shares.

ARTICLE IX. PAID UP

That the attached list of members have subscribed That the attached list of members have subscribed

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and paid-up capital of THREE HUNDRED FIFTY
TWO MILLION SIX HUNDRED EIGHTY THOUSAND
PESOS (P352,680,000.00) divided into ELEVEN
MILLION THIRTEEN THOUSAND TWO HUNDRED
SIXTY EIGHT (11,013,268) shares.
AMENDMENTS TO ACDI BY-LAWS
PRESENT PROVISIONS
We, the undersigned, citizens and residents of
the Republic of the Philippines, representing
the majority of the regular members in good
standing of ACDI Savings and Credit
Cooperative have voluntarily joined together to
pursue a lawful economic objective in
accordance with universally accepted
cooperative principles, do hereby adopt the
following code or By-Laws.
ARTICLE I. PURPOSES
Section 1. Objectives and Purposes. The Section 1. Purposes. The purposes of this Cooperative
objectives and purposes of this Cooperative
are those set forth in Article II of the Articles of
Cooperation and those generally granted to
cooperatives under RA No. 6938 and the rules
and regulations there under. Objectives &
Purposes set forth in Articles of Cooperation
and paid-up capital of SIX HUNDRED FIFTY
THREE MILLION EIGHT HUNDRED THIRTY
NINE THOUSAND SEVEN HUNDRED SEVEN &
23/100 PESOS (P653,839,707.23) divided into
SIX MILLION FIVE HUNDRED THIRTY EIGHT
THOUSAND FOUR HUNDRED (6,538,400)
shares.
PROPOSED PROVISIONS REMARKS
We, the undersigned, citizens and residents of the
Republic of the Philippines, representing the majority of
the regular members in good standing of ACDI
Multipurpose Cooperative have voluntarily joined together
to pursue a lawful economic objective in accordance with
universally accepted cooperative principles, do hereby
adopt the following code or By-Laws.
are those set forth in Article II of the Articles of
Cooperation and those generally granted to
cooperatives under RA No. 9520 and the rules and
regulations there under. The following are the
purposes of the ACDI Multipurpose Cooperative:
a. To encourage thrift and savings mobilization
among the members;
b. To generate funds and grant loans to members for
productive and providential purposes;
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 c. To provide related services to enable the members
to maximize the benefits from such loans;
d. To invest funds in business activities that provides
a steady stream of income for the Cooperative
such as: real estate development and
marketing, consumer services, agribusiness,
franchising, insurance
transportation/communication, chartering,
travel and tours, restaurant/catering, wellness
projects/spa and others as may be determined
appropriate by the Board of Directors ;.
e. To engage in aviation education and training
services that support the development of the
aviation industry..;
f. To promote the spirit of cooperativism as a way of
life for improving the social and economic well-
being of the people;
g. To undertake any related activity for the member
self government, improve social or economic well-
being under a truly just and democratic society;
h. To advance the cooperative movement and work
with the government and non-government
organizations/entities in the promotion and
development of cooperatives and in carrying out
government policies;
i. To conduct publicity and research work for the
promotion of the cooperative movement, to educate
the members and the community in general, and
j. To undertake other activities for the effective and
efficient implementation of the provisions of the
Cooperative Code.

ARTICLE II. MEMBERSHIP

Section 1. Membership. The common bond of Section 1. Membership. The common bond of
membership in this cooperative is membership in this cooperative is institutional and
institutional and shall be open to all Filipino shall be open to all Filipino citizen who are of legal
citizens who are of legal age, with capacity age, with capacity to contract or heads of the families
to contract or heads of the families and are and are officers, enlisted personnel and regular
officers, enlisted personnel and regular civilian employees and pensioners of the Armed
civilian employees of the Armed Forces of Forces of the Philippine; permanent employees of
the Philippine; in particular, and the Armed domestic aviation companies; others, as determined,
Forces in general; permanent employees of on a case to case basis, by the Board of Directors
international airport authorities and and are residing or working within the area of
domestic aviation companies; others, as operation as provided in Article III of the Articles of
determined, on a case to case basis, by the Cooperation.
Board of Directors and are residing or
working within the area of operation as
provided in Article III of the Articles of
Cooperation.

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Section 2. Categories of Membership. There Section 2. Categories of Membership. There shall be two
shall be two (2) categories of membership,
as follows:
b. Associate: An associate member of
the Cooperative is one who has not
completed the required education and
training program for membership or
one who is a minor or dependent of
regular members. He is entitled to all
the rights and privileges of
membership, except the right to vote
or be voted upon during an election for
officers of the cooperative.
c. A Junior Savers (JS) is an associate
member, a minor below 18 years old,
and a dependent or close relative of a
member. S/he must have paid the
required fees and minimum savings
deposit in order to enjoy limited
privilege of earning interest income for
his/her investment in the cooperative.
d. Special Depositors: S/he is an
associate member or a non-member
(individual or organization) who wishes
to open a savings account with the
cooperative.
Section 3. Qualifications For Membership. Section 3. Duties and Responsibilities of a Member.
The prospective members should:
a. Pledge to undertake the
responsibilities of members;
b. Complete the prescribed pre-
membership cooperative education
and training program;
c. Undertake to uphold the By-Laws,
policies, guidelines, rules and
regulations promulgated by the Board
of Directors and the general assembly.
d. Use or anticipate to use the services of
the cooperative more particularly the
savings and loaning services, and
other allied services relative thereto.
(2) categories of membership, as follows:
b. Associate: An associate member of the
Cooperative is one who has not completed the
required education and training program for
membership or one who is a minor or dependent of
regular members or a citizen of other country. He
is entitled to all the rights and privileges of
membership, except the right to vote or be voted
upon during an election for officers of the
cooperative. A Junior Savers (JS) is an associate
member, a minor below 18 years old, and a
dependent or close relative of a member. S/he
must have paid the required fees and minimum
savings deposit in order to enjoy limited privilege of
earning interest income for his/her investment in
the cooperative.
Every member shall have the following duties:
a. Pay the installment of his share capital contribution
as it falls due and to participate in the capital build-
up and savings mobilization activities of the
Cooperative;
b. Patronize the Cooperative’s business and services;
c. Participate in the Cooperative education program;
d. Attend and participate in the deliberation of all
matters taken during the 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 goals and objectives of the
Cooperative, the success of its business, the
welfare of its members and the cooperative
movement in general.
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Section 4. Application For Membership. The Section 4. Application For Membership. The application
following procedures in applying for for membership shall be made in writing on a form
membership in the cooperative are provided for the purpose. This shall be presented or
prescribed: The application for submitted to the management staff for evaluation and
membership shall be made in writing on a action, and approved by the Board of Directors.
form provided for the purpose. This shall
be presented or submitted to the
management staff for evaluation and
action, and approved by the Board of
Directors.

a. The application shall be accompanied

by a non-refundable membership fee
of FIFTY (P50.00) PESOS and
another TWENTY FIVE (P25.00)
PESOS to pay for his passbook which
amounts shall be returned to the
applicant in case of rejection.

Section 5. Minimum Share Capital Contribution Section 5. Minimum Share Capital of five shares at a par Change minimum
of five shares with par value of One Hundred value of P100.00 per share or a total value of SCC from P100 to
(P100.00) pesos Five Hundred (P500.00) pesos P500.

Section 8. Duties and Responsibilities of

Members. All members shall have the
following duties and responsibilities:
a. Pay the installments on capital stock
subscription as they fall due and
participate in the capital build-up
through regular savings;
b. Patronize regularly the business of the Transferred to
cooperative; Section 3
c. Participate in the parliamentary affairs
and democratic processes of the
cooperative;
d. Attend the general membership
meeting, regular or special;
e. Obey the rules and regulations
provided by RA No. 6938, these By-
Laws, the decision of the general
assembly and the Board of Directors,
and the policies and procedures or
decisions promulgated by the
Cooperative Development Authority
(CDA); and
f. Promote the aims and purposes of the
Cooperative, the success of its
business, the welfare of its members
and the cooperative movement as a
whole.

Section 9. Member Entitled to Vote: A Section 9. Member Entitled to Vote: A member in good
member in good standing is one who standing is one who is ENTITLED TO VOTE. He

7
 is ENTITLED TO VOTE. He is one
who:
a.
a. Has paid the required subscribed
capital contributions of at least ONE
HUNDRED (P100.00) PESOS the
value of FIVE (5) SHARES and
participate in the capital build-up
through regular savings;
is one who:
Has paid the required subscribed capital
contributions of at least FIVE HUNDRED (P500.00)
PESOS the value of FIVE (5) SHARES and
participate in the capital build-up through regular
savings;

Section 12. Termination of Membership. Section 12. Termination of Membership. Termination of

Membership in the cooperative may be
terminated either by withdrawal or expulsion.
membership, which may be automatic, voluntary or
involuntary, shall have the effect of extinguishing all
rights of the member on the Cooperative or its assets,
subject to the provision of this By-laws and as may be
provided by the General Assembly.

a. Automatic Termination of Membership. The

death, insanity, permanent incapacity, conviction
of felony or crimes involving moral turpitude, or
judicial declaration by a competent court of the
insolvency of a member shall be considered
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 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
pending obligation with the Cooperative.

c. Involuntary Termination. A member may be

terminated by a vote of the majority of the
members of the Board of Directors for any of the
following causes:

1. When he has not patronized the

services/businesses of the Cooperative for
more than 24 months;
2. When he has continuously failed to comply
with his obligations;
3. When he has violated any provisions of this
By-laws and the rules promulgated by the
Cooperative; and
4. For any act or omission injurious or
prejudicial to the interest or the welfare of
the Cooperative.
d. The decision of the Board shall be in writing and
shall be communicated in person or by

8
Section 14. . 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:

d. When a member has not patronized

the services of the cooperative for an
unreasonable period of time as may
be fixed by the Board of Directors;

d. When a member has continuously

failed to comply with his obligations;

d. When a member has acted in

violation of the By-Laws and the rules
of the cooperative;

d. For any act or omission injurious or

prejudicial to the interest or the
welfare of the cooperative.

A member whose membership the Board of

Directors may wish to terminate, shall be
informed of such intended action in writing
and shall be given an opportunity to be
heard before the said Board makes its
decision. The decision of the Board shall
be in writing and shall be communicated in
person or by registered mail to the member
and shall be appealable within thirty (30)
days after the decision is promulgated, to
the general assembly whose decision
therein, whether in general or special
session, shall be final. Pending a decision
by the general assembly, the membership
remains in force.
Section 16. Refund of Share Capital Contribution. A
member whose membership was terminated,
shall be entitled to a refund of his share capital
contribution and all other interest as provided in
the preceding Section. However, such refund
shall not be made if upon payment, the value of
the assets of the Cooperate will be less than the
aggregate amounts of its debts and liabilities New provision

9

Section 3. Powers and Limitations of the Section 3. Powers and Limitations of the General
General Assembly. The general
assembly shall have the following
powers:
a. To elect and remove directors,
officers and committee members
for cause;
b. To hear and pass upon the
reports of the Board of Directors, c. To review, modify, reject, or approve any
officers and committees;
c. To make final decisions
regarding any drastic change in
financial policies of the
Cooperative;
d. To determine the amendments in
the Articles of Cooperation
and/or By-Laws;
e. To exercise final authority on all
matters vitally affecting the
Cooperative;
f. To exercise all powers expressly
provided by law and these By-
Laws; and
g. To approve developmental of the
Cooperative.
Section 4. Annual General Assembly. A
General Assembly shall be held within 90 days
after the end of the fiscal year at the principal
office of ACDI Savings and Credit Cooperative
exclusive of its share capital contribution. In this
case, the terminated member shall continue to
be entitled to the interest of his share capital
contribution, patronage refund, and the use of
the services of the Cooperative until such time
that all his interest in the Cooperative shall have
been fully paid. Upon acceptance of his
withdrawal or approval of his termination,
however, he loses his right to attend, participate
and vote in any meeting of the Board of Directors
or General Assembly.
ARTICLE III. GOVERNANCE
Assembly. The general assembly shall have the
following powers:
a. To elect and remove directors, officers and
committee members for cause;
b. To hear and pass upon the reports of the
Board of Directors, officers and committees;
substantial change in financial and
operational policies of the Cooperative;
d. To determine the amendments in the Articles
of Cooperation and/or By-Laws;
e. To adopt a Cooperative seal and exercise
final authority on all matters vitally affecting
the Cooperative;
f. To exercise all powers expressly provided by
law and these By-Laws; and
g. To review, modify, reject or approve
developmental plans and programs of the
Cooperative.
Section 4. Annual General Assembly. A General
Assembly shall be held within 90 days after the end of the
fiscal year at any place within its area of operation and at
such time as the Board of Directors may designate. The
10
or at any place within its area of operation and ACDI Multipurpose Cooperative by reason of its dispersed
at such time as the Board of Directors may operation shall adopt a sequential/serial General
designate. Assembly.

In the event that the sequential/serial General

Assembly may no longer serve its purpose, the
Cooperative may adopt a representative general
assembly as prescribed by law and regulations.
Section 8. Agenda in General Assembly. As Section 8. Agenda in General Assembly. As far as
far as practicable, the order of practicable, the order of business at each annual
business at each annual meeting meeting shall be:
shall be:
a. Call to Order;
a. Roll Call;
b. Roll Call;
b. Proof of Due Notice;
c. Proof of Due Notice;
c. Consideration of the Minutes of the
last general assembly; d. Declaration of Quorum;

d. Consideration of the consolidated e. Consideration of the Minutes of the last general

report of officers, Board of Directors
and Committees including audited
statements of financial condition and
operations;
e. Ratification of the acts of the Board of
Directors and Committees;
f. Unfinished business, if any;
g. Development plans and budget;
h. Appointment of the External Auditor;
i. Election of directors and committees
members;
assembly;
f. Matters arising from the Minutes;
g. Consideration of the consolidated report of
officers, Board of Directors and Committees
including audited statements of financial
condition and operations;
h. Ratification of the acts of the Board of Directors
and Committees;
i. Unfinished business, if any;
j. Development plans and budget;
k. Appointment of the External Auditor;

j. New business; and administrative l. Election of directors and committees members;

announcement;
m. New business; and administrative
k. Adjournment announcement;

n. Other matters; and

o. Recess/Adjournment

Section 11. The Board of Directors. The Section 11. The Board of Directors. The business of
business of ACDI Savings and Credit ACDI Multipurpose Cooperative shall be administered
Cooperative shall be administered by a by a Board of Directors consisting of nine (9)

11
 Board of Directors consisting of nine (9)
members. The Board of Directors shall
provide the strategic direction to the
management staff in the development of
the Cooperative.
Section 14. Officers of the Cooperative. The Section 14. Officers of the Cooperative. The Board of
Board of Directors, from among
themselves shall elect the Chairperson
and Vice Chairperson. The Board of
Directors shall appoint the President,
Secretary, Treasurer, and other officers
of the cooperative as the BOD may
determine.
Section 18. Removal of Directors and Section 18. Removal of Directors and Committees
Committees Members. The following
procedures shall apply in the removal of
Directors and Committee members:
c. Any Director or Committee member may
be removed from office by a vote of two-
thirds (2/3) of the members in good
standing present and constituting a
quorum at the annual or special general
assembly called for the purpose, after
having been given the opportunity to be
heard at the said assembly.
Section 20. Key Officers of ACDI Savings and Section 20. Key Officers of ACDI Multipurpose
Credit Cooperative. The key officers of
members. Of this number, three (3) members of the
Board of Directors shall come from the active military
service. In the absence of any candidate to fill up the
three (3) slots for active military service, candidates
not in the active military service could fill-in this slot
for a term of only one (1) year. The Board of Directors
shall provide the strategic direction to the
management staff in the development of the
Cooperative.
Directors, from among themselves shall elect the
Chairperson and Vice Chairperson. The Board of
Directors shall appoint the President, Executive Vice
President, Vice Presidents, Secretary, Treasurer,
and other officers of the cooperative as the BOD
may determine. All officers shall serve during
good behavior and shall not be removed except
for cause after due hearing. Loss of confidence
shall not be valid grounds for the removal
unless evidenced by acts or omission causing
loss of confidence in the honesty and integrity of
such officer. No two (2) or more persons with
relationships up to third degree of consanguinity
or affinity nor shall any person engaged in a
business similar to that of the cooperative nor
who in any other manner has interests in conflict
with the cooperative shall serve as an
appointive officer..
Members. The following procedures shall apply in
the removal of Directors and Committee members:
c. Any Director or Committee member may be
removed from office by a vote of three fourth
(3/4) of the members in good standing present
and constituting a quorum at the annual or
special general assembly called for the purpose,
after having been given the opportunity to be
heard at the said assembly. However, before the
General Assembly can decide, the Ethics,
Conciliation and Mediation Committee shall
conduct fact-finding investigation and submit
their investigation report to the Board of Directors
for appropriate action. If the recommendation is
removal, then the Board of Directors shall call for
a special General Assembly for that purpose.
Cooperative. The key officers of the cooperative shall
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 the cooperative shall consist of the consist of the Chairperson, Vice Chairperson,
Chairperson, Vice Chairperson, Treasurer, Secretary, President, Executive Vice
Treasurer, Secretary, President, Vice President, Vice Presidents, Branch Managers, Chief
Presidents, Branch Managers, Chief Accountant, committee heads, and such other officers
Accountant, committee heads, and such as may be determined and approved by the Board
other officers as may be determined and whose powers and duties shall be hereinafter
approved by the Board whose powers provided and as the Board of Directors may fix in
and duties shall be hereinafter provided conformity with the provisions of these By-Laws.
and as the Board of Directors may fix in
conformity with the provisions of these
By-Laws.
Section 21. Officers And Their Duties: The Section 21. Officers And Their Duties: The cooperative
cooperative shall adopt a corporate-type shall adopt a corporate-type structure to be able to
structure to be able to respond rapidly to respond rapidly to situations in the filed as a result of
situations in the filed as a result of its its widely dispersed operation throughout the country.
widely dispersed operation throughout The officer structure shall be classified as corporate
the country. The officer structure shall officers and management officers.
be classified as corporate officers and
management officers. 1. Vice Chairperson:

1. Vice Chairperson: d. Preside as Ex-officio chairperson of

the Education and Training
d) Preside as Ex-officio Committee.
chairperson of the 3. Treasurer
Education and
Membership Committee. c) The Treasurer shall oversee the
3. Treasurer investments of funds and manage
associated risk, supervise cash
c) The Treasurer shall oversee management activities, execute
the investments of funds capital-raising activities to support
and manage associated expansion program, and deal with
risk, supervise cash mergers and acquisition, in
management activities, coordination with the President
execute capital-raising
activities to support 4. Secretary
expansion program, and
deal with mergers and h) Ensure good corporate housekeeping;
acquisition, in coordination and
with the Vice President for
Operation; 5. Management Officers: The Board of
Directors shall appoint the members of the
4. Secretary management staff in the Head Office and
branches, determine their duties and
responsibilities, and fix their compensation
5. Management Officers: The Board and tenure.
of Directors shall appoint the
members of the management b) Executive Vice President
staff in the Head Office and
branches, determine their duties 1) In the absence
and responsibilities, and fix their (temporary/permanent) of the
compensation and tenure. President s/he takes over the
duties and responsibilities of
the President until such time

13
 that the Board of Directors has
designated or appointed a new
President;
2) Ensure the implementation of
directives of the Board of
Directors and/or President;
3) Supervise/monitor the activities
of the Vice Presidents;
4) Supervise/monitor the activities
of Services Managers; and
5) Perform other functions and
duties as prescribed by the
President.
c) Vice President for Operations:

4) In the absence (temporary,

permanent) of the President, s/he
takes over the duties and
responsibilities of the President, until
such time that the Board of Directors
have designated or appointed a new
President. e) Area Vice President

1) The area Vice Presidents shall

have functions, duties and
responsibilities similar to Vice
President for Operation, but
limited in geographical scope
and applicable only to their
area of operation.

f) Services Managers

1) Oversee the day-to-day

operation of the specific
service functions assigned to
him/her;
2) Ensure the timely availability
of the products/services
under his/her functional
responsibility;
3) Formulate plans/programs
and strategies to attain the
long range objectives of
his/her functional services;
4) Render monthly report to the
Board of Directors thru the
President on the status
programs/ projects under

14

Section 23. Election Committee.
a. The Election Committee shall be
composed of three (3) members
elected during the annual general
assembly for a term of one (1)
year or until their successors are
elected and qualified. Within ten
(10) days after their election, the
committee members shall
choose from among
themselves a Chairperson. No
member of the committee shall
serve in the Board or in any other
committees nor shall be eligible
to run for any elective position
during his/her incumbency.
b. The committee shall promulgate
and implement election
guidelines; canvass and certify
as to the results of the election;
proclaim the winning candidates
and decide on all election-related
cases.
5) Perform other functions as
directed by the President.
Section 23. Election Committee.
a. The Election Committee shall be composed
of three (3) members elected during the
annual general assembly for a term of two
(2) years or until their successors are
elected and qualified. Within ten (10) days
after their election, the committee members
shall choose from among themselves a
Chairperson. No member of the committee
shall serve in the Board or in any other
committees nor shall be eligible to run for
any elective position during his/her
incumbency.
b. The Committee shall promulgate rules and
regulations which shall govern the conduct
of elections pass upon the qualifications of
candidates, supervise the conduct of
election, canvass and certify in writing the
returns, proclaim the winning candidates,
hear and decide on election protest.
Election protests filed by the member of
Election Committee shall be decided by the
Board of Directors.
c. The decision of Election Committee is
appealable to the Board of Directors within
fifteen (15) days from receipt thereof, who
shall decide the case within thirty (30) days
after receipt of the records of the case. The
decision of the Board is likewise appealable
to the CDA within fifteen (15) days from the
receipt of the said decision. At the option of
any of the party, however, the case may be
submitted for arbitration to a Special board
composed of three (3) persons, one of
whom shall come from the CDA and the two
to be nominated by each of the parties
concerned.
d. The election of committee members after
approval of this By-Laws shall be such that
the first two candidates garnering the
highest vote shall serve for two (2) years
while the last one winning candidate shall
serve for one (1) year. Thereafter, all
winning candidates shall serve for two (2)
years.
15
Section 24. Audit Committee.
a. The Audit Committee shall be
composed of at least three (3)
members of the Board of
Directors, preferably with
accounting and finance
experiences. The Committee
shall provide the oversight
function of ACDI Savings and
Credit Cooperative on the Internal
Auditor and External Auditor.
b. The members of the Committee
shall elect among themselves a
Chairperson and secretary. They
serve for a term of one year or
until their successors are
appointed by the Board of
Directors.
c. The Committee shall be
responsible for the setting up of
the Internal Audit Department
and for the appointment of the
Internal Auditor as well as the
independent External Auditor. It
shall monitor and evaluate the
adequacy and effectiveness of
the internal control systems.
d. The Audit Committee shall
establish and maintain
mechanism by which officers and
staff may, in confidence, raise
concerns about possible
improprieties or malpractices in
matters of financial reporting,
internal control, auditing or other
issues to persons or entities that
have the power to take corrective
actions. It shall ensure that
arrangements are in place for the
independent investigation,
appropriate follow up action and
subsequent resolution of
complaints.
Section 24. Audit Committee.
a. The Audit Committee shall be composed of
at least three (3) members, preferably with
accounting and finance experiences. The
Committee members to be elected during a
General Assembly and shall hold office for a
term of two (2) years or until their successor
shall have been elected and qualified.
Within ten (10) days after their election, they
shall elect from among themselves a
Chairperson, Vice- Chairperson and
Secretary. No member of the committee
shall hold any other position within the
Cooperative during his/her term of office.
The committee shall provide internal audit
service, maintain a complete record of its
examination and inventory and submit an
audited financial report quarterly or as may
be required by the Board of Directors and
the General Assembly.
b. The members of the Committee shall elect
among themselves a Chairperson and
secretary. They serve for a term of one year
or until their successors are appointed by
the Board of Directors.
c. The Committee shall be responsible for the
setting up of the Internal Audit Department
and for the appointment of the Internal
Auditor as well as the independent External
Auditor. The Committee shall monitor and
evaluate the adequacy and effectiveness of
the internal control systems.
d. The Audit Committee shall establish and
maintain mechanism by which officers and
staff may, in confidence, raise concerns
about possible improprieties or
malpractices in matters of financial
reporting, internal control, auditing or other
issues to persons or entities that have the
power to take corrective actions. It shall
ensure that arrangements are in place for
the independent investigation, appropriate
follow up action and subsequent resolution
of complaints.
e. The election of committee members after
approval of this By-Laws shall be such that
the first two candidates garnering the
highest vote shall serve for two (2) years
16
Section 25. Credit Committee
a. The Credit Committee shall be
composed of three (3) members
elected by the general assembly
for a term of one (1) year or until
their successors are elected and
qualified. Within ten (10) days
after their election, the
members shall elect among
themselves a Chairperson and
appoint a secretary. In no case
shall a member of the Committee
serve as a member of the Board
of Directors at the same time and
vice versa, nor serve in any other
committee.
Section 27. Ethics, Mediation and Conciliation Section 27. Mediation and Conciliation Committee.
Committee.
a. Ethics,, Mediation and
Conciliation Committee (MCC)
shall be composed of three (3)
members, preferably the elders of
the cooperative or with legal
background, to be elected during
the regular general assembly or
appointed by the Board of
Directors. Within ten (10) days
after their election, they shall elect
from among themselves a
Chairperson and a secretary, who
shall serve for a term of one (1)
year or until their successors shall
have been elected and qualified.
No member of the EMCC shall
hold any other position in the
cooperative during their term of
office.
Section 34. Training Requirements for Officers of the
Section 25. Credit Committee.
a. The Credit Committee shall be composed of
three (3) members appointed by the Board of
Directors for a term of two (2) years. Within
ten days after their appointment they shall
elect from among themselves the Chairperson
and a Secretary. In no case shall a member
of the Committee serve as a member of the
Board of Directors at the same time and vice
versa, nor serve in any other committee.
d. Due to the widely dispersed operation of the
cooperative, the Board of Directors, through the
Credit Committee shall establish/institute a
system of delegated level of approving authority
to hasten processing and evaluation of
applications for loans and other credit services.
This shall be carried out by the appointment of
Credit and Collection Officers for each branch as
extension arm of the Credit Committee.
a. Mediation and Conciliation Committee (MCC)
shall be composed of three (3) members,
preferably the elders of the cooperative or with
legal background, to be appointed by the
Board of Directors. Within ten (10) days after
their election, they shall elect from among
themselves a Chairperson and a secretary,
who shall serve for a term of one (1) year or
until their successors shall have been elected
and qualified. No member of the MCC shall
hold any other position in the cooperative
during their term of office.
Cooperative. Officers of the Cooperative
shall be required to undergo necessary
training by the Cooperative,
Federation/Unions and other trainers or
17
training institution duly accredited by CDA.
The training program should contain the
minimum requirements in the
module/curriculum prescribed by the
Authority. The initial courses or any
equivalent substitute thereof must be
undertaken.

a. Board of Directors.

1. Basic Cooperative Courses primarily

on:

a) Articles of Cooperation and By-laws;

b) Cooperative Mission;
c) Cooperative Vision;
d) Cooperative Strategic Plan;
e) Fundamentals of Cooperative;
f) Policies and programs of the
Cooperative;
g) Cooperative Code of 2008 (RA
9520); and
h) Implementing Rules and regulation
of RA 9520.

2. Cooperative Management and

Governance.
3. Policy Development.
4. Financial Management.
5. Conflict Management.
6. Parliamentary Procedures.
7. Leadership and values Re-
orientation.
8. Strategic Planning.
9. Orientation on Labor and other
related laws.

b. Secretary.

1. Basic Cooperative Course.

2. Records management for Non-

18
 3. Parliamentary procedure.
4. Basic Computer Program.
c. Treasurer
1. Basic Cooperative Course.
2. Records Management (Financial
Transaction).
3. Basic Accounting for Non-
Accountant.
4. Cooperative Standards.
5. Investment and Banking Procedures.
6. Financial Management

d. Audit Committee.
1. Basic Cooperative Course.
2. Audit Management.
3. Records management.
4. Basic Accounting for Non-Accountant.
5. Cooperative Standards.
6. Internal Control including Inventory
System.
7. Basic Computer program.
e. Election Committee.
1. Basic Cooperative Course.
2. Records Management.
3. Rules Formulation.
4. Leadership and Values Re-
orientation.
5. Basic Computer program.
f. Ethics Committee.
1. Basic Cooperative Course.
2. Leadership and Values Re-
Orientation.
3. Conflict Management.
4. Records Management.

19
 5. Basic Computer Program.
g. Mediation/Conciliation Committee.
1. Basic Cooperative Course.
2. Leadership and values re-
Orientation.
3. Conflict management.
4. Records management.
5. Effective Communication.
6. Basic Computer program.
h. President
1. Basic Cooperative Course.
2. Cooperative Management and
Governance.
3. Cooperative Standards.
4. Human resource management.
5. Effective Communication Skills.
6. Entrepreneurial
7. and Business management Course.
8. Labor and other related Laws.
9. Leadership and Values
Reorientation.
10. Computer Literacy Course.
11. Strategic Planning and Management.
Section 35. Compliance. The training is required for all
Cooperative Officers. Non compliance with the
said trainings shall be considered grounds for
disqualification for future election or appointment
until such time that she/he has complied with all
the trainings required for the position.
Section 36. Duration of Training Attended. All training
attended by Cooperative Officers shall be
considered valid compliance with the intent of
this Code for a period of five (5) years from date
of issuance of the Certificate of Training. After
which, they shall be required to undergo re-
training of the same.

Section 37. Compensation. The members of the Board

of Directors and Committees, in addition to per
diems for actual attendance in Board and

20
 Committee meetings and reimbursement of
actual and necessary expenses while performing
function in behalf of the cooperative, shall be
given regular compensation approved by a
majority vote of the members in good standing
(entitled to vote) at a regular or special assembly
called for the purpose. The Board of Directors
shall make appropriate adjustments considering
the financial status of the Cooperative and the
demand of the operating environment.

ARTICLE IV. CAPITAL STRUCTURE

Section 1. Sources of Capital. ACDI Savings Section 1. Sources of Capital. ACDI Savings and Credit
and Credit Cooperative shall derive Cooperative shall derive its capital from:
its capital from:

a. Savings deposit;
a. Common Share Capital Contribution from
a. Share Capital Contribution from members;
members;
Section 3. Deposits. The Cooperative shall Section 3. Deposits. The Cooperative shall receive two
receive two kinds of deposits: kinds of deposits:

a. Savings Deposits. The following a. Savings Deposits. The following procedures

procedures applies to savings
deposits:
1) Any member, in addition to his
share capital investment, may
open a savings deposit, the rate
of interest of which shall be
determined by the Board of
Directors at the beginning of
each fiscal year in no case to
exceed the rate prescribed by
Bangko Sentral Ng Pilipinas.
applies to savings deposits:
1) Any member, in addition to his share
capital investment, may open a savings
deposit, the rate of interest of which
shall be determined by the Board of
Directors.
2) Minimum savings deposits to earn
interest is P300.00; and

2) Savings deposits not falling

below P100.00 during any
calendar month shall be entitled
to interest; and to be computed
quarterly based on the lowest
monthly balance outstanding
during the period. The
interest shall be deposited to
the depositor’s account, and the
same shall earn interest from
the date it is credited, at the
same rate as stated in No. 1
above.
Section 4. Share Capital Contribution. The Section 4. Common Share Capital Contribution. The

21
 following policies shall apply to share
capital.
a. The term share capital
contribution refers to a unit of
capital, the value of which is
Twenty Pesos (P20.00) . The
shares may be purchased,
owned or held only by persons
who are eligible for membership.
c. Each member shall subscribe to a
maximum of 250 shares or
P5,000.00. Contributions in
excess of this amount shall be
transferred to Time Deposit or
Savings Deposit or, other plan
depending on the option of the
member.
Section 5. Limitation On Share Capital Section 5. Limitation On Share Capital Holdings.
Holdings.
a. No member of the cooperative
shall own or hold more than
twenty per centum of the total
subscribed share capital
contribution of the Cooperative.;
b. When a member dies, his/her
heirs shall be entitled to the
shares of the deceased under
the following conditions:
1) If the heir is a member
of the cooperative, full
transfer is allowed
provided that his/her
share holdings shall not
exceed 20 In case the
total share holdings of
the heir exceed 20 the
value of the excess
shares shall be
refunded to the heir;
Section 12. Preferred Share Capital. The Section 12. Preferred Share Capital. The cooperative
cooperative may issue Preferred
Shares The following policies shall
following policies shall apply to share capital.
a. The term share capital refers to a unit of
capital, the value of which is One Hundred
Pesos (P100.00). The shares may be
purchased, owned or held only by persons
who are eligible for membership.
c. Each member shall subscribe to a maximum of
50 shares or P5,000.00. Contributions in
excess of this amount shall be transferred to
Time Deposit or Savings Deposit or, other plan
depending on the option of the member.
d. Common Share Capital shall be issued only to
regular members. Its holders shall be entitled to
vote and be voted upon under a principle of one-
man, one-vote principle and shall receive
interest, the rate of which shall not exceed the
normal rate of return on investment.
a. No member of the cooperative shall own or hold
more than ten per centum (10%) of the total
subscribed share capital contribution of the
Cooperative.;
b. When a member dies, his/her heirs shall be
entitled to the shares of the deceased under
the following conditions:
1) If the heir is a member of the
cooperative, full transfer is allowed
provided that his/her share holdings
shall not exceed 10 percentum (10%).
In case the total share holdings of the
heir exceed 10 percentum (10%), the
value of the excess shares shall be
refunded to the heir;
may issue Preferred Shares Capital equivalent to
twenty five percentum (25%) of the authorized
22
 apply to the Preferred Share Capital:
a. The Preferred Share Capital is
an equity investment that earns
interest and receives payment
ahead of other liabilities of the
Cooperative.
b. The Preferred Share Capital
requires a cycle of six (6)
months holding period to earn
the specified interest rate. ACDI
is authorized to issue 50,000
shares at P10, par value;
c.Any member who has acquired
500 shares of Common Share
Capital is authorized of 10
shares but not more than 500
shares of Preferred Share
Capital;
d. A member who has subscribed
to a Preferred Share Capital and
paid a minimum of 10 shares
shall be issued a pass card
indicating therein the amount
paid.
none
Section 15. Borrowing. The Cooperative,
through the Board of Directors, may
borrow money from any source at the
best terms and conditions available in
such amount that may be needed.
The total borrowings of ACDI Savings
and Credit Cooperative from any
source shall not exceed twenty
percentum (20%) of its total assets.
Section 16. Investment of Capital. The Credit Section 16.
cooperative may invest its capital in
any of the following:
b. In securities issued by cooperatives
as may be authorized by law;
capitalization of the Cooperative. The following
policies shall apply to the Preferred Share
Capital:
a. The Preferred Share Capital is an equity
investment that earns interest and receives
payment ahead of other liabilities of the
Cooperative.
b. The Preferred Share Capital requires a
cycle of six (6) months holding period to
earn the specified interest rate. ACDI
Multipurpose Cooperative is authorized to
issue 5,000,000 shares at P100 ONE
HUNDRED PESOS (P100.00) par value;
c.Any member who has acquired 500 shares
of Common Share Capital is authorized of
5,000 shares but not more than 250,000
shares of Preferred Share Capital;
d. A member who has subscribed to a
Preferred Share Capital and paid a
minimum of 5,000 shares shall be issued
a pass card indicating therein the amount
paid.
Section 14. Retention. The Board of Directors may raise
additional capital by deducting a certain
percentage on a per unit basis from the New provision
proceeds of services and/or goods procured by
members. This percentage shall be indicated in
a Board Resolution.
Section 15. Borrowing. The Cooperative, through the
Board of Directors, may borrow money from any
source at the best terms and conditions available
in such amount that may be needed. The total
borrowings of ACDI Savings and Credit
Cooperative from any source shall not exceed
fifty percentum (50%) of its total assets.
Investment of Capital. The Credit
cooperative may invest its capital in any of the
following:
b. In securities issued by primary and subsidiary
cooperatives as may be authorized by law;
e. In any economic activities that generates
23

Section 16. Cooperative Guarantee Fund. Section 17 Community Development Fund. The
The Cooperative shall establish a
guarantee fund which shall be
governed as follows:
a. At least one percentum (1%) of
the gross income of the
cooperative shall be set aside to
constitute the Cooperative
Guarantee Fund which shall be a
social fund for the purpose of
guaranteeing the realization of
the objectives of the cooperative,
payment of common services
and facilities for the benefit of the
members and for investment in
other cooperatives.
b. In the event of the dissolution of
the cooperative, the Guarantee
Fund shall not be distributed to
the individual members but shall
be donated to the Cooperative
Education Training Fund.
f.
In any other manner authorized by law,
Articles of Cooperation and the By-laws.
Cooperative shall establish a Community
Development Fund which shall be governed as
follows:
a. Not less than three percentum (3 %) of the
net surplus of the Cooperative shall be set
aside to constitute the Community
Development Fund which shall be used for
the benefit of the community/constituents in New provision
which the cooperative operates;
b. The Community Development Fund shall
support the programs and projects of the
community that enhance the well-being of
the people and these programs and projects
shall have a sustainable impact on the lives
of the people. This will answer the ACDI
Multipurpose Cooperative’s corporate social
responsibility; and
c. In the event of the dissolution of the
Cooperative, the Community Development
Fund shall not be distributed to the
individual members but shall be donated to
the Cooperative Education Training Fund of
federation or union which the Cooperative is
a member.
ARTICLE IV. CONCEPT OF OPERATION
Section I. Savings and Lending. Savings and lending
shall be one of the line of business of ACDI
Multipurpose Cooperative The business shall be
carried out by applying the principle of weighted New provisions
average cost of capital (WACC). The WACC to
be applied shall be the lowest possible. This
means that the actual and existing capital
structure shall be the best possible mix of fund
sources. In this manner, the savings and lending
rates passed on to members shall be the most
desirable in the market without sacrificing the
generation of appropriate profits to expand or
upgrade services to members.
Section 2. Aviation Education and Training. The
founders of ACDI Multipurpose Cooperative
were aviation enthusiasts. They have braved the
24
 wild blue yonder and looked down the earth
below as a garden paradise. ACDI Multipurpose
Cooperative, therefore, shall invest in aviation
education and training to assist in the
development of the aviation industry.
a. Top notch technology, computer-based-
training and education shall be adopted.
Training simulators, actual aircraft and
required aerospace-ground equipment shall
be acquired for hands-on use of students to
hasten knowledge acquisition and skill
development of students. Facilities and
auxiliary services shall be built to develop
manpower specifically suited for the aviation
industry.
b. Pilot training shall be student-friendly.
Students shall come from the domestic and
international arenas.
c. Technical courses shall be ladderized to
allow students to acquire higher skills while
on the job, in order to rise from the
mechanic/technician level to higher
management position.
d. Conduct of pilot training and technical
courses shall be at international standard.
As to the pilot training program, the
accreditation from the Cessna Pilot Training
Center (CPTC) shall strengthen our desire
to gain international recognition and
standing as a world class facility. The
Cooperative shall exert effort to secure
accreditation by other equally renowned
international aviation training institutions.
e. The income from operation in aviation
education and training may be distributed as
dividend to members. It is, however,
preferable, that the income from operation
be transferred to the loanable fund pool to
derive further dividends. This will lower the
WACC in lending operation.
Section 3. Real Estate. Real Estate, in addition to gold
and silver, is the only property that does not
diminish in value due to inflation or currency
devaluation. ACDI Multipurpose Cooperative
shall, therefore, invest in real estate such as
lands, buildings and improvements for capital
gains and cash flow.

Commercial and residential lands have

greater value appreciation than agricultural
lands. Land banking may be implemented.
However, when the value of the land has
appreciated to a certain predetermined level, the

25
 land could be disposed or sold.
a. If the land should be developed, a reputable
Real Estate developer shall be engaged to
make the development to include sale of the
developed property. Sharing arrangement
shall be 60-40 in favor of ACDI Multipurpose
Cooperative. The developed property may
be sold to members and the general public.
A MOA shall be a must to implement the
arrangement.
b. Buildings and improvement owned by ACDI
Multipurpose Cooperative like apartments,
condotel, boarding houses and warehouses
shall be rented to generate cash flow.
c. ACDI Multipurpose Cooperative may
provide real estate consultancy services to
members who are in need of such a service.
d. Income from operation in real estate
operation shall be transferred to the
loanable fund pool, to lower the WACC in
lending operation.
Section 4. Consumer Services. ACDI Multipurpose
Cooperative shall engage in consumer services to
allow members to enjoy optimum benefits from
other services available from the Cooperative.
a. The Cooperative may invest in the operation
of convenience stores that may be located
alongside, or near branch offices to cater to
members requirement for fast-moving
household items including selected items of
medicines and related supplies.
b. The Cooperative shall act as a whole sale
distributor to members that operate variety
stores in the area. The Cooperative shall
not compete against stores operated by
members but shall act as a low cost supplier
of items to variety store owned by members.
c. To become a low cost supplier, the
Cooperative shall procure directly from
manufactures and procure items in bulk.
Minimum order quantity imposed by
manufactures shall be observed in order to
enjoy substantial discounts or rebates.
MOAs shall be implemented. This shall
apply to hardware items and durable goods.
d. The Cooperative may invest in franchising
for other consumer services in partnership
with interested members or other investors.
e. Income from operation in consumer services
shall be transferred to the loanable fund
pool, to lower the WACC in lending

26
 Section 5.
ARTICLE VII. ALLOCATION AND DISTRIBUTION OF NET SURPLUS
Section 1. Net Surplus. The net surplus in the financial
NONE
Section 2. Order of Distribution of Net Section 2. Order of Distribution of Net Surplus. At the
Surplus. At the end of the fiscal year,
the cooperative shall distribute its net
surplus as follows:
d. Optional Fund. An optional fund,
for land and building, community
development, and any other
necessary fund the total of which
may not exceed ten percentum
(10%) seven percentum (7%) of
net surplus, may be allocated.
e. The remaining net surplus shall be
made available to the members in
the form of interest on share
capital not to exceed the normal
rate of return on investments
prescribed by the CDA, and
patronage refund.
The sum allocated for patronage
refund shall be made available at
the same rate to all patrons of the
cooperative in proportion to their
individual patronage; provided
that:
e. Interest on Share Capital Contribution
and Patronage Refund. The
remaining net surplus shall be made
available to the members in the form
Other Services. ACDI Multipurpose
Cooperative may go into and engaged in other
services such as insurance,
transportation/communication, chartering, travel
and tours, restaurant/catering services, wellness
projects/spa etc. as may be determined
appropriate by the Board of Directors.
operation of the Cooperative shall not be
construed as profits but as excess payments by
the members for the loans borrowed or
services/products used from ACDI Multi
Purpose Cooperative and which shall be
returned to them as prescribed in the order of
distribution of net surplus
end of the fiscal year, the cooperative shall
distribute its net surplus as follows:
d. Optional Fund. An optional fund, for land and
building, community development, and any
other necessary fund the total of which may
not exceed seven percentum (7%) of net
surplus, may be allocated.
e. Interest on Share Capital Contribution and
Patronage Refund. The remaining net
surplus shall be made available to the
members in the form of interest on share
capital not to exceed the normal rate of
return on investments prescribed by law,
and patronage refund. The sum allocated for
patronage refund shall be made available at
the same rate to all patrons of the
27
of interest on share capital not to
exceed the normal rate of return on
investments prescribed by law, and
patronage refund. The sum allocated
for patronage refund shall be made
available at the same rate to all
patrons of the Cooperative in
proportion to their individual
patronage; subject to the following
rules:
Cooperative in proportion to their individual
patronage; subject to the following rules:
3. For non-member patrons, their
proportionate patronage refund shall be
set aside in a general fund created for
the purpose. Their individual patronage
refund shall be credited to their
respected names only upon request
and presentation of evidence of the
amount of his patronage. When the
amount so accumulated under his
name within a period of two (2) years
equals the minimum share capital
contribution for membership and he is
qualified and willing to comply with the
requirements for membership, said
non-member patrons shall be
considered member of the Cooperative
upon payment of membership fee to be
determined by the Board of Directors;
and
4. If within the period specified in the
preceding paragraph, any non-member
patron who has accumulated the sum
necessary for membership but refuses
or fails to qualify for membership, the
amount so accumulated in his account
together with any part of the general
fund for non-member patrons shall be
credit to the reserve fund or to the
education and training fund of the
Cooperative.

f. Community Development Fund. An amount for

the community development fund which
shall not be less than three percentum (3 %)
of the net surplus. The community
development fund shall be used for projects
or activities that will benefit that the
Cooperative operates.

ARTICLE IX
MISCELLANEOUS

Section 4.

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e. A separate book of accounts shall be kept
and maintained for each business activity
that ACDI Multipurpose Cooperative will be
engaged in.

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