ANALOG DEVICES EMPLOYEES MULTI PURPOSE COOPERATIVE

A D E M C July 18, 2011 as approved by the

Cooperative Development Authority

PRE-MEMBERSHIP EDUCATION SEMINAR

For New Members rev.2 02-28-12

WHAT IS A COOPERATIVE?

A cooperative an autonomous and duly registered association of persons, with a common bond of interest, who have voluntarily joined together to achieve their social, economic, and cultural needs and aspirations by making equitable contributions to the capital required, patronizing their products and services and accepting a fair share of the risks and benefits of the undertaking in accordance with universally accepted cooperative principles.

• The main benefit is economic since members get a share of the cooperative’s net surplus by patronizing its services. A certain % of the net surplus is returned to the members after a period of one year usually during the annual general assembly. It is called patronage refund.

• Patronage refund shall be distributed to the members in proportion to their patronage to the services of the cooperative. The distribution shall be in accordance with their cooperative policies based on the cooperative law, the RA 9520. Through the patronage refund, members are actually saving while using the services of the cooperative.

• Those who do not patronize the services of the cooperative are not entitled to patronage refund, only the interest on their share capital invested in the cooperative.

BENEFITS DERIVED FROM COOPERATIVE?

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 of the people;4. To undertake other activities for the effective and efficient implementation of the

provisions of the Cooperative Code.5. To deposit operational fund to any commercial or cooperative banks and gain interest

based on the current prevailing interest rates6. To invest any excess, unutilized funds including the General Reserved Fund in any

gainful investment 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 payment cell phone loading, booking and ticketing, easy access to quality medicines and such other services that members might need in the future.

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OBJECTIVES AND PURPOSES

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• 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 productive purposes which may redound to their material benefits and progress.

• It teaches its members self-discipline, self-reliance and other desirable attitudes, which make every member a better individual and a better member of society.

OTHER BENEFITS DERIVED FROM COOPERATIVE?

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ORGANIZATION STRUCTURE OF ADEMC

GENERAL ASSEMBLY

ELECTIONCOMMITTEEAUDIT COMMITTEE BOARD OF

DIRECTORS

SECRETARY

TREASURER

MED-CON COMMITTEE ETHICS COMMITTEE

CREDIT COMMITTEE

TRAINING & EDUC. COMMITTEE

MANAGEMENT STAFF

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Duties and Responsibilities of Committees:Election CommitteeImplement election rules and guidelines duly approved by the General/Representative Assembly.

Audit CommitteeReview continuously and periodically the books of account and other financial records to ensure that these are in accordance with the cooperative principles and generally accepted accounting 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, officers and employees of the cooperative subject to the approval of the Board of Directors and ratification of the General/Representative Assembly.

Credit CommitteeHave the power to review all loan requests, determine whether or not a given loan would benefit the applicant, and whether or not the security offered is sufficient and the terms appropriates;

(NOTE: Election and Audit committee are elected by members while the rest are appointed by BOD’s)

8Carmi RiveraStaff

Leny AbanesStaff

Rocky CasasSecretary

Ludy VillaminStaff

2013 ADEMC Officers

Reggie ZarzuelaSecretary

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Duties and Responsibilities of a Member

a) Pay the installment of his share capital subscription as it falls due and to participate 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 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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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

assembly meetings;

b)Seek any elective or appointive position, subject to the provisions of this By-laws and the Philippines 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)Participate in the continuing education and other training programs of the cooperative; and

f) Such other rights and privileges as may be provided by the General Assembly.

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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 the Board of Directors for any of the following causes: a) When he has not patronized any of the services of the Cooperative for an

unreasonable period of time as may be previously determined by the Board of Directors;

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 promulgated by the Cooperative; and

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

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LOAN FACILITIESSLF – SINGLE LOAN FACILITY

Category ADI

TenureCapital Share

Limit

WHICHEVER IS LOWER

Payment TermLoanable Amount

LimitCapacity-To-Pay

Limit

SLFCat16 mos.

to below 5 yrs.

1,000 to 25,000 CS x 2

Take Home Pay = 40% Basic Pay

1,000 to 1,000,000 = 1 year or 2 years or

3 years

25,001 and up CS + 25,000

SLFCat25 yrs.

to below 10 yrs.

1,000 to 50,000 CS x 2

50,001 and up CS + 50,000

SLFCat310 yrs.

and above

CAPITAL SHARE x 3 up to 1 million pesos only.

Take Home Pay = 40% Basic Pay

1,000 to 1,000,000 = 1 year or 2 years or 3 years or 4 years

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EXPRESS LOAN

Special Express Loan is offered to members with insufficient capacity-to-pay in the amount of Php5,000.00 payable in 6 months. PROVIDED, that the take home pay is not less than ten percent (10%) of the basic pay after the deduction of Special Express Loan.

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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:

LoansDate of Submission of Loan

ApplicationsDate of Processing of

LoansDate of Releasing of Loans

Thru Check or ATM

SLF and EL Within the 1st working day On the 2nd working day On the 3rd working day

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ST. PETER PLAN LOAN

Plans1st Year Principal & Amortization* 2nd to 5th Year Principal &

Amort.**

Principal Semi-Mo. Amort.

Principal Semi-Mo. 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 1,017.50

St. James 11,500.00 479.17 12,765.00 531.88

St. Jude 16,500.00 687.50 18,315.00 763.13

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COMPUTER LOAN

Terms Interest Service Fee

1 Year to pay 0% 1%

2 Years to pay 9% 2%

COD 0% 2%

Note: 9% interest for 2 years is only specific for Accent Micro. 9% per annum will apply on other appliance center.

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OTHER ADEMC BUSINESSES

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Note: Ordering thru ADEMC office or you may call Prinza Phone # :046897457

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Section 2. Deposit – The cooperative shall receive two kinds of deposits:

 Savings Deposits – Any member, in addition to his share capital investment, may open a saving deposit, the rate of interest of which shall be determined by the Board at the beginning of each fiscal year in no case to exceed the rate prescribed by Bangko Sentral ng Pilipinas.

Savings deposit not falling below P 1,000.00 during any calendar month shall be entitled to interest to be computed quarterly based on the lowest monthly balance outstanding during the period. The interest shall be credited to the depositor’s account, and the same shall earn interest from the date it is credited, at the same rate as savings deposits.

The Board of Directors shall prescribe the rules and regulations governing withdrawals from the savings deposits.

TIME deposit – Second kind of deposit , still for review of the Board

Section 2 of ADEMC By-Laws, states: 

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All members shall have the right to open and maintain a savings deposit account.

A minimum of Two Hundred Pesos (P200.00) shall be required as a maintaining balance for the member’s savings account. The required minimum maintaining balance could not be withdrawn as long as he/she is a member of ADEMC. Savings deposit not falling below P1,000.00 average daily balance shall be entitled to interest to be computed quarterly. Quarterly is based on the calendar year.

Savings deposit shall be done through payroll deduction or over the counter. A member will fill up “Increase/Decrease Savings Deposit Form” (as in the current practice of doing the capital share contribution) to initiate the process of payroll deduction.  

The total deductions to be made from an employee’s salary shall be submitted by ADEMC to ADI payroll at least two (2) weeks before the payroll period, which shall include the authorized amount for the member’s savings deposit.

Over-the counter deposits can be made at the Cashier at the start of office hours by filling up the Savings Deposit Slip while observing the cut off time of 3PM.

Regular savings DEPOSIT

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  Regular Savings Deposit shall earn a corresponding

interest rate quarterly, based on the average daily balance during the period.

The rate of interest on savings deposit shall be two percent (2%) per annum or as may be determined by the majority of the Board of Directors prior the beginning of each calendar year.

Savings deposit not falling below P1,000.00 average daily balance shall be entitled to interest to be computed quarterly. Quarterly is based on the calendar year.

Regular savings INTEREST

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Savings account withdrawal can be made by filling up “ADEMC Withdrawal Slip” until 3PM only to allow reconciliation of transactions received by ADEMC within the day.

A member shall only be allowed single withdrawal per day.

Release of cash and check withdrawals should be acknowledged by the member or his authorized representative upon receipt.

Note: Implementation –April 11, 2013

Regular savings WITHDRAWAL

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Patronage Refund and Interest on Share Capital

Definition of terms:

Patronage Refund - shall refer to the amount returned to individual members who patronize the goods and services of the cooperative in proportion to their individual patronage.

Interest on Share Capital - Interest on Share Capital shall not exceed the Rate of Return 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 share capital and dividing the sum by twelve (12) months.

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All payments of interest and patronage refund must be made on the annual general assembly or such other date after the calendar year as may be determined by the Board of Directors.

Total Patronage Refund to be returned to individual members who patronize the goods 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 interest paid for loans whichever is lower.

Allocation of Patronage Refund for other services shall be determined by the Board of Directors.

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Statutory Reserve FundReserve Fund – Ten percent (10%) of the net surplus. The reserve fund shall be used for 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 the amount allocated to the education and training fund may be spent by the cooperative for education and training purposes; while the other half may be remitted to a union or federation of which the cooperative is a member.

Community Development Fund – Three percent (3%) shall be used for projects and activities that will benefit the community where the cooperative operates.

Optional Fund – One percent (1%) shall be set aside for Optional Fund for land and building fund, and any other necessary expenses

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SAMPLE COMPUTATION OF INTEREST ON CAPITAL OR DIVIDEND and PATRONAGE REFUND:

 Dividend = Average Share X Dividend RatePatronage Refund = Interest Paid by member X Patronage Refund RateTo compute your average share: Ex. Member with P54,000 cap. share with P400 monthly contribution

Months Monthly Balances

January Php54,000.00February 54,400.00April 54,800.00May 55,200.00June 55,600.00July 55,800.00August 56,000.00September 56,400.00October 56,800.00November 57,200.00December 57,400.00Total Php613,600.00Average Share (divided by 12) Php51,133.33Dividend (Ave. Share X 4.74%) Php2,423.72

FY2012 The Board of Directors, based on the computation, declared 4.74% for dividend and 37.12% for Patronage Refund

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SAMPLE COMPUTATION OF INTEREST ON CAPITAL OR DIVIDEND and PATRONAGE REFUND:

Computation of Patronage RefundPatronage Refund = Interest Paid by member in 2012 X Patronage Refund Rate If a member paid total interest of Php5,500 on his loans, his Patronage Refund would be:Patronage Refund = Php5,500.00 X 37.12%Patronage Refund = Php2,041.12 Member’s Total Dividend and Patronage Refund to receive: Php4,465.32

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Net Income:

Less Appropriations:

General Reserved Fund (10% x NI)

Education & Training (5% x NI)

Land & Building Fund (1% x NI)

Officers Bonus Payable (2% x NI)

Net Income To Be Distributed to members

Allocations:

Patronage Refund (50% of net income to be distributed to members)

Dividend (50% of net income to be distributed to members)

Allocation of Patronage Refund for other services shall be determined by the Board of Directors.

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Notes:

Service Fee1% for Express loan2% for SLF

Membership FeeP20 for new membersP100 for re-members and Initial Share of P200

Bereavement Assistance P10 per deceased immediate family members and siblings. In-laws not allowed.2K – from ADEMC for non member

Share Capital 1 share = P20

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THANK YOU!