For New Members

PRE-MEMBERSHIP EDUCATION SEMINAR

July 18, 2011 as approved by the Cooperative Development Authority

ANALOG DEVICES EMPLOYEES MULTI PURPOSE COOPERATIVE

A D E M C

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 paymentcell 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

• 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?

ORGANIZATION STRUCTURE OF

ADEMC

GENERAL ASSEMBLY

ELECTIONCOMMITTEE

AUDIT COMMITTEE

BOARD OF DIRECTORS

SECRETARY

TREASURER

MED-CON COMMITTEE

ETHICS COMMITTEE

TRAINING COMMITTEE

OTHER COMMITTEE

MANAGEMENT STAFF

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)

General Assembly(ADEMC Members)

Election CommitteeAudit Committee

Jess GadugdugMember

AnnieHernandez

Member

Ethics Committee Education & TrainingCredit Committee Conciliation & Mediation

Operation Team

Carmi RiveraStaff

Leny AbanesStaff

Rhoda GorospeChairpersonRaymond Tana

Chairperson

Franklin CadavicioSecretary

Lota ReyesChairperson

Jane AguilaTreasurer

Edwin PerezVice Chairperson

Carrie VallespinVice Chairperson

Karell AquinoMember

Leigh PerezSecretary

Jhun BayranteMember

Froilan BeratioChairperson

Dona CabreraMember

Jojo CarantoMember

FerdinandConcepcion

Member

Dang SalcedoMember

Evelyn DavilaMember

Maricel De AsisSecretary

Ederlyn GulengSecretary

Tony AlineaChairperson

Arnel BaronganMember

JerichoTonelada

Vice Chairperson

Rocky CasasSecretary

Bong PimentelChairperson

Gina CabralSecretary

Lyndon DelaPaz

Vice Chairperson

Betzy TagleSupervisor

Ludy VillaminStaff

Board of Directors

2012 ADEMC Officers

Louie HabitanGen. Mgr.

Enero PolicarpioVice Chairperson

Mercy MerialesMember

Lina AbadChairperson

Rolly TarraVice Chairperson

Lolit CatarigVice Chairperson

Reggie ZarzuelaSecretary

Tess Vaenzuela Treasurer

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.

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.

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 FACILITIES

SLF – SINGLE LOAN FACILITY

ADEMCMEMBER

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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.

COMPUTER LOAN

Terms Interest Service Fee

1 Year to pay 0% 1%

2 Years to pay 9% 2%

COD 0% 2%

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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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OTHER ADEMC BUSINESSES

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.

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.

Statutory Reserve Fund

Reserve 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

Month ACCUMULATED CS BALANCE AVERAGE SHAREJanuary 79,328,813.72 / 12 6,610,734.48February 80,610,376.61 / 12 6,717,531.38March 81,858,510.54 / 12 6,821,542.55April 83,144,889.19 / 12 6,928,740.77May 85,064,788.06 / 12 7,088,732.34June 86,400,348.94 / 12 7,200,029.08July 87,237,043.54 / 12 7,269,753.63August 88,649,816.28 / 12 7,387,484.69September 89,638,069.41 / 12 7,469,839.12October 90,688,130.23 / 12 7,557,344.19November 91,139,504.90 / 12 7,594,958.74December 92,407,271.01 / 12 7,700,605.92 TOTAL AVERAGE SHARE 86,347,296.87 TOTAL EFFECTIVE SHARE @ P20/SHARE 4,317,364.84

Patronage Refund for credit services = 50% of the allocation and the other 50% is for Interest on share capital

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

Net Income: 12,559,634.80

Less Appropriations:

General Reserved Fund (10% x NI) 1,255,963.48

Education & Training (5% x NI) 627,981.74

Land & Building Fund (1% x NI) 125,596.35

Officers Bonus Payable (2% x NI) 251,192.70

2,260,734.26

Net Income To Be Distributed to Members 10,298,900.54

Allocations:

Patronage Refund (50% of net income to be distributed to members) 5,149,450.27

Dividend (50% of net income to be distributed to members) 5,149,450.27

 

10,298,900.54

Dividends Per Share ( 5,149,450.27 / 4,317,372.27 shares) 1.192

DIVIDEND AND PATRONAGE REFUND COMPUTATIONS:

Dividend (1.192 X 325 eff. Share) 387.40

Patronage Refund:

SLF Principal amount of P50,000.00 - interest rate = 9%

Interest from Loan = 4,500.00

Term - 12 months X 50%

Patronage Refund 2,250.00

Total Dividend and Patronage Refund due to Member 2,637.40(Note: Patronage Refund may be vary depends on the Income)

Month ACCUMULATED CS BALANCE AVERAGE SHAREJanuary 1,000.00 / 12 83.33February 2,000.00 / 12 166.67March 3,000.00 / 12 250.00April 4,000.00 / 12 333.33May 5,000.00 / 12 416.67June 6,000.00 / 12 500.00July 7,000.00 / 12 583.33August 8,000.00 / 12 666.67September 9,000.00 / 12 750.00October 10,000.00 / 12 833.33November 11,000.00 / 12 916.67December 12,000.00 / 12 1,000.00 TOTAL AVERAGE SHARE 6,500.00

TOTAL EFFECTIVE SHARE @ P20/SHARE 325.00

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.

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 COOP for non member