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(Back to Main Menu; See An Introduction to Cooperatives) CHAPTER XII. SPECIAL PROVISIONS ON PUBLIC COOPERATIVES Section 96. Definition and Coverage. A public service cooperative, within the meaning of this Code, is one organized to render public service as authorized under a franchise or certificate of public convenience and necessity duly issued by the appropriate government agency. Such services may include the following:
(1) Power generation, transmission, and/or distribution;
(2) Ice plants and cold storage services. Electric cooperatives created under Presidential
Decree No. 269 shall be governed by this Chapter if they qualify as cooperative under the
provisions of this Code;
(3) Communications services including telephone, telegraph, and telecommunications;
(4) Land, sea, and air transportation cooperative for passenger and/or cargo. Transport
cooperatives organized under the provisions of Executive Order No. 898, Series of 1983, shall
be governed by this Chapter;
(5) Public markets, slaughterhouses and other similar services; and
(6) Such other types of public services as may be engaged in by any cooperative. Such
cooperative shall be primarily governed by this Chapter and the general provisions of this Code
insofar as they may be applicable unless they are inconsistent herewith.
Section 97. Registration Requirements. No public service cooperative shall be registered unless
it satisfies the following requirements:
(1) It has the favorable endorsement of the proper government agency authorized to issue
the franchise or certificates of public convenience and necessity;
(2) Its articles of cooperation and by-laws provide for the membership of the users and/or
producers of the service of such cooperatives; and
(3) It satisfies such other requirements as may be imposed by the other pertinent
government agencies concerned. In case there are two (2) or more applicants for the same public
service franchise or certificate of public convenience and necessity, all things being equal,
preference shall be given to a public service cooperative.
Section 98. Regulation Requirements. (1) The internal affairs of public service cooperatives such
as the rights and privileges of members, the rules and procedures for meetings of the general
assembly, board of directors and committees; for the election and qualifications of officers,
directors, and committee members, allocation and distribution of surpluses; and all other matters
relating to their internal affairs shall be governed by this Code.
(2) All matters relating to the franchise or certificate of public convenience and necessity
of public service cooperatives such as capitalization and investment requirements, equipment and
facilities, frequencies, rate-fixing, and such other matters affecting their public service operations
shall be governed by the proper government agency concerned.
(3) The Cooperative Development Authority and the proper government agency
concerned shall jointly issue the necessary rules and regulations to implement this Chapter. (Back to Main Menu)
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