QuestionsQuestions (CDA MEMORANDUM CIRCULAR NO. 2011-04)
Article 42 prohibits any person from serving as an appointive officer if they have a relationship up to the third civil degree of consanguinity or affinity with another appointive officer, and it also bars persons who are engaged in a business similar to that of the cooperative or who have interests in conflict with the cooperative from serving as appointive officers.
The memorandum cites these as officers: (1) members of the board of directors; (2) members of different committees created by the general assembly; (3) general manager or CEO; (4) secretary; (5) treasurer; and (6) members holding other positions as provided in the by-laws.
Yes. The memorandum clarifies that there is no prohibition against elected officers having relationship up to the third civil degree of consanguinity or affinity, provided they are elected by the General Assembly (i.e., positions in paragraph B).
Officers elected by the General Assembly include: (1) members of the Board of Directors; and (2) members of the Audit and Election Committee.
Appointed positions include: (1) Treasurer; (2) Secretary; (3) members of the Mediation and Conciliation Committee; (4) members of the Ethics Committee; (5) members of other committees unless otherwise provided in the by-laws; and (6) board members appointed by remaining directors for vacancies other than expiration of term under Article 41.
For elected officers (paragraph B), relatives up to the third civil degree may serve together in the same cooperative if elected by the General Assembly. For appointive officers (paragraph C), relatives up to the third civil degree may not both hold appointive positions in the same cooperative.
Yes, the memorandum allows one (1) appointed relative of an elected officer within the third civil degree, provided there is no relationship up to the third degree among the appointed officers themselves.
Loss of confidence is not a valid ground for removal unless evidenced by acts or omission causing loss of confidence in the honesty and integrity of the officer. Removal must be for cause and after due hearing.
Officers serve during good behavior and cannot be removed except for cause after due hearing. Additionally, loss of confidence alone is insufficient unless tied to acts/omissions affecting honesty and integrity.
Yes, but the effect differs: relationship up to the third degree is not barred among elected officers elected by the General Assembly, while it is barred among appointive officers appointed by the Board.
It states that husband and wife are considered as a one person with the same interest (based on the Family Code report cited), so the prohibition on appointive officers applies to them as well.
First degree: parent to child. Second degree: grandparent to grandchild, brother to sister. Third degree: uncle/aunt to child, great-grandparent to great-grandchild.
First degree: parent-in-law to daughter/son-in-law. Second degree: brother-in-law to sister-in-law. Third degree: great-grandparent-in-law to great-granddaughter/great-grandson-in-law; uncle/aunt-in-law to niece/nephew-in-law.
Article 42 also prohibits persons engaged in a business similar to that of the cooperative or anyone who has interests in conflict with the cooperative from serving as an appointive officer.
It would violate Article 42 as interpreted: relatives within the third degree cannot both serve as appointive officers in the same cooperative (Treasurer and Secretary are appointive positions listed in paragraph C).
No. The memorandum expressly says there is no prohibition for elected officers with relationship up to the third civil degree in paragraph B, as long as they are elected by the General Assembly.