Question & AnswerQ&A (OTC ADMINISTRATIVE ORDER NO. 2000-001)
The official title is "OTC ADMINISTRATIVE ORDER NO. 2000-001, AS AMENDED."
The Office of Transportation Cooperatives (OTC) has these responsibilities.
A transport service cooperative is an entity accredited by the OTC and registered with the Cooperative Development Authority (CDA) that operates public transportation services under a franchise or certificate of public convenience issued by appropriate government agencies, composed of persons pooling their skills, savings, and resources including vehicles to operate the business enterprise for economic and efficient carriage of passengers and goods.
Objectives include equitable income distribution, upgrading social and economic conditions of members, integration, and rationalization of public transport systems, improving public transport services, eradicating destructive competition, and enhancement of revenue-generating projects of cooperatives.
A minimum of fifteen (15) qualified natural persons is required to organize a transport service cooperative.
Capitalization depends on the type of vehicle: at least ₱240,000 for tricycles, ₱480,000 for jeepney, taxi, shuttle, or motorized banca, ₱800,000 for mini-buses, buses, and trucks, and ₱3,200,000 for aircraft. At least 25% of authorized capital must be subscribed, and 25% of the subscribed capital must be paid up, with minimum paid-up amounts ranging accordingly by vehicle type.
Membership is limited to individual natural persons who are Filipino citizens, at least eighteen (18) years old, possess required qualifications under applicable regulations and cooperative by-laws, reside or work in the area of operation, and pledge to undertake membership responsibilities.
Each member of the cooperative is entitled to one vote regardless of the number of shares owned. Proxy voting is not allowed, and any agreement aimed to evade this rule is unenforceable.
Members may be suspended or expelled for failure to comply with duties or obligations without valid cause for three months, violation of cooperative by-laws or rules, acts prejudicial to the cooperative, or violation of existing laws or directives issued by OTC or other regulatory agencies.
The Board consists of an odd number of members (5 to 15), representing drivers and operators with drivers comprising at least 30% but not more than 50% of the Board. They supervise management, set policies, approve membership applications or resignations, enter contracts, impose penalties, and manage cooperative affairs collectively.
CETOS is a seminar conducted by the OTC for prospective cooperative members covering the cooperative program overview, essential legal provisions, cooperative governance, policies, and registration requirements. Completion is required for admission as a member.
Prospective members must apply in writing, complete CETOS, be approved by the Board, pay membership fees and required shares, agree to comply with rules and regulations, and execute necessary agreements.
Members enjoy benefits such as reasonable prices on goods and services, priority in using cooperative permits or CPCs, rights to drive cooperative vehicles, social services including Medicare and SSS, opportunities to acquire vehicles, patronage refunds, and assistance in regulatory dealings.
For individual cooperatives: 15 units jeepneys/taxis/tricycles, 10 units buses/minibuses, 5 units motorized banca, 2 units trucks. For cooperative-owned: 5 units jeepneys/taxis/tricycles, 2 units buses/minibuses/motorized banca, 1 unit truck and aircraft. Exceptions may be granted in remote areas.