Question & AnswerQ&A (Act No. 3425)
The primary purpose is to operate for the mutual benefit of members as producers by promoting intelligent and orderly marketing of agricultural products, making the distribution as direct as possible between producer and consumer, and stabilizing the marketing of agricultural products.
Fifteen or more persons, a majority of whom are residents of the Philippine Islands engaged in agricultural production, may organize a cooperative marketing association.
Agricultural products include horticultural, forestry, dairy, livestock, poultry, and any farm products.
They can market, sell, process, and handle agricultural products produced by members; borrow money and lend to members; own stock of related associations; establish reserves; and do all necessary activities conducive to their purposes.
Yes, but only for storage purposes.
At least 20% of the entire capital stock must be subscribed, and at least 20% of the subscription must be paid in cash or property of equal valuation, sworn by the treasurer.
No member is entitled to more than one vote regardless of stock owned; preferred stock owners without common stock have no voting rights unless dividends are unpaid for two years, in which case they get voting rights equal to common stockholders.
They shall be fined not less than 100 pesos and not more than 500 pesos per offense and may be liable for damages of up to 500 pesos to the aggrieved association.
Dividends on membership capital and common stock are limited to 8% per annum; preferred stock dividends are limited to 10% per annum.
No, associations organized under this Act are exempt from both merchant's sales tax and income tax.