Membership Policy

 

Article I

DECLARATION OF POLICY

This policy paper provides guidelines governing membership in the HPP Employees Multipurpose Cooperative drawn from CDA regulations, pertinent provisions of HPPEMC Bylaws, and other policies and procedures as approved by the Board of Directors.

 

Article II

WHO CAN BECOME A MEMBER

Membership of HPPEMC is a privilege extended to employees of HP Inc., Hewlett Packarc Enterprise, DXC Technology, Computer Sciences Corporation, Micro Focus, and other future IT/BPO companies that may result from mergers, acquisitions, and divestitures (hereinafter collectively referred to as "Company") with the following conditions:

1. Regular Members - only regular employees of the Member Companies are qualified to become Regular Members of the Cooperative.
2. Associate Members - former employees of Member Companies, current and previous employees of HPP Employees Multipurpose Cooperative, employees of other IT/BPO companies may become Associate Members.
3. Honorary Members - family members endorsed by Regular or Associate Members.

 

Article III

ENTITLEMENT OF MEMBERS

Section 1. Entitlements of Regular Members.

1. Participate in the capitalization of the Cooperative through capital build-up.
2. Fully enjoy the loan products of the Cooperative.
3. Share in the surplus earned by the Cooperative through dividends.
4. Be paid patronage refund proportionate to their use of the business of the Cooperative.
5. Attend meetings and participate in the parliamentary affairs of the Cooperative.

Section 2. Entitlements of Associate Members.

1. Participate in the capitalization of the Cooperative through capital build-up.
2. Enjoy the loan products of the Cooperative up to 100% of their capital investment in the Cooperative.
3. Share in the surplus earned by the Cooperative through dividends.
4. Be paid patronage refund proportionate to their use of the business of the Cooperative.
5. Cannot participate in the parliamentary affairs of the Cooperative.

 

Article IV

HOW TO BECOME A MEMBER

Employees of Member Companies can apply for membership through the following procedure:

1. Attend a Pre-Membership Education Seminar (PMES) given by the Cooperative.
2. Fill-up the Membership Application Form
3. Subscribe to at least 200 shares equivalent to P20,000.00 (payable through the monthly share capital build-up).
4. Deposit an initial share capital of P1,000.00 equivalent to 10 shares.
5. Commitment to a monthly share capital build-up of at least P500.00.
6. Commitment to a monthly savings deposit of at least P200.00.
7. Participate in Member's Raffle Fund of P50.00 per month (collected annually before the General Assembly, i.e. P600.00/year).
8. Payment of a one-time membership fee of P200.00.
9. Commitment to patronize the products of the Cooperative.

 

Article V

DUTIES OF A MEMBER

Every member shall have the following duties:

1. Fully pay the capital stock subscribed and participate in the continuous capital build-up of the Cooperative.
2. Patronize the Cooperative business.
3. Participate in its parliamentary affairs (for Regular Members).
4. Attend membership meetings.
5. Obey rules, regulations, and policies set by the Board, the HPPEMC Bylaws, the General Assembly, and the Cooperative Development Authority.
6. Pay cooperative obligations (e.g mandatory monthly capital build-up, savings, loan payments, etc.) without the need for reminder.
7. Promote the aims and purposes of the Cooperative and the success of its business.

 

Article VI

SHARE CAPITAL

The main source of funds of the Coop comes from members’ share capital contributions. One share has a par value of P100.00.

1. Every member is required to subscribe to at least 200 shares with a total value to P20,000.00.
2. All members are required to commit to sustained capital build-up. A monthly share capital contribution of P300.00 will be deducted from employees’ payroll account until the minimum required subscription of 200 shares has been paid up. A member may opt to continue his/her share capital build-up up to the maximum share capital subscription of 5,000 shares or P500,000.00 (for Regular and Associate Members).
3. Any member is entitled to increase his/her capital in the Cooperative at any time subject to the prescribed minimum and maximum share capital contribution.
4. Partial withdrawal of share capital in the Cooperative is not allowed. Share capital can only be withdrawn upon termination of membership.
5. It is standard practice among Cooperatives to use paid-up share capital to determine the loan entitlement of Regular Members. Thus, share capital cannot be paid through loan borrowed from the Cooperative.
6. At the end of the year, numbered stock certificates are issued to members for the shares they have paid-up during the year.
7. Members have the right to request for the print out of their paid-up share capital ledger anytime.

At year-end, the Coop shall send members a statement to confirm his/her outstanding balance of loans and paid-up share capital contribution. This confirmation is also in preparation for the annual computation of dividends on share capital and patronage refund.

 

Article VII

DIVIDENDS AND PATRONAGE REFUND

1. Upon completion of the external audit, the Board of Directors deducts the mandatory reserves (10% General Reserve Fund, 1% Education Fund, 3% Community Development Fund, 3% Optional Fund for land and building) from the annual surplus to determine the net surplus for distribution.
2. Dividing the net surplus available for distribution into dividend and patronage refund is presented for approval of the Board of Directors. This ratio determines the amount that will be paid out as dividends and the amount that will be paid out as patronage refund.
3. Dividends Rate is computed in the following manner:
   
   Total average share capital is computed by calculating the following:
   
   
   1. • Total Share Months – this is computed by adding the monthly balances of each member’s share capital for 12 months.
      • Average Share Capital – this is computed by dividing the Total Share Months by 12.
      • Total Average Share Capital – the average share capital of all members are added together.
      • Dividend Rate- the net surplus available for distribution as dividend is then divided by the Total Average Share Capital to get the dividend rate.
        
        
4. The Patronage Refund Rate is computed by dividing the net surplus available for distribution as patronage refund by interest income from loans.
5. Patronage refund paid to each member is calculated by computing the interest members paid on all loans for the entire year. Patronage Refund Rate is applied to Interest payment.
6. Coop Bylaws provide that dividend and patronage refund can be paid out or retained.
7. Actual payment of dividends and patronage refund is effected at such time as the Board of Directors may designate.
8. Members with past due loans may receive dividends and patronage refund but will be deposited directly to their Share Capital.
9. Members who terminate their membership will be entitled to receive dividends on a pro-rated basis. Unclaimed dividends and patronage refund are closed to the General Reserve Fund after the 4-year prescription period provided by law.

 

Article VIII

TERMINATION OF EMPLOYMENT/MEMBERSHIP

1. Voluntary Termination of Membership
   Any member desiring to terminate his/her membership with the Cooperative must submit the Termination/Associate Membership Form 30 days prior to his/her intended last day of membership. The form is available online under Members Area of the website (login required). Please note that all outstanding loans must be settled in full within 30 days upon application of membership termination. 
   
   
2. Termination of Employment from the Company
   Any member leaving his/her employer must submit the Termination/Associate Membership Form 30 days prior to his/her last working day. The form is available online under Members Area of the website (login required). When submitting the form, member has 2 options, as follows: 
   1. Terminate membership with the cooperative
      1. All outstanding loans must be settled in full within 30 days, or
      2. Provide post-dated checks for a max term of 3 months (subject to 3% restructuring fee), or
      3. Auto-Debit from payroll account for a max term of 3 months (subject to 3% restructuring fee), or
      4. Transfer all existing loans to comakers (no surcharge but need comaker/s approval).
   2. Remain as Assocaite Member
      1. All outstanding loans must be paid within 60 days, or
      2. Provide post-dated checks for a max term of 6 months (subject to 3% restructuring fee), or
      3. Auto-Debit from payroll account for a max term of 6 months (subject to 3% restructuring fee)
      4. Transfer to comakers (no surcharge but need comaker's approval).
         .
3. Expulsion – 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:
   1. When a member has not patronized the products of the Cooperative for an unreasonable period of time as may be fixed by the Board.
   2. When a member has continuously failed to comply with his obligations.
   3. When a member has acted in violation of the Bylaws and the rules of the Cooperative.
   4. For any act or omission injurious or prejudicial to the interest or the welfare of the Cooperative.
      
      
4. Returning Member
   1. A member who has voluntarily terminated his/her membership with HPPEMC may reapply for membership after one (1) year. Upon rejoining, his/her Coop tenure will reset to zero (0).
   2. A member who was involuntarily terminated (i.e. expelled) is not eligible to reapply for membership.

 

 

 

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