Thanks Grazie,
There is something I would like to add and it is the difference between a cooperative and a corporation. They may have many things in common, but let me enumerate on the aspects where they greatly differ.
In a corporation, the one who has the biggest share has voice and owns the biggest vote by the board; i.e. in SMC, Soriano owns the biggest share; hence he is the President.
While in a cooperative, we have a one member, one vote system. During the general assembly/election, each member regardless of his share is entitled to a 1 vote. Hence, even if you have Php100,000 worth of shares and I have only Php3,000 (minimum share to be a member), we have equal voting power.
Hence, if you display a good character with genuine intentions, there is a possibility for you to become one of the Board Members during election (if you have many fans). In a cooperative, there is no discrimination on gender, age or religion.
Further, in a corporation, the revenues of the company will be shared only among incorporators.
While in a cooperative, the net profit of each year shall be shared by all members, in a form of dividend, which is in proportion to his/her capital share.
Moreover, if you avail a loan, you will be entitled to what is called a "patronage refund". A patronage refund is a portion of your loan revenues, returned back to you.
To explain further, if you avail a loan from any bank, the revenues from that loan will go to the bank. While in a cooperative a portion of that revenue mo balik ra nimo as patronage refund.
Moreover, all our transactions in a cooperative is "tax free". While if we build a corporation, the BIR is always on the lookout to take a big bite of your revenues.
There are more technical information I would like to share with you in due course.
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