Membership of the Cooperative

  

Regular Members

A regular membership in this cooperative is open to all regular employees of the cooperative hospitals, active and rotating medical staff provided however that they are not active and rotating member of any other cooperative and private hospital, and to visiting physicians holding sub-specialties, of legal age with capacity to contract; and clinics in the area of operation as provided in Article IV of the Article of Cooperative who make use/patronize of the services of the cooperative hospital, subscribe to its aim and purposes, agree to abide by these by-laws and is willing to accept the responsibility of a member. 

Associate Members

Notwithstanding the provisions of the preceding paragraph, those who are investors in the share capital of the cooperative hospital may be admitted as associate members upon compliance with section 2 of Article II of MMG By-laws and upon recommendation by a regular member and duly approved by the Board of Directors.           

Except the right to vote and be voted upon, and associate member, shall be entitled to all other rights and privileges provided in MMG By-laws and the resolution of the General Assembly. 

Common Shares

Only one kind of common share with voting rights shall be issued. This shares is intended for hospital regular employees, active and rotating medical staff provided however that they are not active and rotating member of any other cooperative and private hospital and visiting physicians holding sub-specialties, of legal age with capacity to contract; and clinics in the area of operation as defined and delimited in Article IV hereof. However, when an employee terminates or resigns from his/her job, or when a physician withdraws from being an active and rotating medical staff, such common shareholders shall automatically be converted into preferred shares, thereby losing his voting rights.

Preferred Shares

Issued to investors in the share capital of the cooperative hospital, with the following features: 

1. Entitled to preference as to profits before any cash or stock dividends are declared and to aid to the holders of common stock. It shall earn   non-cumulative dividends at the rate of eight (8%) per centum per share per annum subject to the amendments by the Board of Directors every year to be concurred by the General Assembly.

2. The holders of preferred shares are not entitled to vote or be voted upon any general membership meeting for election of Board of Directors or for any other position in the cooperative hospital or otherwise participate in any activities during the meeting. However, in case of sales of the owner or shareholders of preferred shares to those qualified and existing common share holders. 

3. Visiting physicians who are holders of preferred shares shall be converted into common share upon approval of their application to hold clinic at the cooperative hospital, and thereby become active and rotating medical staff practitioner subject to the stipulation as provided for by the above provision in common shares.

4. Convertible into common share after twelve (12) years at the same par value as before conversion. The Article of Cooperation of the hospital shall be amended to reflect the conversion of said preferred shares subject to the stipulation as provided for by the above provision in common shares.

5. Redeemable in part or in full at any time within the twelve (12) year period, provided that said redemption shall not diminish the paid-up capital level existing at the time of said redemption, or the required minimum capital, whichever is higher. 

In the event of liquidation, dissolution, bankruptcy or winding up of the affairs of the cooperative hospital, either voluntarily, the assets of the hospital after payment has been made to its creditors, shall be distributed in the following preference: First recipient shall be the holders of preferred shares to an amount equal to the par value of their shares or ratably insofar as the assets of the hospital shall permit. Second recipient shall be the holders of common shares to the full par value or ratably insofar as the hospital shall permit. The above rights, preferences and restrictions shall be printed on the back of the share certificate to be issued by the cooperative. No person shall be accepted as a member of this cooperative if he is a member of another cooperative of the same type within the same area of operation unless he/she resigns from the other cooperative. 

Application for Membership

1. The application for membership shall be in writing on a form provided for the purpose and shall be presented to the Board of Directors for action.

2. The applicant, except for associate member, shall subscribe for at least twelve (12) shares with a total value of One Thousand Two Hundred Pesos (P1,200.00) with at least Three Hundred Pesos (P300.00) corresponding to three shares shall be paid upon submission of the application for membership. The membership and subscription agreement shall provide the term of payment of the unpaid subscription. However, no member shall own or hold more than twenty per centum, (20%) of the subscribed share capital of the cooperative. 

3. Appeal – an application rejected by the Board of Directors may appeal his case to the next General Assembly by giving notice to the Secretary of the Cooperative thirty (30) days before the said General Assembly, whose decision on the matter shall be final.