Pursuant to Special Order No. 2017-364, s.2017 dated November 23, 2017, the Cooperative Development Authority-Manila Extension Office conducted an examination of Nutriwealth Multi-Purpose Cooperative which focused on certain areas of concern, one of which is on business operation.
Nutriwealth MPC has a savings program which may either be:
A. Time deposit for a period of five (5) years, to earn seven percent (7%) interest per annum, which deposit cannot be withdrawn within five (5) years but may be transferred to other members; or
B. Direct savings deposit, where interest can be withdrawn monthly and the principal amount after a period of two (2) years.
However, under the Articles of Cooperation and By-laws of the cooperative, the above savings program involving acceptance of deposits from members for a specified period of time to earn a stipulated interest is not one of the purposes for which it was organized, making this venture not in accordance with law. Thus, the cooperative is hereby ORDERED TO CEASE AND DESIST from accepting deposits from members and non¬members.
Likewise, in order to protect the interest of the depositors, the cooperative is hereby ORDERED TO RETURN all deposits received under the said program within one- hundred twenty (120) days from receipt of this Order. Failure to comply would constrain this Office to take appropriate action in accordance with applicable laws and regulations.
SO ORDERED.
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Pursuant to Special Order No. 2017-364, s.2017 dated November 23, 2017, the Cooperative Development Authority-Manila Extension Office conducted an examination of Nutriwealth Multi-Purpose Cooperative which focused on certain areas of concern, one of which is on business operation.
As a multi-purpose cooperative, Nutriwealth MPC has embarked on different types of businesses. However, during the examination, it has come to our attention that these undertakings are not supported by feasibility study to determine its viability. Business ventures were done haphazardly which could expose the members’ interests at risk.
Thus, the cooperative is hereby ORDERED TO CEASE AND DESIST from undertaking business activities without the necessary feasibility study to support the viability of the proposed business. Failure to comply would constrain this Office to take appropriate action in accordance with applicable laws and regulations.
SO ORDERED.
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Pursuant to Special Order No. 2017-364, s.2017 dated November 23, 2017, the Cooperative Development Authority-Manila Extension Office conducted an examination of Nutriwealth Multi-Purpose Cooperative which focused on certain areas of concern, one of which is on governance.
The cooperative has satellite offices established outside of its principal office to provide limited services to its members. However, during the examination, it has come to our attention that business permits in some of its satellite offices are under the names of their members, in violation of Memorandum Circular No. 2016-05 providing the guidelines on the establishment and operation of a cooperative satellite office.
Thus, the cooperative is hereby ORDERED TO CEASE AND DESIST from establishing and operating satellite offices without the prior approval of the Authority including those satellite offices outside the area of operation. Failure to comply would constrain this Office to take appropriate action in accordance with applicable laws and regulations.
SO ORDERED
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Pursuant to Special Order No. 2017-364, s.2017 dated November 23, 2017, the Cooperative Development Authority-Manila Extension Office conducted an examination of Nutriwealth Multi-Purpose Cooperative which focused on certain areas of concern like governance and business operation.
During the examination, it has been noted that officers of Nutriwealth MPC likewise have an overlapping directorate with private corporations, thus, causing confusion and creating the impression that the cooperative and the corporations are one and the same entity. This also creates the impression that the cooperative is being used as tax and labor shield.
Therefore, the officers of the cooperative are hereby ORDERED TO CEASE AND DESIST from serving as officers of corporations having the same purposes as the cooperative, specifically the following:
1. Nutriwealth Manufacturing Plant, Inc.;
2. Nutriphysics Wellness Association, Inc.;
3. Nutriwealth School of Wealth and Wellness Foundation, Inc.; and
4. Nutriwealth Wellness Association, Inc.
Likewise, the officers concerned are hereby ORDERED TO DIVEST their interest from
the above-stated corporations within one-hundred twenty (120) days from receipt of this Order.
Failure to comply would constrain this Office to take appropriate action in accordance with applicable laws and regulations.
SO ORDERED.
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Pursuant to Special Order No. 2017-364, s.2017 dated November 23, 2017, the Cooperative Development Authority-Manila Extension Office conducted an examination of Nutriwealth Multi-Purpose Cooperative which focused on certain areas of concern, one of which is on governance.
The Articles of Cooperation and By-Laws of the cooperative show that it was organized only for the following purposes:
1. To produce different herbal and nutritional products such as malunggay capsules, turmeric capsules, sambong capsules, lagundi capsules, alkaline powder, herbal coffee, healing crystal salt, pinagpala juice, EENT alkaline drops, feminine wash, and herbal soap for sale to members and non-members.
2. Credit services.
However, during the examination, it has come to our attention that the cooperative is engaged in diverse businesses such as those involving consumer products (coffee shop, water refilling station, grocery, store, bakery7 and restaurant), wellness center, savings program, agricultural operation, and rental/leasing business but the same have not been presented to and approved by the General Assembly and consequently, by the Authority.
Thus, the cooperative is hereby ORDERED TO CEASE AND DESIST from engaging in business operations which are not included in the purposes stated in its Articles of Cooperation and By-Laws. Failure to comply would constrain this Office to take appropriate action in accordance with applicable laws and regulations.
SO ORDERED.
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Pursuant to Special Order No. 2017-364, s.2017 dated November 23, 2017, the Cooperative Development Authority-Manila Extension Office conducted an examination of Nutriwealth Multi-Purpose Cooperative which focused on certain areas of concern, one of which is on membership.
The By-Laws of the cooperative states that the latter shall operate within Luzonwide area. The examination, however, revealed that the membership is diversified and comes from almost all parts of the country. The membership strategy focuses on recruitment of members of different church-based organizations and Overseas Filipino Workers (OFWs). Financial management seminars are conducted to recruit OFWs located in Abu Dhabi, A1 Ain, Ras A1 Khaimah, Qatar, Dubai, UAE, Hongkong, Singapore and South Korea. This is not in accordance with the provisions of their By-Laws since the membership should come from an identified association and the area of operation must be Luzon-wide only.
Thus, the cooperative is hereby ORDERED TO CEASE AND DESIST from accepting members who are outside the area of operation stated in its By-Laws. Failure to comply would constrain this Office to take appropriate action in accordance with applicable laws and regulations.
SO ORDERED.
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Pursuant to Special Order No. 2017-364, s.2017 dated November 23, 2017, the Cooperative Development Authority-Manila Extension Office conducted an examination of Nutriwealth Multi-Purpose Cooperative which focused on certain areas of concern, one of which is on membership.
A close scrutiny of the registry of membership of the cooperative showed that the cooperative is accepting minors, primary cooperatives and other business entities or corporations as members and savings or time depositors, in violation of their Articles of Cooperation and Bylaws.
Thus, the cooperative is hereby ORDERED TO CEASE AND DESIST from accepting members and savings or time depositors who are minors, primary cooperatives or business entities or corporations. Failure to comply would constrain this Office to take appropriate action in accordance with applicable laws and regulations.
SO ORDERED.
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Pursuant to Special Order No. 2017-364, s.2017 dated November 23, 2017, the Cooperative Development Authority-Manila Extension Office conducted an examination of Nutriwealth Multi-Purpose Cooperative which focused on certain areas of concern, one of which is on membership.
The Articles of Cooperation states that the common bond is associational and their field of membership should come from the members of NutriPhysics Wellness Association, an entity duly registered with the Securities and Exchange Commission. However, it has come to our attention that acceptance of members is not in accordance with the common bond of membership requirement. Members are already accepted in the cooperative even before they become members of the aforementioned association.
Thus, the cooperative is hereby ORDERED TO CEASE AND DESIST from accepting members who are not yet members of NutriPhysics Wellness Association. Failure to comply would constrain this Office to take appropriate action in accordance with applicable laws and regulations.
SO ORDERED.
NONIE I. HERNANDEZ, CESO V
Regional Director
Cc: Legal Department
Supervision and Examination Unit
Central Office
827 Aurora Blvd. Service Road Brgy. Immaculate Conception,
111 Cubao, Quezon City
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