Instruction: Study each case below. Then answer the questions that that follow by writing Yes or No in the answer column. If you give a No answer, give a brief explanation as justification.

1. Dissolution. Kalamragan Cooperative, a credit cooperative operating in the City of Tacloban was issued its Certificate of Registration by the CDA sometime in June of 2018. However, up until the Covid-19 pandemic was still unable to operate. Members have been complaining about this inability to commence operation but the Board of Directors simply ignored them and used as justification the pandemic. In frustration, the members filed an official complaint with the Cooperative Development Authority who subsequently wrote the Board of Directors, directing them to present a show cause answer to prevent their cooperative from being dissolved. This remained unanswered. To protect the interest of the members against this seemingly unjust treatment by the Board of Directors, CDA issued an order for the dissolution of Kalamragan Cooperative.correct? a. Is the act of CDA in ordering the dissolution of Kalamragan Cooperative b. Will the declaration of dissolution on Kalamragan Cooperative by CDA be considered as involuntary? b. c. Can the Board of Directors of Kalamragan Cooperative be excused by using the pandemic as justification of the cooperative's inability to commence operation despite issuance of their Certificate of Registration two years ago? C. d. On dissolution, it signifies the termination of the right of the cooperative to continue the business or purposes for which it was established. d. e. The nature of the cooperative's dissolution is by order of a competent court. C. 2. Liquidation. Following the order of dissolution issued by CDA upon Kalamragan Cooperative, it is then expected that liquidation proceedings will commence. Since the Board of Directors refused to elect the Board of Liquidators, neither did the General Assembly contending that they do not have the expertise, CDA then made the appointment and held the Liquidators directly accountable to the cooperative and supervised by the Authority. a. Liquidation refers to the various activities undertaken by a dissolved cooperative, through it duly constituted Board of Liquidators. b. The act of CDA in appointing a Liquidator for Kalamragan Cooperative is an invalid act, since present in the cooperative was its Board of Directors. b. c. Liquidators compensation in this case shall be fixed by the Cooperative Development Authority but paid from the funds of the cooperative. d. The Board of Liquidators shall not be less than three (3) but not more than five (5), who must have the time and willingness to undertake activities e. Liquidators shall be responsible for the speedy, equitable, and beneficial winding up of the affairs of the cooperative. e. 3. Allocation of Net Surplus. Santa Theresa Consumer Cooperative have been operating for the last five (5) years and is doing good in the business. Members were actively patronizing the products of their cooperative, and the Board of Directors, Officers and Committee members were all well-trained and competent leaders so that it was no surprise that the cooperative was flourishing As a result, the cooperative posted an encouraging net surplus. Now the Board of Directors is of the idea to declare dividends so the members will be happy and motivated to keep on supporting the cooperative. a. The determination of cooperative net surplus shall be in accordance with its articles of cooperation at the close of every fiscal year. a. b. In the distribution of the cooperative's net surplus, not more than 10% of the net surplus should be allocated for the reserve fund to be used for stability of the cooperative and to meet net losses In its operations. b. ". An amount for the education and training fund shall be at least 10% of the net surplus to provide for training and development geared towards the growth of the cooperative movement. C. . d. An amount for the community development fund, which shall not be less than