OFFICE OF THE TRANSPORTATION COOPERATIVES, October 27, 2005

[ OFFICE OF THE TRANSPORTATION COOPERATIVES, October 27, 2005 ]

OTC BOARD RESOLUTION NO. 2005-06-07 AS AMENDED, SEPTEMBER 8, 2005

"Whereas, OTC SBR No. 2003-06-01, resolved that in case of intra-cooperative/leadership dispute, member-operators in good standing of Transport Cooperatives (TCs) are allowed to transact business with LTO and LTFRB, regarding registration and franchising issues of their respective vehicles;

"Whereas, SBR No. 2003-06-01 has no time limit within which TCs has to resolve/settle their disputes, thus, their operations and management are affected;

"Whereas, the privileges of SBR No. 2003-06-01 are being used/abused by either parties for their vested interest;

"Wherefore premises considered, the OTC Board resolved to amend OTC SBR No. 2005-06-01, as follows:

1. TCs having intra-cooperative/leadership disputes shall be given six (6) months period to exhaust all remedies to resolve/settle their differences/issues. At this point, SBR No. 2003-06-01 is applicable;

2. Non-Resolution of the disputes after six (6) months shall be a ground for the cancellation of its accreditation by the OTC Board. Thus, the privilege of SBR No. 2003-06-01 is no longer applicable;

3. Once, the accreditation has been cancelled by the OTC, the LTFRB shall forthwith cancel, the cooperative franchise/s;

4. Effectivity _ For TCs with existing disputes as of this Resolution, the effectivity shall be six (6) months after filing copies thereof with the UP Law Center.

While for TCs that may have disputes in the future, its effectivity shall be six (6) months after issuance of Certificate of Non-Resolution (CNR) by the Cooperative Development Authority (CDA).

5. This Resolution shall be circularized to all OTC accredited primary TCs for their perusal and guidance.

Adopted: 08 Sept. 2004

(SGD.) JAIME S. DOMDOM

(SGD.) RICARDO E. ALFONSO, JR

Chairman

Vice-Chairman

Office of Transportation Cooperatives

DOTC Undersecretary

(SGD.) MA. ELENA BAUTISTA

(SGD.) FIDELITO J. SOCO

Board Member

Board Member

LTFRB Chairperson

KKPPI Chairman

(SGD.) JIMMY G. PESIGAN

(SGD.) REYNALDO A. MANLONGAT

Board Member

PNP Representative

OTC Executive Director

(SGD.) MA. ANTHONETTE VELASCO-ALLONES

DOLE Representative