THE REBT REVIEWER Chapter 9 COOPERATIVE C&S DEFINITION AND PRINCIPLES DEFINITION: A cooperative is an autonomous and duly registered association of persons, with a common bond of interest, who have voluntarily joined together to achieve their social, economic, and cultural needs and aspirations by making equitable contributions to the capital required, patronizing their products and services and accepting a fair share of the risks and benefits of the undertaking in accordance with universally accepted cooperative principles. COOPERATIVE PRINCIPLES: ART. 4. Cooperative Principles. - Every cooperative shall conduct its affairs in accordance with Filipino culture, good values and experience and the universally accepted principles of cooperation which include, but are not limited to, the following: (1) Voluntary and Open Membership - Cooperatives are voluntary organizations, open to all persons able to use their services and willing to accept the responsibilities of membership, without gender, social, racial, cultural, political or religious discrimination; (2) Democrative Member Control - Cooperatives are democratic organizations that are controlled by their members who actively participate in setting their policies and making decisions. Men and women serving as elected representatives, directors or officers are accountable to the membership. In primary cooperatives, members have equal voting rights of one-member, ona votes ‘Cooperative i as ‘ es at other levels are organized in the same democraticCooperative (3) Member Economic Participation - Members contribute equitably to, and democratically control, the capital of their cooperatives. At least part of that capital is the common property of the cooperative. They shall receive limited compensation or limited interest, if any, on capital subscribed and paid as a condition of membership. Members allocate surpluses for any or all of the following Purposes: developing the cooperative by setting up reserves, part of which should at least be indivisible; benefitting members in Proportion to their patronage of the cooperative's business; and, supporting other activities approved by the membership. (4) Autonomy and Independence - Cooperatives are autonomous, self- help organizations controlled by their members. If they enter into agreements with other organizations, including government, or raise capital from external sources, they shall do so on terms that ensure democratic control of their members and maintain their cooperative autonomy. (5) Education, Training and Information - Cooperatives shall provide education and training for their members, elected and appointed representatives, managers, and employees, so that they can contribute effectively and efficiently to the development of their cooperatives. (6) Cooperation Among Cooperatives- Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, national, regional and international structures. (7) Concern for Community - Cooperatives work for the sustainable development of their communities through policies approved by their members. PURPOSES OF A COOPERATIVE 2 Noyee To encourage thrift and savings mobilization among the members; To generate funds and extend credit to the members for productive and provident purposes; To encourage among member To provide goods and services e To develop expertise and skills among its members; To acquire lands and provide housing benefits for the members; To insure against losses of the rs systematic production and marketing; and other requirements to the members; members; 465THE RFBT REVIEWER 8. To promote and advance the economic, social and educational status of the members; ; 9. To establish, own, lease or operate cooperative banks, cooperative wholesale and retail complexes, insurance and agricultural/industrial processing enterprises, and public markets; 10. To coordinate and facilitate the activities of cooperatives; 11. To advocate for the cause of the cooperative movements; 12. To ensure the viability of cooperatives through the utilization of new technologies; 13. To encourage and promote self-help or self-employment as an engine for economic growth and poverty alleviation; and 14. To undertake any and all other activities for the effective and efficient implementation of the provisions of the Cooperative Code. OBJECTIVES AND GOALS OF A COOPERATIVE 1. Provide goods and services to its members to enable them to attain increased income, savings, investments, productivity, and purchasing power, and promote among themselves equitable distribution of net surplus through maximum utilization of economies of scale, cost-sharing and risk-sharing; 2. Provide optimum social and economic benefits to its members; 3. Teach them efficient ways of doing things in a cooperative manner; 4. Propagate cooperative practices and new ideas in business and management; 5. Allow the lower income and less privileged groups to increase their ownership in the wealth of the nation; and 6. Cooperate with the government, other cooperatives and people-oriented organizations to further the attainment of any of the foregoing objectives. ‘OWERS AND CAPACITIES OF A COOPERATIVE To the exclusive use of its registered name, to sue and be sued; 2. Ofsuccession 3. To amend its articles of coo) this Code 4 To adopt bylaws not contrary to law, morals or public policy, and to amend and repeal the same in accordance with Cooperative Code; 5. To purchase, receive, take or grant, hold, convey, sell, lease, pledge, mortgage, and otherwise deal with such real and personal property as the transaction of the lawful affairs of the cooperative may reasonably peration in accordance with the Provisions of 466Cooperative and necessarily require, subject to the limitations prescribed by law and the Constitution; 6. To enter into division, merger or consolidation, as provided in Cooperative Code; 7. To form subsidiary cooperatives and join federations or unions, as provided in Cooperative Code; 8. To avail of loans, be entitled to credit and to accept and receive grants, donations and assistance from foreign and domestic sources, subject to the conditions of said loans, credits, grants, donations or assistance that will not undermine the autonomy of the cooperative. The Authority, upon written request, shall provide necessary assistance in the documentary requirements for the loans, credit, grants, donations and other financial support; 9. Toavail of preferential rights granted to cooperatives under Republic Act No. 7160, otherwise known as the Local Government Code, and other laws, particularly those in the grant of franchises to establish, construct, operate and maintain ferries, wharves, markets or slaughterhouses and to lease public utilities, including access to extension and on-site research services and facilities related to agriculture and fishery activities; 10. To organize and operate schools in accordance with Republic Act No. 9155, Governance of Basic Education Act of 2001 and other pertinent laws; and 11. To exercise such other powers granted by Cooperative Code or necessary to carry out its purpose or purposes as stated in its Articles of cooperation. CHARACTERISTICS SIMILAR TO A CORPORATION A cooperative duly registered shall have limited liability. 2. Separate personality: ‘A cooperative can be likened to a corporation with a personality separate and distinct from its ‘owner-members. (Republic v. Asiapro, GR 172101, November 23, 2007) 3. Term: for a period not exceeding 50 years from the date of ration; may be extended for periods not exceeding 50 years, but prior to the original or stifiable reasons. regist f no extension can be made earlier than 5 y' subsequent expiry date/dates unless there are j Note, however, that this is no longer @ similarity since a corporation now, generally, has perpetual existence under the Revised Corporation Code. 467THE REBT REVIEWER 8. 9. 1 > To promote and advance the economic, social and educational status of the members; . To establish, own, lease or operate cooperative banks, cooperative wholesale and retail complexes, insurance and agricultural/industrial Processing enterprises, and public markets; |. To coordinate and facilitate the activities of cooperatives; . To advocate for the cause of the cooperative movements; . To ensure the viability of cooperatives through the utilization of new technologies; . To encourage and promote self-help or self-employment as an engine for economic growth and poverty alleviation; and To undertake any and all other activities for the effective and efficient implementation of the provisions of the Cooperative Code. OBJECTIVES AND GOALS OF A COOPERATIVE 1. 2 3. 4. s Provide goods and services to its members to enable them to attain increased income, savings, investments, productivity, and purchasing power, and promote among themselves equitable distribution of net surplus through maximum utilization of economies of scale, cost-sharing and risk-sharing; Provide optimum social and economic benefits to its members; Teach them efficient ways of doing things in a cooperative manner; Propagate cooperative practices and new ideas in business and management; Allow the lower income and less privileged groups to increase their ownership in the wealth of the nation; and Cooperate with the government, other cooperatives and people-oriented organizations to further the attainment of any of the foregoing objectives. POWERS AND CAPACITIES OF A COOPERATIVE 1. To the exclusive use of its registered name, to sue and be sued; 2 3. 4. Of succession To amend its articles of cooperation in accordance with the provisions of this Code To adopt bylaws not contrary to law, morals or public policy, and to amend and repeal the same in accordance with Cooperative Code; To purchase, receive, take or grant, hold, convey, sell, lease, pledge, mortgage, and otherwise deal with such real and personal property as the transaction of the lawful affairs of the cooperative may reasonably 466 Nie