LAW (COOPERATIVE)
REPUBLIC ACT No. 9520 February 17, 2009
Philippine Cooperative Code of 2008
COOPERATIVE
Autonomous
common bond of interest
voluntarily joined together to achieve their social, economic, and cultural needs
Equitable; Patronized; Fair share of risk
Term: Maximum of 50 years
Extend: 5 years before expiring, not exceed 50 years.
UNIVERSALLY ACCEPTED COOP PRINCIPLE (MADVECC)
Member Economic Participation
Autonomy and Independence
Democrative Member Control
Voluntary and Open Membership
Education, Training and Information
Cooperation Among Cooperatives
Concern for Community
DEFINITION OF TERMS
MEMBER - either natural or juridical
GENERAL ASSEMBLY (GA) - duly assembled for the purpose of exercising all the
rights and performing all the obligations
BOARD OF DIRECTORS - body entrusted with the management of the affairs
COMMITTEE - body entrusted with specific functions and responsibilities
ARTICLES OF COOPERATION - AOC registered under this code includes a registered
amendment
BYLAWS – registered under this code includes any registered amendment
REGISTRATION - operative act granting juridical personality; evidenced by a certificate
of registration
COOPERATIVE DEVELOPMENT AUTHORITY (CDA) - government agency in
charge of the registration and regulation of cooperatives
UNIVERSALLY ACCEPTED PRINCIPLE - body of cooperative principles adhered to
worldwide
OFFECERS OF THE COOP. – member of BOD; committee; general manager or chief
executive officer, secretary, treasurer, etc.
SOCIAL AUDIT - cooperative assesses its social impact and ethical performance
PERFORMANCE AUDIT - audit on the efficiency and effectiveness of the cooperative
SINGLE-LINE/PURPOSE - undertaking activities which are related to its main line of
business or purpose
SERVICE COOP - provide any type of service to its members
SUBSIDIARY COOP - three or more primary cooperatives, doing the same line of
business
* The primary objective of every cooperative is to help improve the quality of life of its members
CHARACTERISTICS OF COOPERATIVE
Limited liability
Separate personality
Right of succession
REQUIREMENTS
Articles of Cooperation
1. Name of the cooperative
2. Purposes and scope of business
3. Term of existence
4. Area of operation
5. Names, nationality, and the postal addresses
6. Common bond of membership
7. List of names of the directors
8. Amount of its share capital
Sworn statement of treasurer elected by subscriber
25% of authorized capital = subscribed
25% of subscribed = paid (not less than 15k)
By-laws
Bond of accountable officer
General statement of CDA
Structure; bookkeeper; purpose of propose coop
Economic survey
ORGANIZING PRIMARY COOP
15 natural person
Filipino citizen
Legal age
Common bond of interest
Resided within area of operation
Premembership education seminar (PMES)
CONVERSION
Primary Coop MPC (Required by CDA)
Single Purpose Coop MPC (After 2 years of operation)
P100,000
Minimum Paid in Capital (MPC) = Higher
Required under FS
REGISTRATION
APPROVED (cert. of registration)
CDA
DENY (appeal at the office of the president within 90 days - if
silent - deemed approved.
60 days – if silent –
deemed approved
AMENDMENTS OF AOC & BYLAWS
2/3 of all member, voting, present, quorum
dissenting members can withdraw their membership
All amendments to the article of cooperation and/or bylaws shall be submitted to the CDA.
30 days – if silent – deemed approved
DIVISION OF COOP
3/4 of all member, voting, present, quorum
No appraisal right
MERGER OF COOP
3/4 of all member, voting, present, quorum
dissenting members can withdraw their membership
TYPES OF COOP
A. w/ descriptive definition
1. Advocacy – advocates
2. Dairy – fresh milk
3. Fisherman – fishermen
4. Multipurpose – 2 or more
5. Workers – worker
B. Closely – related
1. Agriculture – living organism
2. Agrarian – beneficiaries
3. Consumer – produce & distribute
4. Marketing – markets
5. Producers – joint production
C. Financial
1. Coop Banks – provides wide range of financial service
2. Credit – savings & lending services
3. Financial Service – savings, credit, & other financial services
D. Service Coop
o Electric; health services; housing; insurance; transport; education; water service
