COOPERATIVE

MANAGEMENT
 GENERAL
CONCEPTS AND
PRINCIPLES
GENERAL
CONCEPTS The first part of RA 9520 is the "Philippine Cooperative
AND Code of 2008,“ a law that changes the cooperative
code of the Philippines.
PRINCIPLES
General Concepts: A cooperative is a group of people
with a common interest who have voluntarily joined to
meet their social, economic, and cultural needs and
goals. They do this by making fair contributions to the
capital needed, using their products and services, and
taking a fair share of the risks and benefits of the
venture based on universally accepted cooperative
principles.
GENERAL
CONCEPTS Cooperative Principles: Every cooperative must run its
AND business according to Filipino culture, good values,
and experience, as well as the widely accepted
PRINCIPLES
principles of cooperation. Article 7 of RA 9520 says
that every cooperative's main goal is to help its
members live better lives. To reach this goal, the
cooperative will try to do the following:

Give its members goods and services that will

help them earn more money, save more money,
invest more money, be more productive, and
have more buying power;
Help its members get the most out of their social
and economic benefits;
Teach them how to do things efficiently in a
cooperative.
ORGANIZATION
AND
REGISTRATION
ORGANIZATION
AND One of the stated goals of the legislation is to pave the
REGISTRATION way for the formation and expansion of cooperatives
to empower individuals to work together to achieve
common goals like economic prosperity and social
justice. By the nature of their operations, "registered
cooperatives may create a federation." A primary
cooperative can be formed by fifteen (15) or more
Filipino nationals of legal age who share a similar
interest bond and are genuinely dwelling or working in
the designated area of operation. Pre-Membership
Education Seminars are required for everyone wanting
to join a central cooperative
MEMBERSHIP
MEMBERSHIP
New members may only be admitted to the
cooperative after undergoing Pre-Membership
Education Seminar. There are two kinds of members:
Regular participant's member-at-large status confers
the ability to vote and be voted upon, among other
benefits. Enlisted members, n. Has no voting power,
cannot be removed from office, and solely has the
privileges outlined in the bylaws. However, if an
associate member (a) has been a member for two
years in a row, (b) uses the cooperative's services as
if he were a regular member, and (c) indicates his
intention to do so, he will be treated as a regular
member. The extent of a member's liability for the
cooperative's indebtedness shall equal the member's
investment in the cooperative's share capital. A
member shall be liable for the cooperative's debts to
the extent of his contribution to the share capital of
the cooperative.
ADMINISTRATION
ADMINISTRATION
Those in good standing are the ones who make up the
General Assembly. A member in good standing has
fulfilled his or her obligations to the cooperative as
outlined in its bylaws. During this time, you will be
drafting the responsibilities and entitlements of
members. When submitted alongside the Articles of
Cooperation, the bylaws will outline the rights and
responsibilities of members;
The requirements for becoming a member and
the payment or interest must be made before you
can use your membership rights. The rules for
joining, staying a member, and leaving.;
The process to be followed in the event of a
member's resignation;
The terms under which a member's share or
interest may be transferred.
ADMINISTRATION
The regulations and procedures for the
performance of the business of the general
assembly, the board of directors, and the
committees, including the agenda, time, place,
and manner of calling, convening, and
conducting meetings, quorum requirements,
voting systems, and other topics;
The general management of the cooperative's
business, including the authority and
responsibilities of the membership, the board of
directors, committees, and officials, as well as
their eligibility and removal from office.
How the funds can be accumulated and what
they can be put toward; Accounting and auditing
procedures;
The method of holding and investing any surplus
funds;
Limitations on lending and borrowing practices;
Procedures for redistributing any ports made.
ADMINISTRATION
The process for creating, revising, and erasing
bylaws;
A conciliation or mediation process for resolving
differences amicably among cooperative
members, directors, officers, and committee
members; and
Any items are ancillary to the cooperative's aims
and activities.
 RESPONSIBILITIES,
RIGHTS, PREVILEGES
OF COOPERATIVE
RESPONSIBILI
TIES, RIGHTS, Cooperatives in the Philippines are granted rights and
PREVILEGES obligations under RA 9520. Among the most
important duties are:
OF
Respect for Cooperative Principles:
COOPERATIVE Cooperatives must adhere to cooperative legal
principles, which include open and free
membership, democratic control, And community
care.
Sound Financial Management: Cooperatives
must conduct sound financial-management, keep
correct records and produce financial statements
compliant with accounting standards.
Good Governance: Cooperatives must ensure
accountability, openness, and integrity in all
business operations. This includes giving
members access to information, conducting
routine audits, and holding routine general
assembly meetings.
RESPONSIBILI
Compliance with Reporting Requirements: The
TIES, RIGHTS,
Cooperative Development Authority (CDA), the
PREVILEGES regulatory agency in charge of cooperatives in
OF the Philippines requires cooperatives to submit
COOPERATIVE periodic reports. These reports detail the
cooperative's operations, finances, and legal
compliance. Under RA 9520, cooperatives are
given several business and safeguards in terms
of rights and privileges, including:
Equal Voting Rights: A cooperative's members
have the same number of votes, regardless of
how much money they have invested, facilitating
democratic decision-making inside the
cooperative.
Access to Cooperative Services: Members are
entitled to use the cooperative's services and
benefits at their discretion.
RESPONSIBILI
Patronage Refunds: Based on their purchases
TIES, RIGHTS,
and donations to the cooperative, members can
PREVILEGES obtain patronage refunds or dividends. Members
OF with limited responsibility often have their
COOPERATIVE personal assets safeguarded from the
cooperative's liabilities. It is significant to
highlight the specific obligations, privileges, and
rights of cooperatives may change based on the
legal system and the cooperative's operational
procedures and bylaws.
INSOLVENCY OF
COOPERATIVES
INSOLVENCY
OF Republic Act No. 9520, the Philippine Cooperative
COOPERATIVES Code of 2008, governs Philippine cooperatives. It
supports cooperative growth but recognizes the risk
of insolvency. The 2010 Financial Rehabilitation and
Insolvency Act (FRIA) (Republic Act No. 10142)
governs cooperative insolvencies. The FRIA regulates
the rehabilitation and liquidation of financially
impaired entities, including cooperatives. A
cooperative can seek rehabilitation under the FRIA if it
becomes insolvent or cannot pay its bills. The
cooperative's board or management committee might
petition the court to start rehabilitation. After
submitting the petition, the court will assess the
cooperative's nuances and determine possible
rehabilitation. If rehabilitation is practicable, the court
will grant a stay order preventing claims against the
cooperative while the rehabilitation plan is developed
and implemented.
INSOLVENCY
OF A rehabilitation receiver will help the cooperative
COOPERATIVES create a financial rehabilitation strategy. The
cooperative's financial viability may be improved via
debt restructuring, asset sales, or operational
adjustments. The court may liquidate the cooperative
if its nuances are irreparable or the rehabilitation plan
is unfeasible. The cooperative's assets will be
liquidated to satisfy its creditors in a legal order. The
court's discretion and the circumstances determine
insolvency and rehabilitation proceedings.
Cooperatives facing insolvency should obtain legal
advice to navigate the process. Laws may have
changed since then. For the latest information, consult
the law or a specialist.
DISSOLUTION OF
COOPERATIVES
DISSOLUTION
OF Under Republic Act No. 9520, cooperatives in the
COOPERATIVES Philippines may undergo dissolution through a
majority vote of the board of directors and approval of
at least two-thirds of the general assembly. Reasons
for dissolution include achieving objectives, loss of
viability, insolvency, or other justifiable causes. The
cooperative must notify the Cooperative Development
Authority (CDA) and creditors, dispose of assets, and
settle obligations according to priority.
 CAPITAL,
PROPERTY AND
FUNDS
CAPITAL,
PROPERTY AND Cooperatives are mandated by Republic Act No. 9520
FUNDS to meet a minimum share capital requirement that
varies with the type of cooperative they operate as.
They can own and get rid of property required for their
operations. The cooperative is responsible for
managing the finances, and any surplus funds maybe
put toward various goals, such as reserve funds,
education, and training, community development, and
dividends paid to members.
1. What role do cooperatives play in the Philippine economy?

2. What are the benefits of joining a cooperative?