SUMMARY DISCUSSION ON COOPERATIVES March 6, 2023

COOPERATIVES 5. Develop expertise and skills to members

6. Acquire land and provide housing benefits to members
-RA No. 9520 a.k.a Philippine Cooperative Code of 2008 7. Insure against losses
- an autonomous and duly registered association of persons with a 8. Promote and advance the economic, social and educational
common bond of interest, who voluntarily joined together to status of the members
achieve their social, economic and cultural needs and aspirations 9. Coordinate and facilitate activities of cooperatives
by making equitable contributions to the capital required, 10. Advocate for the cause of the cooperative movements
patronizing their products and services and accepting fair share of 11. Ensure viability of cooperatives through utilization of new
the risks and benefits of the undertaking in accordance with technologies
universally accepted cooperative principles. 12. Encourage and promote self-help or self-employment as
economic growth and poverty alleviation
Cooperative Principles 13. Undertake other activities for effective and efficient
implementation of the provision of this Code
1. Voluntary and Open Membership – OPEN TO ALL
2. Democrative Member Control – Controlled by Members
3. Member Economic Participation – contribute equitably,
democratically control the cooperative, capital of
cooperatives
4. Autonomy and Independence – Autonomous and self-help
organizations
5. Education, Training and Information – provide education
and training to members
6. Cooperation among Cooperatives – working together with
other Cooperatives
7. Concern for community – work for sustainable community

Purposes of Cooperatives

1. Encourage thrift and saving mobilizations among members

2. Generate fund and extend credit to members for productive
and provident purposes
3. Encourage systematic production and marketing
4. Provide goods and services and other requirements to
members

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SUMMARY DISCUSSION ON COOPERATIVES March 6, 2023

Organization of Cooperatives Other Requirement:

ELIGIBILITY: 25% - 25% RULE Subscribed – Paid up

Paid Up cannot be less than 15,000.00
1. 15 or more natural person, FILIPINO citizen, of legal age
having common bond of interest, resident or working in Should be certified by treasurer
intended area
2. Undertakes Pre- Membership Education Seminar CDA Paid up req’t.  assess every 5 years  upon
(PMES) consultation with NEDA

REQUIREMENT: TYPE OF OBLIGATION = LIMITED LIABILITY

1. Before Formation  Submit GENERAL STATEMENT JURIDICAL PERSONALITY:

describing
a. Structure and purpose Acquires upon issuance of Certificate of Registration under
b. Staffing pattern which must consist of CDA official seal
BOOKKEEPER
c. Area of operation Application  disposed of within 60 days
d. size of membership
e. other data In case of denial  appeal to Office of President 
2. Submit Articles of Cooperative which states disposed of within 90 days upon receipt of notice of denial
a. The name
b. Purpose President’s response  within 90 days from filing
c. Terms of existence
d. Address No response after given periodshall mean approval if filer
e. names, nationalities and address of registrants is not at fault.
f. common bond
g. names of directors and who shall manage TERM OF EXISTENCE – NOT EXCEEDING 50 YEARS, CAN BE
h. amount of share capital, names and residences EXTENDED NOT EARLIER THAN 5 YEARS PRIOR TO EXPIRY DATE
of contributors UNLESS JUSTIFIABLE
i. statement as to type of cooperative  Primary
or Secondary or Tertiary

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SUMMARY DISCUSSION ON COOPERATIVES March 6, 2023

NATURE OF TRANSACTIONS REQUIRED PARTY REQUIRED VOTE OTHER NOTES

Amendment of AOC and Bylaws Members with voting rights 2/3

Delegation of Power by General General Assembly with voting 3/4

Assembly to BOD or smaller Body rights, present and
constituting quorum
Special Meeting of GA Called by BOD Majority Vote
Failure to call regular meeting or The Authority, with petition 10%
special meeting within given period of members entitled to vote
Quorum in General Assembly All members entitled to vote 25%

Quorum in General Assembly of All members entitled to vote 5%

banks
Ratification of action of DisloyalAll members with voting 3/4 Disloyal director shall be liable to double the
Director rights, present and profits that otherwise would have accrued to
constituting quorum coop unless ratified
Ratification of Dealings with All members with voting 3/4 Other Conditions: Presence of such Director,
Directors, Officers or Committee rights, present and Officers or Committee Member
Members constituting quorum
1. not necessary to constitute quorum
2. not necessary for contract approval
3. contract is fair and reasonable
4. in case of committee member,
contract is previously authorized by
GA or BOD

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SUMMARY DISCUSSION ON COOPERATIVES March 6, 2023

Removal of Elected Officer

1. Preventive Suspension 1. Board of Directors 1. Majority All complaints should be filed to BODSuch
2. Removal 2. Regular Members, 2. 3/4 officer has the right to be heardPreventive
present and SuspensionPrima Facie Guilt
constituting quorum Recommendation for RemovalVote of
Regular Members

Voluntary Dissolution with no BOD Majority Notice of Time, Place and object of meeting
creditors affected should be published in 3 consecutive weeks
All members with voting Affirmative vote in newspaper (location of coop) or of general
rights, present and 3/4 publication
constituting quorum
Notice of meeting sent to member of record
thru registered mail or personal delivery 
30 days prior to meeting

Certificate of Resolution should be signed by

majority of BOD countersigned by Secretary
 Authority should issue certificate of
dissolution
Voluntary dissolution with affected BOD Majority Shall be filed to Authority through petition 
creditors petition signed by Majority of BOD and
All members with voting Affirmative vote verified by its chairperson or board secretary
rights, present and 3/4
constituting quorum
Vacancy in BOD for reason other than BOD if constituting quorum Majority Director so elected may fill only the
expiration of term unexpired portion
Director not subject of compensation but
only PER DIEM
Officers’ Compensation may be fixed in
bylaws
Unless fixed in bylaws, employees’

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SUMMARY DISCUSSION ON COOPERATIVES March 6, 2023

compensation muSt be fixed by BOD

Voting System
- member of primary coop = 1 vote, member of secondary or tertiary coop = 1 basic vote and incentive votes not exceeding 5 votes.
Bylaws of coop other than primary may provide voting by proxy.
BOD – Compose of not less than 5 but not more than 15 members – term of 2 years and elected by General Assembly

Sources of Capital of Cooperatives

1. Member’s Share Capital

2. Loans and borrowings including deposits
3. Revolving Capital  deferred payment of patronage and
interest on share capital

4. Subsidies, donations, grants from local or foreign institution serial number, name, amount and rate of interest to be paid
whether private or public and set forth time of retirement

Notes:

1. Member’s Share capital holding should not be more than

10% of cooperative’s share capital
2. Par Value of share cannot be more than 1,000.00 Where to invest Capital of Cooperative?
3. Unpaid subscription can be subjected to fine in bylaws
provided fine is fair and reasonable 1. Debentures or Securities of another cooperative
4. Bylaws shall provide reasonable and realistic capital build 2. Reputable bank in locality or cooperative
up program 3. Securities guaranteed issued by Gov’t
5. GA may authorized BOD to increase revolving capital, 4. Real estate primarily for use of cooperative or members
provided they will issue revolving capital certificates w/ 5. Other manner authorized in bylaws

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SUMMARY DISCUSSION ON COOPERATIVES March 6, 2023

Submission Flow:

Performance and Social audit reports findings and

recommendationssubmitted to BOD

Audit Report (in accordance to GAAP) by auditorBOD and audit

committeeGeneral Assembly

ANNUAL AUDIT

Type of Audit Person to Conduct the Audit Net Surplus

Financial Audit External auditor:

1. independent of the
cooperative
2. member in good
standing of PICPA
3. BOA accredited
4. CDA Accredited

Social Audit Social Auditor:

1. Accredited by
Authority

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SUMMARY DISCUSSION ON COOPERATIVES March 6, 2023

1. Address
DISTRIBUTION OF NET SURPLUS 2. Cooperative Books
3. Reports of Cooperative
Reserve Fund 4. Register of Member
Education, Training Fund 5. Probative Value
Community Development Fund
6. Bonding of Accountable Officers
Optional Fund
Interest on Share Capital and/or Patronage Fund 7. Preference of Claims
8. Instrument for Salary or Wage Deduction
10%
9. Primary Lien

Insolvency of Cooperative FRIA

10%

3%
3%

74%

Responsibilities of Cooperative

M.C. CABRERA, CPA 7