What Are The Kinds Of Cooperative?
- promotes thrift and savings among its members and createsfunds in order to grant loans for productivity
- the primary purpose is to procure and distributecommodities to member and non-members;
- undertakes joint production whether agricultural orindustrial;
- engages in medical, and dental care, hospitalization,transportation, insurance, housing , labor, electric light and power, communication andother services; and
Multi- Purpose Cooperative
- combines two (2) or more of the business activities of these different types of cooperatives;According to membership and territory, the following are the categories of cooperatives:In terms of membership:I .Primary -The members of which are natural persons of legal age;II .Secondary- The members of which are primaries;III. Tertiary - The member of which are secondaries upward to one or more apexorganizations. Cooperatives whose members are cooperatives are called federations orunions.In terms of territory, cooperatives are categorized according to areas of operation which maynot be coincide with the political subdivisions of the country.
What are the General Steps in Forming a Cooperative?
Basically, there six steps in setting up a cooperative.
, get organized. You must have at least 15 members to do that. At once determine thecommon problems you would want solved and the basic needs you would want provided forthrough a cooperative. You may want to include increasing of your production, marketing of your produce, credit assistance, power generation, banking or insurance and other similarneeds.Determining your problems and needs will also help you classify the kind of a cooperative youwill be organizing.Even before coop is set up, a dedicated core group of people will do all the organizational andpaper works is a must. From this core group, working commodities may be formed to setthings moving. These committees may include membership, finance, executives, secretariatto name a few.
, prepare a general statement called an economic survey. This statement will help youmeasure your cooperatives chances of success.
, draft the cooperatives by-laws. The by-laws contain the rules and regulation governingthe operation of the cooperative.
, draft the articles of cooperation. Here you indicate the name of the cooperative, itsmembers, terms of existence and other pertinent description about your cooperative.
, secure bond of your accountable officers, normally the treasurer, or the treasurer andthe manager. The amount of the bond is to be decided upon by the Board of Directors, based