R.A.
9520 – Philippine Cooperative Code common bond of interest, who have
of 2008
Art. 2. It is the declared policy of the State
to foster the creation and growth of
cooperatives as a practical vehicle for
promoting self-reliance and harnessing
people power towards the attainment of
economic development and social justice.
All cooperatives can set-up
cooperative branch office and cooperative
satellite office.
Branch Office – refers to a business office
outside the principal office where
cooperative activities and business
operation are undertaken as per approved
cooperative development plan.
Principal/Main Office – refers to the
registered head office as indicated in the
articles of cooperation and bylaws to the
cooperative where the business and
cooperative activities are conducted and
central records and main books of accounts
are kept.
Note:
The principal office must have a minimum
paid-up capital, as provided for in the
Articles of Cooperation:
Paid-up Capital Category of Cooperative
Php10 Million Primary
Php15 Million Secondary
Php20 Million Tertiary
Each branch must have an available
operating capital as provided for in the
Business Plan:
Operating Capital Category of Cooperative
Php5 Million Primary
Php10 Million Secondary
Php15 Million Tertiary
Transfer of Office – refers to the relocation
of the office address of cooperative branch
within the same municipality/city.
Inspection Report – refers to the documents
where the findings/observations, actions
and recommendation of the CDA authorized
person who conducted the inspection are
summarized and presented.
Satellite Office – refers to an office
established by a cooperative outside of its
principal/main office but within its area of
operation to provide limited services to its
members but which does not however
maintain books of accounts.
A cooperative is an autonomous and duly
registered association of persons, with a
voluntarily joined together to achieve their
social, economic, and cultural needs.
Universally accepted principles of
cooperation:
1. Voluntary and Open Membership –
voluntary organizations, open to all
persons able to use their services
and willing to accept the
responsibilities of membership
without any discrimination.
2. Democratic Member Control –
democratic organizations that are
controlled by their members who
actively participate in setting their
policies and making decisions.
3. Member economic participation –
members contribute equitably to,
and democratically control, the
capital of their cooperative.
4. Autonomy and Independence –
autonomous, self-help organizations
controlled by their members.
5. Education, training and information –
shall provide education and training
for their members, elected and
appointed representatives,
managers, and employees.
6. Cooperation among cooperatives –
working together through local,
national, regional and international
structures.
7. Concern for Community – work for
the sustainable development of their
communities through policies
approved by their members.
Merger – refers to a union of two or more
existing cooperatives belonging to the same
category whereby the surviving cooperative,
retaining its identity, absorbs one or more
constituent cooperative/s.
Constituent Cooperatives – refers to two or
more existing cooperatives which are
parties to a merger or consolidation.
Consolidation – refers to a union of two or
more existing cooperatives belonging to the
same category to form a new cooperative
called the consolidated cooperative.
Subsidiary Cooperative – refers to any
organization all or minority of whose
membership or shareholders come from a
cooperative called a parent cooperative.
Art. 10. Organizing a Primary Cooperative –
15 or more natural persons who are filipino
citizens, of legal age, having a common
bond of interest and are actually residing or
working in the intended area of operation
may organize a primary cooperative under
this Code.
Primary Cooperative – the members of
which are natural persons.
Multipurpose Cooperative – a cooperative
which combines 2 or more
business/economic activities.
Note: no cooperative shall be
registered as a multipurpose cooperative
unless it has been in operation for at least 2
years.
Art. 13. A cooperative shall exist for a
period not exceeding 50 years from the date
of registration unless sooner dissolve or
unless said period is extended.
No extension can be made earlier
than 5 years prior to the original or
subsequent expiry date unless there are
justifiable reasons for an earlier extension
as may be determined by the Authority.
Art. 16. Cooperative formed and organized
acquires juridical personality from the date
the Authority issues a certificate of
registration under its official seal.
Art. 17. A certificate of registration issued
by the Authority under its official seal shall
be conclusive evidence that the cooperative
therein mentioned is duly registered unless
it is proved that the registration thereof has
been cancelled.
Bond of Membership:
1. Residential – members working
and/or actually and physically
residing in the same place.
2. Institutional – members consist of
employees, workers, and/or officers
of a particular institution.
3. Associational – members come from
a registered and/or recognized
association, group, club, fraternity,
religious group, cultural and other
similar aggrupation.
4. Occupational – members come from
same or allied profession or actual
occupation.
Federation of Cooperatives – refers to a
cooperative, the members of which are
primary cooperative doing the same line of
business.
A federation of Cooperatives may be
registered by carrying out the formalities for
registration of a cooperative.