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