Professional Documents
Culture Documents
DEFINITION
with a common bond of interest, who have voluntarily joined together to achieve
their social, economic, and cultural needs and aspirations by making equitable
contributions to the capital required, patronizing their products and services and
accepting a fair share of the risks and benefits of the undertaking in accordance
PURPOSE
The declared purpose of the law, among others, is to foster the creation and
social justice.
PRINCIPLES OF COOPERATIVISM
and available to all individuals regardless of their social, political, racial or religious
background or beliefs.
Democratic member control. Cooperatives are democratic organizations that
are controlled by their members who actively participate in setting their policies
and making decisions. In primary cooperatives, members have equal voting rights
democratic manner.
capital is the common property of the cooperative. They shall receive limited
condition of membership.
Cooperative education. All cooperatives shall make provision for the education
of their members, officers and employees and of the general public based on the
principles of cooperation.
Concern for community. Cooperatives work for the sustainable development of
provision.
TYPES OF COOPERATIVES
Cooperatives may fall under any of the following types, in addition to others
and processing of raw materials or goods produced by its members into finished
or processed products for sale by the cooperative to its members and non-
members. Any end product or its derivative arising from the raw materials
produced by its members, sold in the name and for the account of the
projects, education and training, research and communication, and other similar
Cooperative Bank. Organized for the primary purpose of providing a wide range
Republic Act No. 9155, otherwise known as the Governance of Basic Education Act
of 2001.
members.
benefit of its regular members who actively participate in the savings program for
systems for the provision and distribution of potable water for its members and
their households.
are at same time the members and owners of the enterprise. Its principal purpose
In terms of membership –
operations which may or may not coincide with the political subdivisions of the
country.
CAPITAL
The minimum paid-up share capital is now PhP15,000 (the minimum under
the old law is only PhP2,000), subject to increase by the CDA upon consultation
The par value of shares of a primary cooperative shall not exceed PhP1,000.
No member of primary cooperative other than cooperative itself shall own or hold
New members may only be admitted to the cooperative after undergoing Pre-
1. Regular members. Entitled to all the rights and privileges of membership,
2. Associate members. Has no right to vote nor be voted upon and shall be
entitled only to such rights and privileges as the bylaws may provide. However, an
associate member shall be considered a regular member if: (a) he has been a
member for 2 continuous years; (b) he patronizes the cooperative as its member;
A member shall be liable for the debts of the cooperative to the extent of his
general public shall not be subject to any taxes and fees imposed under the
internal revenue laws and other tax laws. Cooperatives transacting business with
both members and non-members shall be subject to another set of rules, but
AUDIT
PENAL PROVISIONS
Anyone who uses the word “Cooperative” without being registered with the CDA is
registered with the National Electrification Administration (NEA) are exempt and
Any person who willfully attempt in any manner to evade or defeat tax in
imprisonment (2 years but not more than 4 years) and a fine (not less than
requirements of cooperatives.
ORGANIZING A COOPERATIVE
Fifteen (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
ARTICLES OF COOPERATION
Corporations which seek to register must file its Articles of Incorporation, while
cooperatives file its Articles of Cooperation, which must be signed by each of the
shall contain:
1. The name of the cooperative. The name must include the word “cooperative”.
2. The purpose or purposes and scope of business for which the cooperative is to
3. The term of existence of the cooperative. A cooperative shall exist for a period
not exceeding 50 years from the date of registration unless sooner dissolve or
5. The names, nationality, and the postal addresses of the registrants.
7. The list of names of the directors who shall manage the cooperative. The
8. The amount of its share capital, the names and residences of its contributors
least 25% of the authorized share capital must be subscribed, and at least 25% of
the total subscription has been paid. In no case shall the paid-up share capital be
The bylaws, which is filed at the same time as the Articles of Cooperation, shall
1. The qualifications for admission to membership and the payment to be made
membership;
3. The circumstances under which membership is acquired, maintained and lost;
shall be permitted;
6. The rules and procedures on the agenda, time, place and manner of calling,
other matters relative to the business affairs of the general assembly, board of
7. The general conduct of the affairs of the cooperative, including the powers and
duties of the general assembly, the board of directors, committees and the
8. The manner in which the capital, may be raised and the purposes for which it
can be utilized;
11. The manner of loaning and borrowing including the limitations thereof;
cooperative; and
15. Other matters incident to the purposes and activities of the cooperative.
TREASURER CERTIFICATION
Certification under oath by the treasurer, showing that at least 25% of the
authorized share capital must be subscribed, and at least 25% of the total
OFFICERS’ BOND
accountable officers.
GENERAL STATEMENT
among others the structure and purposes of the proposed cooperative. The
bookkeeper. The applicant shall not be allowed to operate without the necessary
personnel and shall also submit an economic survey, indicating therein the area of
operation, the size of membership, and other pertinent data in a format provided
by the CDA.
All applications for registration shall processed within 60 days from filing.
The application is deemed approved in case the CDA fails to act within the 60-day
period.
In case of denial of the application, an appeal may be filed with the Office of
the President within 90 days from receipt of notice of such denial. If the President
CERTIFICATE OF REGISTRATION
A cooperative acquires juridical personality from the date the CDA issues a
Certificate of Registration.