WHAT IS A COOPERATIVE?

promoting self-reliance and harnessing people power towards the

attainment of economic development and social justice.
A Cooperative is an autonomous and duly registered association of
persons, with a common bond of interest, who have voluntarily joined
together to achieve their social, economic, and cultural needs and
What is the basic OBJECTIVE of a cooperative?
aspirations by making equitable contributions to the capital required,
patronizing their products and services and accepting a fair share of The primary objective of every cooperative is to help improve the
risks and benefits of the undertaking in accordance with universally quality of life of its members.
accepted cooperative principles (Art. 3, RA 9520)

OBJECTIVES AND GOALS OF COOPERATIVE

A Cooperative is a duly registered association of persons, with a
The primary objective of every cooperative is to help improve the
common bond of interest, who have voluntarily joined together to
quality of life of its members. Towards this end, the cooperative shall
achieve a lawful common social or economic end making equitable
aim to:
contributions to the capital requirements and accepting a fair share of
the risks and benefits of the undertaking in accordance with a. Provide goods and services to its members to enable them to
universally accepted cooperative principles (ART. 3, RA 6938) attain increased income, savings, investments, productivity,
and purchasing power, and promote among themselves
equitable distribution of net surplus through maximum
WHO IS THE IMPLEMENTING AGENCY? utilization of economies of scale, cost-sharing and risk-sharing.
b. Provide optimum social and economic benefits to its manner;
The Cooperative Development Authority (CDA), Under the office of
c. Teach them efficient ways of doing things in a cooperative
the President created under RA No. 6839, is the agency charged with
manner
the authority and responsibility for implementing the program of
d. Propagate cooperative practices and new ideas in business
cooperative development.
and management;
It is further responsible for the promotion, registration, development, e. Allow the lower income and less privileged groups to increase
and evaluation of all types of cooperatives in the country. their ownership in the wealth of the nation; and
f. Cooperate with the government, other cooperatives and
people-oriented organizations to further the attainment of any
COOPERATIVE (RA 9520) of the foregoing objectives.

What is the basic PURPOSE of a cooperative?

The declared purpose of the law, among others, is to foster the
creation and growth of cooperatives as a practical vehicle for
 WHAT ARE THE DECLARED PRINCIPLES OF COOPERATIVISM? 6. Cooperative education (education, training, and information)
- All cooperatives shall make provision for the education of
1. Voluntary and open membership (voluntarism)
their members, officers, and employees, and of the general
- Membership in a cooperative is voluntary and available to
public based on the principles of cooperation.
all individuals regardless of their social, political, racial or
religious background or beliefs.
7. Concern for community
-
- Cooperatives work the sustainable development of their
2. Democratic member control
communities through policies approved by their members.
- cooperatives are democratic organizations that are
This is a new provision
controlled by their members who actively participate in
setting their policies and making decisions.
PRINCIPLE OF SUBSIDIARITY
- In primary cooperatives, members have equal voting rights
of one-member, one-vote. Cooperatives at other levels are
organized in the same democratic manner.
It is enshrined in the Cooperative Code which means that there
should be no government intervention as much as possible, and
3. Members economic participation
government intervenes only when necessary.
- Members contribute equitably to the capital of their
cooperatives. At least part of that capital is the common The principle of transparency highlights one of the backbones of
property of the cooperative. They shall receive limited democratic societies like a cooperative.
compensation or limited interest, if any on capital
subscribed and paid as a condition of a membership.
DEFINITION OF TERMS
4. Autonomy and independence
- Cooperatives are autonomous, self-help organizations
controlled by their members. Articles of Incorporation
- A legal document signed by the organizers stating the
5. Cooperation among cooperatives
name, goals and objectives, place of operation of the
- Cooperatives serve their members most effectively and
cooperative and others.
strengthen the cooperative movement by working
together through local, national, regional, and Authorized share capital
international structures.
- The amount approved by the CDA and set by the leaders
and members of the cooperative to finance its business
activities.
By-laws of the cooperative - Shall mean the full membership of the cooperative duly
assembled for the purpose of exercising all the rights and
- The rules adopted by a cooperative for the management
performing all the obligations pertaining to cooperatives,
and regulation of its members and its activities.
as provided by this code, its Articles of cooperation and by-
Dynamic laws: provided, that for cooperatives with numerous and
dispersed membership, the general assembly may be
- Having a lot of ideas and enthusiasm, energetic and
composed of delegates elected by each sector, chapter or
forceful; active
district of the cooperative in accordance with the rules and
Economic Feasibility regulations of the CDA.

- The practicality or workability of a cooperative with

regards to the economic situation in a community.
BOARD OF DIRECTORS
Economic survey
- Shall mean that body entrusted with the management of
- A statement describing the structure, purposes and the affairs of the cooperative under its Articles of
economic feasibility of the proposed cooperative. cooperation and by-laws.

Paid-up shares
- The number of subscribed shares paid by a member. REPRESENTATIVE ASSEMBLY

Pledged shares - The full membership of a body of representatives elected

by each of the sectors, chapters, or districts of the
- The number of shares that a member will subscribe.
cooperative duly assembled for the purpose of exercising
Thrift such powers lawfully delegated unto them by the general
assembly in accordance with its bylaws.
- The careful use of money, especially by avoiding waste.
MEMBERS
Officers of cooperatives
- A person either natural or juridical who adhering to the
- Included the members of the board of directors, members
principles set forth in this code and in the Articles of
of the different committees created by the general
Cooperative, has been admitted by the cooperative as
assembly, general manager or chief executive officer,
member.
secretary, treasurer and members holding other positions
GENERAL ASSEMBLY as may be provided for in their bylaws.
SOCIAL AUDIT
- A procedure wherein the cooperative assess its social
impact and ethical performance vis-à-vis its stated mission,
vision, goals and code of social responsibility for
cooperatives to be established by the authority in
consultation with the cooperative sector.
- It enables the cooperative to develop a process whereby it
can account for its social performance and evaluate its
impact in the community and be accountable for its
decisions and action s to its regular members.
UNIVERSALLY ACCEPTED PRINCIPLES
- The body of cooperative principles adhered to worldwide
by cooperatives.
PERFORMANCE AUDIT
- Refer to an audit on the efficiency and effectiveness of the
cooperative as a whole; its management and officers; and
its various responsibility centers as basis for improving
individual team or overall performance and for objectively
informing the general membership on such performance.

Committee
A Single-Line or Single-Purpose cooperative
- Refer to anybody entrusted with specific functions and
- Include cooperative undertaking activities which are
responsibilities under the bylaws or resolution of the
related to its main line of business or purpose;
general assembly or the board of directors.
*can single-purpose can be multi-purpose? YES AFTER 2 YEARS
Service cooperatives
Registration
- Those which provide any type of service to its members,
- Means the operative act granting juridical personality to a
including but not limited to, transport, information and
proposed cooperative and is evidenced by a certificate of
communication, insurance, housing, electric, health
registration.
services, education, banking, and savings and credit;

COOPERATIVE DEVELOPMENT AUTHORITY (CDA)

Subsidiary cooperative
- The government agency in charge of the registration and
- Refers to any organization all or majority of whose
regulation of cooperatives as such hereinafter referred to
membership or shareholders come from a cooperative,
as the authority.
organized for any other purpose different from that of, and
received technical, managerial and financial assistance
from, a cooperative, in accordance with the rules and
regulations of the Authority.
 o Inter-regional – shall refer to the cooperative’s area
of operation covering two or more regions in not
more than two (2) islands;
TYPES OF COOPERATIVES
1. Credit Cooperative
- Promotes thrift and savings among its members and create
funds in order to grant loans for productive and provident
purposes.
- It undertakes saving and lending services among its
members.
- It generates common pool of funds in order to provide
financial assistance to its members.
2. Consumer Cooperative
- The primary purpose is to procure and distribute
commodities to members and non-members.
3. Producers cooperative
- It is formed and operated by its members to undertake the
production 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 cooperative, shall be deemed a
product of the cooperative and its members. It undertakes
joint production whether agricultural or industrial.
4. Marketing Cooperatives
- Engages in the supply of production inputs to members
and markets their products.
5. Service Cooperatives
- Engages in medical and dental care, hospitalization,
transportation, insurance, housing, labor, electric light and
power, communication and other services.
6. MULTI-PURPOSE COOPERATIVES
- Combines two (2) or more of the business activities of
these different types of cooperatives.
NEW TYPES OF COOPERATIVES
7. Advocacy Cooperative
- A primary cooperative which promotes and advocates
cooperativism among its members and the public through
socially-oriented projects, education and training,
research, and communication, and other similar activities
to reach out to its intended beneficiaries.
8. Agrarian Reform Cooperative
- Organized by marginal farmers majority of which are
agrarian reform beneficiaries for the purpose of
developing an appropriate system of land tenure, land
development, land consolidation or land management in
areas covered by agrarian reform.
9. Cooperative Bank
- Organized for the primary purpose of providing a wide
range of financial services to cooperatives and their
members.
10. Dairy Cooperative
- One whose members are engaged in the production of
16. Housing Cooperative
fresh milk which may be processed and/or marketed as
- Organized to assist or provide access to housing for the
dairy products.
benefit of its regular members who actively participate in
the savings program for housing.
- It is co-owned and controlled by its members.
11. Education Cooperative
- Organized for the primary purpose of owning and
operating licensed educational institutions
17. Insurance Cooperative
notwithstanding the provisions of Republic Act No. 9155,
- Engaged in the business of insuring life and poverty of
otherwise known as the Governance of Basic Education
cooperatives and their members.
Act of 2001.
18. Transport Cooperative
- Includes land and sea transportation, limited to small
12. Electric Cooperative
vessels, as defined or classified under the Philippine
- Organized for the primary purpose of undertaking power
maritime laws, organized under the provisions of this code;
generations, utilizing renewable energy sources, including
hybrid systems, acquisition and operation of sub-
transmission or distribution to its household members.
19. Wate service Cooperative
- Organized to own, operate and manage waters systems for
the provision and distribution of portable water for its
13. Financial Service Cooperative
members and their households.
-One organized for the primary purpose of engaging in savings
and credit services and other financial services.
20. Workers Cooperative
- Organized by workers, including the self-employed, who
14. Fishermen Cooperative
are at the same time the members and owners of the
- Organized by marginalized fishermen in localities whose
enterprise. Its principal purpose is to provide employment
products are marketed either as fresh or processed
and business opportunities to its members and manage it
products;
in accordance with cooperative principles.

15. Health Services Cooperative

- Organized for the primary purpose of providing medical,
dental and other health services.
 COOPERATIVE BANKS
21. Agrarian Reform Cooperatives Art. 97. Organization, membership and establishment of a Coop Bank.
Article 88. definition and purpose:
(1) Cooperative organizations duly established and registered
- An Agrarian Reform Cooperative is one organized by
under this code may organize a cooperative bank, which shall
marginal farmers, majority of which are agrarian reform
likewise be considered a cooperative registrable under the
beneficiaries, for the purpose of developing an appropriate
provisions of this code subject to the requirements and
system of land tenure, land development, land
requisites authorization from the BSP.
consolidation or land management in areas covered by
agrarian reform. General Rule:
Only one cooperative bank may be established in each
province:
22. Financial service Cooperatives
ARTICLE 119. DEFINITION AND FUNCTION: Exception:
- A financial organization owned by its members and
That an additional cooperative bank may be established in the same
authorized to provide services exclusively to its members.
province to cater the needs of the locality depending on the economic
- Its service are:
conditions of the province as may be determined by the BSP;
o The functions of credit cooperatives and other
provided, further, that the additional cooperative bank shall be
cooperatives, including multi-purpose cooperatives,
located in the city or municipality other than the city or municipality
that provide savings and credit to their members;
where the first cooperative bank is located.
and
o Other financial services subject to regulation by the
BSP.
CATEGORIES OF COOPERATIVES (ART.23)
According to membership and territory, the following are the
ORGANIZING A COOPERATIVE categories of cooperatives: in terms of membership

Any newly organized primary cooperative may be registered as 1. Primary cooperatives

multipurpose cooperative only after compliance with the minimum - The members of which are natural persons of legal age;
requirements for the multipurpose cooperative. 2. Secondary Cooperative
- The members of which are primaries
3. Tertiary cooperative
A single-purpose cooperative may transform into a multipurpose or - The members of which are secondary cooperatives.
may create subsidiaries only after atleast two (2) years of operation. Cooperatives whose members are cooperatives are called
(RA 9520, ART. 10) the federations and unions.
In terms of territory, cooperatives are categorized according to areas sale of products and/or services in the Philippines and
of operation, which may or may not coincide with the political abroad; and
subdivision of the country. VII. To perform such other functions as may be necessary to
attain its objectives.

FEDERATION OF COOPERATIVES
FEDERATION vs SUBSIDIARY vs MULTI-PURPOSE COOPERATIVE
Art. 5. On the definition of terms, the term FEDERATION OF
COOPERATIVE has been added which essentially means: Federation
“three or more primary cooperatives doing the same line of business - Three or more PRIMARY COOPERATIVE doing the same
organized from the municipal to the provincial level registered with line of business organized from the municipal to the
the CDA to undertake business activities in support of its members.” provincial leel registered with the CDA to undertake
business activites in support of its members.
Subsidiary Cooperative
FUNCTIONS OF THE FEDERATION COOPERATIVE
- Refers to any organization all or majority of whose
I. To carry on any cooperative enterprise authorized under
membership or shareholders come from a cooperative,
Article 6 that complements augments or supplements but
organized for any other purpose different from that of,
does not conflict, complete with, nor supplant the business
and receives technical, managerial and financial assistance
or economic activities of its members;
from, a cooperative, in accordance with the rules and
II. To carry on, encourage, and assist educational and advisory
regulations of the authority.
work relating to its member cooperatives;
III. To render services designed to encourage simplicity, Multi-purpose
efficiency, and economy in the conduct of business of its
- It combines two (2) or more of the business activites of
member cooperatives and to facilitate the implementation
these different types of cooperatives.
of their bookkeeping, accounting, and other systems and
procedures;
IV. To print, publish, and circulate any newspaper or other
COOPERATIVE UNIONS
publication in the interest of its member cooperatives and
enterprises. It is a cooperative the members of which are registered cooperatives
V. To coordinate and facilitate the activities of its member and/or federations organized purposely to represent the interest and
cooperatives; welfare all types of cooperatives at the provincial, city, regional, and
VI. To enter into joint ventures with national or international national levels.
cooperatives of other countries in the manufacture and
FUNCTIONS OF COOPERATIVE UNIONS Section 2. AUTHORIZED, SUBSCRIBED AND PAID-UP CAPITAL
I. To represents its members organization 2.1. the authorized share capital of a cooperative shall be provided for
II. To acquire, analyze, and disseminate, economic, statistical, in its Articles of cooperation. At least twenty-five percent (25%) of the
and other information relating to its members and to all authorized share capital shall be subscribed by the members and at
types of cooperatives within its area of operation. least twenty-five percent (25%) of the subscribed share capital shall
III. To sponsor studies in the economic, legal, financial, social be paid by the members prior to registration.
and other phases of cooperation, and publish the result
thereof
IV. To promote the knowledge of cooperative principles and 2.2. for federation of cooperatives, the minimum paid-up share capital
practices shall be PHP 1,000,000.00 or the amount required in the feasibility
V. To develop cooperative movement in their respective study, whichever is higher.
jurisdictions
For tertiary cooperatives, the minimum paid-up share capital is PHP
VI. To advise the appropriate authorities on all questions
5,000,000.00, or the amount required in the feasibility study,
relating to cooperatives
whichever is higher.
VII. To raise funds through membership fees, dues and
contributions xxx
VIII. To do and perform such other non-business activities xxx
COOPERATIVE UNIONS
Cooperative union
MEMORADUM CIRCULAR NO. 2020-24 SERIES OF 2020
Refer to a cooperative the members of which are registered
ORGANIZATION AND REGISTRATION OF FEDERATION OF cooperatives and/or federations organized purposely to represent the
COOPERATIVES interest and welfare of all types of cooperatives at the city, provincial,
regional, and national levels.
Section 1. MEMBERSHIP
Members of the federation shall consist of cooperatives engaged in
the same line or type of business as specified in its Articles of Sectoral Union of Cooperatives
Cooperation and bylaws.
Refer to a cooperative union catering to the interest and
welfare of a particular sector of registered cooperatives and/or
federations at the city, provincial, regional, and national levels.
The minimum number of members shall be at least three (3) primary
cooperatives for a federation of cooperatives and at least three (3)
secondary cooperatives for tertiary cooperatives.
*A cooperative union is a non-profit umbrella organization wherein
all types of cooperatives converge for the promotion, development
and progress of traditions of cooperatives in the country. It is the
heart and soul of cooperative movement, a structure which
embodies and maintains the values, beliefs, principles, philosophy and
spirit of cooperativism in the country.
Section 2. MC No 2020-23. ORGANIZATION OF COOPERATIVE UNION
The cooperative union shall be organized according to the following
territorial considerations:
a. NATIONAL – the members shall come from at least
three (3) or more regions in Luzon, Visayas, and
Mindanao.
b. INTER-REGIONAL – the members shall come from two
(2) or more regions.
c. REGIONAL – the members shall come from the
majority of the provinces in the region
d. PROVINCIAL – the members shall come from the
majority of the cities / municipalities in the province.
There shall only be one cooperative union in a
province
e. CITY / MUNICIPALITY – the members shall come from
the city/municipality.
There shall only be one cooperative union in a city/
municipality.
Section 7. REGISTRATION JURISDICTION
A cooperative union shall be registered in the CDA Regional
Office where its principal office is located.
Section 9. REGISTRATION FEE
The registration fee to be paid by the proposed cooperative union
shall be in the amounts prescribed below:
CATEGORY AMOUNT
National PHP 3,000.00
Inter-regional and regional PHP 2,000.00
Provincial, city/municipality PHP 1,000.00
Section 3. REPORTORIAL REQUIREMENTS
Within one hundred twenty (120) days after the end of each
fiscal year, the cooperative union shall submit the following:
1. Cooperative Annual Progress Report (CAPR) with the following
attachments:
a. Audited Financial Statements (AFS)
b. List of Officers and Trainings Undertaken/completed;
c. Social Audit Report;
d. Governance and Management report
e. Semi-annual Reports on Meditation and Conciliation;
f. List of affiliated and cooperatives which have remitted
their respective CETFs;
g. Business consultancy assistance rendered, specifying
the nature and cost, including the use of CEFT;
h. Other training activities undertaken, specifying the
nature, participants, and cost of each activity; and
2. Annual Tax Incentive Report
 REQUIREMENTS FOR REGISTRATION What are the GENERAL requirements in registering a Cooperative?

Minimum number of members You will need FOUR (4) COPIES of each of the following –
Federation – 3 Primary
(1) Economic survey
cooperatives UNION
10 Primary and/or federations - A statement describing the structure, purposes and
Tertiary – 3 secondary economic feasibility of the proposed cooperative.
cooperatives
Minimum paid-up share (2) Articles of Cooperation and By-Laws
Federation Tertiary a. Articles of Cooperation duly notarized (with seal and
Php 1,000,000.00 Php 5,000,000.00 signature of notary public)
Registration fee o A legal document signed by each of the organizers.
Federation Tertiary It states the name of the cooperative goals and
objectives, the place of operation, list of
1/10 of 1% of the total paid-up 1/10 of 1% of the total paid-up incorporators and other information
share capital or Php 2,000 share capital or Php 5,000 b. By-Laws of the cooperative
whichever is higher whichever is higher o Sets of rules adopted by a cooperative for the
management and regulation of its members and its
Basic steps to create activities.

1. Get organized. You must have at least fifteen (15) members to

(3) Surety bond of accountable officers
do that. Form a dedicated core group
(4) Treasurer’s affidavit
2. Reserved your proposed cooperative name
- Sworn statement of the treasurer duly notarized showing
3. Prepare a general statement called economic survey in your
that at least 25% of the authorized share capital; and at
community
least 25% of the total subscription has been paid. The paid-
4. Prepare the cooperative by/laws
up capital must not be less than Php 2,000.00 (now Php
5. Prepare the article of cooperation
15,000.00)
6. Secure bond of accountable officers(s)
(5) Approved Cooperative Name Reservation Slip
7. Execute Treasurers Affidavit
(6) Certificate of PMES
8. Complete the Pre-Membership Education Seminar (PMES)
9. Register your cooperative at the Cooperative Development
Authority (CDA) and pay the registration fee
The other requirements for the registration of cooperative
a. Economic survey
b. By-Laws
 c. Article of Cooperation Step 2: Application type
d. Three (3) years projected financial statement:
Step 3: cooperative reservation form
a. Income Statement
b. Balance sheet Step 4: cooperative’s information
c. Cash flow
Step 5: processing, review and approval of application
e. Organizational structure
f. Sketch Map (specifying the proposed office location of the Step 6: submission of hard copies of documents
cooperative)
Step 7: payment of Assessed fees (online pyt through landbank/ pyt thru CDA treasury)
g. Certificate (certifying that core management team and internal
control system has been appointed and installed) Step 8: issuance of certificate of registration
h. Certificate of Pre-Membership Education Seminar (PMES)
i. Undertaking to submit reportorial requirements and to change
name MEMORANDUM CIRCULAR NO. 2021-12
j. Verification slip and fee Php 50.00
AMENDMENT TO STEP 8. SECTION 5 OF MEMORANDUM CIRCULAR
NPO. 2020-20, S-2020
ONLINE REGISTRATION
MEMORANDUM CIRCULAR NO. 2020-20 To facilitate the issuance of certificate of compliance to newly
registered cooperatives under the Electronic Cooperative Registration
Pursuant to RA 11364, the authority hereby issues the following
Information System (E-CoopRIS). Step 8 of section 5 of Memorandum
guidelines governing the registration of cooperatives and other
Circular No. 2020-20, S-2020, titled “Guidellines Governing the
related processes through the Electronic Cooperative Registration
registration of Cooperatives Through the Electronic Registration
Information System (E-CoopRIS).
Information System (E-CoopRIS)”, is hereby amended to read as
follows:
E-CoopRIS Section 5. Procedure for Online Registration of New Cooperative
A web-based information system that provides an online Step 8. Issuance of certificate of registration and certificate of
platform for cooperative name reservation, evaluation, and approval compliance
of application for new registration, amendments and recognition of
The authority through the registration division shall issue the
branch/satellite/laboratory.
certificate of registration and certificate of compliance upon
confirmation, in case of online payment or upon the issuance of
official receipt, if payment is through the CDA treasury.
Procedure for Online registration of New Cooperative
Step 1: Account creation
What are the GENERAL requirements in registering a Cooperative?
-Sworn statement of the treasurer duly notarized showing that at
least 25% of the authorized share capital has been subscribed, and at
least 25% of the total subscription has been paid. The paid up capital
must not be less than PHP 15,000.00.
- Should preferred share capital be provided in their By-Laws, it shall
not exceed 25% of the total authorized share capital of the
cooperative.
*finally, for both common and preferred share capital, no fractional
shares shall be issued.
*the par value of shares of a primary cooperative shall not exceed
PHP 1,000.00.
No member of primary cooperative other than cooperative itself shall
own or hold more than 10% of the share capital of the cooperative.
 SHARE
- Refer to a unit of capital the par value of which may be
fixed at any figure not less than One Hundred pesos (PHP
100) but not more than One Thousand Pesos (PHP
1,000.00), which is divisible by one peso and may be
divided into common and preferred share capital;

COOPERATIVE CODE (ART. 14) CORPORATION CODE (SEC. 14-

COOPERATIIVE CODE (ART. 14)
CAPITAL SUBSCRIPTION AND
PAID-UP CAPITAL REQUIREMENT
At least twenty-five per cetum
(25%) of the authorized share
capital must be subscribed
At least twenty-five per centum
(25%) of the total subscription
has been paid
In no case shall the paid-up
share capital be less than Fifteen
thousand pesos (15,000.00)
OLD COOPERATIVE CODE 15)
(SEC.13)
ARTICLES OF COOPERATION ARTICLES OF INCORPORATION
NO COUNTERPART
All cooperatives shall file with Corporations shall file with SEC
the Cooperative Development
REMOVED
Authority the articles of
cooperation
The Articles of Cooperation shall NOW -both natural and juridical
be signed by each of the persons are allowed
organizers and acknowledged by
them if natural persons, and by
the chairpersons or secretaries,
if juridical persons, before a
notary public

*the minimum paid-up share capital is php 15,000.00 for primary

cooperatives, except for multipurpose cooperative – Php 100,000.00
or as required by the feasibility study whichever is HIGHER
 What does the Article of Cooperation Contain?
The Article of cooperation is a duly notarized document that legally
binds all the signatories in the formation of a cooperative.
It should contain:
1. The name of cooperative which shall include the word
“cooperative”
2. The purpose or purposes and scope of business
3. The term of existence of the cooperative (not more than 50
years);
4. The area of operation and the postal address of the registrants
5. The common bond of membership
6. The list of names of the directors who shall manage the
cooperative; &
7. The amount of its share capital, the names and residences of
its contributors and a statement of whether the cooperative is
primary, secondary, or tertiary in accordance with Article 23 of
R.A. 6938
COOPERATIVE BY-LAWS (SEC.15)
Each cooperative shall adopt by-laws not inconsistent with the
provisions of the code.
ByLaws (sec.15) RCC By-Laws (Sec.45)
The bylaws shall be filed at the May be filed before or after
SAME TIME as the articles of
cooperation Vote required to approve
What are the cooperative bylaws?
By-laws are the set of rules that defines how a cooperative is to be run
without confusion. It must contain the ff:
1. The qualifications for membership; how they are acquired,
maintained and lost;
2. The rights and liabilities of members
3. The condition for transfer of a share of interest
4. The rules and procedures covering the agenda, time, place,
and manner of calling, convening, conducting meetings,
quorum requirements, voting system and other matter related
to the business affairs of the general assembly, board of
directors, and committees;
5. The general conduct of the affairs of the cooperative, including
the powers and duties of the general assembly, board of
directors, committees and other officers and their
qualifications and disqualifications
6. The manner in which capital may be raised and purposes for
which it can be utilized;
7. The mode of custody and of investment of net surplus
8. The accounting and auditing systems
9. The manner and limitations of loaning and borrowing,
including limitations
10. The method of distribution of net surplus
11. The manner of adopting, amending, repealing, and abrogating
by-laws; a conciliation or mediation mechanism for the
amicable settlement of disputes among members; directors,
officers and committees; and
12. Other matters pertaining to the purposes and activities of the
cooperative
 ECONOMIC SURVEY provided, further, that they shall not be allowed to operate without
the necessary personnel and shall also submit an economic survey,
A general statement describing the structure, purpose, economic
indicating therein the
feasibility of the proposed cooperative, area of operation, size of
membership and other pertinent data. It is, in fact, a project (1) Area of operation
feasibility study. (2) Size of membership
(3) Other pertinent data in a format provided by the Authority
The structure describes the kind of cooperative being set up, whether
it is primary, secondary, or tertiary and whether it is a credit, Articles of Cooperation By-Laws or Laws of the Coop.
consumer transport or any other type of coop. - Name of the - Goals and objectives
cooperative
The purpose defines the primary, secondary and other objectives of - Membership
the cooperative. - Scope of
The area of operation merely indicates the geographical or sectoral operation/place - Meetings and
election
scope of the coop. for example, a cooperative may operate in, says
- Terms of existence
Cebu city; it is important to set limits to the coop’s scope like farmers.
- Board of directors,
This is closely related to cooperative structure.
- Name, citizenship general assembly
and address of each
incorporator - Sources of funds
*the most important part of the survey is the ECONOMIC
FEASIBILITY. - Common bond of - Custody and
membership investment of net
Here the prospective coop member estimate the incomes and
surplus
expenses of the cooperative. It makes a projection of the feasible - People managing the
growth pattern of the coop over a certain period and how these cooperative - Accounting and
growths generate income and expenses. It tries to anticipate possible auditing systems
obstacles and constraint and allowances for them - Amounts pledged
- Manner of lending
and borrowing
ECONOMIC SURVEY (ART.11)
- Adopting and
Every group of individuals or cooperatives intending to form a amending by-laws
cooperative under this code shall submit to the Authority a general
statement describing, among other the Structure and Purposes of - Settlement of
the proposed cooperative: provided, that the structure and actual disputes
staffing pattern of the cooperative shall include a bookkeeper; If ayaw mag issue ang COI =MANDUS
 Where to register your cooperative
The Cooperative Development Authority (CDA) is the only
government agency mandated to register all types of cooperatives.
- Its main office is located at 5th and 6th floors, Ben-Lor
building, 1184 Quezon Avenue, Quezon City.
To facilitate the flow of its services, extension offices have been set
up. These are located in:
otherwise the application is deemed approved, unless the cause of
the delay is attributable to the applicant.
-remedy is mandamus
CDA to OFFICE OF THE PRESIDENT
In case of a denial of the application for registration, and appeal shall
lie with the Office of the President within ninety (90) days from receipt
of notice of such denial

(a) Dagupan City Failure of the Office of the president to act on the appeal within ninety (90)
(b) Tuguegarao, Cagayan days from the filing thereof shall mean APPROVAL of the said application.
(c) Baguio City
(d) San Fernando, pampanga
CERTIFICATE OF REGISTRATION
(e) NCR-Quezon City
(f) Calamba, Laguna COOPERATIVE CODE (ART.17) CORPORATION CODE (SEC.19)
(g) Naga City A certificate of registration issued A certificate of incorporation is
(h) Iloilo city by the authority under its official issued under its official seal; and
(i) Cebu dity seal shall be conclusive evidence thereupon the incorporators,
that the cooperative therein SHs/Ms and their successors shall
(j) Kidapawan mentioned is duly registered unless constitute a body politic and
(k) Tacloban city it is proved that the registration corporate under the name stated in
(l) Davao city thereof has been cancelled. AOI for the period of time
(m)Zamboanga city mentioned therein. Unless said
(n) Butuan city period is extended or the
corporation is sooner dissolved in
HOW? REGISTRATION 60/90/90 accordance with law.

COOPERATIVE DEVELOPMENT AUTHORITY

LIABILITY (ART.12)
A cooperative formed and organized under this code acquires
juridical personality from the date the Authority issues a certificate of Cooperative Code Corporation Code
a cooperative duly registered under Doctrine of corporate Fiction (Sec.
registration under its official seal
this code shall have limited liability 2 BP68)
(RA 9520, ART.112)
TRUST FUND DOCTRINE
All applications for registration shall be finally disposed of by the
Authority within a period of sixty (60) days from the filing thereof,
 WHO MAY ORGANIZED? than five (5) years prior to the UNLESS for justifiable reason for an
original or subsequent expiry earlier extension as may be
COOPERATIVE CODE (ART.10) CORPORATION CODE (SEC. 10) date/dates unless there are determined by SEC
Fifteen (15) or more natural Natural persons justifiable reasons for an earlier
persons extension as may be determined by
Who are Filipino citizens X citizens of the Philippines X the Authority (RA 9520. ART 13)
Of legal age X of legal age X
Having a common bond of interest Owners of at least one share
Actually residing or working in the X majority are residents of the AMENDMENT OF ARTICLES OF COOPERATION AND BYLAWS
intended area of operation Philippines X
COOPERATIVE CODE CORPORATION CODE
Other requirement Capacity to contract
Unless otherwise prescribed by this
A prospective member of a primary
code and for legitimate purposes,
cooperative must have completes a
any provision of matter stated in Majority of the BOD and 2/3 with
Pre-Membership Education
the Articles of cooperation and by- OCS
Seminar (PMES)
laws may be amended by two-
thirds (2/3) vote of all the
LIABILITY OF MEMBERS (Art.29) members with voting rights,
without prejudice to the right of
A member shall be liable for the debts of the cooperative to the extent of the dissenting members to exercise
his contribution to the share capital of the cooperative their right to withdraw their
membership under Article 30
TERM

COOPERATIVE CODE CORPORATION CODE The amendments shall take affect

ORIGINAL TERM A corporation shall have perpetual upon its approval by the authority
existence unless its Articles of or within thirty (30) days from the Upon approval by SEC
Period not exceeding fifty (50) Incorporation provides otherwise date filing thereof if not acted
years from the date of registration upon by the Authority for a cause
unless sooner dissolve or unless not attributable to the cooperative
said period is extended
EXTENSION X not exceeding fifty (50) years in
any single instance by an
Term may be extended for periods amendment of the AOI X
not exceeding fifty (50) years in
any single instance by an
amendment of the articles of
cooperation
LIMITATION xX no extension can be made
earlier than 5 years prior to the
No extension can be made earlier original or subsequent expiry date
 CONTRACTS EXECUTED PRIOR TO REGISTRATION AND EFFECTS THEREOF
COOPERATIVE CODE
Contracts executed between
private persons and cooperatives
prior to the registration of the
cooperative shall remain valid and
binding between the parties and
upon registration of the
cooperative
A formal written contact shall be
adopted and made in the
cooperative’s name or on its behalf
prior to its registration
DIVISION OF COOPERATIVES
COOPERATIVE CODE
Any registered cooperative may, by
a resolution approved by a vote of
three-fourths (3/4) of all the
members with voting rights,
present and constituting a quorum,
resolve to divide itself into the two
(2) or more cooperatives. XxX:
Provided, that all the requirements
set forth in this Code have been
complied with by the new
cooperatives: Provided, further,
that no division of a cooperative in
fraud of creditors shall be valid
VOTING REQUIREMENTS
VOTE TO AMEND AOC
Xxx may be amended by two-thirds (2/3) vote of all the members with
voting rights, without prejudice to the right of the dissenting members to
CORPORATION CODE
exercise their right to withdraw their membership under article 30
Similar provision VOTE TO DIVIDE COOP
Any registered cooperative may, by a resolution approved by a vote of three-
fourths (3/4) of all the members with voting right, present and constituting a
quorum, resolve to divide itself into the two (2) or more cooperatives.
WHO MAY BE MEMBERS? ART.26
New members may only be admitted to the cooperative after undergoing
Pre-Membership Education Seminar. There are two kinds of members:
A. Regular Members
CORPORATION CODE - Entitled to all rights and privileges of membership, including the
right to vote and be voted upon.
B. 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
NO similar provision
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; and
c. He signifies his intention of becoming a regular member
A member shall be liable for the debts of the cooperative to the extent of his
contribution to the share capital of the cooperative
KINDS OF MEMBERSHIP
A cooperative organized by minors shall be considered a LABORATORY
COOPERATIVE and must be affiliated with a registered cooperative. A
cooperative may assist in the organization of a laboratory cooperative of 15 organization using the mandatory cooperative funds and other funds of the
or more individuals who are minors who may be students or out of school cooperative
minors, Filipino citizens and are actually studying or residing within the
nearest area of operation at the intended guardian cooperative (given a
certificate of Recognition)

Guardian Cooperative RIGHTS AND DUTIES OF MEMBERS

- Refers to a duly registered cooperative to which a laboratory The rights and duties of a members are to:
cooperative is affiliated with.
a. Participate in decision-making during assemblies and/or
meetings
b. Vote on all matters brought to the attention of the assembly
CAN GOVERNMENT OFFICERS AND EMPLOYEES JOIN A COOPERATIVE?
c. Seek any elective position, if qualified
Yes, provided that: d. Receive interest on capital and patronage refund
e. Inspect and examine the books, accounts, minuted of
1. Any officer or employee of the CDA shall be disqualified to be
meetings and other records, and
elected or appointed to any position in a cooperative;
f. Exercise all the rights and privileges granted to members
2. All elected officials of the government shall be ineligible to become
officers and directors of the cooperative; LIABILITY OF MEMBERS
3. Any government employee or official may, in the discharge of his
A member shall be liable for the debts of the cooperative to the extent of his
duties as member in the cooperative, use his official time provided
contribution to the share capital of the cooperative
that the operations of the office where he works are not adversely
affected
4. That the disqualification does not extend to a party list
representative being an officer of a cooperative he or she He is not personally liable beyond his contribution (Sec. 29)
represents.

POLICY ON THE CANDIDACY OF AN OFFICER OF A COOPERATIVE IN THE
NATIONA OR LOCAL ELECTION
Issue No. 1. On the prohibition for the cooperative or any officer of the
cooperative to engage in any election campaign or partisan political activity
to support any election candidate or party-list organization using the
mandatory cooperative funds and other funds of the cooperative.
Answer: Section 5 MC 2022-06 says “it shall be prohibited for the
cooperative or any officer of the cooperative to engage in any election
campaign or partisan political to support any election candidate or party-list
WHO MAY BECOME MEMBERS OF A COOPERATIVE? 30/30
- If you are a Filipino, of legal age, you can be a coop member if
you meet the qualification s prescribed by the coop’s by laws.
- An applicant for membership is refused or denied by the board
of directors, an appeal (30) days may be made to the general
assembly and the latter’s decision shall be final
 - For this purpose, the general assembly may opt to create an
appeal and grievance committee, the members of which shall
serve for a period of one (1) year and shall decide appeals on
membership application within thirty (30) days upon receipt
thereof.. if the committee fails to decide within the prescribed
period, the appeal is DEEMED APPROVED IN FAVOR OF THE
APPLICANT
a member of a cooperative may, for any reason withdraw his
membership from the cooperative by giving sixty (60) days notice to the
board of directors;
- The death, insanity. Insolvency, or dissolution of a member shall
be considered an automatic termination of membership

*TERMINATION
WITHDRAWAL OF MEMBERSHIP
- a member may be terminated by a vote of majority of all members of the
COOPERATIVE CODE CORPORATION CODE Board of Directors, For any of following causes;
- Any valid reason
a. when a member has not patronized the services of the cooperatives for
- Sixty (60) day notice to an unreasonable period of the time as may be fixed by the board of
the board of directors directors;

b. when a member has continuously failed to comply with his obligations

- Entitled to a refund of The moments the SH cease to own
his share capital at least one share c. when a member has acted in violation of the by-laws and the rules of the
contribution and all cooperative
other interests in the
cooperative d. for any act or omission injurious or prejudicial to the interest or the
welfare of the cooperative
- Deatch or insanity of a
member in a primary
cooperative APPEAL FROM TERMINATION
- Insolvency or The decision of the board shall be in writing and shall be communicated in
dissolution of a person or by registered mail to said member and shall be appealable within
member in a secondary thirty (30) days from receipt thereof to the general assembly whose
or tertiary cooperative decision shall be final
may be grounds for
termination of
membership
The general assembly* may create an APPEAL AND GRIEVANCE
COMMITTEE whose members shall serve for a period of one (1) year and
TERMINATION OF MEMBERSHIP shall decide appeals on membership termination. The committee is given
Thirty (30) days from receipt thereof to decide on the appeal. Failure to
*WITHDRAWAL
decide within the prescribed period, the appeal is deemed approved in favor
of the member. Pending a decision by the general assembly, the
membership remains in force.

COMPOSITION

The general assembly is composed of members in GOOD STANDING. A

member in good standing is one who:

a. Has paid the membership fee and at least one share of stock
b. Pays his/her dues on time
c. Abided with the cooperative’s rules, regulations, and bylaws
d. Performs his obligations, duties and tasks
e. Attends the required seminars and/or training activities, and
f. Attends the required seminars and/or training activities and
g. Patronizes the cooperative and actively participates in elections and
decision-making.