PRE-MEMBERSHIP EDUCATION SEMINAR  What is a Cooperative?

 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 aspirations, 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 with universally accepted cooperative principles. C- Capitalized by Members with common goal O- Owned by Members O- Operated by Members P- Patronized by Members  WHAT ARE THESE COOPERATIVE VALUES?  Self-help Values. A cooperative is organized for members to solve their common problems through their own initiative and activities.  Mutual Help Values. For the cooperative to solve problems of the member, cooperation, unity and solidarity among them is necessary.  Common Interest Values. In healthy operation of the cooperative, individual interest is subordinated to the common benefit of all members. This is the main purpose of organizing a cooperative.  Democratic Control Values. In the governance or control of a cooperative. Active participation and equal status of members are recognized in any decision-making. Every member must participate in electing/choosing the officers.  Education Values. Members should be knowledgeable and updated on all cooperative matters to enable them to actively participate and support all project and activities of their cooperative. Everyone must therefore attend educational activities in cooperative.  Voluntary Efforts Values. ( Common Concern )  Development Values. ( Organization Development/Progress)

political. members have equal voting rights (one member. they do so on terms that ensure democratic control by the members and maintain their cooperative independence. one vote) and cooperatives at other levels are also organized in a democratic manner. and employees so they can contribute effectively to the development of their cooperatives. 6th Principle: Cooperation among Cooperatives Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local. . social. 2nd Principle: Democratic Member Control Cooperatives are democratic organizations controlled by their members. 4th Principle: Autonomy and Independence Cooperatives are autonomous. 5th Principle: Education. COOPERATIVE PRINCIPLES  The cooperative principles are guidelines by which cooperatives put their values into practice. Members usually receive limited compensation. Men and Women serving as elected representatives are accountable to the members. national. or religious discrimination. managers. if any. 1st Principle: Voluntary and Open Membership Cooperatives are voluntary organization open to all persons able to use their services and willing to accept the responsibilities of membership without gender. who actively participate in setting their policies and making decisions. In primary cooperatives. Training and Information Cooperatives provide education and training for their members. If they enter into the agreements with their other organizations (including governments) or raise capital from external sources. They inform the general public. 3rd Principle: Member Economic Participation Members contribute equality to and control the capital of their cooperative. racial. At least part of that capital is usually the common property of the cooperative. self-help organizations controlled by their members. regional and international structures. on the capital subscribed as a condition of membership.particularly young people and opinion leaders about the nature and benefits of cooperation. elected representatives.

. the welfare of its members and the cooperative movement as a whole. the decisions that may be promulgated by the Cooperative Development Authority (CDA). 2. Pay the installment on Capital Stock subscription as it falls due and to participate on the capital build-up of the cooperatives. the share register. Adopt improved production techniques and practices. Avail himself of the services of the cooperative without any discrimination whatever upon compliance with the conditions and requirements thereof. and 5. Seek any elective position. and 7. 6. Attend membership meetings. subject to the provision of Section 12 Article III of these by-laws. the success of its business.7th Principle: Concern of Community Cooperatives work for the sustainable development of their communities through policies approved by their members. Patronize regularly its business by procuring his requirement from the cooperative and marketing his produce to or through the cooperative. of the cooperative during office hours and to exercise other rights and privileges of membership. Obey the Rules and Regulation provided by R. regular or special.A.  DUTIES AND OBLIGATIONS OF A MEMBER 1. Participate in the deliberation during membership meetings. 3. and other records. the minutes’ books. Promote the aims and purposes of the cooperative. Inspect and examine the books of accounts. 4. 5. Vote on all matters brought before such meetings. 4.  RIGHTS OF A MEMBER Every member who is entitled to vote has the following rights: 1. Participate in its Parliamentary Affairs. 3. 6938. these by-laws. 2.

 To exercise final authority on all matter vitally affecting the cooperative. social and educational status of the members.  To insure against losses of the members.  To encourage among members systematic production and marketing.  To provide goods and services and other requirements to the members. ASSOCIATE.one who is entitled to all the right and privileges of membership.  To take final decisions regarding any drastic change in financial policies.  To generate funds and extend credit to the members for productive and provident purposes.  To hear and pass upon reports of the Board of Directors.  To determine the amendments in the Articles of Cooperation and/ or by-laws.  To approve development plans of the cooperative. subject to legal restrictions. and Committee.  PURPOSES OF COOPERATIVES A cooperative may be organized and registered for any or all of the following purposes:  To encourage thrift and savings mobilization among the members.  To acquire lands and provide housing benefits for the members. Officers.  To develop expertise and skills among its members. . officers and committee members for cause. KINDS OF MEMBERSHIP REGULAR.  To promote and advance the economic.one who has no right to vote or to be voted upon and shall be entitled only to such rights and privileges as the By-Laws may provide. and  To exercise all powers expressly provided laws by-laws.  POWERS AND LIMITATIONS OF THE GENERAL ASSEMBLY  To elect and remove directors.

That a prospective member of a primary cooperative must have completed a Pre-Membership Education Seminar (PMES).  Producers Cooperative – is one that undertakes joint production whether agricultural or industrial.  To ensure the viability of cooperative through the utilization of new technologies. own. who are citizens of the Philippines. cooperative wholesale and retail complexes. of legal age. To establish.  TYPES AND CATEGORIES OF COOPERATIVES  Credit Cooperative – is one that promotes and undertakes savings and lending services among its members. having a common bond of interest and are residing or working in the intended area of operation .  ORGANIZING A PRIMARY COOPERATIVE Any newly organized primary cooperative may be registered as multipurpose cooperative only after compliance with the minimum requirements for multipurpose cooperatives to be set by the Authority.  To advocate for the cause of cooperative movement. lease or operate cooperative banks. and  To undertake any and all other activities for the effective and efficient implementation of the provisions of this Code.  Consumers Cooperative – is one of the primary purpose of which is to procure and distribute commodities to members and non-members. and public markets.  ORGANIZING A PRIMARY COOPERATIVE Fifteen (15) or more natural persons. A single-purpose cooperative may transform into a multipurpose or may create subsidiaries only after at least two (2) years of operation.  To encourage and promote self-help or self-employment as an engine for economic growth and poverty alleviation.  To coordinate and facilitate the activities of cooperatives. insurance and agricultural/industrial processing enterprises. may organize a cooperative under this Code: Provided. It is formed and operated by its members to undertake the production and processing of raw materials or goods produced by its members into . It generates a common pool of funds in order to provide financial assistance and other related financial services to its members for productive and provident purposes.

sold in the name and for the account of the cooperative and its members. communication. insurance. land development. Any end product or its derivative arising from the raw materials produced by its members. and  Multi-Purpose Cooperative – is one which combines two (2) or more of the business activities of these different types of cooperatives.  Cooperative Bank – is one organized for the primary purpose of providing a wide range of financial services to cooperatives and members. land consolidation or land management in areas covered by agrarian reform. research and communication.  Advocacy Cooperative – is a primary cooperative which promotes and advocates cooperation among its members and the public through socially-oriented projects.  Agrarian Reform Cooperative – is one organized by marginal farmers majority of which are agrarian reform beneficiaries for the purpose of developing an appropriate system of land tenure. utilizing renewable sources.  Service Cooperative – is one which engages in medical and dental care.  Marketing Cooperative – is one which engages in the supply of production inputs to members and markets their products. including hybrid systems. 9155.finished or processed products for sale by the cooperative to its members and nonmembers. transportation. otherwise known as the Governance of Basic Education Act of 2001. education and training. acquisition and operation of sub-transmission or distribution to its household members. hospitalization. housing. electric light and power. notwithstanding the provisions of Republic Act No. labor.  Education Cooperative – is one organized for the primary purpose of owning and operating licensed educational institutions. . professional and other services.  Electric Cooperative – is one organized for the primary purpose of undertaking power generation.  Dairy Cooperative – is one whose members are engaged in the production of fresh milk which may be processed and/or marketed as dairy products. and other similar activities to reach out to its intended beneficiaries.  Financial Service Cooperative – is one organized for the primary purpose of engaging in savings and credit services and other financial services.

 Water Service Cooperative – is one organized to own.  Transport Cooperative – is one which includes land and sea transportations. secretary. .  Workers Cooperative – is one organized by workers. members of the different committees created by the general assembly. as defined or classified under the Philippine maritime laws. including the self employed.  OFFICERS OF THE COOPERATIVES shall include the members of the board of directors. and iii) Tertiary – the members of which are secondary cooperative b) In terms of territory. operate and manage water systems for the provision and distribution of potable water for its members and their households. limited to small vessels. Fishermen Cooperative – is one organized by marginalized fishermen in localities whose products are marketed either as fresh or processed products. It is co-owned and controlled by its members. cooperatives shall be categorized according to areas of operations which may or may not coincide with the political subdivisions of the country. and other health services. Its principal purpose is to provide employment and business opportunities to its members and manage it in accordance with cooperative principles.  Health Services Cooperative – is one organized for the primary purpose of providing medical. dental. and members holding other positions as may be provided for in their by-laws. treasurer. ii) Secondary – the members of which are primaries. a cooperative shall be categorized into: i) Primary – the members of which are natural persons. and  Other types of cooperatives as may be determined by the Authority.  CATEGORIES OF COOPERATIVES – cooperatives shall be categorized according to membership and territorial considerations as follows: a) In terms of membership. who are at the same time the members and owners of the enterprise. organized under the provisions of this Code.  Housing Cooperative – is one organized to assist or provide access to housing for the benefit of its regular members who actively participate in the savings program for housing. manager or chief executive officer.

Officers 1. Specialized Training of Staff 2. Honest and Dedicated Officers 2.  SUCCESS FACTORS OF COOPERATIVES A. ethics. Management 1. Patronize the Business 4. Roles and Responsibility Awareness 3. and the rest shall be appointed by the board. and such other committees as may be necessary for the proper conduct of the affairs of the cooperative. Proper Documentation of Transactions C. Frequent Audit and Inventory 4. Capital Build Up Consciousness B. Continuous Education 2.  The by-laws shall provide for the creation of an audit. It shall have the power and duty to continuously monitor the adequacy and effectiveness of the cooperative’s management control system and audit the performance of the cooperative and its various responsibility centers. The members of both the audit and election committees shall be elected by the general assembly. Honest and Dedicated Management 3. Loss of confidence shall not be a valid ground for removal unless evidenced by acts or omissions causing loss of confidence in the honesty and integrity of such officer. election. All officers shall serve during good behavior and shall not be removed except for cause after due hearing.- the board of directors shall elect from among themselves only the chairman and vice-chairman. mediation and conciliation.  The audit committee shall be directly accountable and responsible to the general assembly. -  COMMITTEE OF COOPERATIVES  The by-laws may create an executive committee to be appointed by the board of directors with such powers and duties as may be delegated to it in the by-laws or by majority vote of all members of the board of directors. Prompt Payment of Obligations 3. Members 1. Sound Policy Formulation . No two (2) or more persons with relationships up to the third civil degree of consanguinity and affinity nor any person engaged in a business similar to that of the cooperative or who in any manner has interests in conflict with the cooperative shall serve as an appointive officer. and elect or appoint other officers of the cooperative from outside of the board in accordance with their by-laws.

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