Organization,

Registration and
Management of
Cooperatives
Organizing a Cooperative
Organizing Cooperatives
Organizing a cooperative can be
complex and simple. It requires an
understanding of the basic needs of the
prospective cooperative members. It
demands patience from the organizer
who must take the cooperative’s long
term goals and objectives, and its
visions a real part of the member’s
lives.
How to organize
a Cooperative?
 FIRST
Get organized. You must have
at least 15 members to do that.
 For what purpose(s) may a
cooperative be organized with?
• Thrift and savings mobilization
among members
• Fund generation and providing loans
to members for productive and
provident purposes
• Systematic production and marketing
• Providing goods and services
• Developing the expertise and skills of
members
• Acquiring lands and providing
housing services
• Promoting and advancing the
economic, social and educational
status of the members
• Establishing, owning, leasing and
operating cooperative banks,
wholesale and retail complexes,
insurance and agricultural/industrial
processing enterprises and public
markets
• Coordinating and facilitating the
activities of the cooperatives
• Advocating the cause of the
cooperative movement
• Ensuring the viability of cooperatives
through the utilization of new
technologies
• Encouraging and promoting self-help
or self-employment as engines for
economic growth and poverty
alleviation
 Goals to be attained to improve the
quality of life of the members

•Increased income, savings, investments, productivity,

and purchasing power
•Maximum utilization of economies of scale, cost
sharing and risk-sharing
•Equitable distribution of net surplus and optimum
social and economic benefits
•Learning efficient and cooperative ways of doing
things
• Propagation of cooperative practices and new ideas
in business and management
• Increased ownership in the wealth of the nation by
the lower income and the underprivileged groups
• Cooperation with government, other cooperatives
and people-oriented organizations to further the
attainment of the foregoing goals and objectives
 • Common problems to be solved and basic
needs to be provided
• Classify your cooperative

Who may become members of a primary cooperative?

What are the kinds of memberships in the cooperative?
Can government officers and employees join a cooperative?
 Who may become members of a primary
cooperative?

• Filipino of legal age – qualifications

• Board of Directors
• Exercise his rights only after having paid
the fees and acquired shares
What are the kinds of membership in the
Cooperative?
REGULAR MEMBERS ASSOCIATE MEMBERS

Has complied with all Has no right to vote

the requirements nor be voted
Entitled to all right Entitled to rights and
and privileges stated privileges stated in the
in Cooperative Code coops by-laws only
and the coops by-laws *Meets up the minimum
requirements of regular
membership, continues to
patronize the cooperative for
(2) years
 Can government officers and
employees join a cooperative?
• CDA officer or employee shall be
disqualified to be elected or appointed
to any position
• Elected government officials of the
government shall be ineligible to
become officers and directors
• Any government employee may, in the
discharge of his duties as member in the
cooperative, use official time provided
that the operations of the office where
he works are not adversely affected.
 If Membership’s Denied
• May appeal to the General Assembly
• The General Assembly may opt to create
an appeal and grievance committee, which
members served for (1) year and shall
decide appeals on membership application
within 30 days upon receipt.
– If it fails to decide within 30 days, the appeal
is deemed approved in favor of the applicant
 Termination of Membership
• Withdrawal of member
• Death or insanity of a member in primary,
and the insolvency of dissolution in
secondary and tertiary
• Vote of the majority of all the members of
the board of directors
has not patronized the services of the
cooperative for an unreasonable period of time
as may be fixed by the board of directors
continuously failed to comply with his
obligations
has acted in violation of the bylaws and the rules
of the cooperative
For any act or omission injurious or prejudicial to
the interest or the welfare of the cooperative
 SECOND

Reserve your proposed

cooperative name.
• Cooperative Name Reservation Request
Form (CNRRF)
• Submitted to CDA Central Office or its
Extension Office
• Reservation fee shall apply
 THIRD
Prepare a general statement
called an economic survey.
 Economic Survey
• A general statement describing the
structure and purposes of the proposed
cooperative
• A project feasibility study (economic
feasibility)
Structure
• Describes the kind of cooperative being set
up whether it is primary, secondary or
tertiary and whether it is a credit, consumer
transport or any other type of coop.
Purpose
• Defines the primary, secondary and other
objectives of the cooperative
• Cooperative’s area of operation
• Size of membership
 FOURTH

Prepare the cooperative’s

by-laws.
 By-laws
• contain the rules and regulations
governing the operation of the cooperative
• set of rules that determines how a
cooperatives is to be run without
confusion
• Qualifications for membership; how they are
acquired, maintained and lost
• Rights and liabilities of members
• The procedure to be followed in cases of
termination of membership
• The condition for transfer of a share of
interest
• The rules and procedures covering agenda,
time, place, and manner of calling, covering,
conduct meeting, quorum requirements,
voting system, and other matters related to
the business affairs of the general assembly,
board of directors, and committees
• The general conduct of the affairs of the
cooperative , including the powers and
duties of the general assembly, board of
directors, committees and the officers, and
their qualifications and disqualifications
• The manner in which capital may be raise
and purpose for which it can be utilized
• The mode of custody and investment of net
surplus
• The accounting and auditing systems
• The manner and limitations of loaning and
borrowing, including limitations
• The methods of distribution of net
surplus
• 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
• Other matter pertaining to the purpose
and activities of the cooperative
 FIFTH
Prepare the articles of
cooperation.
 Articles of Cooperation
• shall be signed by each of the organizers
and acknowledged by them if natural
persons, and by the chairpersons or
secretaries, if juridical persons, before a
notary public
• the name of the cooperative, which must
include the word “cooperative”
• the purpose or purposes and scope of
business for which the cooperative is to be
registered
• the term of existence of cooperative (not
more than 50 years)
• area of operation and the postal address
of its principal office
• the names, nationality and the postal
addresses of the registrants
• the common bond of membership
• The list of names of the directors who shall
manage the cooperative
• 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
 SIXTH
Secure bond of accountable
officer(s).
• secured from a duly registered insurance or
bonding company
• Every director, officer and employee
handling funds, securities or property on
behalf of the cooperative shall be covered
by this
• The amount of the bond is to be decided
upon by the Board of Directors
 SEVENTH
Execute Treasurers Affidavit.
Legend:
ASC- (Authorized shared capital)- is the
maximum amount of capital that a company can
issue to stakeholders as agreed in its articles of
association.
SSC-(Subscribed shared capital)- represents a
portion of the authorized capital that potential
shareholders have agreed to purchase from the
cooperative (or company’s) treasury,(if it is only a
corporation, often as part of the company's initial
public offering (IPO).)
Legend:
• Companies often hold back a portion of their
authorized share capital for future financing
needs.
• A company's authorized share capital will not
increase without shareholder approval.
PSC- (Paid-Up Capital)is the portion of the
subscribed capital for which the company has
received payment from the subscribers.
• Sworn statement of treasurer
elected by the subscribers attached
to the articles of cooperation
• At least 25% of the authorized share
capital has been subscribed
• At least 25% of the total
subscription has been paid (shall
not be less than P15,000)
 Illustration
Upon Registering
ASC = P400,000 par value = P100
= 4,000 shares * not more than P1,000/share
Articles of Cooperation
– member subscribes at least 10 shares (P1,000)
– subscribe not more than 400 shares (P40,000)
To be registered
SSC = at least 1,000 shares (P100,000)
* 25% of ASC
PC = at least 250 shares (P25,000)
* 25% of SSC
* not less than P15,000
 EIGTH
Complete the Pre-Membership
Education Seminar (PMES).
• All prospective member must have
completed PMES
• Certificate of PMES
 NINTH
Register your cooperative with
the Cooperative Development
Authority (CDA).
• Submit the required documents
 in (4) copies and duly notarized
Economic Survey
Articles of Cooperation
By-Laws
Surety bond of accountable officers
Treasurer’s Affidavit
Approved Cooperative Name Reservation Slip
Certificate of PMES
Registering a Cooperative
 Registering a Cooperative
Registration of a new co-operative under the Co-
operatives Act 1992 is a 3 step process:
• The Act requires a set of rules and a disclosure
statement be submitted to the Registrar for
approval.
• Once this has occurred the proponents of the co-
operative hold a formation meeting to formally
adopt the rules and present the disclosure
statement to prospective members.
• Registration occurs after the formation meeting
when the Application for registration is submitted
to the Registry.
Where do you register a Cooperative?
• Cooperative Development Authority
• Main office = 827 Aurora Blvd.,
Immaculate Conception, Quezon City
• CDA Extension Offices were set-up
What are the general requirements in
registering a Cooperative?
Economic Survey (duly notarized)
Articles of Cooperation (duly notarized)
By-Laws (duly notarized)
Surety bond of accountable officers
Treasurer’s Affidavit
Approved Cooperative Name Reservation Slip
Certificate of PMES
How much is the registration fee?
MEMORANDUM CIRCULAR NO. 2016-08
Series of 2016
SUBJECT : AMENDED SCHEDULE OF
REGISTRATION FEES
DATE : October 18, 2016
How much is the registration fee?
The Authority hereby prescribes the
following Amended Schedule of Registration
Fees:
• Section 1.Scope – This amended Registration
Fees shall be imposed for every transaction
specified in Section 4, hereof consequent to
the registration of cooperatives. Legal and
Research Fees (LRF) shall also be imposed /
collected by the Authority in the exercise of
its functions and responsibilities.
How much is the registration fee?
• Section 2. Legal Basis – This Memorandum
Circular is anchored on Section 3(j) of R.A. 6939
which states that the CDA is empowered to
“Impose and collect reasonable fees and charges
in connection with the registration of
cooperatives”.
• Section 3. Purpose –Equity requires that
persons receiving or benefiting from rendered
services share the cost of providing such services
in order to defray the necessary expenses
consequent thereto.
How much is the registration fee?

Section 4. Schedule of Fees – The Amended Fees

are indicated below:

PROCESS REQUIRED FEES

A. NameReservation
(pre-registration)

30days Php 100

60days Php 200
90days Php 300
 How much is the registration fee?
• B. Initial registration fee 1/10 of 1% of
authorized share or basic fee below whichever
is higher:
Primary Cooperatives (Php 500.00)
Secondary Cooperatives (Php 2,000.00)
Tertiary Cooperatives (Php 3,000.00)
Laboratory Cooperatives (Php 50.00)
 How much is the registration fee?
C – Amendment
c.1 On specific provision/sPhp300
c.2 By substitution Php300
c.3 On increase of capital 1/10 of 1% of
the increased paid-up capital
 How much is the registration fee?
D. Merger 400.00 and, apply “c.3” above in case
of increase in capital
E. Consolidation apply “B” above, if applicable
F. Division apply “B” above, if applicable
 How much is the registration fee?
Section 5. Legal and Research fee (LRF)-An
additional LRF fee in an amount equivalent to
one percent (1%) of the fee imposed but in no
case lower than ten (10) pesos shall be collected
on every fee for all applications for registration
and amendment, petitions and complaints
imposed by the Authority in the exercise and
discharge of its regulatory functions.
 How much is the registration fee?
Section 6. Repealing Clause. All previous circulars
and/or guidelines issued by the Authority which
are inconsistent with this Guidelines are hereby
repealed or modified accordingly.

Section 7. Effectivity. This Circular shall take effect

immediately upon approval hereof by the Board
of Administrators and filing with the Office of
National Administrative Register (ONAR).
 How much is the registration fee?
Approved pursuant to BOA Resolution No. 361, S-
2016 dated October 18, 2016.

For the Board of Administrators

By:

(SGD) ORLANDO R. RAVANERA

Chairman
 For what purpose(s) may a federation of
cooperatives be registered?
• To carry on any cooperative enterprise
authorized under Article 6
• To carry on, any encourage and assist
educational and advisory work relating to its
member cooperatives
• To coordinate and facilitate the activities of its
member cooperatives
• To print, publish, and circulate any newspaper of other
publication in the interest of its member cooperatives and
enterprises
• To enter into joint ventures with national or international
cooperative of other countries in the manufacture and sale
of products and/ or services in the Philippines and abroad
• To render services designed to encourage simplicity,
efficiency, and economy in the conduct of the business of
its member cooperatives and to facilitate the
implementation of their bookkeeping , accounting and
other systems and procedures
 For what purpose(s) may a cooperative
union be registered?
• To represent its member organization
• To acquire, analyze, and disseminate economic,
statistical, and other phases of cooperatives
within its area of operation
• To sponsor studies in the economic, legal,
financial, social, and other phases of
cooperation, and publish their results
• To promote the knowledge of cooperative
principles and practices
• To develop the cooperative movement in
their respective areas of operation
• To advice the appropriate authorities on all
question relating to cooperatives
• To raise funds through membership fees and
contribution , donations, and subsidies from
local and foreign sources whether private or
government
• To do and perform such other activities as
may be necessary to attain these objectives
 How soon should the CDA act on
application for registration?
• 30 days
• considered approved if no action
was made, unless application
himself causes the delay
 What should one do if application is
denied?
• Appeal to the Office of the President
• If fails to act within (90) days,
application is considered approved
 What are the powers and capacities of a
registered cooperative?
• To sue and be sued in its cooperative name
• Of succession
• To amend its Articles of Cooperative in accordance with the
provisions of R.A. 6938
• To adopt by laws not contrary to law ,morals or public policy,
and to amend and re-apeal the same in accordance with R.A.
6938
• To purchase, receive, take of grant, convey, sell, lease, pledge,
mortgage, and otherwise deal with such real and personal
property as the transaction of the lawful affairs of the
cooperative may reasonably and necessarily require, subject to
the limitations prescribed by law and the Constitution
• To enter into division, merger or
consolidated, as provided in R. A. 6938;
• To join federations federation or unions, as
provided in R.A. 6938;
• To accept and receive grants, donations
and assistance from foreign and domestic
sources; and
• To exercise such other powers granted by
R.A. 6938 necessary to carry out its
purpose as stated in its Article of
Cooperation.
What evidence confirms the
approval of a registration?
Certificate of Registration
from CDA