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MM Elect 2

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THE BENEFITS AND PRIVILEGES OF THE COOPERATIVE

I. INTRODUCTION

A cooperative is an autonomous and duly registered association of


persons with 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 with universally
accepted cooperative principles.

II. OBJECTIVES

1. Discuss what are the benefits of the cooperative

2. Discuss what are the privileges of the cooperative

3. Discuss who can avail the benefits and privileges of the cooperative

III. CONTENT DISCUSSION

WHAT ARE BENEFITS AND PRIVILEGES OF THE COOPERATIVE?

As provided under Article 62, RA 9520, cooperative registered under R.A.


9520 enjoy the following privileges:

1. Cooperatives shall enjoy the privilege of depositing their sealed


cash boxes or containers, documents or any valuable papers in the
safes of the municipal or city treasurers and other government
offices free of charge, and the custodian of such articles shall issue
a receipt acknowledging the articles received duly witnessed by
another person;
2. Cooperatives organized among government employees,
notwithstanding any law or regulation to the contrary, shall enjoy
the free use of any available space in their agency, whether owned
or rented by the Government;
3. Cooperatives rendering special types of services and facilities such
as cold storage, ice plant, electricity, transportation, and similar
services and facilities shall secure a franchise therefor, and such
cooperatives shall open their membership to all persons qualified in
their areas of operation;
4. In areas where appropriate cooperatives exist, the preferential right
to supply government institutions and agencies rice, corn and other
grains, fish and other marine products meat, eggs, milk, vegetables,
tobacco and other agricultural commodities produced by their
members shall be granted to the cooperatives concerned;
5. Preferential treatment in the allocation of fertilizers and in rice
distribution shall be granted to cooperatives by the appropriate
government agencies;
6. Preferential and equitable treatment in the allocation or control of
bottomries of commercial shipping vessels in connection with the
shipment of goods and products of cooperatives.
7. Cooperatives and their federations, such as market vendor
cooperatives, shall have preferential rights in management of public
markets and/or lease of public market facilities, stall or spaces.
8. Credit cooperatives and/or federations shall be entitled to loans,
credit lines, rediscounting of their loan notes, and other eligible
papers with the Development Bank of the Philippines, the Philippine
National Bank, the Land Bank of the Philippines and other financial
institutions except the Central Bank of the Philippines
9. Cooperatives transacting business with the Government of the
Philippines or any of its political subdivisions or any of its agencies
or instrumentalities, including government-owned and controlled
corporations shall be exempt from pre-qualification bidding
requirements; and
10. Cooperatives shall enjoy the privilege of being represented by
the provincial or city fiscal or the Office of the Solicitor General, free
of charge, except when the adverse party is the Republic of the
Philippines
11. Cooperatives shall have the preferential right in the
management of the canteen and other services related to the
operation of the educational institution where they are employed:
Cooperatives organized by faculty members and employees of
educational institutions Provided, That such services are operated
within the premises of the said educational institution
12. The appropriate housing agencies and government financial
institutions shall create a special window for financing housing
projects undertaken by cooperatives, with interest rates and terms
equal to, or better than those given for socialized housing projects.
This financing shall be in the form of blanket loans to qualified
cooperatives, without need for individual processing .
WHO CAN BE MEMBERS OF A COOPERATIVE?

Any natural person, who is a citizen of the Philippines and is of legal age
or a juridical person like a cooperative or non-profit organization is
qualified to be a member of a cooperative, provided further that the
person meets the qualifications prescribed in the bylaws of the
cooperative he/she wishes to be a member of (Article 26, RA 6938).
However, minors may organize laboratory cooperatives (Article 26, RA
9520)

WHAT ARE THE KINDS OF MEMBERSHIP IN A COOPERATIVE?

There are two (2) kinds of members under Article 26, RA 9520:

1. Regular members; and


2. Associate members

A regular member is one who has complied with all the membership
requirements and entitled to all the rights and privileges of membership
as stated in the Cooperative Code and the cooperative by laws.

An associate member has no right to vote and be voted upon and is


entitled only to such rights and privileges provided by the cooperative’s
bylaw

WHEN DOES AN APPLICANT FOR MEMBERSHIP IN A COOPERATIVE


ACQUIRE HIS RIGHTS AS A MEMBER?

An applicant becomes a cooperative member when his application is


approved by the board of directors. He may exercise his rights as a
member after he makes the payments that are due to the cooperative, as
set forth by Article 28,RA 9520.
HOW IS MEMBERSHIP IN A COOPERATIVE TERMINATED ?

As provided under Article 30, RA 9520, membership in a cooperative may


be terminated by reason of death or insanity of a member in a primary
cooperative, or the insolvency or dissolution of a member in a secondary
or tertiary cooperative. Membership may be terminated by a vote of the
majority of all the members of the board of directors for the following
causes:

1. When a member has not patronized any of the services of the


cooperative for an unreasonable period of time as may be
previously determined by the board of directors;
2. When a member has continuously failed to comply with his
obligations;
3. When a member has acted in violation of the bylaws and the rules
of the cooperative; and
4. For any act or omission injurious or prejudicial to the interest or the
welfare of the cooperative.

MAY A MEMBER WITHDRAW HIS MEMBERSHIP FROM A


COOPERATIVE ?

Yes. Under Article 30, RA 9520, a member may withdraw his membership
from a cooperative by giving a 60-day notice to the board of directors

IV. CONCLUSION

A cooperative has two kinds of members: regular members and associate


members. A regular member is one who has complied with all the
membership requirements and entitled to all the rights and privileges of
membership as stated in the Cooperative Code and the cooperative by
laws.

V. SUMMARY

Cooperatives bring people together in a democratic and equal way.


Whether the members are the customers, employees, users or residents,
cooperatives are democratically managed by the ‘one member, one vote’
rule. Members share equal voting rights regardless of the amount of
capital they put into the enterprise.

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