Philippine Cooperative

Code of 2008 (RA 9520)

Title of the Act
General Concept (Art. 3)
• A cooperative is:
• an autonomous 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
• making equitable distributions 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 cooperatives principles.”
Cooperative Principles (Art 4)
A. Voluntary and Open Membership
 open to all persons
 able to use their services and
 willing to accept the responsibilities of membership
 without gender, social, racial, cultural, political or religious
discrimination
Cooperative Principles
B. Democratic Member Control
 Controlled by their members who actively participate in
setting their policies and making decisions
 With elected representatives, directors or officers are
accountable to the membership
 Equal voting rights: one member, one vote
Cooperative Principles
C. Member Economic Participation
 Members contribute equitably and democratically control the cooperative’s
capital
 They shall receive limited compensation or limited interest, if any, on capital
subscribed and paid up as a condition of membership
 Members allocate surpluses for any or all of the following purposes:
o developing the cooperative by setting up reserves,
o part of which should at least be indivisible;
o benefitting members in proportion to their patronage of the cooperative’s business;
and,
o supporting other activities approved by the membership
Cooperative Principles
C. Autonomy and Independence
 When entering into agreements with other organizations
(including government) or raise capital from external
sources
o they shall do so on terms that ensure democratic control of
their members and maintain their cooperative autonomy.
Cooperative Principles
D. Education, Training, and Information
 Cooperatives shall provide education and training for their
members, elected and appointed representatives,
managers, and employees
o To contribute effectively and efficiently to the development of
their cooperatives.
Cooperative Principles

E. Cooperation Among Cooperatives

 Cooperatives serve their members most effectively
and strengthen the cooperative movement
oby working together through local, national, regional
and international structures
Cooperative Principles
F. Concern for Community
 work for the sustainable development of their
communities through policies approved by their members
Definition of Terms (Art. 5)
• Member
oincludes a person either natural or juridical
oadhering to the principles set forth in this Code and
oin the articles of cooperation, has been admitted by the
cooperative as member
Definition of Terms
• General Assembly
o the full membership of the cooperative duly assembled for the
purpose of exercising all the rights and
o performing all the obligations pertaining to cooperatives, as provided
by this Code, its articles of cooperation and bylaws
o Provided, That for cooperatives with numerous and dispersed
membership,
 the general assembly may be composed of delegates elected by each sector,
chapter or district of the cooperative in accordance with the rules and
regulations of the Cooperative Development Authority:
Definition of Terms
• Board of Directors
obody entrusted with the management of the affairs of the
cooperative under its articles of cooperation and bylaws;
• Committee
oany body entrusted with specific functions and
responsibilities under the bylaws or resolution of the
general assembly or the board of directors
Definition of Terms
• Articles of Cooperation
othe articles of cooperation registered under this Code and
includes a registered amendment thereof;
• Bylaws
othe bylaws registered under this Code and includes any
registered amendment thereof;
Definition of Terms
• Registration
oThe operative act granting juridical personality to a
proposed cooperative and is evidenced by a certificate of
registration
• Cooperative Development Authority
oThe government agency in charge of the registration and
regulation of cooperatives as such, hereinafter referred to
as the Authority
Definition of Terms
• Universally Accepted Principles
o Body of cooperative principles adhered to worldwide by
cooperatives;
• Representative Assembly
o The full membership of a body of representatives elected by each
of the sectors, chapter or district of the cooperative duly
assembled
o For the purpose of exercising such powers lawfully delegated nntc
them by the general assembly in accordance with its bylaws
Definition of Terms
• Social Audit
oA procedure wherein the cooperative assesses its social impact
and ethical performance vis-&visits stated mission, vision, goals
and code of social responsibility for cooperatives to be established
by the Authority in consultation with the cooperative sector.
oEnables the cooperatives to develop a process whereby it can
account for its social performance
oEvaluate its impact in the community and be accountable for its
decisions and actions to its regular members
Definition of Terms
• Performance Audit
oAn 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
Definition of Terms
• Single-line or Single-purpose Cooperative
oCooperative undertaking activities which are related to its
main line of business or purpose
• Service Cooperatives
o Provide any type of service to its members, including but
not limited to: transport, information and
communication, insurance, housing, electric, health
services, education, banking, and savings and credit
Definition of Terms
• Subsidiary Cooperative
oAny organization all or majority of whose membership or
shareholders come from a cooperative
o organized for any other purpose different from that of,
oreceives technical, managerial and financial assistance
from, a cooperative, in accordance with the rules and
regulations of the Authority
Definition of Terms
• Federation of Cooperatives
othree or more primary cooperatives
odoing the same line of business
oorganized at the municipal, provincial, city, special
metropolitan political subdivision, or economic zones
created by law
oregistered with the authority to undertake business
activities in support of its member-cooperatives
 COOPERATIVE
DEVELOPMENT
AUTHORITY (CDA)
REPUBLIC ACT NO. 6939
Powers, Functions and
Responsibilities (Sec 3)
a. Formulate, adopt and implement integrated and comprehensive plans and
programs on cooperative development consistent with the national policy on
cooperatives and the overall socioeconomic development plans of the
Government
b. Develop and conduct management and training programs upon request of
cooperatives that will provide members of cooperatives with the
entrepreneurial capabilities, managerial expertise, and technical skills required
for the efficient operation of their cooperatives and inculcate in them the true
spirit of cooperativism and provide, when necessary, technical and professional
assistance to ensure the viability and growth of cooperatives with special
concern for agrarian reform, fishery and economically depressed sectors
Powers, Functions and
Responsibilities (Sec 3)
c. Support the voluntary organization and consensual development of
activities that promote cooperative movements and provide
assistance towards upgrading managerial and technical expertise
upon request of the cooperatives concerned
d. Coordinate the efforts of the local government units and the private
sector in promotion, organization, and development of cooperatives
Powers, Functions and
Responsibilities (Sec 3)
e. Register all cooperatives and their federations and unions, including
their division, merger, consolidation, dissolution or liquidation. It
shall also register the transfer of all or substantially all of their
assets and liabilities and such other matters as may be required by
the Authority
f. Require all cooperatives, their federations and unions to submit
their annual financial statements, duly audited by certified public
accountants, and general information sheets
Powers, Functions and
Responsibilities (Sec 3)
g. Order the cancellation after due notice and hearing of the
cooperative's certificate of registration for non-compliance with
administrative requirements and in cases of voluntary dissolution
h. Assist cooperatives in arranging for financial and other forms of
assistance under such terms and conditions as are calculated to
strengthen their viability and autonomy
i. Establish extension offices as may be necessary and financially
viable to implement this Act. Initially, there shall be extension
offices in the Cities of Dagupan, Manila, Naga, Iloilo, Cebu, Cagayan
de Oro and Davao
Powers, Functions and
Responsibilities (Sec 3)
j. Impose and collect reasonable fees and charges in connection with
the registration of cooperatives
k. Administer all grants and donations coursed through the
Government for cooperative development, without prejudice to the
right of cooperatives to directly receive and administer such grants
and donations upon agreement with the grantors and donors
thereof
l. Formulate and adopt continuing policy initiatives consultation with
the cooperative sector through public hearing
Powers, Functions and
Responsibilities (Sec 3)
m. Adopt rules and regulations for the conduct of its internal operations
n. Submit an annual report to the President and Congress on the state of the
cooperative movement
o. Exercise such other functions as may be necessary to implement the provisions
of cooperative laws and, in the performance thereof, the Authority may
summarily punish for direct contempt any person guilty of misconduct in the
presence of the Authority which seriously interrupts any hearing or inquiry with
a fine of not more than Five hundred pesos (P500.00) or imprisonment of not
more than ten (10) days, or both. Acts constituting indirect contempt as defined
under Rule 71 of the Rules of Court shall be punished in accordance with the
said Rule
Governing Body (Sec 4)
Board of Administrators consisting:
• 1 Chairman and 6 members to be appointed by the President
• all shall be chosen from among the nominees of the cooperative sector with 2
representatives each from Luzon, Visayas and Mindanao.
• Shall serve for a term of six (6) years without reappointment
• Provided, That among those first appointed, the Chairman shall serve for a term of 6 years, 3
members to serve for 4 years, and 3 members to serve 2 years:
• Provided, there shall be 4 ex officio members, 1 each from the:
(a) Department of Agriculture
(b) (b) Department of Transportation and Communications
(c) (c) National Electrification Administration, and
(d) (d) Sugar Regulatory Administration.
Governing Body (Sec 4)
• Representation status for the agencies is:
• on a nonvoting basis
• terminates one (1) year from the operation of the Authority
• Ex officio members shall not be holding any other board position in any
government entity.
• The Chairman and members shall serve on a full-time basis.
• Any vacancy in the Board shall be filled by appointment by the President in
accordance with the membership allocation set forth in this section
• Provided, That a member so appointed shall serve only for the unexpired term.
Qualifications of Members of the
Governing Board
(a) A natural-born Filipino citizen of legal age
(b) A Bachelor's Degree in Cooperatives, Economics, Finance,
Agriculture, Fisheries, Veterinary Medicine, Business, Social Science,
Law, Management, or in similar fields of study and 5 years of
experience as an official or officer of a cooperative, government
agency, or nongovernment organization engaged in cooperative
development or,
• in the absence of a Bachelor Degree, at least 10 years of experience in
cooperatives either as an officer of a cooperative or a government agency or
nongovernment organization engaged in cooperative development; and
Qualifications of Members of the
Governing Board
(c) Must be a resident of the region he represents for at 5
years.
• Any person appointed as Chairman or regular member of the
Board of Administrators shall divest himself of any direct or
indirect pecuniary interest in or dealings with cooperatives upon
his appointment.
Board of Administrators
Meeting
• Meet at least once a month for the transaction of its regular business.
• Special meetings may be called by the Chairman or majority of the
members to consider specific matters.
• A majority vote by the entire Board shall be required for a decision.
• All meetings of the Board shall be held at the head office in Metro
Manila or at any other place as may be determined by the Board.
• The Board of Administrators shall appoint an Executive Director who
shall be the chief operating officer of the Authority whose
compensation shall be fixed by the Board of Administrators.
Organization of the Authority
• CDA shall be organized within one hundred twenty (120)
days from the effectivity of this Act
Mediation and Conciliation