WHAT IS A COOPERATIVE?

The primary objective of every cooperative

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

COOPERATIVE (RA 9520)

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 promoting self-reliance and
harnessing people power towards the
attainment of economic development and
social justice.

What is the basic OBJECTIVE of a

cooperative?
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 WHAT ARE THE DECLARED public based on the principles of
PRINCIPLES OF COOPERATIVISM? cooperation.
1. Voluntary and open membership
7. Concern for community
(voluntarism)
- Cooperatives work the
- Membership in a cooperative is
sustainable development of their
voluntary and available to all
communities through policies
individuals regardless of their
approved by their members. This
social, political, racial or religious
is a new provision
background or beliefs.
-
2. Democratic member control
PRINCIPLE OF SUBSIDIARITY
- cooperatives are democratic
organizations that are controlled
by their members who actively
It is enshrined in the Cooperative Code
participate in setting their policies
which means that there should be no
and making decisions.
government intervention as much as
possible, and government intervenes only
- In primary cooperatives, members
when necessary.
have equal voting rights of one-
member, one-vote. Cooperatives The principle of transparency highlights
at other levels are organized in the one of the backbones of democratic
same democratic manner. societies like a cooperative.

3. Members economic participation

- Members contribute equitably to DEFINITION OF TERMS
the capital of their cooperatives.
At least part of that capital is the
common property of the Articles of Incorporation
cooperative. They shall receive
limited compensation or limited - A legal document signed by the
interest, if any on capital organizers stating the name, goals
subscribed and paid as a and objectives, place of operation
condition of a membership. of the cooperative and others.
Authorized share capital
4. Autonomy and independence
- Cooperatives are autonomous, - The amount approved by the CDA
self-help organizations controlled and set by the leaders and
by their members. members of the cooperative to
finance its business activities.
5. Cooperation among cooperatives By-laws of the cooperative
- Cooperatives serve their members
most effectively and strengthen - The rules adopted by a
the cooperative movement by cooperative for the management
working together through local, and regulation of its members and
national, regional, and its activities.
international structures. Dynamic
- Having a lot of ideas and
6. Cooperative education (education, enthusiasm, energetic and
training, and information) forceful; active
- All cooperatives shall make Economic Feasibility
provision for the education of
their members, officers, and - The practicality or workability of a
employees, and of the general cooperative with regards to the

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 economic situation in a
community.
REPRESENTATIVE ASSEMBLY
Economic survey
- The full membership of a body of
- A statement describing the representatives elected by each of
structure, purposes and economic the sectors, chapters, or districts
feasibility of the proposed of the cooperative duly assembled
cooperative. for the purpose of exercising such
powers lawfully delegated unto
Paid-up shares
them by the general assembly in
- The number of subscribed shares accordance with its bylaws.
paid by a member.
Pledged shares Officers of cooperatives

- The number of shares that a - Included the members of the

member will subscribe. board of directors, members of the
different committees created by
Thrift
the general assembly, general
- The careful use of money, manager or chief executive officer,
especially by avoiding waste. secretary, treasurer and members
holding other positions as may be
MEMBERS provided for in their bylaws.
- A person either natural or
juridical who adhering to the SOCIAL AUDIT
principles set forth in this code
and in the Articles of Cooperative, - A procedure wherein the
has been admitted by the cooperative assess its social
cooperative as member. impact and ethical performance
vis-à-vis its stated mission, vision,
GENERAL ASSEMBLY goals and code of social
- Shall mean the full membership of responsibility for cooperatives to
the cooperative duly assembled be established by the authority in
for the purpose of exercising all consultation with the cooperative
the rights and performing all the sector.
obligations pertaining to
cooperatives, as provided by this - It enables the cooperative to
code, its Articles of cooperation develop a process whereby it can
and by-laws: provided, that for account for its social performance
cooperatives with numerous and and evaluate its impact in the
dispersed membership, the community and be accountable
general assembly may be for its decisions and action s to its
composed of delegates elected by regular members.
each sector, chapter or district of
the cooperative in accordance Committee
with the rules and regulations of
the CDA. - Refer to anybody entrusted with
specific functions and
responsibilities under the bylaws
BOARD OF DIRECTORS or resolution of the general
assembly or the board of
- Shall mean that body entrusted directors.
with the management of the
affairs of the cooperative under its
Articles of cooperation and by- Registration
laws.

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 - Means the operative act granting - Refers to any organization all or
juridical personality to a proposed majority of whose membership or
cooperative and is evidenced by a shareholders come from a
certificate of registration. cooperative, organized for any
other purpose different from that
of, and received technical,
COOPERATIVE DEVELOPMENT managerial and financial
AUTHORITY (CDA) assistance from, a cooperative, in
accordance with the rules and
- The government agency in charge
regulations of the Authority.
of the registration and regulation
o Inter-regional – shall refer
of cooperatives as such
to the cooperative’s area of
hereinafter referred to as the
operation covering two or
authority.
more regions in not more
than two (2) islands;

UNIVERSALLY ACCEPTED PRINCIPLES

- The body of cooperative principles TYPES OF COOPERATIVES
adhered to worldwide by 1. Credit Cooperative
cooperatives.
- Promotes thrift and savings
among its members and create
funds in order to grant loans for
PERFORMANCE AUDIT productive and provident
- Refer to an audit on the efficiency purposes.
and effectiveness of the - It undertakes saving and lending
cooperative as a whole; its services among its members.
management and officers; and its - It generates common pool of funds
various responsibility centers as in order to provide financial
basis for improving individual assistance to its members.
team or overall performance and
for objectively informing the
general membership on such 2. Consumer Cooperative
performance. - The primary purpose is to procure
and distribute commodities to
members and non-members.
A Single-Line or Single-Purpose
cooperative
- Include cooperative undertaking 3. Producers cooperative
activities which are related to its - It is formed and operated by its
main line of business or purpose; members to undertake the
production and processing of raw
*can single-purpose can be multi-purpose? materials or goods produced by its
YES AFTER 2 YEARS members into finished or
Service cooperatives processed products for sale by
the cooperative to its members
- Those which provide any type of and non-members.
service to its members, including
but not limited to, transport, - Any end product or its derivative
information and communication, arising from the raw materials
insurance, housing, electric, produced by its members, sold in
health services, education, the name and for the account of
banking, and savings and credit; the cooperative, shall be deemed a
product of the cooperative and its
members. It undertakes joint
Subsidiary cooperative
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 production whether agricultural
or industrial.
11. Education Cooperative
4. Marketing Cooperatives
- Organized for the primary
- Engages in the supply of
purpose of owning and operating
production inputs to members
licensed educational institutions
and markets their products.
notwithstanding the provisions of
5. Service Cooperatives
Republic Act No. 9155, otherwise
- Engages in medical and dental
known as the Governance of
care, hospitalization,
Basic Education Act of 2001.
transportation, insurance,
housing, labor, electric light and
power, communication and other
12. Electric Cooperative
services.
- Organized for the primary
purpose of undertaking power
6. MULTI-PURPOSE COOPERATIVES
generations, utilizing renewable
- Combines two (2) or more of the
energy sources, including hybrid
business activities of these
systems, acquisition and
different types of cooperatives.
operation of sub-transmission or
distribution to its household
members.
NEW TYPES OF COOPERATIVES
7. Advocacy Cooperative
- A primary cooperative which 13. Financial Service
promotes and advocates Cooperative
cooperativism among its members -One organized for the primary
and the public through socially- purpose of engaging in savings and
oriented projects, education and credit services and other financial
training, research, and services.
communication, and other similar
activities to reach out to its
intended beneficiaries. 14. Fishermen Cooperative
- Organized by marginalized
8. Agrarian Reform Cooperative fishermen in localities whose
- Organized by marginal farmers products are marketed either as
majority of which are agrarian fresh or processed products;
reform beneficiaries for the
purpose of developing an 15. Health Services Cooperative
appropriate system of land - Organized for the primary
tenure, land development, land purpose of providing medical,
consolidation or land dental and other health services.
management in areas covered by
agrarian reform.
16. Housing Cooperative
9. Cooperative Bank - Organized to assist or provide
- Organized for the primary access to housing for the benefit
purpose of providing a wide range of its regular members who
of financial services to actively participate in the savings
cooperatives and their members. program for housing.
- It is co-owned and controlled by
10. Dairy Cooperative its members.
- One whose members are engaged
in the production of fresh milk
which may be processed and/or 17. Insurance Cooperative
marketed as dairy products.

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 - Engaged in the business of
insuring life and poverty of
21. Agrarian Reform
cooperatives and their members.
Cooperatives
Article 88. definition and purpose:
18. Transport Cooperative
- An Agrarian Reform Cooperative
- Includes land and sea
is one organized by marginal
transportation, limited to small
farmers, majority of which are
vessels, as defined or classified
agrarian reform beneficiaries, for
under the Philippine maritime
the purpose of developing an
laws, organized under the
appropriate system of land
provisions of this code;
tenure, land development, land
consolidation or land
management in areas covered by
19. Wate service Cooperative
agrarian reform.
- Organized to own, operate and
manage waters systems for the
provision and distribution of
22. Financial service
portable water for its members
Cooperatives
and their households.
ARTICLE 119. DEFINITION AND
FUNCTION:
- A financial organization owned by
20. Workers Cooperative
its members and authorized to
- Organized by workers, including
provide services exclusively to
the self-employed, who are at the
its members.
same time the members and
- Its service are:
owners of the enterprise. Its
o The functions of credit
principal purpose is to provide
cooperatives and other
employment and business
cooperatives, including
opportunities to its members and
multi-purpose
manage it in accordance with
cooperatives, that provide
cooperative principles.
savings and credit to their
members; and
o Other financial services
subject to regulation by the
BSP.

ORGANIZING A COOPERATIVE
Any newly organized primary cooperative
may be registered as multipurpose
cooperative only after compliance with the
minimum requirements for the
multipurpose cooperative.

A single-purpose cooperative may

transform into a multipurpose or may
create subsidiaries only after atleast two (2)
years of operation. (RA 9520, ART. 10)
COOPERATIVE BANKS
Art. 97. Organization, membership and
establishment of a Coop Bank.

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 (1) Cooperative organizations duly Art. 5. On the definition of terms, the term
established and registered under this FEDERATION OF COOPERATIVE has been
code may organize a cooperative added which essentially means:
bank, which shall likewise be
“three or more primary cooperatives
considered a cooperative registrable
doing the same line of business organized
under the provisions of this code
from the municipal to the provincial level
subject to the requirements and
registered with the CDA to undertake
requisites authorization from the
business activities in support of its
BSP.
members.”
General Rule:
Only one cooperative bank may be
FUNCTIONS OF THE FEDERATION
established in each province:
COOPERATIVE
Exception:
I. To carry on any cooperative
That an additional cooperative bank may be enterprise authorized under
established in the same province to cater Article 6 that complements
the needs of the locality depending on the augments or supplements but
economic conditions of the province as may does not conflict, complete with,
be determined by the BSP; provided, nor supplant the business or
further, that the additional cooperative economic activities of its
bank shall be located in the city or members;
municipality other than the city or II. To carry on, encourage, and assist
municipality where the first cooperative educational and advisory work
bank is located. relating to its member
cooperatives;
III. To render services designed to
CATEGORIES OF COOPERATIVES encourage simplicity, efficiency,
(ART.23) and economy in the conduct of
business of its member
According to membership and territory, the
cooperatives and to facilitate the
following are the categories of cooperatives:
implementation of their
in terms of membership
bookkeeping, accounting, and
1. Primary cooperatives other systems and procedures;
- The members of which are natural IV. To print, publish, and circulate
persons of legal age; any newspaper or other
2. Secondary Cooperative publication in the interest of its
- The members of which are member cooperatives and
primaries enterprises.
3. Tertiary cooperative V. To coordinate and facilitate the
- The members of which are activities of its member
secondary cooperatives. cooperatives;
Cooperatives whose members are VI. To enter into joint ventures with
cooperatives are called the national or international
federations and unions. cooperatives of other countries in
the manufacture and sale of
In terms of territory, cooperatives are products and/or services in the
categorized according to areas of operation, Philippines and abroad; and
which may or may not coincide with the VII. To perform such other functions
political subdivision of the country. as may be necessary to attain its
objectives.

FEDERATION OF COOPERATIVES
FEDERATION vs SUBSIDIARY vs MULTI-
PURPOSE COOPERATIVE

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Federation FUNCTIONS OF COOPERATIVE UNIONS
- Three or more PRIMARY I. To represents its members
COOPERATIVE doing the same organization
line of business organized from II. To acquire, analyze, and
the municipal to the provincial disseminate, economic,
leel registered with the CDA to statistical, and other information
undertake business activites in relating to its members and to all
support of its members. types of cooperatives within its
area of operation.
Subsidiary Cooperative
III. To sponsor studies in the
- Refers to any organization all or economic, legal, financial, social
majority of whose membership or and other phases of cooperation,
shareholders come from a and publish the result thereof
cooperative, organized for any IV. To promote the knowledge of
other purpose different from cooperative principles and
that of, and receives technical, practices
managerial and financial V. To develop cooperative movement
assistance from, a cooperative, in in their respective jurisdictions
accordance with the rules and VI. To advise the appropriate
regulations of the authority. authorities on all questions
relating to cooperatives
Multi-purpose VII. To raise funds through
- It combines two (2) or more of the membership fees, dues and
business activites of these contributions xxx
different types of cooperatives. VIII. To do and perform such other
non-business activities xxx

COOPERATIVE UNIONS
MEMORADUM CIRCULAR NO. 2020-24
It is a cooperative the members of which are SERIES OF 2020
registered cooperatives and/or federations
organized purposely to represent the ORGANIZATION AND REGISTRATION
interest and welfare all types of OF FEDERATION OF COOPERATIVES
cooperatives at the provincial, city, Section 1. MEMBERSHIP
regional, and national levels.
Members of the federation shall consist of
cooperatives engaged in the same line or
type of business as specified in its Articles
of Cooperation and bylaws.

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.
Section 2. AUTHORIZED, SUBSCRIBED
AND PAID-UP CAPITAL
2.1. the authorized share capital of a
cooperative shall be provided for in its
Articles of cooperation. At least twenty-five
percent (25%) of the authorized share
capital shall be subscribed by the members
and at least twenty-five percent (25%) of the

8
subscribed share capital shall be paid by more regions in Luzon, Visayas,
the members prior to registration. and Mindanao.

b. INTER-REGIONAL – the
2.2. for federation of cooperatives, the members shall come from two
minimum paid-up share capital shall be (2) or more regions.
PHP 1,000,000.00 or the amount required
in the feasibility study, whichever is c. REGIONAL – the members
higher. shall come from the majority of
the provinces in the region
For tertiary cooperatives, the minimum
paid-up share capital is PHP
d. PROVINCIAL – the members
5,000,000.00, or the amount required in
shall come from the majority of
the feasibility study, whichever is higher.
the cities / municipalities in the
province.
There shall only be one
COOPERATIVE UNIONS cooperative union in a
Cooperative union province

Refer to a cooperative the members of e. CITY / MUNICIPALITY – the

which are registered cooperatives and/or members shall come from the
federations organized purposely to city/municipality.
represent the interest and welfare of all There shall only be one
types of cooperatives at the city, provincial, cooperative union in a city/
regional, and national levels. municipality.

Sectoral Union of Cooperatives Section 7. REGISTRATION

Refer to a cooperative union catering JURISDICTION
to the interest and welfare of a particular A cooperative union shall be
sector of registered cooperatives and/or registered in the CDA Regional Office
federations at the city, provincial, regional, where its principal office is located.
and national levels.

Section 9. REGISTRATION FEE

*A cooperative union is a non-profit
umbrella organization wherein all types of The registration fee to be paid by the
cooperatives converge for the promotion, proposed cooperative union shall be in the
development and progress of traditions of amounts prescribed below:
cooperatives in the country. It is the heart CATEGORY AMOUNT
and soul of cooperative movement, a National PHP 3,000.00
structure which embodies and maintains
the values, beliefs, principles, philosophy Inter-regional and PHP 2,000.00
and spirit of cooperativism in the country. regional
PHP 1,000.00
Provincial,
Section 2. MC No 2020-23. city/municipality
ORGANIZATION OF COOPERATIVE
UNION Section 3. REPORTORIAL
The cooperative union shall be organized REQUIREMENTS
according to the following territorial Within one hundred twenty (120)
considerations: days after the end of each fiscal year, the
a. NATIONAL – the members shall cooperative union shall submit the
come from at least three (3) or following:

9
 1. Cooperative Annual Progress Report 4. Prepare the cooperative by/laws
(CAPR) with the following 5. Prepare the article of cooperation
attachments: 6. Secure bond of accountable
a. Audited Financial Statements officers(s)
(AFS) 7. Execute Treasurers Affidavit
b. List of Officers and Trainings 8. Complete the Pre-Membership
Undertaken/completed; Education Seminar (PMES)
c. Social Audit Report; 9. Register your cooperative at the
d. Governance and Management Cooperative Development Authority
report (CDA) and pay the registration fee
e. Semi-annual Reports on
Meditation and Conciliation;
f. List of affiliated and
cooperatives which have
What are the GENERAL requirements in
remitted their respective
registering a Cooperative?
CETFs;
g. Business consultancy You will need FOUR (4) COPIES of each of
assistance rendered, the following –
specifying the nature and cost,
including the use of CEFT; (1) Economic survey
h. Other training activities - A statement describing the
undertaken, specifying the structure, purposes and economic
nature, participants, and cost feasibility of the proposed
of each activity; and cooperative.
2. Annual Tax Incentive Report
(2) Articles of Cooperation and By-Laws
REQUIREMENTS FOR REGISTRATION a. Articles of Cooperation duly
notarized (with seal and
Minimum number of members
Federation – 3 signature of notary public)
Primary UNION o A legal document signed by
cooperatives 10 Primary and/or each of the organizers. It
federations states the name of the
Tertiary – 3 cooperative goals and
secondary objectives, the place of
cooperatives operation, list of
Minimum paid-up share incorporators and other
Federation Tertiary information
Php 1,000,000.00 Php 5,000,000.00 b. By-Laws of the cooperative
Registration fee o Sets of rules adopted by a
Federation Tertiary cooperative for the
management and
1/10 of 1% of the 1/10 of 1% of the
regulation of its members
total paid-up share total paid-up share
and its activities.
capital or Php capital or Php
2,000 whichever is 5,000 whichever is
higher higher (3) Surety bond of accountable officers
(4) Treasurer’s affidavit
- Sworn statement of the treasurer
Basic steps to create duly notarized showing that at
1. Get organized. You must have at least 25% of the authorized share
least fifteen (15) members to do that. capital; and at least 25% of the
Form a dedicated core group total subscription has been paid.
2. Reserved your proposed cooperative The paid-up capital must not be
name less than Php 2,000.00 (now Php
3. Prepare a general statement called 15,000.00)
economic survey in your (5) Approved Cooperative Name
community Reservation Slip
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 (6) Certificate of PMES Step 5: processing, review and approval of
application
Step 6: submission of hard copies of
The other requirements for the
documents
registration of cooperative
Step 7: payment of Assessed fees (online pyt
a. Economic survey through landbank/ pyt thru CDA treasury)
b. By-Laws
c. Article of Cooperation Step 8: issuance of certificate of registration
d. Three (3) years projected financial
statement:
a. Income Statement MEMORANDUM CIRCULAR NO. 2021-12
b. Balance sheet AMENDMENT TO STEP 8. SECTION 5 OF
c. Cash flow MEMORANDUM CIRCULAR NPO. 2020-
e. Organizational structure 20, S-2020
f. Sketch Map (specifying the proposed
office location of the cooperative) To facilitate the issuance of certificate of
g. Certificate (certifying that core compliance to newly registered
management team and internal cooperatives under the Electronic
control system has been appointed Cooperative Registration Information
and installed) System (E-CoopRIS). Step 8 of section 5 of
h. Certificate of Pre-Membership Memorandum Circular No. 2020-20, S-
Education Seminar (PMES) 2020, titled “Guidellines Governing the
i. Undertaking to submit reportorial registration of Cooperatives Through the
requirements and to change name Electronic Registration Information System
j. Verification slip and fee Php 50.00 (E-CoopRIS)”, is hereby amended to read as
follows:
ONLINE REGISTRATION Section 5. Procedure for Online
MEMORANDUM CIRCULAR NO. Registration of New Cooperative
2020-20
Step 8. Issuance of certificate of
Pursuant to RA 11364, the authority registration and certificate of
hereby issues the following guidelines compliance
governing the registration of cooperatives
and other related processes through the The authority through the registration
Electronic Cooperative Registration division shall issue the certificate of
Information System (E-CoopRIS). registration and certificate of compliance
upon confirmation, in case of online payment
or upon the issuance of official receipt, if
E-CoopRIS payment is through the CDA treasury.

A web-based information system

that provides an online platform for What are the GENERAL requirements in
cooperative name reservation, evaluation, registering a Cooperative?
and approval of application for new
registration, amendments and recognition -Sworn statement of the treasurer duly
of branch/satellite/laboratory. notarized showing that at least 25% of the
authorized share capital has been
subscribed, and at least 25% of the total
Procedure for Online registration of New subscription has been paid. The paid up
Cooperative capital must not be less than PHP
15,000.00.
Step 1: Account creation
- Should preferred share capital be
Step 2: Application type provided in their By-Laws, it shall not
Step 3: cooperative reservation form exceed 25% of the total authorized share
capital of the cooperative.
Step 4: cooperative’s information
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*finally, for both common and preferred COOPERATIVE CORPORATION
share capital, no fractional shares shall be CODE (ART. 14) CODE (SEC. 14-15)
issued. ARTICLES OF ARTICLES OF
COOPERATION INCORPORATION
All cooperatives Corporations shall
COOPERATIIVE OLD shall file with the file with SEC
CODE (ART. 14) COOPERATIVE Cooperative
CODE (SEC.13) Development
CAPITAL NO Authority the
SUBSCRIPTION COUNTERPART articles of
AND PAID-UP cooperation
CAPITAL REMOVED
REQUIREMENT The Articles of NOW -both natural
Cooperation shall and juridical
At least twenty-five be signed by each persons are allowed
per cetum (25%) of of the organizers
the authorized and acknowledged
share capital must by them if natural
be subscribed persons, and by
the chairpersons
At least twenty-five or secretaries, if
per centum (25%) juridical persons,
of the total before a notary
subscription has public
been paid

In no case shall the

paid-up share
capital be less than
Fifteen thousand
pesos (15,000.00)

*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
*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;

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 What does the Article of Cooperation 3. The condition for transfer of a share
Contain? of interest
4. The rules and procedures covering
The Article of cooperation is a duly
the agenda, time, place, and manner
notarized document that legally binds all
of calling, convening, conducting
the signatories in the formation of a
meetings, quorum requirements,
cooperative.
voting system and other matter
It should contain: related to the business affairs of the
general assembly, board of directors,
1. The name of cooperative which shall
and committees;
include the word “cooperative”
5. The general conduct of the affairs of
2. The purpose or purposes and scope
the cooperative, including the powers
of business
and duties of the general assembly,
3. The term of existence of the
board of directors, committees and
cooperative (not more than 50 years);
other officers and their qualifications
4. The area of operation and the postal
and disqualifications
address of the registrants
6. The manner in which capital may be
5. The common bond of membership
raised and purposes for which it can
6. The list of names of the directors who
be utilized;
shall manage the cooperative; &
7. The mode of custody and of
7. The amount of its share capital, the
investment of net surplus
names and residences of its
8. The accounting and auditing systems
contributors and a statement of
9. The manner and limitations of
whether the cooperative is primary,
loaning and borrowing, including
secondary, or tertiary in accordance
limitations
with Article 23 of R.A. 6938
10. The method of distribution of
net surplus
11. The manner of adopting,
COOPERATIVE BY-LAWS (SEC.15) amending, repealing, and abrogating
Each cooperative shall adopt by-laws not by-laws; a conciliation or mediation
inconsistent with the provisions of the mechanism for the amicable
code. settlement of disputes among
members; directors, officers and
ByLaws (sec.15) RCC By-Laws committees; and
(Sec.45) 12. Other matters pertaining to the
The bylaws shall be May be filed before
purposes and activities of the
filed at the SAME or after
cooperative
TIME as the articles
of cooperation Vote required to
approve

ECONOMIC SURVEY
A general statement describing the
structure, purpose, economic feasibility of
the proposed cooperative, area of operation,
What are the cooperative bylaws? size of membership and other pertinent
data. It is, in fact, a project feasibility
By-laws are the set of rules that defines study.
how a cooperative is to be run without
confusion. It must contain the ff: The structure describes the kind of
cooperative being set up, whether it is
1. The qualifications for membership; primary, secondary, or tertiary and
how they are acquired, maintained whether it is a credit, consumer transport
and lost; or any other type of coop.
2. The rights and liabilities of members

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The purpose defines the primary, - Name,
secondary and other objectives of the citizenship - Board of
cooperative. and directors
address of , general
The area of operation merely indicates each assembl
the geographical or sectoral scope of the incorporato y
coop. for example, a cooperative may r
operate in, says Cebu city; it is important - Sources
to set limits to the coop’s scope like - Common of funds
farmers. This is closely related to bond of
cooperative structure. membershi - Custody
p and
investme
- People nt of net
*the most important part of the survey
managing surplus
is the ECONOMIC FEASIBILITY. the
Here the prospective coop member estimate cooperative - Accounti
the incomes and expenses of the ng and
cooperative. It makes a projection of the - Amounts auditing
pledged systems
feasible growth pattern of the coop over a
certain period and how these growths
- Manner
generate income and expenses. It tries to of
anticipate possible obstacles and lending
constraint and allowances for them and
borrowin
g
ECONOMIC SURVEY (ART.11)
- Adopting
Every group of individuals or cooperatives and
intending to form a cooperative under this amendin
code shall submit to the Authority a g by-
general statement describing, among laws
other the Structure and Purposes of the
proposed cooperative: provided, that the -
Settleme
structure and actual staffing pattern of nt of
the cooperative shall include a disputes
bookkeeper; provided, further, that they If ayaw mag issue ang COI =MANDUS
shall not be allowed to operate without the Where to register your cooperative
necessary personnel and shall also submit
an economic survey, indicating therein the The Cooperative Development Authority
(CDA) is the only government agency
(1) Area of operation mandated to register all types of
(2) Size of membership cooperatives.
(3) Other pertinent data in a format
provided by the Authority - Its main office is located at 5th
and 6th floors, Ben-Lor
Articles of By-Laws or Laws building, 1184 Quezon Avenue,
Cooperation of the Coop. Quezon City.
- Name of the - Goals
cooperative and To facilitate the flow of its services,
objective extension offices have been set up. These
- Scope of s are located in:
operation/
place - Member (a) Dagupan City
ship (b) Tuguegarao, Cagayan
- Terms of (c) Baguio City
existence - Meetings (d) San Fernando, pampanga
and (e) NCR-Quezon City
election (f) Calamba, Laguna
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 (g) Naga City extended or the
(h) Iloilo city corporation is sooner
(i) Cebu dity dissolved in
accordance with law.
(j) Kidapawan
(k) Tacloban city
(l) Davao city LIABILITY (ART.12)
(m) Zamboanga city Cooperative Code Corporation Code
(n) Butuan city a cooperative duly Doctrine of corporate
registered under this Fiction (Sec. 2 BP68)
HOW? REGISTRATION 60/90/90 code shall have
COOPERATIVE DEVELOPMENT limited liability (RA TRUST FUND
9520, ART.112) DOCTRINE
AUTHORITY
A cooperative formed and organized
under this code acquires juridical WHO MAY ORGANIZED?
personality from the date the Authority
issues a certificate of registration under COOPERATIVE CORPORATION
CODE (ART.10) CODE (SEC. 10)
its official seal Fifteen (15) or more Natural persons
natural persons
Who are Filipino X citizens of the
All applications for registration shall be citizens Philippines X
finally disposed of by the Authority within Of legal age X of legal age X
a period of sixty (60) days from the filing Having a common Owners of at least
bond of interest one share
thereof, otherwise the application is
Actually residing or X majority are
deemed approved, unless the cause of the working in the residents of the
delay is attributable to the applicant. intended area of Philippines X
operation
-remedy is mandamus Other requirement Capacity to contract
CDA to OFFICE OF THE PRESIDENT A prospective
member of a primary
In case of a denial of the application for cooperative must
registration, and appeal shall lie with the have completes a
Pre-Membership
Office of the President within ninety (90) Education Seminar
days from receipt of notice of such denial (PMES)
Failure of the Office of the president to act on
the appeal within ninety (90) days from the LIABILITY OF MEMBERS (Art.29)
filing thereof shall mean APPROVAL of the said
application. A member shall be liable for the debts of the
cooperative to the extent of his contribution
to the share capital of the cooperative
CERTIFICATE OF REGISTRATION TERM
COOPERATIVE CORPORATION COOPERATIVE CORPORATION
CODE (ART.17) CODE (SEC.19) CODE CODE
A certificate of A certificate of ORIGINAL TERM A corporation shall
registration issued incorporation is have perpetual
by the authority issued under its Period not existence unless its
under its official seal official seal; and exceeding fifty (50) Articles of
shall be conclusive thereupon the years from the date Incorporation
evidence that the incorporators, of registration unless provides otherwise
cooperative therein SHs/Ms and their sooner dissolve or
mentioned is duly successors shall unless said period is
registered unless it is constitute a body extended
proved that the politic and corporate EXTENSION X not exceeding fifty
registration thereof under the name (50) years in any
has been cancelled. stated in AOI for the Term may be single instance by an
period of time extended for periods amendment of the
mentioned therein. not exceeding fifty AOI X
Unless said period is (50) years in any
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single instance by an CONTRACTS EXECUTED PRIOR TO
amendment of the REGISTRATION AND EFFECTS THEREOF
articles of
cooperation COOPERATIVE CORPORATION
LIMITATION xX no extension can CODE CODE
be made earlier than Contracts executed
No extension can be 5 years prior to the between private
made earlier than original or persons and
five (5) years prior subsequent expiry cooperatives prior to Similar provision
to the original or date UNLESS for the registration of the
subsequent expiry justifiable reason for cooperative shall
date/dates unless an earlier extension remain valid and
there are justifiable as may be binding between the
reasons for an earlier determined by SEC parties and upon
extension as may be registration of the
determined by the cooperative
Authority (RA 9520.
ART 13) A formal written
contact shall be
adopted and made in
AMENDMENT OF ARTICLES OF the cooperative’s
COOPERATION AND BYLAWS name or on its behalf
prior to its
COOPERATIVE CORPORATION registration
CODE CODE
Unless otherwise
prescribed by this DIVISION OF COOPERATIVES
code and for Majority of the BOD
legitimate purposes, and 2/3 with OCS COOPERATIVE CORPORATION
any provision of CODE CODE
matter stated in the Any registered
Articles of cooperative may, by a
cooperation and by- resolution approved
laws may be by a vote of three-
amended by two- fourths (3/4) of all NO similar
thirds (2/3) vote of the members with provision
all the members voting rights,
with voting rights, present and
without prejudice to constituting a
the right of the quorum, resolve to
dissenting members divide itself into the
to exercise their right two (2) or more
to withdraw their cooperatives. XxX:
membership under Provided, that all the
Article 30 requirements set
forth in this Code
The amendments have been complied
shall take affect upon with by the new
its approval by the Upon approval by cooperatives:
authority or within SEC Provided, further,
thirty (30) days that no division of a
from the date filing cooperative in fraud
thereof if not acted of creditors shall be
upon by the valid
Authority for a cause
not attributable to VOTING REQUIREMENTS
the cooperative
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 exercise their right to withdraw
their membership under article 30

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VOTE TO DIVIDE COOP CAN GOVERNMENT OFFICERS AND
EMPLOYEES JOIN A COOPERATIVE?
Any registered cooperative may, by a resolution
approved by a vote of three-fourths (3/4) of all Yes, provided that:
the members with voting right, present and
1. Any officer or employee of the CDA shall
constituting a quorum, resolve to divide itself
be disqualified to be elected or
into the two (2) or more cooperatives.
appointed to any position in a
cooperative;
2. All elected officials of the government
WHO MAY BE MEMBERS? ART.26
shall be ineligible to become officers
New members may only be admitted to the and directors of the cooperative;
cooperative after undergoing Pre-Membership 3. Any government employee or official
Education Seminar. There are two kinds of may, in the discharge of his duties as
members: member in the cooperative, use his
official time provided that the operations
A. Regular Members of the office where he works are not
- Entitled to all rights and privileges of adversely affected
membership, including the right to 4. That the disqualification does not extend
vote and be voted upon. to a party list representative being an
B. Associate Members officer of a cooperative he or she
- Has no right to vote nor be voted represents.
upon and shall be entitled only to
such rights and privileges as the POLICY ON THE CANDIDACY OF AN
bylaws may provide OFFICER OF A COOPERATIVE IN THE
NATIONA OR LOCAL ELECTION
However, an associate member shall be
considered a regular member if: Issue No. 1. On the prohibition for the
cooperative or any officer of the cooperative to
a. He has been a member for 2 engage in any election campaign or partisan
continuous years political activity to support any election
b. He patronizes the cooperative as candidate or party-list organization using the
its member; and mandatory cooperative funds and other funds
c. He signifies his intention of of the cooperative.
becoming a regular member
Answer: Section 5 MC 2022-06 says “it shall be
A member shall be liable for the debts of the prohibited for the cooperative or any officer of
cooperative to the extent of his contribution to the cooperative to engage in any election
the share capital of the cooperative campaign or partisan political to support any
election candidate or party-list organization
using the mandatory cooperative funds and
KINDS OF MEMBERSHIP other funds of the cooperative

A cooperative organized by minors shall be

considered a LABORATORY COOPERATIVE
and must be affiliated with a registered RIGHTS AND DUTIES OF MEMBERS
cooperative. A cooperative may assist in the The rights and duties of a members are to:
organization of a laboratory cooperative of 15
or more individuals who are minors who may a. Participate in decision-making
be students or out of school minors, Filipino during assemblies and/or
citizens and are actually studying or residing meetings
within the nearest area of operation at the b. Vote on all matters brought to the
intended guardian cooperative (given a attention of the assembly
certificate of Recognition) c. Seek any elective position, if
qualified
Guardian Cooperative d. Receive interest on capital and
- Refers to a duly registered patronage refund
cooperative to which a laboratory e. Inspect and examine the books,
cooperative is affiliated with. accounts, minuted of meetings
and other records, and
f. Exercise all the rights and
privileges granted to members
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LIABILITY OF MEMBERS - Deatch or
insanity of a
A member shall be liable for the debts of the member in a
cooperative to the extent of his contribution to primary
the share capital of the cooperative cooperative

- Insolvency or
He is not personally liable beyond his dissolution of
contribution (Sec. 29) a member in a
secondary or
tertiary
cooperative
WHO MAY BECOME MEMBERS OF A may be
COOPERATIVE? 30/30 grounds for
termination
- If you are a Filipino, of legal age, you
of
can be a coop member if you meet the
membership
qualification s prescribed by the
coop’s by laws.
TERMINATION OF MEMBERSHIP
*WITHDRAWAL
- An applicant for membership is
refused or denied by the board of a member of a cooperative may, for any
directors, an appeal (30) days may reason withdraw his membership from the
be made to the general assembly cooperative by giving sixty (60) days notice to
and the latter’s decision shall be the board of directors;
final

- The death, insanity. Insolvency, or

- For this purpose, the general dissolution of a member shall be
assembly may opt to create an appeal considered an automatic termination
and grievance committee, the of membership
members of which shall serve for a
*TERMINATION
period of one (1) year and shall decide
appeals on membership application - a member may be terminated by a vote of
within thirty (30) days upon receipt majority of all members of the Board of
thereof.. if the committee fails to Directors, For any of following causes;
decide within the prescribed period,
the appeal is DEEMED APPROVED a. when a member has not patronized the
IN FAVOR OF THE APPLICANT services of the cooperatives for an
unreasonable period of the time as may be fixed
by the board of directors;
WITHDRAWAL OF MEMBERSHIP
b. when a member has continuously failed to
COOPERATIVE CODE CORPORATION comply with his obligations
CODE
- Any valid c. when a member has acted in violation of the
reason by-laws and the rules of the cooperative
d. for any act or omission injurious or
- Sixty (60) day
prejudicial to the interest or the welfare of the
notice to the
board of The moments the cooperative
directors SH cease to own
at least one share
- Entitled to a APPEAL FROM TERMINATION
refund of his
share capital The decision of the board shall be in writing
contribution and shall be communicated in person or by
and all other registered mail to said member and shall be
interests in appealable within thirty (30) days from
the receipt thereof to the general assembly whose
cooperative decision shall be final

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The general assembly* may create an APPEAL
AND GRIEVANCE COMMITTEE whose
members shall serve for a period of one (1) year
and shall decide appeals on membership
termination. The committee is given Thirty (30)
days from receipt thereof to decide on the
appeal. Failure to 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.

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