Cooperative defined: ‘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, cconomic, 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 ‘Cooperative Principles (Art. 5, R.A. 9520) Every cooperative shall conduct its affairs in accordance with Filipino culture, good values and experience and the universally accepted principles of cooperation which include, ‘but are not limited to, the followin 1) Voluntary and Open Membership - Cooperatives are ‘Voluntary organizations, 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, 2) Democrtive Member Control- Coopermtives are democratic organizations that are controlled by their ‘members who actively participate in setting ther policies tnd making decisions. Men and women serving as elected representatives, drecors or officers are accountable tothe membership. In primary cooperatives, members have equal voting Fights of one-member, one-vote. Cooperatives at otter levels are organized in the same democratic manner. 43) Member Economic Parcipaion- Members contribute cquiably to, and democratically contol, the capital of their cooperatives. AI least pet of tat copia is the common property ofthe cooperative. They shal receive limited compensation o limited interest, if ny, on capital subscribed. and paid as condition of membership. Members allocate surpluses for eay oral ofthe following purposes: developing the cooperative by seting up eserves, part of which should at least be indivisible, benefiting members in proportion to thee patronage ofthe coopertive's business; and, supporting other activities approved by the membership. 4) Kotonomy and. Independence - Coopentives ere ‘auonomous, selhelp organizations contlled by their members. If dey enter into agreements with other ‘organizations inchuding government, or rise capital from ‘external sources, they shall do s0 on terms that ensure democratic contol oftheir members and maintain thelr ‘cooperative autonomy, 5) Education, Training and Information - Cooperatives shall provide education and taining for their member, elected and appointed representatives, managers, and employees, So thal they can contribute effectively rd efficiently tothe development ofthis cooperatives. 6) Cooperation Among Cooperatives - Cooperatives serve their members most effectively and strengthen the ‘cooperative movement by working together through local, raviona, regional and international stuctures. 7.) Concem for Community - Cooperatives work for the sustainable development of their communities trough policies approved by their members. (Organleation and Registration Purposes of Cooperatives (Art. 6, R.A. 9520) ‘cooperative may be organized and registered for any or all, of the following purposes: page 2 of 36 (OCT 2017) Ti) To encourage Grif and savings mobilization among the members: (@) To generate funds and extend credit to the members for productive and provident purposes {@) To encourage among members systematic production and marketing: (4) To provide goods and services and other requirements to the members; (5) To develop expertise and skills among its members: (6) To acquire lands and provide housing benefits for members; (7) To insure against losses of the members: (8) To promote and advance the economic, social and educational status of the members: (0) To establish, own, lease or operate cooperative banks, coopentive wholesale and retail complexes, insurance and agriculturaV industrial processing enterprises, and public (10) To faciinate the activities of cooperatives; (11) To sdvocate for the cause of the cooperative movements; (12) To ensure the viability of cooperatives through the ‘ilization of new technologies, (13) To encourage end promote self-help or self- ‘employment as an engine for economic growth and poverty alleviation, and (14) To undertake any and all other activities for the ‘effective and efficient mplemeatation of the provisions of this Code. (Art 6, RA. 9520) Objectives of a Cooperative (Art. 7, RA. 9520) The primary objective of every cooperative is to help improve the quality of life ofits members. Goal of cooperative ‘The cooperative shall sim to: () Provide goods and services toi members t enable them to attain increased income, savings, investments, [productivity and purchasing power, and promote among themscives equitable distribution of net surplus through ‘asim wiliztion of economies of sale coxt-sbarng (®) Provide optimum sovial and economic benefits to its members; (©) Teach them efficient ways of doing things in a cooperative (6) Prope cooperative practes and new dens in business (© Allow be vee aaa sbtaged groupe income and a increase their ownership in the wea of he nation and (9 Cooperste withthe goveenmens, other cooperatives and Peopleatctedorpaizaons 1 father he amine of Any ofthe foregoing objectives. (AR. 7) Characters of cooperatives ("Tish ee) Limited life A cooperative shal exist for & ‘icooding fifty (30) years Hom the date of repbanion (See 13) * at i. 2. thus Jel pemcoaliy-soquies uric! personaly ‘socs a certieat of region under ofl ta. (Art 16) REBT - Special Topic‘TTY. JOHNSON A! ING Numbers and qualification of organizer of primary ‘cooperative (a) Fifteen (15) or more natural persons (b) Filipino citizens, (©) Legal age (@) Having a common bond of interest (©) Actually residing or working in the intended area of operation. (©) That a prospective member of a primary cooperative must ‘have completed Pre-Membership Education Seminar (MES). Multipurpose Cooperative One which combines two (2) or more of the business activities of different types of cooperatives. (Art. 23, f, RA. 9520) (s) Newly organized primary cooperative may be registered 48 multipurpose cooperative only after compliance with the minimum requirements for multipurpose cooperatives set by the Cooperative Development Authority (CDA). (©) Single-purpose cooperative may transform into a ‘multipurpose or may create subsidiaries only after at least ‘wo (2) years of operations. (Art. 10) Requirement for registration of cooperative Every group of individuals or cooperatives intending to form 4 cooperative under this Code shall submit to the Authority Four (4) copies each of the following: 1. Articles of cooperation which shall be signed by each of the organizers and acknowledged by them if natural Prion, and by the chairpersons or secretaries, if juridical Persons, before a notary public. (Art. 14) 2. A swom statement of the treasurer clected by the subscribers showing that at least twenty-five per centum (25%) of the authorized share capital has been subscribed and at least twenty-five per centum (25%) of the total subscription has been paid: Provided, that in no case shall the paid-up share capital be less than Fifteen thousand pesos (P15,000.00). . By laws. (An. 15) 5 5 6. Economic survey, indicating therein the area of operation, the size of membership, and other pertinent data in a format provided by the Authority. (Ar.11) Content of the Article of ‘The articles of cooperation shall set forth: 1, Name of the cooperative which shall include the word cooperative; 2. Purpose or purposes and scope of business for which the cooperative is to be registered; 3. Term of existence of the cooperative; 4. Area of operation and the postal addresses of its principal office. Every cooperative shall have an official postal address to ‘which all notices and communications shall be sent. Such address and every change thereof shall be registered with the Authority, (Art. 51) 5. Names, nationality, and the postal addresses of the registrants. 6. Common bond of membership; 7. List of names of the directors who shall manage the ‘cooperative; and Page 3 of 36 JUG) Zu17 "Amount of i share capital, tbe names and residences of its contributors and a statement of whether the cooperative is primary, secondary or tertiary. (Sec 14) Content of the by-laws ‘The bylaws shall be fled at the same time as the articles of cooperation which shall provide: (@) The qualifications for admission to membership and the payment to be made or interest to be acquired as condition for the exercise of the right of membersnip; (©) The rights and liabilities of membership; (©) The circumstances under which membership is acquired, maintained and lost (@) The procedure to be followed in cases of termination of membership, (©) The conditions under which the transfer of a share or interest of the members shall be permitted; (0) The rules and procedures on the agenda, time, place and manner of calling, convening, conducting, meetings, quorum requirements, voting systems, and other matiers relative to the business affairs of the general sssembhy, board of directors, and committees; (a) The general conduct of the affairs of the cooperstive, including the powers and duties of the general assembly, the board of directors, commitiees and the officers, and their qualifications and disqualifications, (h) The manner in which the capital, may be mised and the purposes for which it can be utilized: () The mode of custody and of mrvestment of net surplus, G) The accounting and auditing sy sem, (&) The manner of lomning and becrowing including the limitations thereof, ()_ The method of distribution of net surphas; (mm) The manner of adopting, amending, repealing, and abrogating bylaws, (a) A conciliation or mediation mechanism for the amicable settlement of disputes among members, directors officers and committee members of the cooperative: and (0) Other matters incident to the parposes and activities of the ‘cooperative. (Art 15) © Fine on unpaid subscribed share capital thr i fir and reasonable under the circumstances. (A.77) © The determination of net surpies (An. 8S) Term of cooperative 1, Term - Period not exceeding fifty ($0) years from the date Of registration unless soener dssoive or unless said period 2. Extension - May be extended for periods not exceeding fifty (SO) years in any single instance by an amendment of the articles of cooperation, 3. Limitation oa extension - No extension can be made cartier than five (5) years prior w the original or ‘subsequent expiry date‘dates unless there are justifiable reasons for an earlier extension #8 may be determined by the Authority. (Art. 13, R.A. 9520) ‘Acooperaive fooned sn ‘under this Code acquires ive organized under this Juridical personality from the date the Authority issues a ‘certificate of registration under its official seal. (Art. 16) A certificate of registration issued by the Authority under its ‘official seal shall be conclusive evidence that the cooperative ‘therein mentioned is duly registered unless itis proved that the ‘registration thereof has been cancelled. (Art. 17) REBT — Special Topic