Cooperative Unions
Registered cooperatives and federations at the appropriate levels may organize or join cooperative unions to
represent the interest and welfare of all types of cooperatives at the provincial, city, regional, and national
levels. Cooperative unions may have the following purposes:
1. To represent its member organizations
2. To acquire, analyze, and disseminate, economic, statistical, and other information relating to its
members and to all types of cooperatives within its area of operation
3. To sponsor studies in the economic, legal, financial, social and other phases of cooperation, and
publish the results thereof
4. To promote the knowledge of cooperative principles and practices
5. To develop the cooperative movement in their respective jurisdictions
6. To advise the appropriate authorities on all questions relating to cooperatives
7. To raise funds through membership fees, dues and contributions, donations, and subsidies from
local and foreign sources whether private or government; and
8. To do and perform such other non-business activities as may be necessary to attain the foregoing
objectives.
Cooperative unions may assist the national and local governments in the latter’s development activities in their
respective jurisdictions.
COOPERATIVE MEMBERSHIP
Kinds of Membership
A regular member is one who has complied with all the membership requirements and entitled to all the
rights and privileges of membership.
An associate member is one who has no right to vote nor be voted upon and shall be entitled only to
such rights and privileges as the by-laws may provide: Provided, that an associate who meets the
minimum requirements of regular membership, continues to patronize the cooperative for two (2) years,
and signifies his/her intention to remain a member shall be considered a regular member.
Rules on Government Officers and Employees:
1. Any officer or employee of the CDA shall be disqualified to be elected or appointed to any position
in a cooperative: Provided, That the disqualification does not extend to a cooperative organized by
the officers or employees of the CDA.
2. All elective officials of the Government shall be ineligible to become officers and directors of
cooperatives: Provided, That the disqualification does not extend to a party list representative being
an officer of a cooperative he or she represents; and
3. Any government employee or official may, in the discharge of his duties as a member in the
cooperative, be allowed by the end of office concerned to use official time for attendance at the
general assembly, board and committee meetings of cooperatives as well as cooperative seminars,
conferences, workshops, technical meetings, and training courses locally or abroad: Provided, That
the operations of the office concerned are not adversely affected.
Termination of Membership
1. Withdrawal for a valid reason and giving of a sixty (60) day notice to the board of directors.
Subject to the by-laws of the cooperative, the withdrawing member shall be entitled to a refund of his
share capital contribution and all other interests in the cooperative: Provided, That such fund shall not
be made if upon such payment the value of the assets of the cooperative would be less than the
aggregate amount of its debts and liabilities exclusive of his share capital contribution.
2. The death or insanity of a member in a primary cooperative and the insolvency or dissolution of a
member in a secondary or tertiary cooperative may be considered valid grounds for termination of
membership: Provided, That in case of death or insanity of an agrarian reform beneficiary- member
of a cooperative, the next-of-kin may assume the duties and responsibilities of the original member
3. Membership in the cooperative may be terminated by a vote of the majority of all the members of the
board of directors for any of the following causes:
a. 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
b. When a member has continuously failed to comply with his obligations
c. When a member has acted in violation of the by-laws and the rules of the cooperative
d. For any act or omission injurious or prejudicial to the interest or the welfare of the cooperative.
A member whose membership the board of directors may wish to terminate shall be informed of such intended
action in writing and shall be given an opportunity to be heard before the said board makes its decision. The
decision of the board shall be in writing and shall be communicated in person or by registered mail to said
member and shall be appealable within thirty (30) days from receipt thereof to the general assembly whose
decision shall be final.
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.
Refund of Interest: All sums computed in accordance with the bylaws to be due from a cooperative to a
former member shall be paid to the member whose membership has been terminated either by the cooperative
or by the approved transferee, as the case may be.
LABORATORY COOPERATIVE
A cooperative organized by minors shall be considered a laboratory cooperative and must be affiliated with a
registered cooperative.
Purposes of a laboratory cooperative (Section 7 of CDA MC 2015-03):
1. To serve as a training ground for its members to prepare them for membership in regular cooperatives
2. To teach the values of thrift and saving mobilization among its members
3. To instill cooperative values, principles, financial discipline, business skills, and leadership skills
among its members
4. To promote and advocate Filipino social and cultural values, financial education, ecological
awareness and sustainable development
Affiliation (Section 8 of CDA MC 2015-03):
1. A laboratory cooperative shall be affiliated with a duly registered cooperative, to be known as the
Guardian Cooperative
2. A laboratory cooperative primarily composed of students from a particular school may affiliate with
the school’s cooperative, if any, or select a cooperative of its choice within its area of operation.
3. If the laboratory cooperative is composed primarily of out-of-school minors, it shall be affiliated with
a cooperative of its own choice within or nearest its area of operation.
Name (Section 11 of CDA MC 2015-03): It shall include in it name the words “Laboratory Cooperative of
(Name of Guardian Cooperative)”.
Rules Applicable:
1. A certificate of registration issued to a laboratory cooperative does not bestow upon a laboratory
cooperative a juridical personality
2. The dissolution of the Guardian Cooperative shall result in the revocation of the Certificate of
Recognition.
3. It is the Guardian Cooperative that shall be liable for any violations committed in the operation of
the laboratory cooperative.
4. Any member who reaches the age of majority has option to join the Guardian Cooperative by
signifying his/her intention to become a member upon compliance with all the requirements for
membership.
5. A Guardian Cooperative may supervise more than one laboratory cooperative.
Causes of Termination of Membership (Section 16 of CDA MC 2015-03):
1. Upon reaching the age of majority (18 years of age); and
2. Such other causes as may be provided for in the by-laws of the Guardian Cooperative and in the
Manual of Operations for the Laboratory Cooperative
GENERAL ASSEMBLY
The General Assembly refers to the full membership of the cooperative duly assembled for the purpose of
exercising the rights and performing all the obligations pertaining to cooperatives, and is considered the
highest policy-making body of the cooperative.
Composition: all members who are entitled to vote under the articles of cooperation and by-laws.
Exclusive powers which cannot be delegated:
1. \To determine and approve amendments to the articles of cooperation and bylaws;
2. To elect or appoint the members of the board of directors, and to remove them for cause. However,
in the case of the registered electric cooperatives, election of the members of the board shall be
held in accordance with its bylaws or election guidelines of such electric cooperative; and
3. To approve developmental plans of the cooperative.
Delegation of powers of the GA: only for purposes of prompt and intelligent decision-making, the general
assembly may by a three-fourths (3/4) vote of all its members with voting rights, present and constituting a
quorum, delegate some of its powers to a smaller body of the cooperative; these powers shall be enumerated
under the bylaws of the cooperative.
Meetings
Regular meeting: shall be held annually on a date fixed in the by-laws, or if so not fixed, any date within 90
days after the close of each fiscal year.
Special meeting: whenever necessary, a special meeting of the general assembly may be called at any time
by a majority vote of the board of directors or as provided for in the by-laws. A notice in writing shall be sent
one
(1) week prior to the meeting to all members who are entitled to vote.
However, a special meeting shall be called by the board of directors after compliance with the required notice
within 1 month after receipt of a request in writing from at least ten per centum (10%) of the total members who
are entitled to vote to transact specific business covered by the call.
If the board fails to call a regular or a special meeting within the given period, the Authority, upon petition of ten
per centum (10%) of all the members of the cooperative who are entitled to vote, and for good cause shown,
shall issue an order to the petitioners directing them to call a meeting of the general assembly by giving proper
notice as required by the Code or in the by-laws
In the case of a newly approved cooperative, a special general assembly shall be called, as far as practicable,
within ninety (90) days from such approval;
The Authority may call a special meeting of the cooperative for the purpose of reporting to the members the
result of any examination or other investigation of the cooperative affairs;
Notice: may be done in writing, by posting or publication or through electronic means. Note, however, that
notice of any meeting may be waived, expressly or impliedly, by any member.
Quorum: consist of at least 25% of all the members entitled to vote.
Except:
Cooperative banks: ½ plus 1
Electric cooperatives: 5% of all members entitled to vote, unless the by-laws provides otherwise
Voting system: Each member of a primary cooperative shall have only one vote.
In case of members of secondary or tertiary cooperatives, they shall have one basic vote and as many incentive
votes as provided for in the bylaws but not to exceed 5 votes.
Delegates: the votes cast by the delegates shall be deemed as votes cast by the members thereof. Voting by
proxy may be allowed by the by-laws of a cooperative other than a primary cooperative.
