PREPARED BY: CATHERINE B.

BOLINTIAM
 INTRODUCTION
WITH A JURIDICAL SUBSTANCE, A COOPERATIVE IS COMPARABLE TO
A CORPORATION. HOWEVER, WHILST CORPORATIONS ARE REGISTERED AND
SUPERVISED BY WAY OF THE SECURITIES AND EXCHANGE COMMISSION
(SEC), COOPERATIVES ARE REGISTERED AND SUPERVISED BY MEANS OF THE
COOPERATIVE DEVELOPMENT AUTHORITY (CDA). AND THIS IS IN
ACCORDANCE TO THE PHILIPPINE COOPERATIVE CODE OF 2008 (REPUBLIC
ACT NO. 9520). ORGANIZING A COOPERATIVE CAN BE COMPLEX AND
SIMPLE, AND IT REQUIRES AN UNDERSTANDING OF THE BASIC NEEDS OF
T H E M E M B E RS A S W E L L A S T H E P E R T I N E N T D O C U M E N T S T H AT
COOPERATIVES MUST COMPLY TO MAKE ITS BUSINESS OFFICIAL. THUS, IN
ORDER TO BECOME REGISTERED, THERE ARE STEPS TO CONSIDER THAT
SERVE AS GUIDE IN ESTABLISHING COOPERATIVES.
 OBJECTIVES
At the end of the topic, students are expected to:

Understand the steps in establishing a cooperative;

Find out what are the proofs that cooperatives are already confirmed
registered; and

Learn what are the pertinent documentary requirements to prepare during

the establishment of the cooperative.
 STEPS IN ESTABLISHING A COOPERATIVE
Get organized.
You must have at least 15 members to do that. At once determine
the common problems you would want solved and the basic needs you
would want provided for through a cooperative. You may want to include
increasing your production, marketing your produce, credit assistance,
power generation, banking or insurance and other similar needs.
Determining your problems and needs will also help you classify the kind of
cooperative you will be organizing. Even before a cooperative is set up, a
dedicated core group people who will do all the organizational and paper
works is a must. From this core group, working communities may be
formed to set things moving. These committees may include membership,
finance, executive, secretariat to name a few.
Prepare a general statement called an
economic survey.
This statement will help you
measure your cooperative’s chances of
success.
Draft the cooperative’s by-laws.

The by-laws contain the rules

and regulations governing the
operation of the cooperative.
 BY-LAWS
THE BYL AWS, WHICH IS FILED AT THE SAME TIME AS THE
ARTICLES OF COOPERATION, SHALL PROVIDE THE FOLLOWING:

1. THE QUALIFICATIONS FOR ADMISSION TO MEMBERSHIP AND THE

PAY M E N T TO B E M A D E O R I N T E R E S T TO B E ACQ U I R E D A S A
CONDITIONS FOR THE EXERCISE OF THE RIGHT OF MEMBERSHIP;

2. THE RIGHTS AND LIABILITIES OF MEMBERSHIP;

3. THE CIRCUMSTANCES UNDER WHICH MEMBERSHIP IS ACQUIRED,

MAINTAINED AND LOST;
4. THE PROCEDURE TO BE FOLLOWED IN CASES OF TERMINATION OF
MEMBERSHIP;

5. THE CONDITIONS UNDER WHICH THE TRANSFER OF A SHARE OR

INTEREST OF THE MEMBERS SHALL BE PERMITTED;

6. THE RULES AND PROCEDURES ON THE AGENDA, TIME, PLACE AND

MANNER OF CALLING, CONVENING, CONDUCTING MEETINGS,
QUORUM REQUIREMENTS, VOTING SYSTEMS, AND OTHER MATTERS
RELATIVE TO THE BUSINESS AFFAIRS OF THE GENERAL ASSEMBLY,
BOARD OF DIRECTORS, AND COMMITTEES;
7. THE GENERAL CONDUCT OF THE AFFAIRS OF THE COOPERATIVE,
INCLUDING THE POWERS AND DUTIES OF THE GENERAL ASSEMBLY,
THE BOARD OF DIRECTORS, COMMITTEES AND THE OFFICERS, AND
THEIR QUALIFICATIONS AND DISQUALIFICATIONS;

8. THE MANNER IN WHICH THE CAPITAL, MAY BE RAISED AND THE

PURPOSES FOR WHICH IT CAN BE UTILIZED;

9. THE MODE OF CUSTODY AND OF INVESTMENT OF NET SURPLUS;

10. THE ACCOUNTING AND AUDITING SYSTEMS;

11. THE MANNER OF LOANING AND BORROWING INCLUDING THE

LIMITATIONS THEREOF;
12. THE METHOD OF DISTRIBUTION OF NET SURPLUS;

13. THE MANNER OF ADOPTING, AMENDING, REPEALING, AND

ABROGATING BYLAWS;

14. A CONCILIATION OR MEDIATION MECHANISM FOR THE

AMICABLE SETTLEMENT OF DISPUTES AMONG MEMBERS,
DIRECTORS, OFFICERS AND COMMIT TEE MEMBERS OF THE
COOPERATIVE; AND

15. OTHER MATTERS INCIDENT TO THE PURPOSES AND ACTIVITIES

OF THE COOPERATIVE.
Draft the articles of cooperation.

Mandatory contents of the articles of cooperation are the

following: (a) the name of the cooperative, which must include the
word “cooperative”; (b) the purpose or purposes and scope of business
of the cooperative; (c) the term of existence of cooperative;(d) the area
of operation and the postal addresses of the registrantcooperators; (e)
the common bond of membership; (f) the names of the directors who
shall manage the cooperative; (g) the amount of share capital; (h) the
names and residences of its contributors, and (i) the type of
cooperative, whether it is primary, secondary or tertiary.
SAMPLE ARTICLES OF COOPERATION
Secure bond for accountable officer(s).

The accountable officers normally are the Treasurer and the

Manager. The amount of the bond is to be decided upon by the
Board of Directors, based on the initial net worth of the cooperative
which includes the paid-up capital,
membership fees and other assets of the cooperative at the time of
registration.
 What is a Treasurer Certification

Certification under oath by the treasurer, showing that at least

25% of the authorized share capital must be subscribed, and at least
25% of the total subscription has been paid.
Register your cooperative with the Cooperative Development
Authority (CDA).

Submit the following required documents:

Four (4) copies each of the Economic Survey, Articles of Cooperation
and By-Laws duly notarized;
Bonds of accountable officer(s) (any directors, officers and
employees) handling funds, securities, of properties in behalf of the
cooperative;
Sworn statement of the treasurer duly notarized showing that at least
25% of the authorized share capital has been subscribed, and at least 25%
of the total subscription has been paid
The paid-up capital must not be less than Php 2,000.00. It must be
noted that no member may own more than 20% of the subscribed share
capital and each share must not be less than Php 1.00
 Where to Register your Cooperative?
The Cooperative Development Authority (CDA) is the only
government agency mandated to register all types of cooperatives. Its main
office is located at 5th Floors, BenLor Building, 1184 Quezon Avenue,
Quezon City. To facilitate the flow of its services, extension offices have
been set up. These are located in (a) Dagupan City; (b) Tuguegarao,
Cagayan; (c) Baguio City; (d) San Fernando, Pampanga; (e) NCR-Quezon
City; (f) Calamba, Laguna; (g) Naga City; (h) Iloilo City; (I) Cebu City (k)
Kidapawan; (l) Tacloban City; (m) Davao City; (n) Zamboanga City; and (o)
Butuan City.
 Where to Register your Cooperative?
The Cooperative Development Authority (CDA) is the only
government agency mandated to register all types of cooperatives. Its main
office is located at 5th Floors, BenLor Building, 1184 Quezon Avenue,
Quezon City. To facilitate the flow of its services, extension offices have
been set up. These are located in (a) Dagupan City; (b) Tuguegarao,
Cagayan; (c) Baguio City; (d) San Fernando, Pampanga; (e) NCR-Quezon
City; (f) Calamba, Laguna; (g) Naga City; (h) Iloilo City; (I) Cebu City (k)
Kidapawan; (l) Tacloban City; (m) Davao City; (n) Zamboanga City; and (o)
Butuan City.
 Proofs of Registration of Cooperatives
I. Issuance of Cooperative Name Reservation Notice (CNRN)

• Submission of Cooperative Name Reservation Report Form (CNRRF) shall

be submitted either to CDA Central Office or Regional Offices nationwide
through personal, postal mail, courier, electronic mail, or online.
• The applicant has the option to choose from the following period to
reserve their proposed names with the corresponding reservation fees
a. Thirty (30) calendar days - Php 100.00
b. Sixty (60) calendar days - Php 200.00
c. Ninety (90) calendar days - Php 300.00
• Cooperative name shall be in acvordance with the prescribed guidelines.
• All reserved names shall be valid in accordance with the period specified
in the Cooperative Name Reservation Notice.
II. Issuance of Certificate of Registration (COR)

The prospective cooperative acquires its juridical personality upon

issuance of a Certificate of Registration .

III. Issuance of Certificate of amendments

This is being issued in case of any amendments in the Articles of

Cooperation and by laws of the Cooperative
 lV. Issuance of Certificate of Authority (COA)
A Certificate of Authority shall be issued by CDA to cooperatives
applying for the establishment of a branch office upon compliance with the
requirements. A Branch Office refers to a business office outside the
principal office where cooperative activities and business operation are
undertaken as per approved cooperative development plan.

V. Issuance of Letter of Authority (LOA)

A Letter of Authority shall be issued by CDA to cooperatives applying
for the establishment of a satellite office upon compliance with the
requirements. Satellite Office refers to an office established by a
cooperative outside of its principal/main office but within its area of
operation to provide limited services to its members but which does not
h o w e v e r m a i n t a i n b o o k s of a c c o u n t s a s i t i s d o n e o n l y b y t h e
principal/main office.
Vl. Issuance of Certificate of Recognition (CoR)

Certificate of Recognition shall be issued for the organization of

laboratory cooperative for minors (ages below 18 years old) by a Guardian
Cooperative.

VlI. Issuance of Certificate of Merger or Consolidation

This refers to the process where two or more cooperatives becomes

single cooperative,which, in the case of merger ,there is a surviving
cooperative , and consolidated cooperative in the case of consolidation .
 REFERENCES
Cooperative Development Authority (2020). Registration of Cooperatives.
Accesed from http://invest.cfo.gov.ph/pdf/part2/registration-of-cooperative

Tulali, Carlos (2014). Model By-Laws for Primary Cooperatives in the

Philippines. Accessed from
https://www.scribd.com/document/246324979/model-by-laws-for-
primary-cooperative-in-the-philippines

iChange (2012). Articles of Cooperation. Accessed from

https://www.slideshare.net/lovephileo/articles-of-cooperation-12735463
P&L Law (2018). HOW TO START/REGISTER A COOPERATIVE IN THE
PHILIPPINES. Accessed from https://pnl-law.com/article/how-to-register-a-
cooperative-in-the-philippines/

Cooperative Development Authority (2020). REGULATORY SERVICE |

REGISTRATIONhttps://cda.gov.ph/products-and-services-0/regulatory-
services/registration
THANK YOU
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