ORGANIZATION AND REGISTRATION
Purposes of Cooperatives
1. To encourage thrift and savings mobilization among the members.
2. To generate funds and extend credit to the members for productive and provident purposes.
3. 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 the members.
7. To insure against losses of the members.
8. To promote and advance the economic, social and educational status of the members.
9. To establish, own, lease or operate cooperative banks, cooperative wholesale and retail complexes,
insurance and agricultural/industrial processing enterprises, and public markets.
10. To coordinate and facilitate the activities of cooperatives.
11. To advocate for the cause of the cooperative movement.
12. To ensure the viability of cooperatives through the utilization of new technologies.
13. To encourage and promote self-help or self-employment as an engine for economic growth and poverty
alleviation.
14. To undertake any and all other activities for the effective and efficient implementation of the provisions
of this Code.
Objectives and Goals of a Cooperative
- The primary objective of every cooperative is to help improve the quality of life of its members. Towards
this end, the cooperative shall aim to:
1. Provide goods and services to its members to enable them to attain increased income, savings,
investments, productivity, and purchasing power, and promote among themselves equitable
distribution of net surplus through maximum utilization of economies of scale, cost-sharing~ and
risk-sharing.
2. Provide optimum social and economic benefits to its members.
3. Teach them efficient ways of doing things in a cooperative manner.
4. Propagate cooperative practices and new ideas in business and management.
5. Allow the lower income and less privileged groups to increase their ownership in the wealth of the
nation.
6. Cooperate with the government, other cooperatives and people-oriented organizations to further the
attainment of any of the foregoing objectives.
Cooperative Powers and Capacities
- A cooperative registered under this Code shall have the following powers, rights and capacities:
1. To the exclusive use of its registered name, to sue and be sued.
2. Of succession.
3. To amend its articles of cooperation in accordance with the provisions of this Code.
4. To adopt bylaws not contrary to law, morals or public policy, and to amend and repeal the same in
accordance with this Code.
5. To purchase, receive, take or grant, hold, convey, sell, lease, pledge, mortgage, and otherwise deal
with such real and personal property as the transaction of the lawful affairs of the cooperative may
reasonably and necessarily require, subject to the limitations prescribed by law and the
Constitution.
6. To enter into division, merger or consolidation, as provided in this Code.
7. To form subsidiary cooperatives and join federations or unions, as provided in this Code.
8. To avail of loans, be entitled to credit and to accept and receive grants, donations and assistance
from foreign and domestic sources, subject to the conditions of said loans, credits, grants,
donations or assistance that will not undermine the autonomy of the cooperative. The Authority,
upon written request, shall provide necessary assistance in the documentary requirements for the
loans, credit, grants, donations and other financial support.
9. To avail of preferential rights granted to cooperatives under Republic Act No. 7160, otherwise
known as the Local Government Code, and other laws, particularly those in the grant of franchises
to establish, construct, operate and maintain ferries, wharves, markets or slaughterhouses and to
lease public utilities, including access to extension and on-site research services and facilities
related to agriculture and fishery activities.
10. To organize and operate schools in accordance with Republic Act No. 9155, Governance of Basic
Education Act of 2001 and other pertinent laws.
11. To exercise such other powers granted by this Code or necessary to carry out its purpose or
purposes as stated in its articles of cooperation.
ARTICLES OF COOPERATION AND BY-LAWS
Articles of Cooperation
- All cooperatives applying for registration shall file with the Authority the articles of cooperation which
shall be signed by each of the organizers and acknowledged by them if natural persons, and by the
chairpersons or secretaries, if juridical persons, before a notary public.
- The articles of cooperation shall set forth:
a. The name of the cooperative which shall include the word ‘cooperative’
b. The purpose or purposes and scope of business for which the cooperative is to be registered
c. The term of existence of the cooperative
d. The area of operation and the postal address of its principal office
e. The names, nationality, and the postal addresses of the registrants
f. The common bond of membership
g. The list of names of the directors who shall manage the cooperative
h. The amount of its share capital, the names and residences of its contributors and a statement of
whether the cooperative is primary, secondary or tertiary in accordance with Article 23 hereof.
By-Laws
- Each cooperative to be registered under this Code shall adopt bylaws not inconsistent with the
provisions of this Code. The bylaws shall be filed at the same time as the articles of cooperation.
- The bylaws of each cooperative shall provide:
a. The qualifications for admission to membership and the payment to be made or interest to he
acquired as a condition for the exercise of the right of membership.
b. The rights and liabilities of membership.
c. The circumstances under which membership is acquired, maintained and lost
d. The procedure to be followed in cases of termination of membership
e. The conditions under which the transfer of a share or interest of the members shall he permitted
f. The rules and procedures on the agenda, time, place and manner of calling, convening, conducting
meetings, quorum requirements, voting 14 systems, and other matters relative to the business
affairs of the general assembly, board of directors, and committees
g. 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
h. The manner in which the capital may be raised and the purposes for which it can be utilized
i. The mode of custody and of investment of net surplus
j. The accounting, and auditing systems
k. The manner of loaning and borrowing, including limitations thereof
l. The method of distribution of net surplus
m. The manner of adopting, amending, repealing, and abrogating bylaws
n. A conciliation or mediation mechanism for the amicable settlement of disputes among members,
directors, officers and committee members of the cooperative
o. Other matters incident to the purposes and activities of the cooperative.
Cooperative Development Authority (CDA)
- is a proactive and responsive lead government agency for the promotion of sustained growth and full
development of the Philippines cooperatives for them to become broad - based instruments of social
justice, equity and balanced national progress.
- Steps in organizing a cooperative:
1. Get Started
2. Reserve the proposed cooperative name
3. Prepare a general statement
4. Prepare the cooperatives by laws and articles of cooperation
5. Secure bond of accountable officer/s
6. Execute treasurer’s affidavit
7. Complete the PMES
8. Register Cooperative with the CDA
o Submit the following required documents in four (4) copies:
a. Economic Survey
b. Articles of Cooperation and By-Laws
c. Surety bond of accountable officers
d. Treasurer's Affidavit
e. Approved Cooperative Name Reservation Slip
f. Certificate of PMES
