COOPERATIVES

Part 1

1. COOPERATIVE DEVELOPMENT AUTHORITY

– the agency that promotes the viability and growth of cooperatives as instruments of
equity, social justice and economic development.
- RA 11364 provides its powers, functions, and responsibilities; the governing body;
budget and funds; rule making power, among others

2. ORGANIZATION AND REGISTRATION OF COOPERATIVES

Article 6, Chapter II of RA 9520

"ART. 6. Purposes of Cooperatives. A cooperative may be organized and registered for any or all
of the following purposes:

"(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 movements;

"(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; and

"(14) To undertake any and all other activities for the effective and efficient implementation of
the provisions of this Code.

3. ADMINISTRATION

CHAPTER IV ADMINISTRATION, RA 9520

The General Assembly shall be the highest policy-making body of the cooperative and shall
exercise such powers stated in the Code, in the Articles of Cooperation and bylaws.
The General Assembly shall be composed of such members who are entitled to vote under the
articles of cooperation

Powers of the General Assembly:

"(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.

"(3) To approve developmental plans of the cooperative.

4. RESPONSIBILITIES, RIGHTS AND PRIVILEGES

CHAPTER V RA9520

1. Keep books and reports open to members

2. The accountant or the bookkeeper of the cooperative shall be responsible for the
maintenance of the cooperative in accordance with generally accepted accounting practices.
And the audit committee shall be responsible for the continuous and periodic review of the
books and records of account

3. Maintain records of accounts such that the true and correct condition and the results of the
operation of the cooperative may be ascertained therefrom at any time.

4 Subject to the pertinent provisions of the National Internal Revenue Code and other laws, a
cooperative may dispose by way of burning or other method of complete destruction any
document, record or book pertaining to its financial and nonfinancial operations which are
already more than five (5) years old except those relating to transactions which are the subject
of civil, criminal and administrative proceedings.

5. CAPITAL, PROPERTY OF FUNDS

CHAPTER VIII RA 9520

The capitalization of cooperatives and the accounting procedures shall be governed by the
provisions of this Code and the regulations which shall be issued.

Captial sources:

"(1) Member's share capital;

"(2) Loans and barrowings including deposits;

"(3) Revolving capital which consists of the deferred payment of patronage refunds, or interest
on share capital; and

"(4) Subsidies, donations, legacies, grants, aids and such other assistance from any local or
foreign institution whether public or private: Provided, That capital coming from such subsides,
donations, legacies, grants, aids and other assistance shall not be divided into individual share
capital holdings at any time but shall instead form part of the donated capital or fund of the
cooperative.