Cooperative Code of the Philippines

Amendatory Law of R.A. 6938

Module 1
Part 1
Preliminaries:
Original Law- R.A. no. 6938 of March 10, 1990, which is an act to ordain a cooperative code of
the Philippines. This code takes effect 15 days from its publication in newspapers of general circulations
(Section 130, RA 6938).
Amendatory Law of R.A. 6938- R.A. 9520 begun on July 28, 2008, signed by the President
Gloria Macapagal Arroyo into Law on February 17, 2009. This is an act amending The Cooperative
Code of the Philippines to be known as “Philippine Cooperative Code of 2008”. This code takes effect
15 days from its publication in a Newspaper of general circulation and any part of this code be declared
unconstitutional, the validity of remaining provision shall remain in full and effect (Article 145- 146,
R.A. 9520).

Part 1A
Types and Categories of Cooperatives
(Section 2. Articles 14, 15, 16) Mnemonics SSS
Single- Line or Single Purpose Cooperative- Includes cooperative undertaking activities which are
related to its main line of business or purpose.
Service Cooperatives- Which provides any type of service to its members, including but not limited to
transport, information and communication, insurance, housing, electric, health services, education,
banking, and savings and credit.
Subsidiary Cooperative- refers to 3 or more primary cooperatives doing the same line of business
organized by the authorities.

Article 23: Types of Cooperative- Mnemonics CCP, MAAMS- C- FEED, FHHIT, WWO

Credit Cooperative- promotes and undertakes savings and lending services among its members. (a)
Consumers Cooperative- primary purpose is to procure and distribute commodities to members and non-
members. (b)
Producers Cooperative- undertakes production whether agricultural or industrial. (c)

Marketing Cooperative- one which engages in the supply of production inputs to members and market
their products. (d)
Advocacy Cooperative- promotes and advocates cooperativism among its members. (g)
Agrarian Reform Cooperative- organized by marginal farmers majority of which are agrarian reform
beneficiaries. (h)
Multipurpose Cooperative- combines two or more business activities of these different types of
cooperatives. (f)
Service Cooperative- engages in medical and dental care, hospitalization, transportation, insurance,
housing, labor, electric light and power, communication, professional and other services. (e)
Cooperative Bank- has the primary purpose of providing a wide range of financial service cooperative
and their members. (i)
Financial Service Cooperative- engages in savings and credit services and other financial services. (m)
 Electric Cooperative- has the primary purpose of undertaking power generations, utilizing renewable
energy sources, including hybrid systems, acquisition, and operation of sub transmission or distribution
to its household members. (l)
Education Cooperative- primary purpose of owning and operating licensed educational institution
notwithstanding the provisions of R.A. 9155 or the Governance of Basic Education Act of 2001. (k)
Dairy Cooperative- members engage in the production of fresh milk. (j)

Fishermen Cooperative- organized by the marginalized fishermen in localities. (n)

Health Service Cooperative- has the primary purpose of providing medical, dental, and other health
services. (o)
Housing Cooperative- organized to assist or provide access to housing for the benefit of its regular
members. (p)
Insurance Cooperative- one engaged in the business of insuring life and poverty of cooperative and its
members. (q)
Transport Cooperative- one which includes land and sea transportation, limited to small vessels, as
defined, or classified under the Philippine maritime laws, organized under the provision of this code. (r)

Water Service Cooperative- one organized to own, operate and manage water systems for the provision
and distribution of potable water for its members and their households. (s)
Workers Cooperative- organized by workers, including the self- employed, who are at the same time the
members and owners of the enterprise. (t)
Other types of cooperative as may be determined by the Authority.

Part II: Organization and Registration of Cooperative

Article 6: Purpose of Cooperative (1,2,3,4,5,6,7,8,9,10, 11, 12, 13, 14)
* A cooperative may be organized and registered by any of the any or all the following purposes stated under
Article 6, Purpose of Cooperative from 1-14.
Article 7: The primary objective of every cooperative is to help improve the quality of life of its
members. The cooperation shall aim those stated under Article 7 (a, b, c, d, e, f)
Article 15: By Laws- each cooperative to be registered under this code shall adopt by laws not
inconsistent with the provision of this code. The bylaws shall be filed at the same time as the articles of
cooperation.
Registration (Article 16, 17, 18)
A cooperative formed and organized under this code acquires juridical personality from the date
the authority issues a certificate of registration under its official seal. All application for registration
shall be disposed of by the Authority with a period of 60 days from filing.
Certificate of Registration (Article 17)
A certificate of registration issued by the Authority under its official seal shall be conclusive
evidence that the cooperative therein mention is duly registered unless it is proved that the registration is
cancelled.

Amendment of Articles of Cooperative and Bylaws (Article 18)

 Any provision or matter stated in the articles of cooperation and bylaws may be amend by 2/3
vote of all members with voting rights, without prejudice to the right of the dissenting members to
exercise their right to withdraw their membership under Article 30.
Part III: Administration
The general assembly shall be composed of such members who are entitled to vote under the
article of cooperation and bylaws of cooperative. (Article 32, Chapter IV)
The general assembly shall be the highest policy- making body of the cooperative and shall exercise
such powers as a stated in this code, in the articles of cooperation and in the bylaws of the cooperative. The
general assembly shall have the following exclusive powers which cannot be delegated stated in Article 33-
1,2,3.
A regular meeting shall be held annually by the general assembly on a date fixed in the bylaws or if not so
fixed, on any 90 days after the close of each fiscal year. (Article 34)
A quorum shall consist of at least 25% of all the members entitled to vote. In the case of cooperative banks, the
quorum shall be as provided in Article 99 of this code. In the case of electric cooperative registered under this
code, a quorum, unless otherwise provided in the bylaws, shall consist of 5% of all the members entitled to
vote. (Article 35)
The board of directors shall be responsible for the strategic planning, direction- setting and policy- formulation
activities of the cooperatives. ( Article 38)