Philippine

Cooperative
Code of
2008 (RA
9520)
 1.
Concepts and
Rules
General Provisions
Definition of Cooperative
An autonomous and duly registered association of persons, with a common bond
of interest, who have voluntary joined together to achieve their social, economic,
and cultural needs and aspirations by making equitable contributions to the
capital required, patronizing their products and services and accepting a fair
share of the risks and benefits of the undertaking in accordance with universally
accepted cooperative principles

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Cooperative Principles
a. Voluntary and Open Membership
▪ Membership is open to all person without discrimination.

b. Democratic Member Control

▪ “One member, one vote” principle.

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Cooperative Principles
c. Member Economic Participation
▪ Members receive limited compensation or limited interest,
if any, on capital subscribed and paid as a condition of
membership.

d. Autonomy and Independence

▪ Cooperative is a self-help organization controlled by the
members.

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 Cooperative Principles
e. Education, Training, and Information
▪ The purpose is to contribute for the development of the cooperative.
f. Cooperation Among Cooperatives
▪ Working together through local, national, regional, and international
structures.
g. Concern for Community
▪ Sustainable development of the cooperative’s community

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Main Objective of Cooperative
▪ To improve the quality of life of its members.

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 2
Organization
and
Registration
Cooperative Powers, Rights and
Capacities
a. To the Exclusive use of its registered name, to sue and be
sued;
b. Of succession;
c. To amend its articles cooperation;
d. To adopt by-laws, amend and repeal the same;

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Cooperative Powers, Rights and
Capacities
e. To purchase, receive, take or grant, hold, convey, sell,
lease, pledge and mortgage, and otherwise deal with such
real or personal property;
f. To enter into division, merger or consolidation;
g. To form subsidiary cooperatives and join federation or
unions;

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Cooperative Powers, Rights and
Capacities
h. 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 that these will
not undermine the autonomy of the cooperative.

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Cooperative Powers, Rights and
Capacities
i. To avail of preferential rights under the Local
Government Code and other laws;
j. To organize and operate school in accordance with RA
9155;
k. Other powers as provided by the Code and those
necessary to carry out its purpose as stated in the Articles of
cooperation.

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Organization of Primary Cooperative
● It must be formed by fifteen (15) or more natural
persons who are Filipino citizens, of legal age, have a
common bond of interest, and actually residing or
working in the intended area of operation.
● A prospective member must have completed a Pre-
Membership Education Seminar (PMES)

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Liability of the Cooperative
● Registered cooperative has limited liability.

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Term of Cooperative
● Cooperative shall exist for fifty (50) years from the date
of registration unless sooner dissolve or unless said
period is extended;
● The term may be extended for not exceeding fifty (50)
years by amending the cooperative articles of
cooperation;

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Term of Cooperative
● No extension can be made earlier than five (5) years
prior to the original or subsequent expiry date unless
there are justifiable reasons for an earlier extension as
may be determined by the Authority.

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Articles of Cooperation
● Signed by each of the organizers and submitted to the
Authority;
● The articles of corporation must be accompanied by a
BONDs of the accountable officers and TREASURER’s
affidavit showing that 25% of the authorized capital
have been subscribed and 25% of the subscribed have
been paid

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By-Laws
● The cooperative shall adopt by-laws not inconsistent
with the Code and it shall be filed at the same time as
articles of cooperation;
● It provides… (o) other matters incident to the purposes
and activities of the cooperative.

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Registration
● • Cooperative acquires its juridical personality from the
date the Authority issues a certificate of registration
under its official seal;
● • Certificate of registration shall be conclusive evidence
that it is registered unless it is proved that the
registration has been cancelled.

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Registration
● • All application shall be finally disposed of by the
Authority within 60 days from the filing thereof,
otherwise the application is deemed approve, unless the
cause of the delay is attributable to the applicant;

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Registration
● That in case of denial of the application, an appeal shall
lie with the Office of the President within 90 days from
the receipt of such denial;
● • Failure of the President to act within 90 days from the
filing thereof shall mean approval
● of said application.

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Capitalization
● • For primary cooperative, the paid-up capital shall not
be less than fifteen thousand pesos (P15,000);
● • For multi-purpose cooperative, the minimum paid up
capital is one hundred thousand pesos (P 100,000) or the
amount stated in the feasibility study whichever is
higher.

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Cooperative Name
● • The word “cooperative” shall be included in the name
of the cooperative, which name shall likewise specify
the type of cooperative.

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Cooperative Name
● • No Cooperative name shall be allowed by the
Cooperative Development Authority (CDA) if the
proposed name is identical or deceptively or confusingly
similar to that of any existing cooperative, contrary to
public policy, moral and existing laws.

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Cooperative Name
● • The use of the word “development”, “integrated”,
“Federation and Union” in the cooperative name shall be
discouraged.

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 Amendment of Articles if Cooperation
and By-laws
● It requires 2/3 votes of all the members with voting rights, without
prejudice to the right of the dissenting members to exercise their
right to withdraw their membership.
● The amendments shall take effect upon its approval by the
authority or within 30 days from the date of filing thereof if not
acted upon by the Authority for a cause not attributable to the
cooperative.

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Question and Answer

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