QuestionsQuestions (Republic Act No. 9520)
RA 9520 is titled the “Philippine Cooperative Code of 2008,” and it amends the Cooperative Code of the Philippines under RA 6938.
The State will foster the creation and growth of cooperatives as a vehicle for self-reliance and for harnessing people power toward economic development and social justice, while ensuring technical guidance, financial assistance, and other services without infringing cooperative autonomy or organizational integrity.
An autonomous and duly registered association of persons with a common bond of interest who voluntarily join to achieve social, economic, and cultural needs and aspirations through equitable capital contributions, patronage, and accepting a fair share of risks and benefits under universally accepted cooperative principles.
Examples include: (1) Voluntary and Open Membership; (2) Democratic Member Control (one-member, one-vote in primary cooperatives); (3) Member Economic Participation (limited return on capital, patronage-based allocation, reserves/indivisible part); (4) Autonomy and Independence; (5) Education, Training and Information; (6) Cooperation Among Cooperatives; (7) Concern for Community.
Registration is the operative act granting juridical personality to a proposed cooperative, evidenced by a certificate of registration issued by the Authority.
A cooperative may be organized for purposes such as: encouraging thrift and savings; generating funds and extending credit to members; encouraging systematic production and marketing; providing goods and services to members; developing skills; acquiring lands and providing housing benefits; insuring against losses; promoting socio-economic status; and others enumerated in Article 6.
The primary objective is to improve the quality of life of members. It aims to provide goods and services for increased income/savings/investments/productivity/purchasing power and equitable distribution of net surplus; provide social and economic benefits; teach efficient cooperative methods; propagate cooperative practices and ideas; enable lower-income and less privileged groups to increase ownership; and cooperate with government, other cooperatives, and people-oriented organizations.
Fifteen (15) or more natural persons who are Filipino citizens, of legal age, with a common bond of interest, actually residing or working in the area of operation may organize a primary cooperative; prospective members must have completed a pre-membership education seminar (PMES).
Groups intending to form a cooperative must submit to the Authority a general statement describing the structure and purposes of the proposed cooperative, including an economic survey indicating the area of operation, size of membership, and other pertinent data (in the format provided by the Authority), and staffing structure must include a bookkeeper.
It acquires juridical personality from the date the Cooperative Development Authority issues a certificate of registration under its official seal.
Applications must be finally disposed of within sixty (60) days from filing; otherwise, the application is deemed approved unless the cause of delay is attributable to the applicant.
At minimum: the cooperative name (including “cooperative”); purpose/scope of business; term of existence; area of operation and principal office address; names/nationality/postal addresses of registrants; common bond of membership; list of directors; share capital amount and contributors/residences; and whether the cooperative is primary/secondary/tertiary in accordance with Article 23.
They must provide, among others: qualifications for membership and required payment/interest; rights and liabilities of membership; acquisition/maintenance/loss of membership; procedures for calling meetings and quorum/voting systems; general conduct/powers and duties of bodies and officers; how capital is raised and used; accounting/auditing; loaning/borrowing rules; method of distribution of net surplus; and amendments procedure; plus a conciliation/mediation mechanism for disputes.
Unless otherwise prescribed, amendments require a two-thirds (2/3) vote of all members with voting rights, and dissenting members have the right to withdraw their membership under Article 30.
The general assembly is the full membership entitled to vote. A quorum is at least 25% of members entitled to vote (electric cooperatives: 5% unless bylaws provide otherwise). Primary cooperatives use one-member, one-vote. Secondary/tertiary may have one basic vote plus incentive votes not to exceed five (5).