MGT111

• The Commission on Audit (COA) is the agency responsible for auditing all government agencies, including local governments.
• The Philippine Cooperative Code of 2008 is known as "Philippine Cooperative Code of 2008".
• The declared policy of the State is to foster the creation and growth of cooperatives as a practical vehicle for promoting self-reliance and harnessing people power towards the attainment of economic development and social justice.
• In case of a denial of the application for registration, an appeal shall lie with the Office of the President within ninety (90) days from receipt of notice of such denial.
• Failure of the Office of the President to act on the appeal within ninety (90) days from the filing thereof shall mean approval of said application.
• All applications for registration shall be finally disposed of by the Authority within a period of sixty (60) days from the filing thereof, otherwise the application is deemed approved, unless the cause of the delay is attributable to the applicant.
• The State encourages the private sector to undertake the actual formation and organization of cooperatives and creates an atmosphere that is conducive to the growth and development of these cooperatives.
• The Government and all its branches, subdivisions, instrumentalities and agencies ensure the provision of technical guidance, financial assistance and other services to enable cooperatives to develop into viable and responsive economic enterprises and thereby bring about a strong cooperative movement that is free from any conditions that might infringe upon the autonomy or organizational integrity of cooperatives.
• The State recognizes the principle of subsidiarity under which the cooperative sector will initiate and regulate within its own ranks the promotion and organization, training and research, audit and support services relative to cooperatives with government assistance where necessary.
• A cooperative is an autonomous and duly registered association of persons, with a common bond of interest, who have voluntarily 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.
• The objectives of a cooperative are to 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.
• A cooperative registered under this Code shall have limited liability.
• A cooperative shall exist for a period not exceeding fifty (50) years from the date of registration unless sooner dissolve or unless said period is extended.
• A cooperative registered under this Code shall have the following powers, rights and capacities: to the exclusive use of its registered name, to sue and be sued; of succession; to amend its articles of cooperation in accordance with the provisions of this Code; to adopt bylaws not contrary to law, morals or public policy, and to amend and repeal the same in accordance with this Code; 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
• Cooperative principles include voluntary and open membership, democratic member control, member economic participation, autonomy and independence, education, training and information, cooperation among cooperatives, and concern for community.
• A member of a cooperative is a person either natural or juridical who adhering to the principles set forth in this Code and in the Articles of Cooperative, has been admitted by the cooperative as member.
• The General Assembly is the full membership of the cooperative duly assembled for the purpose of exercising all the rights and performing all the obligations pertaining to cooperatives, as provided by this Code, its articles of cooperation and bylaws.
• No cooperative, other than a cooperative union as described under Article 25 hereof, shall be registered unless the articles of cooperation is accompanied with the bonds of the accountable officers and a sworn statements of the treasurer elected by the subscribers showing that at least twenty-five per centum (25%) of the authorized share capital has been subscribed and at least twenty-five per centum (25%) of the total subscription has been paid: Provided, That in no case shall the paid-up share capital be less than Fifteen thousand pesos (P15,000.00).
• 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.
• 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.
• The articles of cooperation may also contain any other provisions not inconsistent with this Code or any related law.
• The articles of cooperation shall set forth: the name of the cooperative which shall include the word cooperative; the purpose or purposes and scope of business for which the cooperative is to be registered; the term of existence of the cooperative; the area of operation and the postal addresses of its principal office; the names, nationality, and the postal addresses of the registrants; the common bond of membership; the list of names of the directors who shall manage the cooperative; and the amount of its share capital, the names and residences of its contributors and a statement of whether
• The Authority shall periodically assess the required paid-up share capital and may increase it every five (5) years when necessary upon consultation with the cooperative sector and the National Economic and Development Authority (NEDA).
• The bylaws of each cooperative shall provide: the qualifications for admission to membership and the payment to be made or interest to be acquired as a conditions for the exercise of the right of membership; the rights and liabilities of membership; the circumstances under which membership is acquired, maintained and lost; the procedure to be followed in cases of termination of membership; the conditions under which the transfer of a share or interest of the members shall be permitted; the rules and procedures on the agenda, time, place and manner of calling, convening, conducting meetings, q
• Four (4) copies each of the proposed articles of cooperation, bylaws, and the general statement required under Article 11 of this Code shall be submitted to the Authority.
• Each cooperative to be registered under this Code shall adopt bylaws not inconsistent with the provisions of this Code.
• The cooperative term, as originally stated in the articles of cooperation, may be extended for periods not exceeding fifty (50) years in any single instance by an amendment of the articles of cooperation, in accordance with this Code: Provided, That no extension can be made earlier than five (5) years prior to the original or subsequent expiry date/dates unless there are justifiable reasons for an earlier extension as may be determined by the Authority.
• For cooperatives with numerous and dispersed membership, the general assembly may be composed of delegates elected by each sector, chapter or district of the cooperative in accordance with the rules and regulations of the Cooperative Development Authority.
• Representative Assembly is the full membership of a body of representatives elected by each of the sectors, chapter or district of the cooperative duly assembled for the purpose of exercising such powers lawfully delegated unto them by the general assembly in accordance with its bylaws.
• Articles of Cooperation are the articles of cooperation registered under this Code and includes a registered amendment thereof.
• Cooperative Development Authority is the government agency in charge of the registration and regulation of cooperatives.
• Social Audit is a procedure wherein the cooperative assesses its social impact and ethical performance vis-a-vis its stated mission, vision, goals and code of social responsibility for cooperatives to be established by the Authority in consultation with the cooperative sector.
• Performance Audit refers to an audit on the efficiency and effectiveness of the cooperative as a whole; its management and officers; and its various responsibility centers as basis for improving individual team or overall performance and for objectively informing the general membership on such performance.
• Registration is the operative act granting juridical personality to a proposed cooperative and is evidenced by a certificate of registration.
• Service Cooperatives are those which provide 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.
• Federation of Cooperatives refers to three or more primary cooperatives, doing the same line of business, organized at the municipal, provincial, city, special metropolitan political subdivision, or economic zones created by law, registered with the Authority to undertake business activities in support of its member-cooperatives.
• Board of Directors is the body entrusted with the management of the affairs of the cooperative under its articles of cooperation and bylaws.
• Subsidiary Cooperative refers to any organization all or majority of whose membership or shareholders come from a cooperative, organized for any other purpose different from that of, and receives technical, managerial and financial assistance from, a cooperative, in accordance with the rules and regulations of the Authority.
• A Single-Line or Single-Purpose Cooperative includes cooperative undertaking activities which are related to its main line of business or purpose.
• Universally Accepted Principles are the body of cooperative principles adhered to worldwide by cooperatives.