Coop

• A cooperative's term is for a period not exceeding 50 years from the date of registration; may be extended for periods not exceeding 50 years, but no extension can be made earlier than 5 years prior to the original or subsequent expiry date/dates unless there are justifiable reasons
• Cooperatives are autonomous, self-help organizations controlled by their members
• A cooperative duly registered shall have limited liability
• Cooperatives are voluntary organizations, open to all persons able to use their services and willing to accept the responsibilities of membership, without gender, social, racial, cultural, political or religious discrimination
• Cooperative


  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
• Cooperatives are democratic organizations that are controlled by their members who actively participate in setting their policies and making decisions
• A cooperative can be likened to a corporation with a personality separate and distinct from its owner-members
• Cooperative Principles

  • Voluntary and Open Membership
  • Democratic Member Control
  • Member Economic Participation
  • Autonomy and Independence
  • Education, Training and Information
  • Cooperation Among Cooperatives
  • Concern for Community
• Cooperatives shall provide education and training for their members, elected and appointed representatives, managers, and employees
• Articles of Cooperation are filed with the Cooperative Development Authority (Authority) which shall be signed by the organizers and acknowledged by them if natural persons, and by the chairpersons or secretaries, if juridical persons, before a
• Members contribute equitably to, and democratically control, the capital of their cooperatives. They shall receive limited compensation or limited interest, if any, on capital subscribed and paid as a condition of membership
• Cooperative Principles


  Every cooperative shall conduct its affairs in accordance with Filipino culture, good values and experience and the universally accepted principles of cooperation
• A cooperative has a right of succession in the sense that heirs may inherit share capital subject to the requirement that they are qualified to be members and signify intent to become a member
• Cooperatives work for the sustainable development of their communities through policies approved by their members
• Minimum subscription is 25% of authorized share capital
• Economic Survey Submission


  Submission of a general statement describing the structure and purposes of the proposed cooperative, including details like area of operation, size of membership, and other pertinent data as required by the CDA
• A single-purpose cooperative may transform into a multi-purpose or create subsidiaries only after at least 2 years of operations
• Minimum paid-up share capital is 25% of the total subscription but not less than P15,000.00, except for multi-purpose cooperatives which should have at least P100,000.00 or as required by the feasibility study, whichever is higher
• Organization and Registration of a Cooperative

  Filing Articles of Cooperation with the Cooperative Development Authority (Authority), signed by organizers and acknowledged before a notary public, setting forth various details such as the name, purpose, term of existence, area of operation, names of registrants, common bond of membership, list of directors, share capital, and cooperative type
• Registration of a Cooperative

  A cooperative acquires juridical personality from the date the Authority issues a certificate of registration under its official seal
• A newly organized primary cooperative may be registered as a multi-purpose cooperative only after meeting the minimum requirements set by the CDA
• Failure of the Office of the President to act on the appeal within ninety (90) days from filing shall mean approval of the application
• Cooperatives with a minimum paid-up capital of P100,000.00 or as required in the feasibility study may be allowed to transform into a multi-purpose cooperative
• Prospective members of a primary cooperative must complete a Pre-Membership Education Seminar (PMES)
• All applications for registration must be finally disposed of by the Authority within 60 days from filing, otherwise, the application is deemed approved unless the delay is attributable to the applicant
• Organizing a primary cooperative requires 15 or more Filipino citizens of legal age with a common bond of interest residing or working in the intended area of operation
• In case of denial of the application for registration, an appeal can be made to the Office of the President within ninety (90) days from receipt of notice of denial
• CDA periodically assesses the required paid-up share capital and may increase it every 5 years when necessary upon consultation with the cooperative sector and NEDA
• Certificate of registration issued by the CDA under its official seal shall be conclusive evidence that the cooperative therein mentioned is duly registered unless it is proved that the registration thereof has been cancelled
• Merger and Consolidation: Two (2) or more cooperatives may merge into a single cooperative which shall either be one of the constituent cooperatives or the consolidated cooperative. No merger or consolidation shall be valid unless approved by a three-fourths (3/4) vote of all the members with voting rights, present and constituting a quorum of each of the constituent cooperatives at separate general assembly meetings. The dissenting members shall have the right to exercise their right to withdraw their membership. In any case, the merger or consolidation shall be effective upon the issuance of the certificate of merger or consolidation by the CDA
• Division of cooperatives: Any registered cooperative may, by a resolution approved by a vote of three-fourths (3/4) of all the members with voting rights, present and constituting a quorum, resolve to divide itself into the two (2) or more cooperatives. The procedure for such division shall be prescribed in the regulations of the CDA: Provided, That all the requirements have been complied with by the new cooperatives: Provided, further, That no division of a cooperative in fraud of creditors shall be valid
• Registration Fee to be paid by the proposed federation shall be 1/10 (or 10%) of the 1% of the authorized share capital or the amount prescribed in the CDA schedule of fees, whichever is higher
• Types of Cooperatives

  • Advocacy Cooperative
  • Dairy Cooperative
  • Fishermen Cooperative
  • Multipurpose Cooperative
  • Workers Cooperative
• The appeal within ninety (90) days from the filing thereof shall mean approval of said application
• Amendment of articles of cooperation and by-laws can only be made by 2/3 vote of all the members with voting rights without prejudice to the right of the dissenting members to exercise their right to withdraw their membership
• Insurance Cooperative is engaged in insuring life and property of cooperatives and their members
• Water Service Cooperative is organized to own, operate, and manage water systems for providing potable water to members and their households
• Cooperative types

  1. Multipurpose Cooperative combines two or more business activities of different types of cooperatives

  2. Workers Cooperative organized by workers who are also members and owners of the enterprise to provide employment and business opportunities

  3. Agriculture Cooperative involves raising/culture of plants, animals, fungi, and other living organisms for productive and economic purposes

  4. Agrarian Reform Cooperative organized by marginal farmers, majority being agrarian reform beneficiaries, for developing land tenure systems

  5. Consumers Cooperative procures and distributes commodities to members and non-members

  6. Marketing Cooperative supplies production inputs to members and markets their products

  7. Producers Cooperative undertakes joint production, agricultural or industrial, by processing raw materials into finished products for sale

  8. Service Cooperative engages in various services like medical, dental care, transportation, insurance, housing, etc.
• Transport Cooperative includes land and sea transportation, limited to small vessels, as defined under Philippine maritime laws
• The list of cooperative types is not exclusive as per Article 23(1)(u) of RA 9520, CDA may determine other types of cooperatives