Cooperatives

• What is the definition of a cooperative according to the Philippine Cooperative Code of 2008?

  An autonomous and duly registered association of persons with a common bond of interest.
• What are the main purposes of a cooperative?

  To achieve social, economic, and cultural needs and aspirations.
• What are the universally accepted 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
• What does "Voluntary and Open Membership" mean in cooperatives?

  Cooperatives are open to all persons able to use their services without discrimination.
• How are cooperatives controlled according to the principle of "Democratic Member Control"?

  Members actively participate in setting policies and making decisions.
• What is meant by "Member Economic Participation"?

  Members contribute equitably to the capital of their cooperatives.
• What does "Autonomy and Independence" signify for cooperatives?

  Cooperatives are self-help organizations controlled by their members.
• Why is education important in cooperatives?

  It helps members contribute effectively to the development of their cooperatives.
• How do cooperatives demonstrate "Concern for Community"?

  By working for the sustainable development of their communities.
• Who is considered a member of a cooperative?

  A person or entity admitted by the cooperative adhering to its principles.
• What is a General Assembly in a cooperative?

  The full membership of the cooperative assembled to exercise rights and obligations.
• What is the role of the Board of Directors in a cooperative?

  They manage the affairs of the cooperative.
• What are Articles of Cooperation?

  The registered articles that define the cooperative's structure and purpose.
• What does "Registration" mean for a cooperative?

  The act granting juridical personality to a proposed cooperative.
• What is a Social Audit?

  A procedure assessing a cooperative's social impact and ethical performance.
• What is the purpose of a Performance Audit?


  To evaluate the efficiency and effectiveness of the cooperative's management.
• What are the purposes of cooperatives?

  • Encourage thrift and savings mobilization
  • Generate funds and extend credit
  • Systematic production and marketing
  • Provide goods and services
  • Develop expertise and skills
  • Acquire lands and provide housing
  • Insure against losses
  • Promote economic, social, and educational advancement
  • Establish and operate cooperative banks and markets
  • Advocate for cooperative movements
• What is the objective of a cooperative regarding its members' income?


  To enable members to obtain increased income, savings, and investments.
• How do cooperatives aim to benefit their members socially and economically?

  By providing optimum social and economic benefits.
• What powers do cooperatives have according to the Cooperative Code?

  To sue and be sued, amend articles of cooperation, and enter into mergers.
• What is a Credit Cooperative?


  A cooperative that promotes savings and lending services among its members.
• What is the primary purpose of a Consumers Cooperative?

  To procure and distribute commodities to members and non-members.
• What is the function of a Marketing Cooperative?

  To supply production inputs to members and market their products.
• What is the purpose of a Multipurpose Cooperative?


  To combine two or more business activities of different types of cooperatives.
• What is the role of an Advocacy Cooperative?

  To promote cooperativism through education and socially-oriented projects.
• What is the purpose of a Laboratory Cooperative?

  To serve as a training ground for members preparing for regular cooperatives.
• What is a Guardian Cooperative?


  A duly registered cooperative to which a laboratory cooperative is affiliated.
• What are the functions of a Federation of Cooperatives?

  To carry on cooperative enterprises and assist educational work for member cooperatives.
• What are the types and categories of cooperatives?

  • Single-Line or Single-Purpose Cooperative
  • Service Cooperatives
  • Credit Cooperative
  • Consumers Cooperative
  • Producers Cooperative
  • Marketing Cooperative
  • Multipurpose Cooperative
  • Advocacy Cooperative
  • Agrarian Reform Cooperative
  • Cooperative Bank
  • Dairy Cooperative
  • Education Cooperative
  • Electric Cooperative
  • Financial Service Cooperative
  • Fishermen Cooperative
  • Health Services Cooperative
  • Housing Cooperative
  • Insurance Cooperative
  • Transport Cooperative
  • Water Service Cooperative
  • Workers Cooperative
  • Laboratory Cooperative
• What are the objectives of Credit Cooperatives?

  • Encourage savings among members
  • Create a pool of savings for loans
  • Provide related services to maximize loan benefits
• What are the purposes of Laboratory Cooperatives?

  • Serve as a training ground for members
  • Promote thrift and saving mobilization
  • Instill cooperative values and leadership skills
  • Advance Filipino social and cultural values
• What is the term used to refer to a duly registered cooperative to which a laboratory cooperative is affiliated?

  Guardian Cooperative
• Who are the members of a Primary Cooperative?

  The members are natural persons.
• Who are the members of a Secondary Cooperative?

  The members are primary cooperatives.
• Who are the members of a Tertiary Cooperative?

  The members are secondary cooperatives.
• What are the functions of a Federation of Cooperatives?

  • Carry on cooperative enterprises that complement members' activities.
  • Assist educational and advisory work for member cooperatives.
  • Render services to enhance efficiency and economy in business.
  • Publish materials in the interest of member cooperatives.
  • Coordinate activities of member cooperatives.
  • Enter into joint ventures with national or international cooperatives.
  • Perform other necessary functions to achieve objectives.
• What is required for a federation of cooperatives to be registered?

  Carrying out the formalities of registration of a cooperative.
• What are the purposes of Cooperative Unions?

  • Represent member organizations.
  • Analyze and disseminate information related to cooperatives.
  • Sponsor studies on various phases of cooperation.
  • Promote knowledge of cooperative principles and practices.
  • Develop the cooperative movement.
  • Advise authorities on cooperative-related questions.
  • Raise funds through various means.
• How do cooperative unions assist the government?

  They assist in the government's development activities in their jurisdictions.
• What does the Cooperative Code state about cooperatives in relation to trade?

  No cooperative shall be deemed a conspiracy or illegal monopoly if it complies with the Code.