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Welcom
e
Why do you want to
form a cooperative?
Levelling of Expectations
• What do you know about cooperatives?
• What would you like to know about co-ops?
• What do you expect of the lecturer?
• What do you expect of your co-participants?
• What do you expect from this seminar?
Reasons for
Why do we need to attend PRS?
• It is required by the CDA;
• To understand what a cooperative is;
• To understand the duties & responsibilities of
a cooperative officer and member;
• To know what are the requirements and
process for registering a cooperative.
Issues in the community:
• Lack of job opportunities;
• Inadequate income to support the family;
• Lack of education/knowledge;
• Inequitable distribution of wealth and power;
• People are not united “to each his own”;
• Peace and order situation.
17.6 million
Filipinos who lived
below the poverty
threshold estimated
at PhP 10,727, on
average, for a family
of five per month in
2018.
Subsistence incidence
among Filipinos, or the
proportion of Filipinos
whose income is not
enough to meet even the
basic food needs, was
registered at 5.2
percent in 2018. The
monthly food threshold for
a family of five was
estimated, on average,
at PhP 7,528.
PSA Reference No.: 2019-209
Release Date: 06 December 2019
109 M
population
16.4%
Build and transform
lives thru
cooperativism
Low Income
Middle Income
High Income
DA, DAR, DILG, DTI,
TESDA, DSWD, BFAR,
LBP, NCIP, LGUS, NGOs
How?
Convergences, Partnership through a multi-sectoral
approach
ICA 1995: Seven Cooperative Principles
Principles are guideposts in the organization and management of cooperatives in
which their values are put into practice.
Cooperative Principles
Cooperatives differ from other business types
in that there is a set of guiding principles for
operation. These principles provide a
philosophical foundation for the business by
establishing a governance structure and the
method by which profits are distributed. The
original Rochdale Principles have been
distilled into the following Cooperative
Principles
1. VOLUNTARY AND OPEN MEMBERSHIP
- 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,
political or religious discrimination.
2. DEMOCRATIC MEMBER CONTROL
- Co-ops are democratic organizations controlled by
their members, who actively participate in setting
their policies and making decisions.
- Those who use the cooperative also control it by
electing its officers and voting on major
organizational issues.
3. MEMBER ECONOMIC PARTICIPATION
- Members contribute equitably to, and
democratically control the capital of their co-
operative.
- Members usually receive limited compensation if
any, on capital subscribed as a condition of
membership.
4. AUTONOMY AND INDEPENDENCE
- Co-operatives are autonomous, self-help
organizations controlled by their members.
- If they enter into agreements with other
organizations, including the government, or raise
capital from external sources, they do so on terms
that ensure democratic control of their members and
maintain their co-operative autonomy.
5. EDUCATION, TRAINING AND INFORMATION
- Co-ops provide education and training for their
members, elected officers, manager and employees
so they can contribute effectively to its
development and growth.
- They inform the general public - particularly young
people and opinion leaders about the nature and
benefits of co-operation.
6. COOPERATION AMONG CO-OPERATIVES
- Co-ops serve their members most effectively and
strengthen the co-operative movement by
working together through local, national, regional
and international structures.
Secondaries
Primaries
Tertiaries
Coop to Coop
7. CONCERN FOR COMMUNITY
- Co-ops work for the
sustainable
development of their
communities through
policies approved by
their members.
Universal
Values
Cultural
Values
Personal-
Ethical
Values
you
Self
Reflection
In a co-op, all members are in charge; so individuals must
be accountable for their actions, responsibilities, and duties.
Thus, a co-op cannot function properly if the members are
neglectful of their responsibilities to their job, the co-op, their
fellow members, and themselves.
DEMOCRACY
Co-ops are controlled, managed and operated by
its members. Thus, suggestions are heard and
accepted to make the services or products more
responsive to their needs.
Thus, it empowers members to participate and
vote in meetings.
EQUALITY & EQUITY
o EQUALITY is about giving everyone access to
the same resources and treating them the same.
Every member is only entitled to one vote
regardless of the amount of his/her contribution.
o EQUITY is the concept of providing
disadvantaged persons and privileged people with
fair accommodation and treatment according to
their needs - in order to put them on equivalent
ground.
SOLIDARITY
This is the value of “fellowship” amongst members of a
co-op (worker-owners or member-owners) and more,
including: other co-ops, organizations, and individuals
who are linked by a shared concern or cause.
Thus, it is essential for cooperatives and cooperators to
recognize the importance of working together to support
others in their struggles, goals, and efforts – and for
others to do the same for them.
Honesty
Openness
Social
Respon-
sibility
Caring for
Others
HONESTY
Truthfulness, fairness and sincerity in all
dealings.
The dealings may be between the members
& the cooperative; among members the
themselves; between & among cooperatives
OPENNESS
One that promotes collaboration where the
members are free to share their views and suggestions
with an emphasis on learning s opposed to being right.
Characterized by transparency and free access to
knowledge and information.
SOCIAL RESPONSIBILITY
The economic activities undertaken and
decisions made in the co-ops as a business
enterprise are balanced by the needs and
interests of their members and the community.
CARING FOR OTHERS
Co-ops bring people together to meet a shared
need through operation of a democratically-
controlled business.
Co-ops are open to all who can take advantage of
their benefits.
AUTONOMY AND
INDEPENDENCE
EDUCATION,
TRAINING &
INFORMATION
COOPERATION
AMONG
COOPERATIVES
CONCERN FOR
COMMUNITY
DEMOCRATIC MEMBER
CONTROL
MEMBER ECONOMIC
PARTICIPATION
VOLUNTARY AND OPEN
MEMBERSHIP
SELF-HELP
SELF-
RESPONSIBILITY
EQUALITY
HONESTY OPENNESS
SOCIAL
RESPONSIBILITY
DEMOCRACY
CARING FOR
OTHERS
SOLIDARITY
CO-OP PRINCIPLES ARE PRACTICAL APPLICATIONS OF CO-OP VALUES
CO-OP /ETHICAL VALUES ARE THE FOUNDATION OF THE CO-OP PRINCIPLES
EQUITY
S
• Capital structure highly
influences the success or
failure of a cooperative.
• Capital Build-up:
a. Share Capital Contributions
b. Savings & Time Deposits
• Loans from external sources
shall only serve as a short term
alternative while the co-op is
growing, and it should not
dominate the life of the
cooperative.
1. CAPITAL
FORMATION
2. CASH TRADING
• Discounts are given when goods are paid in cash
and purchases are made in bulk.
3. SELLING AT MARKET PRICE
• Co-ops offer goods and services at prevailing
market prices.
4. CONSTANT EXPANSION
• Membership Expansion
• Expansion of Services
5. QUALITY GOODS AND SERVICES
• Strive for quality goods and services to stand in competition
with other business establishments.
6. COOPERATIVE WHOLESALE
• Purchases in bulk may result to lesser cost and bigger profit.
7. MINIMAL EXPENDITURES
• Exemption from income & sales taxes
• Officers should be prudent and reasonable in spending and
using the co-op’s resources
• Render voluntary services whenever possible without
compromising quality service.
5. QUALITY GOODS AND SERVICES
• Strive for quality goods and services to stand in competition with
other business establishments.
6. COOPERATIVE WHOLESALE
• Purchases in bulk may result to lesser cost and bigger profit.
7. MINIMAL EXPENDITURES
• Exemption from income & sales taxes
• Officers should be prudent and reasonable in spending and using
the co-op’s resources
• Render voluntary services whenever possible without
compromising quality service.
LEGAL BASES
A
1987 Philippine
Constitution
Article XII, Section 15
“The Congress shall
create an agency to
promote the viability
and growth of
cooperatives as
instruments for social
justice and economic
development”
R.A. 6939
Section 2
“The Cooperative
Development
Authority is hereby
created under the
Office of the President
to carry out the
provisions of this Act”
C
R.A. 11364
“The CDA created
under R.A. 6939,
hereinafter referred
to as the Authority, is
hereby strengthened
and reorganized to
carry out the
provisions of this Act
and those of R.A.
6938 as amended by
R.A. 9520”
280
2890 M employment: Source 2020 World Coop Monitor
To pursue the 2020 Vision, the document outlines five
critical themes to form part of the co-operative sector's
agenda, which have been devised by Cliff Mills and Will
Davies, Centre for Mutual and Employee-owned
Business, University of Oxford, under the guidance of an
ICA Planning Work Group.
The ICA Blueprint, which was launched
in a draft format at the General
Assembly last October, sets out a path
that envisions co-operatives to be the
fastest growing form of enterprise by
2020.
These critical themes are:
1 Elevate participation within membership and
governance to a new level
2 Position co-operatives as builders of sustainability
3 Build the co-operative message and secure the co-
operative identity
4 Ensure supportive legal frameworks for co-operative
growth
5 Secure reliable co-operative capital while
guaranteeing member control
ILO Centenary Declaration:
Cooperatives call for people-centred
business models for a fair, secure,
and inclusive Future of Work (2019)
PART III:
CO-OPERATIVE
AS
BUSINESS & SOCIAL
ENTERPRISE
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
BASIC OPERATIONAL REQUIREMENTS IN A CO-OP
1. Mayor’s Permit
2. BIR Requirements:
• TIN
• Official Receipt
• Certificate of Tax Exemption
• Books of Accounts (Stamped by BIR)
3. Office with Signage
4. Core Management Team: Manager, Treasurer and Bookkeeper
6. Functioning Officers
7. Policies and Procedures
8. Adequate Capitalization
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
CERTIFICATE OF REGISTRATION
A co-op organized acquires juridical personality from
the date the CDA issues a certificate of registration
under its official seal.
It shall be conclusive evidence that the co-op named
therein is duly registered unless it is proved that the
registration thereof has been cancelled.
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
AREA OF OPERATION – shall refer to the
area where the cooperative operates and
where its members come from as provided
in the Articles of Cooperation and By-Laws.
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
TERM
A cooperative shall exist for a period not
exceeding fifty (50) years from the date
of registration unless sooner dissolved
or unless said period is extended.
ADDRESS
Every cooperative shall have an official postal address
to which all notices and communications shall be sent.
Such address and every change thereof shall be
registered with the Authority.
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
REGULAR REPORTS
All registered co-ops shall submit an electronically encoded
Cooperative Annual Progress Report (CAPR) with the
following attachments:
* Social Audit Report (SAR);
* Governance and Management Audit Report (GMAR),
including copies of the semi-annual report on mediation
and conciliation;
* Audited Financial Statement (online submission);
* List of Officers and Trainings
undertaken/Completed.
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
REGULAR REPORTS
All registered cooperatives shall file with the CDA
a copy of the required reports either through
personal, registered mail, courier or electronic means,
within 120 days from the end of every calendar
year.
The CAPR including all of the reports shall be
reported to its members during the annual general
assembly meeting.
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
TAX TREATMENT OF COOPERATIVES
Duly registered cooperatives under R.A. 9520
which do not transact any business with non-
members or the general public shall not be subject
to any taxes and fees imposed under the internal
revenue laws and other tax laws.
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
COMMON BOND OF MEMBERSHIP
BOND OF MEMBERSHIP – shall refer to the
condition where members associate themselves
to attain their common goals and objectives
which may either be residential, institutional,
occupational, and associational.
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
COMMON BOND OF MEMBERSHIP
ASSOCIATIONAL - members come from a registered
and/or recognized association, group, club, fraternity,
religious group, cultural and other similar aggrupation.
Recognized association means legitimate aggrupation of
persons which is validated to be publicly known in a
particular community and is able to present certification
from applicable government entity or substantial proof of
visible activity in the community.
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
COMMON BOND OF MEMBERSHIP
RESIDENTIAL - members are working and/or actually
and physically residing in the same place.
INSTITUTIONAL - members consist of employees,
workers and/or officers of a particular institution.
OCCUPATIONAL - members come from the same or
allied profession or actual occupation.
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
FIELD OF MEMBERSHIP
Shall refer to the specific description of membership. In
a way, it clarifies who shall be considered as members of
the co-op in accordance with their bond of membership.
Example:
“That the common bond of membership of this
cooperative is INSTITUTIONAL and the field of
membership shall be open to all CDA – Dagupan
Extension Office employees ONLY.”
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
NATURE AND CHARACTERISTIC OF CO-
OPS
1. Cooperatives are service-oriented.
• Cooperatives are organized to serve their
members by providing goods and services at
reasonable cost.
2. Cooperatives are community-oriented.
• Cooperatives work for the welfare of their
members by integrating themselves into the life
of the community in particular and the nation in
general.
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
NATURE AND CHARACTERISTIC OF CO-OPS
3. Cooperatives are people-oriented.
• Cooperatives are not merely economic instruments
concerned with dividends and related economic and
financial returns.
• They are the mechanisms of change for total human
development. This means the total development of
man as human being in all the economic,
political, cultural and spiritual aspects.
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
NATURE AND CHARACTERISTIC OF CO-OPS
4. Cooperative are owned, managed, and patronized by members.
• Cooperatives are member-owned, member-controlled and member-
used. Ownership is a very important factor in the success of any
cooperative.
• It is very important that members have full authority to manage and
control their cooperative.
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
NATURE AND CHARACTERISTIC OF CO-OPS
5. Cooperatives are business enterprises.
• Cooperatives engage in businesses with social responsibility. They
play a meaningful economic role in the community life by servicing
and performing as efficiently and responsively as the other financial
and business enterprises.
• Cooperatives have to generate surplus to be able to continually
improve and expand its services.
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
NATURE AND CHARACTERISTIC OF CO-OPS
6. Cooperatives develop best through self-help
and mutual help.
• Robert Owen advocated the philosophy of self-help that
inspired the “Rochdale Pioneers” to organize. He said “
if you want some thing done, do it yourself”. This
philosophy has been responsible for the success of
many cooperatives all over the world. - and it is the
best alternative for the poor in any country to unite and
help themselves out of their depressed condition.
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
NATURE AND CHARACTERISTIC OF CO-OPS
7. Cooperatives serve best when they answer the real
felt needs of the members.
• It is important therefore that proper approaches
and techniques are employed to ensure that the real
needs of the members are identified and recognized
before any cooperative is organized.
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
NATURE AND CHARACTERISTIC OF CO-OPS
8. Cooperatives develop best from bottom to top.
• Being mass-based organizations, cooperatives
develop best from the bottom to top.
• Organizationally, their development should be from
the primary level to the secondary, tertiary and up to
the apex.
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
NATURE AND CHARACTERISTIC OF CO-OPS
9. Development of cooperatives is enhanced
through a multi-sectoral approach.
• The government, non-government, and the cooperative
sector – play an important role in enhancing the smooth
and continuous development of the cooperatives.
• This approach involves the participation of all sectors
from the planning stage to the implementation,
evaluation, and monitoring of all activities.
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
Basic Differences With Other Business Model
Bases for
Comparison
SINGLE
PROPRIETORSHIP
PARTNERSHIP CORPORATION COOPERATIVE
Number of
persons
required for
formation
Only one person At least two or more
At least 5 persons
are required to
form a
corporation.
(natural
and juridical
persons
can be
stockholders at the
same time)
At least 15 natural
persons are required
to form a
primary coop (10
primary coops
are required to
form a
federation or
union)
Grant of
Juridical
Personality
No separate juridical
personality from owner
but business name
should be registered
with the DTI
Mere agreement of
partners can be a
partnership.
However,
it is better if
registered
under the SEC
Must be registered
with SEC
Must be registered
with CDA
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
Basic Differences With Other Business Model
Bases for
Comparison
SINGLE
PROPRIETORSHIP
PARTNERSHIP CORPORATION COOPERATIVE
Registration
Requirements for
Documentation Application Form
Contract of
Partnership
Articles of
Incorporation, By
–laws and Bank
Statement
Articles of
Cooperation,
By-laws,
Economic Survey,
Bonds of
Accountable
Officers
and
Treasurer’s
Affidavit
Capitalization
Contributions
Only the owner
contributes capital
Partners contribute
cash or
services/industry
Stockholders pay
for the amount of
shares he wants to
buy
A member can
subscribe
up to 10%
of the total
subscribed
share capital
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
Basic Differences With Other Business Model
Bases for
Comparison
SINGLE
PROPRIETORSHIP
PARTNERSHIP CORPORATION COOPERATIVE
Management
Structure
Only one person
decides
Partners make a
collective decision
Board of Directors
make final decision
General Assembly
has the
final decision
Voting No voting rights
Votes proportional to
the extent of interest
of each partners
Votes proportional
to no. of stocks
owned by
stockholder; proxy
voting allowed
One member,
one vote;
no proxy voting in
primary coops
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
Basic Differences With Other Business Model
Bases for
Comparison
SINGLE
PROPRIETORSHIP
PARTNERSHIP CORPORATION COOPERATIVE
Liability Owner assumes
full liability
All partners are
equally liable
except in
limited partnerships
Limited up to
authorized capital
Member’s liability
is only up to his/her
subscribed
share capital
Taxability Owner is liable
for Income tax
Partners pay tax on
share as partner
Profits taxable;
stockholders pay
tax on dividends
received
Co-ops which
transact
business with
their members ONLY
are tax exempt
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
Basic Differences With Other Business Model
Bases for
Comparison
SINGLE
PROPRIETORSHIP
PARTNERSHIP CORPORATION COOPERATIVE
Basis of
Distribution of
Surplus/Profit
Owner enjoys
all the profits
All partners equally
share in the
profit or
based on
Partnership
Agreement
Stockholder’s
share in the profit
is dependent
on the no. of
stocks which he
holds
Member’s share in
the surplus is based
on his paid-up
share capital and
patronage refund or
volume of business
he/she contributed
to the co-op
Governing
Principles
Purely Business
Management
Principles
Partnership
Principles as
stipulated by
the partners
Purely Business
Management
Principles
Co-op Values
& Principles
and Business
Management
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
• In other words, the primary aim of a co-
op business, as contrasted with other kinds of
business, is to provide goods and services
to its members.
• A cooperative does not engage in buying and
selling in order to make a profit for its
members.
• A co-op answers the needs of its members.
Basic Differences With Other Business Model
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
• Although it may buy and sell from the general
public in order to carry on its own business, this is
incidental to its chief aim —serving its members.
• Nonetheless, “Co-ops”—are enterprises which is
a part of our economic system of private
enterprises just the same as an
individually-owned business,
a partnership, or a corporation.
Basic Differences With Other Business Model
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
As a Business Enterprise..
Co-ops follow all business norms like:
• Adherence to local laws;
• Open trade;
• Cash trading;
• Selling at market price;
• Avoid destructive competition among coops;
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
As a Business Enterprise..
Co-ops follow all business norms like:
• Adequate capitalization;
• Adherence to business governance;
• Minimize Expenditures;
• Constant expansion;
• Quality Standardized Goods.
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
As a Business Enterprise..
Co-ops follow all business norms like:
• Comply with the basic requirements of
a business enterprise such as but not
limited to securing Business Permits;
Registration with BIR; observance of
Labor Laws and other social legislations.
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
As a Social Enterprise..
Stronger Competition
Pooling members' purchasing power enables
co-ops to operate efficiently while promoting
stronger competition locally.
When co-op enterprises start to give its members
services and products -- they become known --
with inventory, management and capital, enabling
them to compete effectively in the local economy.
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
As a Social Enterprise..
Improved Services
Since a co-operative is owned and operated by the
members, for the members, cooperatives focus on
self-help and mutual help.
Cooperatives use revenues to cover costs
associated with rendering services to its members
and surpluses may be used to subsidize member
services.
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
As a Social Enterprise..
Job Generation
Co-ops do not merely serve as buying enterprises,
they are also examples of decentralized
businesses that can provide meaningful jobs
thereby contributing to poverty reduction.
According to the ICA, co-ops currently employ an
estimated 100 million people worldwide, or
roughly 20 % more than multi-national
corporations.
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
What is a Cooperative?
 An autonomous duly registered association of persons
 With a common bond of interest
 Who have voluntarily joined together
 To achieve their social, economic and cultural needs
 By making equitable contributions to the capital required
 Patronizing their products and services
 Accepting fair share of the risks and benefits of the
undertaking
 In accordance with universally accepted co-op principles
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
1. Credit Cooperative
2. Consumer Cooperative
3. Producer Cooperative
4. Marketing Cooperative
5. Service Cooperative
6. Multi-Purpose Cooperative
7. Advocacy Cooperative
TYPES OF COOPERATIVE
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
8. Agrarian Reform Cooperative
9. Cooperative Bank
10. Dairy Cooperative
11. Education Cooperative
12. Electric Cooperative
13. Financial Service Cooperative
14. Fishermen Cooperative
TYPES OF COOPERATIVE
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
15. Health Services Cooperative
16. Housing Cooperative
17. Transport Cooperative
18. Water Service Cooperative
19. Workers Cooperative
20. Other types of cooperatives as may
be determined by the Authority
TYPES OF COOPERATIVE
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
PRIMARY COOPERATIVE – the members of which are
natural persons EXCEPT electric cooperatives, water
service cooperatives and other co-ops which the IRR of
R.A. 9520 or the Authority may allow.
SECONDARY COOPERATIVE – the members of which are
primary co-ops.
TERTIARY COOPERATIVE – the members of which are
secondary co-ops.
CATEGORIES OF COOPERATIVES
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
PART IV:
ORGANIZATION
AND
MANAGEMENT STRUCTURE
OF
COOPERATIVES
Membership
 REGULAR – has complied with all the membership
requirements and entitled to all rights and privileges of
membership.
 ASSOCIATE – one who has NO RIGHT TO VOTE
NOR BE VOTED UPON and shall be entitled only to
such rights and privileges as the by-laws may provide. Shall
be considered a regular member upon meeting the minimum
requirements of regular membership, and continues to
patronize the cooperative for two (2) years, and signifies
his/her intention to remain a member.
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
If an associate member who meets the minimum requirements of
regular membership, continues to patronize the co-op for 2 years
and signifies his/her intention to remain as member, is he/she
automatically considered a regular member?
YES. The law gives the option to the associate member provided
that he/she satisfies the requirements of Article 26. However, it is the
BOD who will decide whether or not he has complied with the
minimum requirements.
Art. 26. Kinds of Membership. x x x
“x x x Provided, that an associate member who meets
the minimum requirements of regular membership,
continues to patronize the services of the coop for 2
years, and signifies intention to remain as member shall
be considered a regular member
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
Membership
RIGHTS AND PRIVILEGES OF A MEMBER
• Participate in the deliberation of all matters taken–up during
general membership meetings;
• Avail himself of the services of the cooperative, subject to
certain conditions as may be prescribed by the Board of
Directors;
• Inspect and examine the books of accounts, the minutes
books, the share register, and other records of the co-op
during reasonable office hours;
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
Membership
RIGHTS AND PRIVILEGES OF A MEMBER
• Secure copies of cooperative records/documents
pertaining to the account information of the concerned
member;
• Participate in the continuing education and other
training programs of the cooperative; and
• Such other rights and privileges as may be granted by
the General Assembly.
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
Membership
MEMBER ENTITLED TO VOTE
• Paid the membership fee and the value of the
minimum shares required for membership;
• Not delinquent in the payment of his/her share
capital subscriptions and other accounts or
obligations;
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
Membership
MEMBER ENTITLED TO VOTE
• Not violated any provisions of the Code, CDA
administrative issuances, Articles of Cooperation and
by-laws, the terms and conditions of the subscription
agreement; and the decisions, guidelines, rules and
regulations promulgated by the Board of Directors and
the general assembly;
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
Membership
MEMBER ENTITLED TO VOTE
• Completed the continuing education program
prescribed by the Board of Directors; and
• Participated in the affairs of the cooperative and
patronized its businesses in accordance with its
policies and guidelines.
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
Membership
MEMBER ENTITLED TO VOTE
Consequently, a member entitled to vote shall have
the following additional rights:
 Participate and vote on all matters deliberated
upon during general assembly meetings;
 Seek any elective or appointive position, subject to
the provisions of the by-laws and the Code.
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
Membership
DUTIES AND RESPONSIBILITIES OF A MEMBER
• Pay the installment of his/her share capital
subscription as it falls due and to participate in the
capital build-up and savings mobilization activities of
the co-op;
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
Membership
DUTIES AND RESPONSIBILITIES OF A MEMBER
• Participate in the membership education programs;
• Patronize the cooperative’s businesses and services;
• Attend general assembly meetings;
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
Membership
DUTIES AND RESPONSIBILITIES OF A MEMBER
• Observe and obey all lawful orders, decisions, rules
and regulations adopted by the Board of Directors and
the general assembly; and
• Promote the purposes and goals of the cooperative,
the success of its business, the welfare of its
members and the cooperative movement in general.
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
Membership
A member shall be liable for the debts
of the cooperative to the extent of
his/her contribution to the share
capital of the cooperative.
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
Membership
TERMINATION OF MEMBERSHIP may be
automatic, voluntary, or involuntary.
AUTOMATIC - The death, insanity, permanent
incapacity or insolvency as declared by a
competent court shall be considered as automatic
termination of membership in the cooperative.
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
Membership
VOLUNTARY - A member may for any reason,
withdraw his membership from the co-op by giving
a 60-day notice to BOD. He/she shall be entitled to
a refund of his/her capital contribution and other
interests in the co-op.
However, no member shall be allowed to withdraw
or terminate his membership during any period
while he has pending obligation with the
cooperative.
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
Membership
INVOLUNTARY - A member may be terminated by
a vote of the majority of all members of BOD for any
of the following/reasons:
When a member has not patronized the service(s)
of the co-op for an unreasonable period of time as
may be fixed by the BOD;
When a member has continuously failed to comply
with his/her obligations;
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
Membership
INVOLUNTARY TERMINATION
When a member has acted in violation of the by-
laws and the rules of the cooperative; and
For any act or omission, injurious or prejudicial to
the interest or the welfare of the cooperative.
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
Membership
DUAL MEMBERSHIP
A prospective cooperative may include in its by-
laws a provision not allowing members of existing
cooperatives of the same type within the same area
of operation to be a member of the proposed
cooperative unless they resign from the former.
COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE