RIZAL TECHNOLOGICAL UNIVERSITY

Cities of Mandaluyong and Pasig

SESSION NO. / WEEK NO. 3

MODULE NO. 03: Republic Act 9520 – Chapter 1

General Concepts and Principles

1. Declaration of Policy
2. General Concepts
3. Cooperative Principles
4. Definition of Terms

Overview

We discussed the Declaration of Policy, General Concepts, Cooperative Principles and

Definition of Terms of RA 9520.

Cooperative Management 1
RIZAL TECHNOLOGICAL UNIVERSITY
Cities of Mandaluyong and Pasig

Study Guide

1. The students should come to class prepared.

2. Complete all activities and quizzes on time.
3. Create a schedule of all of your activities and stick to the schedule.
4. Understand the course requirements.
5. Break tasks into easy pieces and collaborate with your groupmates.
6. Your class representative is in-charge of communicating matters to your professor,
such as requests for consultation, exam problems, etc.
7. The students are expected to participate actively in the discussions.
8. All students are expected to be academically honest.
9. Cheating, lying and other forms of unethical behavior will not be tolerated.
10. Any student found guilty of cheating in examinations or plagiarism in submitted
course requirements will receive an F or Failure in the course requirement or in
the course.
11. It is the responsibility of the student to monitor her/his own tardy incidents and
absences that might accumulate leading to grade of F.
12. Special examinations will be allowed only in special cases, such as prolonged illness.
It is also his/her responsibility to consult with the teacher, department head or
dean should his/her case be of special nature.

Learning Outcomes

Recognize the Declaration of Policy, General Concepts, Cooperative Principles and

Definition of Terms of RA 9520.

Cooperative Management 2
 RIZAL TECHNOLOGICAL UNIVERSITY
Cities of Mandaluyong and Pasig

Topic Presentation

CHAPTER I
GENERAL CONCEPTS AND PRINCIPLES

“ARTICLE 1. Title. – This Act shall be known as the “Philippine Cooperative Code of
2008”.

“ART. 2. Declaration of Policy.

It is the declared policy of the State 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. The State shall encourage the private
sector to undertake the actual formation and organization of cooperatives and shall create an
atmosphere that is conducive to the growth and development of these cooperatives.

“Toward this end, the Government and all its branches, subdivisions, instrumentalities and
agencies shall ensure the provision of technical guidance, financial assistance and other
services to enable said 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.

“Further, 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.

“ART. 3. General Concepts.

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.

Cooperative Management 3
 RIZAL TECHNOLOGICAL UNIVERSITY
Cities of Mandaluyong and Pasig

“ART. 4. Cooperative Principles.

Every cooperative shall conduct its affairs in accordance with Filipino culture, good values and
experience and the universally accepted principles of cooperation which include, but are not
limited to, the following:

“(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, cultural, political or religious discrimination.

“(2) Democrative Member Control – Cooperatives are democratic organizations that are
controlled by their members who actively participate in setting their policies and making
decisions. Men and women serving as elected representatives, directors or officers are
accountable to the membership. In primary cooperatives, members have equal voting rights of
one-member, one-vote. Cooperatives at other levels are organized in the same democratic
manner.

“(3) Member Economic Participation – Members contribute equitably to, and democratically
control, the capital of their cooperatives. At least part of that capital is the common property
of the cooperative. They shall receive limited compensation or limited interest, if any, on capital
subscribed and paid as a condition of membership. Members allocate surpluses for any or all
of the following purposes: developing the cooperative by setting up reserves, part of which
should at least be indivisible; benefitting members in proportion to their patronage of the
cooperative’s business; and, supporting other activities approved by the membership.

“(4) Autonomy and Independence – Cooperatives are autonomous, self-help organizations

controlled by their members. If they enter into agreements with other organizations, including
government, or raise capital from external sources, they shall do so on terms that ensure
democratic control of their members and maintain their cooperative autonomy.

“(5) Education, Training and Information – Cooperatives shall provide education and training for
their members, elected and appointed representatives, managers, and employees, so that they
can contribute effectively and efficiently to the development of their cooperatives.

“(6) Cooperation Among Cooperatives – Cooperatives serve their members most effectively and
strengthen the cooperative movement by working together through local, national, regional
and international structures.

(7) Concern for Community – Cooperatives work for the sustainable development of their
communities through policies approved by their members.

Cooperative Management 4
 RIZAL TECHNOLOGICAL UNIVERSITY
Cities of Mandaluyong and Pasig

“ART. 5. Definition of Terms.

The following terms shall mean:

“(1) Member includes 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;

“(2) General Assembly shall mean 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: Provided, That
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;

“(3) Board of Directors shall mean that body entrusted with the management of the affairs of
the cooperative under its articles of cooperation and bylaws;

“(4) Committee shall refer to anybody entrusted with specific functions and responsibilities
under the bylaws or resolution of the general assembly or the board of directors;

“(5) Articles of Cooperation means the articles of cooperation registered under this Code and
includes a registered amendment thereof;

“(6) Bylaws means the bylaws registered under this Code and includes any registered
amendment thereof;

“(7) Registration means the operative act granting juridical personality to a proposed
cooperative and is evidenced by a certificate of registration;

“(8) Cooperative Development Authority refers to the government agency in charge of the
registration and regulation of cooperatives as such hereinafter referred to s the Authority;

“(9) Universally Accepted Principles means that body of cooperative principles adhered to
worldwide by cooperatives;

“(10) Representative Assembly means the full membership of a body of representatives elected
by each of the sectors, chapter or district o the cooperative duly assembled for the purpose of
exercising such powers lawfully delegated unto them by the general assembly in accordance
with its bylaws;

“(11) Officers of the Cooperative shall include the members of the board of directors, members
of the different committee created by the general assembly, general manager or chief
executive officer, secretary, treasurer and members holding other positions as may be provided
for in their bylaws;

“(12) 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. It
enables the cooperative to develop a process whereby it can account for its social performance

Cooperative Management 5
 RIZAL TECHNOLOGICAL UNIVERSITY
Cities of Mandaluyong and Pasig

and evaluate its impact in the community and be accountable for its decisions and actions to
its regular members;

“(13) Performance Audit shall refer 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;

“(14) A Single-Line or Single-Purpose Cooperative shall include cooperative undertaking

activities which are related to its main line of business or purpose;

“(15) 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;

“(16) 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;” and

“(17) 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.”

Cooperative Management 6
 RIZAL TECHNOLOGICAL UNIVERSITY
Cities of Mandaluyong and Pasig

Guided Exercises / Learning Activities

Available at e-rtu

Assessment

Available at e-rtu

Assignment

Available at e-rtu

Cooperative Management 7
 RIZAL TECHNOLOGICAL UNIVERSITY
Cities of Mandaluyong and Pasig

References

Republic Act 9520. (2022, August 1). Retrieved from Cooperative Development Authority:
https://cda.gov.ph/issuances/republic-act-9520/

Cooperative Management 8