LESSON 1

ORIGIN AND PHILOSOPHY OF COOPERATIVES

TOPICS
1. Origin of Cooperatives
2. Philosophy and Concepts of Cooperative: Why, What and How
3. Importance of Working together

LEARNING OUTCOMES
At the end of the lesson, you should be able to:
1. discuss the origin of cooperative movement;
2. internalize the lyrics and statements of the cooperative hymn, pledge and
concepts then, determine and explain the What, Why and How of the
Cooperative through the different sources; and
3. Explain the importance of the philosophy of Cooperative that should be
embedded to each of the member.

TOPIC 1: ORIGIN OF COOPERATIVES

Cooperative Movement

The cooperative movement began in Great

Britain, where consumers’ cooperatives started
to emerge in 1769. During this time, Fenwick
Weavers’ Society was the first documented
consumer cooperative, when the local weavers
manhandled a sack of oatmeal into John
Walker’s whitewashed front room and sold the
contents at a discount. In the 19th century, after
the industrial revolution group of workers saw
cooperatives as a way against the growth of https://www.ica.coop/en/cooperatives/history-cooperative-
social oppression. movement#top

Robert Owen was the founder of Cooperative movement. A Welshman who made
his fortune in cotton trade. He called on workers to join cooperatives, as he believed in
putting his workers in a good environment with access to education for themselves and
their children although he is a capitalist himself. He was the product of self-help who
concentrated on the “means to the end”.

After a decade several cooperatives were organized including Lennoxtown Friendly

Victualling Society in 1812, Lockhurst Lane Industrial Co-operative Society in 1832 and
Galashiels and Hawick Co-operative Societies in 1839. Both still trade today. In 18444, the
Rochdale Society of Equitable Pioneers was founded in Great Britain. A consumer co-
operative that first a patronage refund. It created a set of organizational and working rules
that have been widely adopted such as open membership, democratic control, sales at

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prevailing market prices, setting aside of some earnings for education.
(https://www.britannica.com/topic/Rochdale-Equitable-Pioneers-Society)

Cooperative in the Philippines

In the latter part of the 19th century, Dr. Jose Rizal and Teodoro Sandiko were the two
prominent Filipinos who have travelled in Europe and were impressed with the success of their
new economic movement.

In 1892, Rizal after his side trip to Sandakan, Borneo, requested Governor Despudol
to move and established a colony under the cooperative plan of Robert Owen. Instead, he
was arrested for treason and banished to Dapitan, Zamboanga del Norte. In Dapitan, Rizal
had his ideas in cooperation partially fulfilled. He put up a school for the poor community
and a store with the help of his pupils on a purely cooperative basis. One noteworthy group
organized by Rizal was the La Sociedad de los Abacaleros (Society of Abaca Producers). This
functioned for only one year. Rizal returned the members’ share capital without any loss.

On the other hand, Teodoro Sandiko, in his travels to Europe, must have had a
close contact with the cooperative movement in Germany where he came across with the
Raiffeisen movement. He was very much impressed by this type of cooperative that he
looked forward for an opportunity to introduce it in the Philippines. Finally, Sandiko had
his chance when he was appointed one of the early governors when Civil Government,
under the Americans, was established.

As soon as Civil Government was established, Filipino participation in government

was encouraged. Teodoro Sandiko, then governor of Bulacan, prepared a bill patterned
after the Raiffeisen type of credit union and had Rep. Albert Barreto of Zambales sponsored
the bill in the lower House of Congress. The principal aim of this bill was to protect and
develop the agricultural interest of the country. When the Barreto sponsored bill was
presented it readily obtained unanimous approval on January 20, 1908. The Philippine
Commission however, turned it down.

Undaunted by this defeat, the sponsors of the bill again put it through in the Second
Philippine Legislature. This time it was sponsored in the Lower House by Rep. Rafael Corpuz
who succeeded Rep. Barreto. The bill was ably presented in both Houses and it was finally
passed into law on February 11, 1914 and became Act 2508. When this Act was finally
made into law, Gov. Sandiko earned the title, Father of Cooperation in this country.

The administration of the Rural Credit Law was entrusted to the Bureau of
Agriculture. On October 18, 1916, the first rural credit association that was organized
under this Law was the Agricultural Credit Cooperative Association of Cabanatuan, Nueva
Ecija. With this initial organization farmers in different provinces were organized. At the
end of 1926, there were 544 rural credit cooperatives organized in 42 provinces and by
1930 there were 571 associations formed all over the country. In 1935, however, about
90% of these cooperatives were inactive with no funds left in their treasury. The
experiment on rural financing, through cooperatives was a failure.

As soon as the organization of rural credit cooperatives was in full swing, The
Cooperative Marketing Law (Act 2425) was enacted and approved on December 9, 1927.
The rural credit associations were designed to help finance the efforts of the farmers for
more production. Wherever rural credit associations were, cooperative marketing
societies were also designed to be present. The apparent weakness of the rural credit
cooperatives, however, failed the enthusiasm of farmers to organize themselves into

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cooperative marketing associations. By 1939 only 164 societies were actually organized
with a total membership of around 5,000 farmers. With this number only 35 reported their
sale of products to the Bureau of Commerce. The number of associations reporting
indicated that only 20% of the organized associations were active.

In recognition of the strategic position occupied by our farmers in the social

structure and economic development of the country, the Philippine Congress enacted
Republic Act 821 in 1952. This law established a system of liberal credit which is specially
designed to meet the needs of the small farmers. It also created an administrative agency
known as the Agricultural Credit and Cooperative Financing Administration (ACCFA). To
implement the great task of rural financing, four general and interrelated objectives of the
law were set forth as follows: to assist small farmers in securing liberal credit; to promote the
effective groupings of farmers into cooperative associations; to establish an orderly and
systematic marketing machinery for, and controlled by, the small farmers; and to place
agriculture on a basis of economic equality with other industries.

In 1957, RA No. 2023, otherwise known as the Philippine Non-Agricultural Cooperative

Act, was passed by Congress which enabled the people in developing their enterprises on a
cooperative basis.

In 1960, the Agricultural Credit Cooperative Institute (ACCI) was established. Three
years later, RA No. 3844 or the Agricultural Land Reform Code was enacted. ACCFA was
organized into Agricultural Credit Administration (ACA). The Landbank of the Philippines was
also established during the same year. In 1969, the Agrarian Reform Code was passed,
mandating that coops be utilized as primary conduits for credit supply and marketing services
to agrarian reform beneficiaries.

During the martial law regime, President Marcos issued several decrees that dealt with
cooperatives. The Bureau of Cooperatives Development (BCOD) and the Agrarian Reform
Decree (PD27) which declares the entire country as an agrarian reform area. Pre-cooperatives
called Samahang Nayons were organized and grouped in tens to form Kilusang Bayan or full
pledged coops. Benefits would include the right to borrow funds from government banks and
the assurance of being supplied with farm inputs. Federations of cooperatives were also
formed.

In 1973, PD No. 175 was promulgated. This was an Act to strengthen the Cooperative
movement, consolidated the different Cooperative laws, provided a sound basis for a truly
systematic cooperative program and placed the responsibility of initiating, promoting
organizing, supervising and developing cooperatives under one government agency, the
Bureau of Cooperatives Development under the Department of Local Government and
Community Development.

In May 1980, under Executive Order 595, the Bureau of Cooperatives Development
under the Ministry of Local Government and Community Development was transferred to the
Ministry of Agriculture.

In 1986 to 1990, Cooperative leaders lobbied aggressively for the adoption of a

cooperative-friendly legislation. The bill was passed and signed as a law, i.e., RA 6938, the
Cooperative Code of the Philippines that rationalizes and unifies all cooperative laws by
President Corazon C. Aquino on March 10, 1990. A companion Law, RA 6939, was also passed
creating the Cooperative Development Authority which provided the abolition of the Bureau
of Agricultural Cooperatives Development (BACOD). The CDA was created to promote the
viability and growth of Cooperatives. With the passage of the Code, a powerful instrument for
economic progress and development has been placed in the hands of the people.

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 In 1993, the National Cooperative Movement (NCM) was organized and then the
organization of the Philippine Cooperative Center (PCC) the following year. In 1998, the
Cooperative-National Confederation of Cooperatives (COOP-NATCCO) Network Party landed
a seat in the House of Representatves. It also won another seat in 2001, 2004, 2007 and 2008
elections which enabled cooperative movement to have the voice in the Halls of Congress,
particularly in the efforts to amend the cooperative code.

In February 17, 2009, RA 9520 or the Philippine Cooperative Code of 2008 a new
law signed amending RA 6938 to meet the challenges of the global economic situation and
the advent of age of information technology and to strengthen the thousands of
cooperatives in the country and enable the system to contribute better to the country
economic growth. All of these, brought gradual transformation in the economic and social
life of the people.

Activity: Video Clip Presentation

To complement the discussion above you may also

watch the Video Clip on ” Kasaysayan ng Kooperatiba” at
https://www.youtube.com/watch?v=dAG40qtBFAM
Module 1 of "Let's Co-operate" Basic Co-operative
Orientation Everyday Lifeable 24 Jul 2012

TOPIC 2: PHILOSOPHY AND CONCEPTS OF COOPERATIVE: WHY, WHAT AND HOW

COOPERATIVE HYMN PANUNUMPA

Ating daan tungo sa kaunlaran
Ang diwa nito ay pagtutulungan, kasipagan, Bilang isang Pilipino
pagsasarili, pagkakapatiran Ako ay naniniwala sa Kooperatiba
Kaalaman patuloy na nililinang Nag-iisa, ako ay mahina
Kamangmangan hindi binibigyang daan Subalit kasama ang iba
Sikap at tiyaga ay mga puhunan Ako ay matatag
Upang harapin ang suliranin ng lipunan Kaya ipinapangako ko
CHORUS: Ang aking sarili
Kooperatibang may katatagan Na gumawa, na makipagtulungan
Sandigan ng sambayanan Upang ang lahat ay umunlad.
Kapit-kamay nating tahakin ang landas Pakikiisa, Kasipagan aking Pahahalagahan.
Tungo sa magandang kinabukasan Mga Gawain ng Kooperatiba aking
Kooperatibang may katatagan dadaluhan
Sandigan ng sambayanan Mga tungkulin aking gagampanan
Ipagmalaki natin sa mundo Mga Prinsipyo ng Kooperatiba aking
Nagtutulungan, nagkakaisa tayo isasabuhay.
Walang puwang ang pag-aalinlangan Isang pananaw, isang paniniwala, isang
Bawat hakbang, tiyak ang patutunguhan damdamin
Mga pusong laging pag-asa ang taglay Sa gawaing Kooperatiba
Abot-kamay silahis ng tagumpay Buhay ko aking inaalay
REPEAT CHORUS Kasiyahan nawa ako ng Diyos.
Kooperatibang may katatagan
Pinagpapala ng Maykapal
Ipagmalaki natin sa mundo
Nagtutulungan, nagkakaisa tayo
Taas noo tayo sa mundo
Isang bansang kooperatiba tayo.
(https://www.youtube.com/results?search_query=cooperative+hy
mn)

ARTICLE 3: GENERAL CONCEPTS,

RA 9520 COOPERATIVE CODE OF 2008

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Ang kooperatiba ay isang rehistradong samahan na may kasarinlan sa
pamamahala ng mga miyembrong pinagbuklod ng isang adhikain, na kusang loob na
nagsama-sama upang makamtam ang kanilang mga pangangailanangan at mga
 Presented are the Cooperative Hymn, Pledge and the General Concepts of the
Cooperative. Out of these three(3), you will be able to understand better the philosophy
of cooperatives by understanding the statements and provisions and answering the why,
what and how of cooperative. It must be noted that Philosophy helps us to be reasonable
and being reasonable enables us to decide better, accomplish goals, live a better life and
become better individuals.

Activity: Essay
Answer the following questions on a yellow paper. Write ACTIVITY 1 – COOPERATIVE
MANAGEMENT on the top middle part of your paper. On the left side, second line of your
paper write your surname, first name and middle initial. Under your name write your
year and section. Please observe margin on both sides, i.e., 1 inch on the left and ½ on
the right. Be guided with the rubrics below.
1) From the lyrics/ statements of the Cooperative hymn, pledge and general
concepts do you see yourself being an active member of a Cooperative? Why?
2) Do you possess the characteristics of being a member of a cooperative? Identify
and give your reasons.

Rubrics for grading:

No Answer Needs Improvement Adequate Quality Exemplary
1 2 3 4 5

Content Did not Answers are partial Answers are not Answers are Answers are
answer or incomplete. Key comprehensive or accurate and comprehensive,
question. points are not completely stated. complete. Key accurate and
clear. Question not Key points are points are stated complete. Key ideas
adequately addressed, but not and supported. are clearly stated,
answered. well supported. explained, and well
supported.

Organization Did not Organization and Inadequate Organization is Well organized,

(Answers are answer structure detract organization or mostly clear and coherently developed,
clearly thought question. from the answer. development. easy to follow. and easy to follow.
out and Structure of the
articulated.) answer is not easy
to follow.

Writing Did not Displays over five Displays three to Displays one to Displays no errors in
Conventions answer errors in spelling, five errors in three errors in spelling, punctuation,
(Spelling, question. punctuation, spelling, spelling, grammar, and
punctuation, grammar, and punctuation, punctuation, sentence structure.
grammar, and sentence structure. grammar, and grammar, and
complete sentence sentence
sentences.) structure. structure.

5
https://www.rcampus.com/rubricshowc.cfm?code=PXB23W3&sp=true&

TOPIC 3: IMPORTANCE OF WORKING TOGETHER

Read the short story below:

The Crisolos and the Casimiros have been family

friends for many years. Both families are living in the
same street and barangay. Mr. Crisolo and Mr.
Casimiro both work as regular government employees
while their spouses are both plain housewives. The
two families would spend their Sundays as their family
day to enjoy each other’s company. The two mothers
would always go to the market and buy their groceries
at the same time and chat now and then.
https://www.google.com/search?q=working+together&sou
rce=lnms&tbm

The lady spouses have been worrying about the rising cost of goods. Every time
they spent more, they bought less. They decided that they have to act on their present
situation. Mrs. Casimiro noticed that there were many things that both families frequently
bought like rice, dried fish, cooking oil, vinegar, condiments and essential goods in their
shopping lists. Mrs. Casimiro then decided to convince Mrs. Crisolo that they will buy in
bulk so that it would be cheaper, that way they could save.

The ladies planned their expenses for the month. Instead of buying rice by the kilo,
they ordered one cavan had it delivered to their place. They also bought by liters of vinegar,
soy sauce and cooking oil. Condiments were also bought by packs. Thereafter, they divided
the goods between the two families. At the end of the month, they computed how much
they had saved and were so happy that were able to save 300 pesos.

Mrs. Crisolo also suggested that they need to help their husbands. Since both of
them had dressmaking skills. They could supply their neighbors with rugs for 3 for 100 and
sell simple house clothes. They talked to Mrs. Salinas to sell their sewn clothes at her stall.
They At the end of the month they earned 1,500 from the clothes and 500 from rugs. The
two ladies were very proud and happy of their success. Their husbands appreciated their
efforts to help improve the family income. They were even able to teach their children a
thing or two about being thrifty, hard work and helping each another.

Activity : Essay.

Answer the following questions on a yellow paper. Write ACTIVITY 2 –

COOPERATIVE MANAGEMENT on the top middle part of your paper. On the left side,
second line of your paper write your surname, first name and middle initial. Under your
name, write your year and section. Please observe margin on both sides, i.e., 1 inch on
the left and ½ on the right. In grading your answers the rubrics provided on activity 1
topic 1 will be used.

1. Why do you think the plans of Mrs. Crisolo and Mrs. Casimiro succeeded?
2. Who benefitted from their success? Why the benefitted?
3. Do you think one of them could have succeeded without the help of the other

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 Think about a problem, a need or an objective that you share you will another
person. This person may be your sibling, relative or friend. If you were to work with him/her
to solve a common problem or achieve a common objective, describe what you would do.

4. How will you share the task that need to be done?

5. How can you be sure that your plans can be carried out?
6. If there are costs involved, how will you share these costs?

ASSESSMENT NO. 1
Answer the following questions on a yellow paper. Write ASSESSMENT NO. 1 –
COOPERATIVE MANAGEMENT on the top middle part of your paper. On the left side,
second line of your paper write your surname, first name and middle initial. Under your
name write your year and section. Please observe margin on both sides i.e.,1 inch on the
left and ½ on the right.

I. HISTORY OF COOPERATIVE. Answer what is asked. Write your answer only.

_______________________1) It is claimed to be one of the world first cooperative in
1948 in Aberdeen, UK.
_______________________2) It is the first documented consumer cooperative in 1769
when local weavers manhandled a sack of oatmeal and
began selling the contents at a discount.
_______________________3) It is where credit unions were invented in the mid 19th
century.
_______________________4) A consumer co-operative that first pay patronage
dividend, founded in 1844.
_______________________5) He introduced the first concept of cooperative in the
Philippines by putting store with the help of his pupils.
_______________________6) He is known to be the Father of World Cooperation.
_______________________7) He is known to be the father of Cooperation in the
Country.

_______________________8) The first rural credit association organized under Act

2503.
_______________________9) The Administrative Agency created by virtue of RA 821
that created an system of liberal credit to meet the needs
of the small farmer.
_______________________10) The pre-cooperative organization during the martial law
where tenant-farmers were obliged to compulsory join.

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II. After understanding the cooperative hymn and reciting the pledge. Copy this entire
assessment 1 part II on your yellow paper. Provided are the phrases in each number,
identify the source by writing CH if the source came from the cooperative hymn or CP
if from cooperative pledge and whether the given phrase is what, why or how of
cooperatives.

SOURCE What, Why, How

________ ________ 1) abot-kamay silahis ng tagumpay
________ ________ 3) bawat hakbang, tiyak ang patutunguhan
________ ________ 4) pakikiisa, Kasipagan aking pahahalagahan
________ ________ 5) kamangmangan hindi binibigyang daan
________ ________ 6) sa gawaing Kooperatiba buhay ko aking inaalay
________ ________ 7) daan tungo sa kaunlaran
________ ________ 8) diwa nito ay pagtutulungan, kasipagan, pagsasarili,
pagkakapatiran
________ ________ 9) gawain ng Kooperatiba aking dadaluhan
________ ________ 10) gumawa, na makipagtulunganupang ang lahat ay
umunlad
________ ________ 11) harapin ang suliranin ng lipunan
________ ________ 12) isang pananaw, isang paniniwala, isang damdamin
________ ________ 13) nag-iisa, ako ay mahina subalit kasama ang iba ako ay
matatag
________ ________ 14) mga pusong laging pag-asa ang taglay
________ ________ 15) nagtutulungan, nagkakaisa tayo
________ ________ 16) kapit-kamay
_________ ________ 17) pambihirang kilusan
_________ ________ 18) kaalaman patuloy na nililinang
_________ ________ 19) sandigan ng sambayanan
_________ ________ 20) mga prinsipyo aking isasabuhay

LESSON 2
UNDERSTANDING MORE OF CO-OPS

TOPICS 8
1. Cooperative definition;
2. Terms to remember;
3. Objectives and goals of cooperatives;
 TOPIC 1: COOPERATIVE DEFINITION

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
https://images.search.yahoo.com/search/images;_ylt=Awr9DuIsQ3
and services and accepting a fair share of deVt4AtzpXNyoA;_ylu=X3oDMTE0dWJmOGJpBGNvbG8DZ3ExBHBvc
risks and benefits of the undertaking in wMxBHZ0aWQDQjk1NjBfMQRzZW MDcGl2cw--
accordance with universally accepted ?p=cooperative&fr2=piv-
cooperative principles (Article 3, RA 9520). web&fr=mcafee#id=18&iurl=https%3A%2F
%2Fwww.assignmentpoint.com%2Fwp-
An enterprise or organization (as for banking and credit services or the ownership
content%2Fuploads%2F2018%2F01%2Fcoo
of residential property) that is owned by and operated for the benefit of those using its
perative-society.jpg&action=click
services.

A cooperative is both an economic and social enterprise. As such the social

contribution of the cooperative shall indicate the improvement on the social welfare of the
members and community as a whole.

9
 TOPIC 2: TERMS TO REMEMBER

COOP AS SOCIAL COOP AS ECONOMIC

ENTERPRISE ENTERPRISE

Cooperatives, as economic
Co-ops are social enterprises that
enterprises, play a meaningful role in
means doing things differently for the
uplifting the socio-economic
better as they are owned by their
conditions of their members and their
members. Cooperatives are working
local communities. Cooperative
toward building stronger
enterprises have successfully
communities, thus, stronger coop
operated locally owned people-
means stronger communities.
centered businesses as they
It is must be noted that coop is a social represent a model of economic
enterprise because it is created for enterprise that places high regard for
social purpose, that is ,to lessen social democratic and human values and
problem or market failure and to respect for the environment.
generate social value as well.
It is also relevant in addressing the
problem of food insecurity. The World
Bank estimates that food demand will
double by 2030 as the world’s
population increases by another two
billion people. One solution is to
encourage farmers to mobilise
collectively in agricultural and
marketing cooperatives that engage
in the production, processing and
marketing of agricultural products
and give them access to markets.

1) Area of Business Operation - shall refer to the principal place of business of a

cooperative where the cooperative conducts its business as provided for in their
Articles of Cooperative and By-laws.
2) Area of Operation - shall refer to the area where the cooperative members come
from as provided for in their Articles of Cooperation and By-laws.
3) Associate Member - shall refer to member of a cooperative who has no right to vote
or be voted upon and shall be entitled only to such rights and privileges as the By-
laws may provide.
4) Authorized Share Capital - shall refer to the capitalization of the cooperative as
prescribed in the Articles of Cooperation
5) Bond of Membership - shall refer to the conditions where members associate
themselves to attain their common goals and objectives which may either be
residential, occupational, associational, and institutional.
6) General Assembly - shall refer to 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 Cooperation and
By-laws.

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7) Guardian Cooperative - shall refer to duly registered cooperative to which a
laboratory cooperative is affiliated with.
8) Laboratory Cooperative - shall refer to a cooperative duly recognized by the
Authority, formed and managed principally by minors and is affiliated with another
registered cooperative which is called the guardian cooperative.
9) Members - shall include persons either natural or juridical who adhere to the
principles set forth by the Philippine Cooperative Law and in the Articles of
Cooperative, have been admitted by the coop as members.
10) 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.
11) Paid-up Share Capital - shall refer to the portion of the subscribed share capital,
which has been paid by the members of the cooperative.
12) Parent Cooperative - shall refer to a cooperative, which initiates the organizational
of another cooperative called a subsidiary cooperative and provides technical,
managerial, and financial assistance thereto.
13) Patronage Refund - shall refer to the amount returned to individual members who
patronize the goods and services of the cooperative in proportion to their individual
patronage.
14) Registration – shall refer to the operative act of the Authority granting juridical
personality to a proposed cooperative and is evidenced by the Certificate of
Registration.
15) Secondary Cooperative - shall refer to a cooperative the members of which are
primaries.
16) Share Capital - shall refer to the money paid or required to be paid by the members
for the conduct of the operations of the cooperative.
17) Social Audit - 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 and evaluate its impact in the
community and be accountable for its decisions and actions to its regular members;
18) Subsidiary Cooperative - shall refer to any organization all or minority of whose
membership or shareholders come from a cooperative called a parent cooperative,
organized for any other purpose different from that of, and receives technical,
managerial, and financial assistance from the said parent cooperative.
19) Total Average Share Month - shall refer to the sum total of the average share month,
which is determined by adding the monthly ending balances of the member's share
capital and dividing the sum by twelve (12) months.
20) Unpaid Subscription - shall refer to the subscribed share capital, which is not yet
fully paid by a member.

TOPIC 3: OBJECTIVES AND GOALS OF A COOPERATIVES

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 The primary objective of every cooperative is
to help improve the quality of life of its members. Towards
this end, the cooperative shall aim to:
(a) 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;
(b) Provide optimum social and economic benefits to its
members;
(c) Teach them efficient ways of doing things in a cooperative manner;
(d) Propagate cooperative practices and new ideas in business and management;
(e) Allow the lower income and less privileged groups to increase their ownership in the
wealth of the nation; and
(f) Cooperate with the government, other cooperatives and people-oriented
organizations to further the attainment of any of the foregoing objectives.

TOPIC 4: COOPERATIVE POWERS AND CAPACITIES

A cooperative registered under this Code shall have the following powers, rights and
capacities:

(1) To the exclusive use of its registered name, to sue and be sued;
(2) Of succession;
(3) To amend its articles of cooperation in accordance with the provisions of this Code;
(4) To adopt bylaws not contrary to law, morals or public policy, and to amend and
repeal the same in accordance with this Code;
(5) 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 and necessarily require, subject to the
limitations prescribed by law and the Constitution;
(6) To enter into division, merger or consolidation, as provided in this Code;
(7) To form subsidiary cooperatives and join federations or unions, as provided in this
Code;
(8) To avail of loans, be entitled to credit and to accept and receive grants, donations
and assistance from foreign and domestic sources, subject to the conditions of said
loans, credits, grants, donations or assistance that will not undermine the autonomy
of the cooperative. The Authority, upon written request, shall provide necessary
assistance in the documentary requirements for the loans, credit, grants, donations
and other financial support;
(9) To avail of preferential rights granted to cooperatives under Republic Act No. 7160,
otherwise known as the Local Government Code, and other laws, particularly those
in the grant of franchises to establish, construct, operate and maintain ferries,
wharves, markets or slaughterhouses and to lease public utilities, including access to
extension and on-site research services and facilities related to agriculture and fishery
activities;
(10) To organize and operate schools in accordance with Republic Act No. 9155,
Governance of Basic Education Act of 2001 and other pertinent laws; and
(11) To exercise such other powers granted by this Code or necessary to carry out its
purpose or purposes as stated in its Articles of cooperation. (Art 9, RA 9250)
( N.B. italized provisions are additional powers)

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 TOPIC 5: PURPOSES OF COOPERATIVES

A cooperative may be organized and registered for any or all of the following
purposes:

(1) To encourage thrift and savings mobilization among the members;

(2) To generate funds and extend credit to the members for productive and provident
purposes;
(3) To encourage among members systematic production and marketing;
(4) To provide goods and services and other requirements to the members;
(5) To develop expertise and skills among its members;
(6) To acquire lands and provide housing benefits for the members;
(7) To insure against losses of the members;
(8) To promote and advance the economic, social and educational status of the
members;
(9) To establish, own, lease or operate cooperative banks, cooperative wholesale and
retail complexes, insurance and agricultural/industrial processing enterprises, and
public markets;
(10) To coordinate and facilitate the activities of cooperatives;
(11) To advocate for the cause of the cooperative movements;
(12) To ensure the viability of cooperatives through the utilization of new technologies;
(13) To encourage and promote self-help or self-employment as an engine for economic
growth and poverty alleviation; and
(14) To undertake any and all other activities for the effective and efficient
implementation of the provisions of this Code. (Art. 6, RA 9520)

TOPIC 6: COOPERATIVE DIFFERS FROM OTHER BUSINESS INSTITUTIONS

COOPERATIVE is a business of the members as owners;

…..by the members as managers;
…..for the members as customers;
……to uplift their social , economic and cultural life.

It is in this character of the members and unique relationship that cooperatives

prosper as a business organization.

DIFFERENCES OF A COOPERATIVE WITH OTHER TYPES OF BUSINESSES

INDICATOR COOPERATIVE SOLE, PARTNERSHIP or
CORPORATION
PURPOSE  Organized to  Established with
provide services the intention of
that are needed by generating earnings
its members. for the benefit of its
 Its services and owners for sole
products are proprietorship,
affordable. partners for
partnerships and
stockholders for
corporations.

13
 ORGANIZATION  Individuals forming  Pools fund with the
cooperatives band intent to generate
together for a income for them.
common goal. Such
as: to obtain goods
and services at a
lower cost; to
create jobs through
a work coop; or
transform and
market products
through a producer
coop.
RIGHTS and AUTHORITY  Members are given  In corporations, the
equal rights to biggest
govern, shareholders has
 Adhere to one- the most number of
member, one vote voting rights.
principle
OWNERSHIP  Members are the  Partnership and
owners of the corporation are
cooperative. owned by partners
and shareholders.
INCOME SHARING  Net surplus shall  Shareholders in a
not be construed as corporation receive
profit but as excess dividends based on
of payments made the amount of their
by the members for shareholdings.
loans borrowed, or
the goods and
services availed by
them.
 Allocation of
statutory fund must
be made and
remainder shall be
in the form of
interest on share
capital and
patronage refund.

TOPIC 7: BENEFITS THAT CO-OP CAN PROVIDE

There used to be no cooperative in town of Kurimao. The place lacked order, jobs
were rare and incomes were low too. People had to walk miles to buy their daily needs.
The place has no source of electricity and no running water as well.
One day, some members of League for Community Services (LCS) a non-
government organization (NGO) visited the place. A Cooperative Development Specialist

14
came with them. The LCS members discussed with the community about cooperatives and
its benefits. Later, they helped the community form its own cooperative.
The cooperative helped people to find ways to raise their incomes. They learned
about different means of livelihood. Others put up their own stores. Some produced goods
they could sell. People did not have to walk far anymore to buy the things they needs every
day.
The members of the cooperative had duties and they were aware of these. They
knew that their cooperative could be of help to them if they all did their share. They
attended meetings, made their payments on time, and helped new members do the same.
The good attitudes that they learned from the cooperative spilled over to the other
residents of Kurimao. They began to work together on projects that concerned their
community. They started taking responsibility for cleaning up their surroundings. They
worked with the municipal government to have better electric and water system.
NOTE: Appreciate the story by describing the community before and after a
cooperative was formed.

The benefits the cooperatives can provide:

Cooperatives provide benefits not just for its members but the community as a whole.

1) The members of the cooperative put their money together (INVEST) to come up
with the capital needed by the cooperative.

Query: What do the members receive by investing in the cooperative?

All members are paid interest on the capital they have invested. They are
given this amount whether or not they patronize the business of their cooperative.
To patronize the business of your cooperative is to buy the goods that it sells or use
the services that it offers.

When a member patronizes the business of his/her cooperative, he/she is

given patronage refund. The amount of his/her patronage refund depends on how
much he/she spent on the goods and services offered by his/her cooperative.

For example, if he/she is a member of consumers’ cooperative, his/her

patronage refund depends on how much he/she spent on the goods sold by the
cooperative store. If he/she is a member of a credit cooperative, his/her patronage
refund is bigger the more loans he/she gets. He/ She must bear in mind of course,
that he/she must be diligent with his/her payments. Members who do not
patronize the business of their cooperative are not entitled to a patronage refund.

A member’s patronage refund is usually given once a year, and is his/her

share of the cooperative’s profits. The profits of the cooperative are used for many
purposes. Some are used for education and training of its member while some are
used for the patronage refunds.

15
 2) Cooperatives also provide opportunities for their members to be further educated
or trained.

They can be taught new skills or crafts, or the basics of simple business
operations. There are also opportunities for members to improve their means of
livelihood. Better means of livelihood can mean higher income for the members. If
people have higher incomes, they are better able to look after the needs of their
own families.

A community that has members who can look after their own families is a
progressive community.

3) Cooperatives aim to offer products and services that are good quality and are
reasonably priced. This benefits not only the members but also non-members who
patronize the business of the cooperative. In this way, the cooperative also serves
the community. People do not have to spend well-earned money on goods that are
too expensive or are poor quality.

4) There are many good values and attitudes that members can learn from a
cooperative. They can learn these by participating in its activities. They can also
learn these from the education and training they receive.

Query: Can you name some of these values and attitudes?

Members are encouraged to be thrifty and to save. They become self-

reliant and they learn self-discipline. Members also work together not just for their
own good but also for the good of all. They learn to work with and help other
people.
Adapted from: https://eskwelanaga.files.wordpress.com/2011/01/whatis-a-
cooperative.pdf

Activity for Lesson 2

I. Answer the following questions on a yellow paper. Write ACTIVITY 3 –

COOPERATIVE MANAGEMENT on the top middle part of your paper. On the left side,
second line of your paper write your surname, first name and middle initial. Under your
name, write your year and section. Please observe margin on both sides i.e.,1 inch on
the left and ½ on the right. In grading your answers the rubrics provided on activity 1
topic 1 will be used.
Answer the following questions:

1) Expound this definition. COOPERATIVE is a business of the members as owners,

by the members as managers, for the members as customers, to uplift their social
, economic and cultural life.
2) Differentiate cooperative as a social enterprise and economic enterprise.
3) If you are a would be member of a cooperative why do you think it is important
to know and understand the objectives, purposes, powers and capacities of a
cooperative?
4) Choose three(3) from each of the objectives, purposes, powers and capacities of
a cooperative.

II. Copy the entire matrix on your yellow paper, then complete the matrix based on the
indicator given. The column for cooperative is provided as a guide.

16
 INDICATOR COOPERATIVE BANKS & LENDING LOAN SHARKS
INSTITUTIONS
Nature of Business Formal
Owners Members
Managers Members
Customers Members
Orientation o Service Oriented
o Non profit
Savings Compulsory
Dividend from surplus
Patronage Refund From loan net
surplus
Development of o value based
Customers o operating with
principles
Concern for Community
community oriented
Reference: Understanding My Cooperative, pp. 12-13; 33-35

Activity/ Project Mid term: Environmental Scanning with complete documentation

Document this activity on long bond papers with pictures as possible observing
the following format: Font should be Times New Roman, size 12 with 1 inch margin on
top and bottom, 1 ½ on the left and ½ on the right. Encode ACTIVITY 4 –
ENVIRONMENTAL SCANNING in COOPERATIVE MANAGEMENT on the top most center of
the paper.
Inspect your own community, with the help of the members of your family
observe and describe the social, economic, political, environmental and cultural conditions
of your barangay. Identify problem areas in each of the conditions described.
Find out whether there is cooperative in the community, if there is any, identify
them and describe the nature of its business. How are they beneficial to the people and
to the community; if none, is there a need to establish a cooperative? expound…
In conducting the activity make sure to abide by the rules prescribed by your local
government units, wear mask and observe physical distancing.

Rubrics on the activity/project:

Economic/social/political/environmental and cultural Issues

Poor Fair Good Excellent
Indicator 1-2 pts 3 pts 4 pts 5 pts

Causes of problem Lists one or two Touches on two or three Explains three causes Effectively explains at least
causes of the issue . causes of the issue. of the issue. Causes four causes of the issue based
No indepth Causes may not be well are based on on observation, interview and
information discussed and/or observation and records. Causes are based on
presented. understood. May be interview . records stated clearly.
lacking in depth.

Effects of the Lists one or two Touches on two or three Explains three effects Effectively explains at least
effects of problem. effects of the problem. of problem. Effects four possible effects of the
problem No in depth Effects may not be well are well discussed problem and effects were
information discussed and/or and understood completely discussed and
presented. understood. May be understood.
lacking in depth.

17
Controversy Lists one or two Touches on two or three Explains three Effectively explains at least
arguments on the controversies surrounding controversies four controversies
Around the problem. No in- the problem. Arguments surrounding the surrounding the problem as
problem depth information may not be well problem. Arguments determined by authority.
presented. discussed and/or are presented clearly. Arguments are presented
understood. May be clearly.
lacking in depth.

Creativity and Poorly done. May Presentation attempts to Good use of Creative and effective use of
be missing pictures. provide pictures but pictures. May contain fonts, and pictures. Spelling is
Effectiveness May be difficult to blurred. Errors are spelling errors and/or correct and presentation is
read or follow. obvious and/or presentation may easy to follow.
Lacking presentation is difficult to jump around.
information. follow.

WE ARE STRONGER AS A GROUP

THAN AN INDIVIDUAL. THINK IN A
COOPERATIVE WAY AND CREATE
GROWING COMMUNITIES
Arthur Potts Dawson

LESSON 3
COOPERATIVE VALUES AND PRINCIPLES

TOPICS
1. Ethical and Cooperative Values
2. Cooperative Principles

18

LEARNING OUTCOMES
At the end of the lesson, you should be able to:
 TOPIC 1: ETHICAL and COOPERATIVE VALUES
The ethical and cooperative values embraced by today’s cooperative movements
have evolved from the ideals of the early co-operators of the 18th and 19th centuries. These
are general norms that co-op members, leaders and employees that determine their way
of life.

Ethical Values Coop Values

Honesty Self-help
Openness
Self-Responsibility
Social
Responsibility Democracy
Caring for Equality
Others Equity
Solidarity

Ethical Values

The set of established values governing the cooperative that each member should
keep in mind in order to meet its objectives. These ethical values should be seen and
embedded to each and every member.

Cooperative members believe in the ethical values of:

1) Honesty. Cooperative members stresses adherence to virtues of truthfulness, and

fairness.
HOW: Be truthful in the use of loans as well as in the payment of it. Be truthful and fair
in leading the cooperative.
2) Openness. One of the recognized values in cooperativism which is characterized by
transparency and free, unrestricted access to knowledge and information, as well as
collaborative or cooperative management and decision making rather than a central
authority.
HOW: Learn by attending seminars on cooperative governance, skills enhancement and
the like. Read cooperative books and literature. Help in co-op activities.
3) Social responsibility. The obligation of the cooperative towards the welfare and interests
of the society in which it operates.
HOW: Patronize the products and services of the co-op. Help in cleaning the
environment and plant trees.

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4) Caring for others. In observance of the 7th Cooperative Principle, Concern for
Community, and in the goal of uplifting the “social needs and aspirations”, cooperatives
provide assistance to the community where they operate through various community
development projects and programs.
HOW: thru regular savings that could help other members and regular payment of loans

Caring for others, Honesty,

Openness & Social Responsibilty

Harmony and Peace

PROGRESS

The ethical values could lead to Harmony and peace among the members that could
bring about progress to the cooperative and community where the member belongs.

Cooperative Values

The cooperatives demonstrate their commitment to the values of self-help, self

responsibility, democracy, equality, equity, and solidarity in everything they do:

1) Self Help. People have the will and capability to improve their destiny peacefully
through joint action which can be more powerful than individual effort, particularly
through collective action in the market.

2) Self-Responsibility. Members, employees, officers of the cooperative take

responsibility and answers for every action they have undertaken.

3) Democracy. Member is the basic unit of a cooperative. All members are equal. They
are the source of all the authority in the cooperative. Members have the right to
participate, to be informed, to be heard, and to be involved in making decisions.

4) Equality. All co-op members have the opportunity to get involved. Equal rights and
opportunities for people to participate democratically with the use of society’s
resources and foster mutuality, understanding and solidarity.

5) Equity. Co-op is committed to fairness. Fair distribution of income and power in society
and its economic life should be based on labor, not ownership of capital. Within the
cooperative, rewards for active membership in the cooperative will be distributed
equitably, be it through patronage dividends, allocations to capital reserves, increases
in services or reductions in charges.

6. Solidarity. “One for all, all for One”. Together members are stronger. Cooperatives are
based on the assumption that there is strength in mutual self-help and that cooperative
has a collective responsibility for the well-being of its members. Further, individual
cooperatives strive to create a united cooperative movement, by working with other
cooperatives to improve collective well-being.

20
Activity: Discussion Questions
Answer the following questions on a yellow paper. Write ACTIVITY 5 –
COOPERATIVE MANAGEMENT on the top middle part of your paper. On the left side,
second line of your paper write your surname, first name and middle initial. Under your
name, write your year and section. Please observe margin on both sides, i.e.,1 inch on
the left and ½ on the right. In grading your answers the rubrics provided on activity 1
topic 1 will be used.

1) How is it important that the above provided values be internalized/absorbed by

the members in order to have quality of members?
2) If in case you become one of the co-op members are you open to accept
leadership responsibility in your coop?
3) Why do you think honesty and transparency important in governance?

TOPIC 2: 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 Original art by Hallie Zillman, courtesy of Willie St. Co-op

responsibilities of membership, without gender, social, racial, cultural, political or

religious discrimination.

The 1st Principle asserts the right of any person to exercise free choice in deciding
to join or leave a co-operative and take collective action to pursue the common
economic, social and cultural interests of its members.

(2) Democratic/ve 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.

A key characteristic of all sustainable democratic systems is that democracy

needs the protection of sound democratic laws, governance codes, procedures and
processes, such as formalized models of organization and business management.
Democracy is also not just linked to voting in elections and general assemblies. It also
requires the separation of democratic and executive powers, with checks and balances
under the control of members.

(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

21
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.

This emphasizes the vital importance of members controlling the capital of their
organization, and indicates that they should receive limited compensation on the capital
they subscribe as a condition of membership. The principle allows for a market return on
capital otherwise invested by members.

(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.

Here the co-operatives as organizations that have the freedom to act

independently to govern themselves, control their own affairs and set their own rules of
operation.

(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.

Effective co-operative education programmes can support the renaissance and

renewal of an established co-operative movement and help unlock the vision and
energies of a new generation, revealing how the co-operative model can be applied to
today’s and tomorrow’s challenge of building a better world.

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.

The 6th Principle shows two dimensions of the nature of co-operatives. The first
dimension is that they are economic entities trading goods and services. The second is
that they are social entities of members who relate positively to other co-operatives in
the way they conduct business. In joining a co-operative members are not only helping to
build their own co-operatives but the wider co-operative movement. They co-operate
with other co-operatives to create wealth for the many, not personal wealth for the few
through unbridled market competition. Members benefit not only from the actions of
their own co-operative but from the impact of its co-operative engagement and trade
with other co-operatives.

(7) Concern for Community. Cooperatives work for the sustainable development of their
communities through policies approved by their members.
(Art. 4, RA 9520)

It challenges all co-operatives to demonstrate that it is possible to be a successful and

sustainable enterprise that benefits both its members, who democratically own and
control it, and the communities within which it carries out its business.

It must be noted that the Co-operative Principles are interdependent principles which
support and strengthen each other. For example, the 5th Principle on Education, Training
and Information will, if applied, strengthen and enhance Principle 2 on Democratic

22
Member Control. If all the Principles are observed and applied in the day to operations of
a co-operative enterprise, that co-operative enterprise will be stronger and more
sustainable.

Activity Questions:

Answer the following questions on a yellow paper. Write ACTIVITY 5 – COOPERATIVE

MANAGEMENT on the top middle part of your paper. On the left side, second line of
your paper write your surname, first name and middle initial. Under your name, write
your year and section. Please observe margin on both sides, i.e.,1 inch on the left and
½ on the right. In grading your answers the rubrics provided on activity 1 topic 1 will be
used.

1) Why is autonomy in a cooperative imperative?

2) Is it good if the cooperative is dependent on outside founding? Why?
3) How will unprofessionalism of coop officers affect the cooperative?
4) What hinders the professionalism of coop officers?
5) How can our coop leaders be made to realize the importance of joining umbrella
organizations?

ASSESSMENT NO. 2 : COOPERATIVE MANAGEMENT

Name: ______________________________ Score/Rating: ______________

Year and Section: ______________________ Date: _____________________

I. ENUMERATION. Cut this page then answer what is asked and submit.
A. Ethical Values.
1. _______________________
2. _______________________
3. _______________________
4. _______________________
B. Cooperative Values
1. _______________________

23
 2. _______________________
3. _______________________
4. _______________________
5. _______________________
6. _______________________
C. Cooperative Principles
1. _______________________
2. _______________________
3. _______________________
4. _______________________
5. _______________________
6. _______________________
7. _______________________
I. Discussion.
From each of the enumerated topics above, choose 2 and discuss.

LESSON 4
TYPES and CATEGORIES OF COOPERATIVES

TOPICS
1. Classification of Cooperatives
2. Important Provisions on Membership
3. Types of Cooperatives

LEARNING OUTCOMES
At the end of the lesson, you should be able to:
1. identify and describe the classification and types of cooperatives;
2. Give examples of the activities of the different types of cooperatives;
3. Discuss the rights and duties of members of a cooperative; and
24
4. Explain how membership is terminated;
TOPIC 1: CLASSIFICATION OF COOPERATIVES

1. According to Membership:

a. PRIMARY – the members of which are natural persons of legal age;

Who may become members of a Primary Cooperative?

 If you are a Filipino of legal age, you can be a coop member if you meet the
qualifications prescribed by the cooperative’s by-laws.
 The board of directors act on application for membership.
 A member may exercise his rights only after having paid the fees for
membership and acquired shares in the cooperative.

What are the kinds of membership in the Cooperative?

 A cooperative has two kinds of members: 1) regular members and 2)
associate members.
 A regular member is entitled to all the rights and privileged of membership
as stated in the Cooperative Code and the coops by- laws.
 An associate member has no right to vote and to be voted upon and is
entitled to such rights and privileged provided by the cooperatives by laws.

NOTE: An associate who meets the minimum requirements of regular

membership, continues to patronize the cooperative for two (2) years, and
signifies his/her intention to remain a member shall be considered a regular
member. (Art 26 p.2, RA9520)

What is the Minimum Number of members in a Cooperative?

 Fifteen (15) natural persons of legal age who are citizens of the Philippines.

b. SECONDARY – the members of which are primaries;

c. TERTIARY - The members of which are secondaries upward to one or more apex
organizations. Cooperatives whose members are cooperatives are called
federations or unions.

2) According to territory

Cooperatives are categorized according to areas of operations which may or may

not coincide with the political subdivisions of the country.

3) Laboratory Cooperative – a cooperative organized by minors must be affiliated with a

registered cooperative and shall be governed by the guidelines by the the CDA. Refer to
MC 2015-03/ Guidelines for the creation and, supervision and monitoring of Laboratory
Cooperatives, August 18, 2015.

TOPIC 2: PROVISIONS ON MEMBERSHIP

25
Application for membership.

 An applicant shall be deemed a member after approval of his membership by the

board of directors and shall exercise the rights of member after having made such
payments to the cooperative in respect to membership or acquired interest in the
cooperative as may be prescribed in the bylaws.
 If refused or denied by the board of directors, an appeal may be made to the
general assembly and the latter's decision shall be final.
 For this purpose, the general assembly may opt to create an appeal and grievance
committee, the members of which shall serve for a period of one (1) year and
shall decide appeals on membership application within thirty (30) days upon
receipt thereof. If the committee fails to decide within the prescribed period, the
appeal is deemed approved in favor of the applicant.
(Art 28, RA 9520)

Duties and Responsibilities of a Member.

a) 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 Cooperative;
b) Patronize the Cooperative’s business(es) and services;
c) Participate in the membership education programs and other activities and affairs
of the Cooperative;
d) Attend and participate in the deliberation of all matters taken during General
Assembly meetings;
e) Observe and obey all lawful orders, decisions, rules and regulations adopted by the
Board of Directors and the General Assembly. (Indicated in the by Laws)

Rights and Privileges of Members.

Regular Members
a. Attend general membership meetings;
b. Avail himself of the services of the Cooperative, subject to certain conditions as may
be prescribed by the Board of Directors;

c. Inspect and examine the books of accounts, the audited financial statements, the
minutes books, the share register, and other records of the Cooperative during
reasonable office hours;
d. Secure copies of Cooperative records/documents pertaining to the account
information of the concerned member;

e. Participate in the continuing education and other training programs of the

Cooperative; and

f. Such other rights and privileges as may be granted by the General Assembly.
(Indicated in the by Laws)

26
Associate Members
a) Attend general membership meetings;
b) Avail themselves of the services of the Cooperative, subject to certain conditions as
may be prescribed by the Board of Directors;
c) Inspect and examine the books of accounts, the audited financial statements, the
minutes books, the share register, and other records of the Cooperative during
reasonable office hours;
d) Secure copies of Cooperative records/documents pertaining to the account
information of the concerned member;
e) Such other rights and privileges as may be granted by the General Assembly.
(Indicated in the by Laws)

Conditions for a Regular Members Entitled to Vote.

a. Paid the membership fee and the value of the minimum shares required for
membership;
b. Not delinquent in the payment of his/her share capital subscriptions and other
accounts or obligations;
c. Has completed the continuing education program prescribed by the Board of
Directors;
d. Has participated in the affairs of the Cooperative and patronized its businesses in
accordance with Cooperative’s policies and guidelines; (Indicated in the by Laws)
 Failure of the member to meet any of the above conditions shall mean
suspension of voting until the same have been lifted upon the determination of
the Board of Directors.

Additional rights a member entitled to vote:

a. Participate and vote on all matters deliberated upon during General Assembly
meetings;
b. Seek any elective or appointive position, subject to the provisions of this By-laws and
the Philippine Cooperative Code of 2008; and
c. Such other rights and privileges as may be provided by the General Assembly.

Nota Bene: Enumerations provided herein are not exclusive, members may include
other rights, privileges and duties in their by laws.
Liability of Members.
A member shall be liable for the debts of the Cooperative only to the extent of his/her
subscribed share capital.
Termination of Membership.
Termination of membership may be automatic, voluntary or involuntary, which shall
have the effect of extinguishing all rights of a member in the Cooperative, subject to
refund of share capital contributions.

27
 a) Automatic Termination of Membership.
The death or insanity of a member shall be considered an automatic
termination of his/her membership in the Cooperative: Provided, however, that in
case of death or insanity of a member of a Cooperative, the next-of-kin shall
assume the duties and responsibilities of the original member.

Failure of the associate member to meet the minimum requirement of

regular membership, to continue to patronize the products and services of the
Cooperative for two (2) years, and signify his/her intention to become regular
member shall automatically terminate his/her membership.

b. Voluntary Termination.
A member may, for any valid reason, withdraw his/her membership from
the Cooperative by giving a sixty (60) day notice to the Board of Directors.

c. Involuntary Termination.
A member may be terminated by a vote of the majority of all the members
of the Board of Directors for any of the following causes:
i. Has not patronized the service(s)/business(es) of the Cooperative as
provided for in the policies of the cooperative;
ii. Has continuously failed to comply with his/her obligations as
provided for in the policies of the Cooperative;
iii. Has violated any provision of this By-laws and the policies of the
Cooperative; and
iv. For any act or omission injurious or prejudicial to the interest or the
welfare of the Cooperative, as defined by the General Assembly.
Section
(Art 30, RA9520, indicated also in the by laws)

TOPIC 3: TYPES OF COOPERATIVES in the PHILIPPINES

1) Credit Cooperative – is one that promotes and undertakes savings and lending
services among its members. It generates a common pool of funds in order to
provide financial assistance and other related financial services to its members for
productive and provident purposes;

2) Consumer’s Cooperative – is one the primary purpose of which is to procure and

distribute commodities to members and non-members;

3) Producer’s Cooperative – is one that undertakes a

joint production whether agricultural or industrial.
It is formed and operated by its members to
undertake the production and processing of raw
materials or goods produced by its members into
finished or processed products for sale by the
cooperative to its members and non-members. Any
end product or its derivative arising from the raw
materials produced by its members, sold in the

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 name and for the account of the cooperative, shall be deemed a product of the
cooperative and its members;

4) Marketing Cooperative – is one which engages in the supply of production inputs

to members and markets their products;

5) Service Cooperative – is one which engages in medical and dental care,

hospitalization, transportation, insurance, housing, labor, electric .light and power,
communication, professional and other services;

6) Multipurpose Cooperative – is one which combines two (2) or more of the business
activities of these different types of cooperatives;

7) Advocacy Cooperative – is a primary cooperative which promotes and advocates

cooperativism among its members and the public through socially-oriented
projects, education and training, research and communication, and other similar
activities to reach out to its intended beneficiaries;

8) Agrarian Reform Cooperative – is one organized by marginal farmers majority of

which are agrarian reform beneficiaries for the purpose of developing an
appropriate system of land tenure, land development, land consolidation or land
management in areas covered by agrarian reform;
9) Cooperative Bank – is one organized for the primary purpose of providing a wide
range of financial services to cooperatives and their members;

10) Dairy Cooperative – is one whose members are engaged in the production of fresh
milk which may be processed and/or -marketed as dairy products;

11) Education Cooperative – is one organized for the primary purpose of owning and
operating licensed educational institutions, notwithstanding the provisions of
Republic Act No. 9155, otherwise known as the Governance of Basic Education Act
of 2001;

12) Electric Cooperative – is one organized for the primary purpose of undertaking
power generation, utilizing renewable energy sources, including hybrid systems,
acquisition and operation of sub-transmission or distribution to its household
members;

13) Financial Service Cooperative – is one organized for the primary purpose of
engaging in savings and credit services and other financial services;

14) Fishermen Cooperative – is one organized by marginalized fishermen in localities

whose products are marketed either as fresh or processed products;

15) Health Services Cooperative – is one organized for the primary purpose of providing
medical, dental and other health services;

16) Housing Cooperative – is one organized to assist or provide, access to housing for
the benefit of its regular members who actively participate in the savings program
for housing. It is co-owned and controlled by its members;

17) Insurance Cooperative – is one engaged in the business of insuring life and property
of cooperatives and their members;

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 18) Transport Cooperative – is one which includes land and sea transportation, limited
to small vessels, as defined or classified under the Philippine maritime laws,
organized under the provisions of this Code;

19) Water Service Cooperative – is one organized to own, operate and manage water
systems for the provision and distribution of potable water for its members and
their households;

20) Worker’s Cooperative – is one organized by workers, including the self-employed,

who are at the same time the members and owners of the enterprise. Its principal
purpose is to provide employment and business opportunities to its members and
manage it in accordance with cooperative principles; and
Other types of cooperative as may be determined by the CDA. The types of
cooperatives are defined in the Joint Rules and Regulations for the taxation of
cooperatives, issued pursuant to the Philippine Cooperative Code of 2008 (RA
9520).

ASSESSMENT NO.3: COOPERATIVE MANAGEMENT

Name: __________________________ Score/Rating: _______

Year and Sec: _____________________ Date: ____________

I. Instruction: Cut this page then answer the following questions and submit.
TRUE or FALSE. Write T if the statement is correct and F if it is otherwise.
____1. Members of primary cooperatives are juridical persons.
____2. Membership in a cooperative may be regular and irregular members.
____3. Laboratory Cooperatives are organized by minors.
____4. As a general rule, an applicant shall be deemed a member only after approval
of his membership by the general assembly and shall exercise the rights of
member after having made such payments to the cooperative.
____5. Cooperatives are categorized according to areas of operations which may or
may not coincide with the political subdivisions of the country.
____6. A member shall be liable for the debts of the Cooperative only to the extent of
his/her personal properties.
____7. Termination of membership may be automatic, voluntary or involuntary, which shall
have the effect of extinguishing all rights of a member in the Cooperative.
____8. A member may at anytime and for any reason may withdraw his/her
membership from the Cooperative.

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 ____9. Minimum of 15 persons of legal age who are residents of the of the
Philippines may form a cooperative.
____10. An associate member has no right to vote and to be voted upon and is
entitled to such rights and privileged provided by the cooperatives by laws.
II. Write the letter of the TYPES of COOPERATIVES that best describes the given statements.

a. Advocacy Cooperative k. Health Services Cooperative

b. Agrarian Reform Cooperative l. Housing Cooperative
c. Credit Cooperative m. Insurance Cooperative
d. Consumer’s Cooperative n. Producer’s Cooperative
e. Cooperative Bank o. Marketing Cooperative
f. Dairy Cooperative p. Multipurpose Cooperative
g. Education Cooperative q. Service Cooperative
h. Electric Cooperative r. Transport Cooperative
i. Financial Service Cooperative s. Worker’s Cooperative
j. Fishermen Cooperative t. Water Service Cooperative

_____1. Its principal purpose is to provide employment and business opportunities to

its members and manage it in accordance with cooperative principles.
_____2. Organized to assist or provide, access to housing for the benefit of its regular
members who actively participate in the savings program for housing.
_____3. Organized for the primary purpose of owning and operating licensed
educational institutions.
_____4. One that promotes and undertakes savings and lending services among its
members.
_____5. One which combines two (2) or more of the business activities of these different
types of cooperatives.
_____6. One which engages in medical and dental care, hospitalization, transportation,
insurance, housing, labor, electric .light and power, communication, professional
and other services.
_____7. One which engages in the supply of production inputs to members and markets
their products.
_____8. The primary purpose of which is to procure and distribute commodities to
members and non-members.
_____9. One which includes land and sea transportation, limited to small vessels, as
defined or classified under the Philippine maritime laws, organized under the
provisions of this Code.
_____10. It is formed and operated by its members to undertake the production and
processing of raw materials or goods produced by its members into finished or
processed products for sale by the cooperative to its members and non-members.
_____11. Organized for the primary purpose of providing a wide range of financial
services to cooperatives and their members.
_____12. One organized for the primary purpose of providing medical, dental and other
health services.
_____13. One organized to own, operate and manage water systems for the provision
and distribution of potable water for its members and their households.
_____14. A primary cooperative which promotes and advocates cooperativism
among its members and the public through socially-oriented projects, education
and training, research and communication, and other similar activities to reach
out to its intended beneficiaries.
_____15. One organized by marginalized fishermen in localities whose products are
marketed either as fresh or processed products.

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_____16. One engaged in the business of insuring life and property of cooperatives and
their members.
_____17. One organized by marginal farmers majority of which are agrarian reform
beneficiaries for the purpose of developing an appropriate system of land tenure,
land development, land consolidation or land management in areas covered by
agrarian reform.
_____18. One whose members are engaged in the production of fresh milk which may
be processed and/or -marketed as dairy products.
_____19. One organized for the primary purpose of engaging in savings and credit
services and other financial services.
_____20. One organized for the primary purpose of undertaking power generation,
utilizing renewable energy sources, including hybrid systems, acquisition and
operation of sub-transmission or distribution to its household members.

LESSON 5
THE LEGAL MANDATES ON COOPERATIVES

TOPICS
1. Cooperative Laws in the Philippines
2. Cooperative Development Authority
3. International Cooperative Alliance
4. Salient Provisions of the Philippine Cooperative Code of 2008 (RA9520) and
its rules and regulations

LEARNING OUTCOMES
At the end of the lesson, you should be able to:
1. determine the cooperative laws that governed in the Philippines;
2. discuss the creation of the CDA and its mandates;
3. explain the role of the International Cooperative Alliance; and
3. identify and explain the relevant provisions of the Cooperative Code
of 2008.

TOPIC 1: PHILIPPINE COOPERATIVE LAWS

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 1987
RA No. 2508 Philippine RA No. 6938
Constitution

RA No. 6939 RA No. 9520

1) Republic Act No. 2508: Enactment of the first

cooperative law sponsored by Teodoro Sandiko
who had a close contact with cooperative
movement in Germany in his travels in Europe.
This earned for him the title, Father of
Cooperative in the Philippines.
2) 1987 Philippine Constitution, Article XII, Section
15: Provided for the creation of the agency to
promote the viability and growth of cooperatives as instrument for social justice and
economic development.
3) Republic Act No. 6938: Enactment of the First Cooperative Code of the Philippines,
March 10, 1990
4) Republic Act No. 6939: Enactment of the creation of the Cooperative Development
Authority, the government agency in charge of the registration and regulation of
cooperatives. March 10, 1990.
5) Republic Act No. 9520: An act amending the Cooperative Code of the Philippines (RA
6938) to be known as the Philippine Cooperative Code of 2008”, February 2008. It was
authored by Senator Miguel Zubiri and was signed into law by former President Gloria
Macapagal-Arroyo that took effect on March 22, 2009.

TOPIC 2: COOPERATIVE DEVELOPMENT AUTHORITY

The Cooperative Development Authority (CDA) is a
government agency created by virtue of RA 6939 in compliance
with the provisions of the 1987 Constitution specifically section 15,
Article 12 that mandates Congress to create an agency to promote
the viability and growth of cooperatives as instruments for equity,
social justice and economic development. Thus, the basic law of the
land envisions the promotion of cooperatives in various sectors of the economy, the
expansion of economic base and the mobilization of the less privilege members of the
society to actively participate in nation-building.

The CDA is governed by a Board of Administrators consisting of a Chairman and six

members appointed by the President and are chosen from among the nominees of the
cooperative sector with two (2) representatives each from Luzon, Visayas, and Mindanao.
They serve for a term of six years without reappointment.

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 The CDA as an effective and efficient regulatory agency working towards the
development of viable, sustainable, socially responsive and globally competitive
cooperatives. Its mission is to ensure the safe and sound operations of cooperatives.

TOPIC 3: INTERNATIONAL COOPERATIVE ALLIANCE

The International Cooperative Alliance was founded in London, England on 19

August 1895 during the 1st Cooperative Congress. In attendance were delegates from
cooperatives from Argentina, Australia, Belgium, England, Denmark, France, Germany,
Holland, India, Italy, Switzerland, Serbia, and the USA. It was one of the only international
organizations to survive both World War I and World War II.

It is the apex body representing cooperatives, which are estimated to be around

3 million worldwide, providing a global voice and forum for knowledge, expertise and co-
ordinated action for and about cooperatives. Further, It works with global and regional
governments and organizations to create legislative environments that allow cooperatives
to form and grow.

International Cooperative Alliance's aims:

1) to provide information, define and defend the Cooperative Principles and develop
international trade.
2) To unite, represent and serve cooperative worldwide

Overcoming all the political differences between its members was difficult, but the
ICA survived by staying committed to peace, democracy, and by remaining politically
neutral.

TOPIC 4: WHAT ELSE TO KNOW on REPUBLIC ACT NUMBER 9520

I. COOPERATIVE PRIVILEGES

Cooperatives are accorded the following privileges:

(1) Enjoy the privilege of depositing their sealed cash boxes or containers, documents or
any valuable papers in the safes of the municipal or city treasurers and other government
offices free of charge, and the custodian of such articles shall issue a receipt acknowledging
the articles received duly witnessed by another person;
(2) Cooperatives organized among government employees:
Enjoy the free use of any available space in their agency, whether owned or rented by the
Government;
(3) Cooperatives rendering special types of services and facilities such as cold storage, ice
plant, electricity, transportation, and similar services and facilities:
Secure a franchise and such cooperatives shall open their membership to all persons
qualified in their areas of operation;
(4) In areas where appropriate cooperatives exist:

34
Preferential right to supply government institutions and agencies rice, corn and other
grains, fish and other marine products, meat, eggs, milk, vegetables, tobacco and other
agricultural commodities produced by their members;
(5) Preferential treatment in the allocation of fertilizers, including seeds and other
agricultural inputs and implements, and in rice distribution;
(6) Preferential and equitable treatment in the allocation or control of bottomries of
commercial shipping vessels in connection with the shipment of goods and products of
cooperatives;
(7) Cooperatives and their federations, such as farm and fishery producers and suppliers,
market vendors and such other cooperatives, which have for their primary purpose the
production and/or the marketing of products from agriculture, fisheries and small
entrepreneurial industries and federations:
Preferential rights in the management of public markets and/or lease of public market
facilities, stalls or spaces: Provided, That these rights shall only be utilized exclusively by
cooperatives: Provided, further, That no cooperative forming a joint venture, partnership
or any other similar arrangement with a non-cooperative entity can utilize these rights;
(8) Cooperatives engaged in credit services and/or federations:
Entitled to loans credit lines, rediscounting of their loan notes, and other eligible
papers with the Development Bank of the Philippines, the Land Bank of the Philippines and
other financial institutions except the Bangko Sentral ng Pilipinas (BSP);
(9) A public transport service cooperative:
Entitled to financing support for the acquisition and/or maintenance of land and sea
transport equipment, facilities and parts through the program of the government financial
institutions.
Preferential right to the management and
operation of public terminals and ports whether land or
sea transport where the cooperative operates and on
securing a franchise for active or potential routes for
the public transport;
(10) Cooperatives transacting business with the
Government of the Philippines or any of its political
subdivisions or any of its agencies or instrumentalities,
including government-owned and controlled
corporations:
Exempt from prequalification bidding requirements notwithstanding the provisions
of Republic Act No.9184, otherwise known as, the Government Procurement Act;
(11) Enjoy the privilege of being represented by the provincial or city fiscal or the Office of
the Solicitor General, free of charge, except when the adverse party is the Republic of the
Philippines;
(12) Cooperatives organized by faculty members and employees of educational
institutions:
Preferential right in the management of the canteen and other services related to the
operation of the educational institution where they are employed: Provided, That such
services are operated within the premises of the said educational institution; and
"(13) The appropriate housing agencies and government financial institutions:
Create a special window for financing housing projects undertaken by cooperatives,
with interest rates and terms equal to, or better than those given for socialized housing
projects. This financing shall be in the form of blanket loans or long-term wholesale loans
to qualified cooperatives, without need for individual processing. ART. 62, RA9520

II. CONFLICT OF INTEREST

A person who is engaged in business similar to that of the coop or a person who
has interest in conflict with the cooperative in any manner or any 2 or more persons

35
related up to 3rd degree of consanguinity or affinity are prohibited to be appointed as
officers of the cooperative.

III. ELIGIBILITY OF GOVERNMENT OFFICERS and EMPLOYEES

CDA officers/employees are not eligible for election or appointment in primary

cooperatives and elective officials (except party-list representatives) of the government
are not eligible to become officers and directors of primary cooperatives. (Art 27, RA9520)

IV. QUORUM FOR MEETING

 A quorum shall consist of at least twenty-five per centum (25%) of all the
members entitled to vote.
 In the case of cooperative banks, the quorum shall be as provided in Article 99
of this Code (one half plus one of the number of voting shares of all the members in
good standing ).
 In the case of electric cooperatives registered under this Code, a quorum, unless
otherwise provided in the bylaws, shall consist of five per centum (5%) of all the
members entitled to vote. (Art 35 RA 9520)

Quorum Requirements for Representative Assembly.

 At least twenty-five per centum (25%) of all Representatives/Delegates shall

constitute a quorum for the representative assembly meeting. (RULE 1 sec 14
IRR, RA9520)

Meeting of the Board and Quorum Requirement.

 In the case of primary cooperatives, regular meetings of the board of directors

shall be held at least once a month. A majority of the members of the Board
shall constitute a quorum or the conduct of business, unless the bylaws proved
otherwise. (Art 40, RA 9520)

V. INSPECTION OF BOOKS

 The following documents ready and accessible to its members and

representatives of the Authority for inspection during reasonable office hours at
its official address:

(a) A copy of RA 9520 and all other laws pertaining to cooperatives;

(b) A copy of the regulations of the Authority (CDA issuances);
(c) A copy of the articles of cooperation and bylaws of the cooperative;
(d) A register of members;
(e) The books of the minutes of the meetings of the general assembly,
board of directors and committee;
(f) Share books, where applicable;
(g) Financial statement; and
(h) Such other documents as may be prescribed by laws or the bylaws.

VI. MEMBER’S RIGHT TO EXAMINE

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  A member has right to examine coop records within reasonable hours during
business days;
 Any officer who refuses to allow a member to examine may be punished
under Art. 140;
 The exercise of this right must be for legitimate purpose and in good faith.
(Art 83)

VII. SHARE OF CAPITAL HOLDINGS OF MEMBERS

 Limited to not more than 10% of the share capital;

 The heirs are entitled to the shares of the decedent but member-heirs not to
exceed 10% limitation; non- member heirs are subject to membership
qualifications.

VIII. TAX TREATMENT OF COOPERATIVES

 Not be subject to any taxes and fees imposed under the internal revenue
laws and other tax laws. Art. 60
 Cooperatives transacting business with both members and non-members
shall not be subjected to tax on their transactions with members.
 The transactions of members with the cooperative shall not be subject to any
taxes and fees, including not limited to final taxes on members' deposits and
documentary tax. Art 61
 At least 25% of net surplus of coop is returned to members as interest and
patronage refund.

IX. DISSOLUTION OF COOPERATIVES

Voluntary Dissolution Where Creditors Are NOT Affected.

 by a majority vote of the BODs and by a resolution duly adopted by the ¾ of all
the members with voting rights, present and constituting a quorum at a
meeting to be held upon call of the directors. (Art 64, RA9520)

Voluntary Dissolution Where Creditors Are Affected.

 the petition for dissolution shall be filed with the Authority.

 The petition shall be signed by a majority of its board or directors or other
officers managing its affairs, verified by its chairperson or board secretary or
one of its directors and shall set forth all claims and demands against it and
that its dissolution was resolved upon by the affirmative vote of at least three-
fourths (3/4) of all the members with voting rights, present and constituting a
quorum at a meeting called for that purpose.

The order of dissolution shall set forth therein:

(1) The assets and liabilities of the cooperative;

(2) The claim of any creditor;
(3) The number of members; and
(4) The nature and extend of the interests of the members of the
cooperative.(Art.65)

Involuntary Dissolution.

37
  A cooperative may be dissolved by order of a competent court after due
hearing on the grounds of:

"(1) Violation of any law, regulation or provisions of its bylaws; or

"(2) Insolvency.

Dissolution by Order of the Authority.

 The Authority may suspend or revoke, after due notice and hearing, the
certificate of registration of a cooperative on any of the following grounds:
(1) Having obtained its registration by fraud;
(2) Existing for an illegal purpose;
(3) Willful violation, despite notice by the Authority, of the provisions of this
Code or its bylaws;
(4) Willful failure to operate on a cooperative basis; and
(5) Failure to meet the required minimum number of members in the
cooperative. (Art 67)

Dissolution by Failure to Organize and Operate.

 If a cooperative has not commenced business and its operation within two
(2) years after the issuance of its certificate of registration or has not carried
on its business for two (2) consecutive years, the Authority shall send a
formal notice to the said cooperative to show cause as to its failure to
operate.
 Failure of the cooperative to promptly provide justifiable cause for its failure
to operate shall warrant the Authority to delete its name from the roster of
registered cooperatives and shall be deemed dissolved. (Art 68)

X. FINANCIAL AUDIT

 The financial audit shall be conducted by an external auditor who satisfies all
the following qualifications:
(1) He is independent of the cooperative or any of its subsidiary that he is
auditing; and
(2) He is a member in good standing of the Philippine Institute of Certified
Public Accountants (PICPA) and is accredited by both the Board and
Accountancy and the Authority. Art 80
 The audit shall be in accordance with the generally accepted auditing
standards for coops and must submit such reports to the BODs and audit
committee. (Art 81)

XI. ALLOCATION AND DISTRIBUTION OF NET SURPLUS

Net Surplus

 The net surplus shall not be construed as profit but as an excess of payments
made by the members for the loans borrowed, or the goods and services
availed by them from the cooperative or the difference of the rightful
amount due to the members for their products sold or services rendered to
the cooperative including other inflows of assets resulting from its other

38
 operating activities and which shall be deemed to have been returned to
them if the same is distributed.
 At the close of every fiscal year and at such other times as may be prescribed
by the bylaws, the net surplus of cooperatives shall be determined in
accordance with its bylaws. (Art.85)

Order of Distribution.
The net surplus of every cooperative shall be distributed among the
statutory funds like : RESERVE FUND, EDUCATION AND TRAINING FUND,
OPTIONAL FUND AND COMMUNITY DEVELOPMENT FUND.

RESERVE FUND Art 86,#1

 at least ten per centum (10%) of net surplus.
 Provided, that, in the first five (5) years of operation after registration, this
amount shall not be less than fifty per centum (50%) of the net surplus:
 Purpose/use of reserve fund:
(a) for the stability of the cooperative and to meet net losses in its
operations. The general assembly may decrease the amount allocated to the
reserve fund when the reserve fund already exceeds the share capital. Any sum
recovered on items previously charged to the reserve fund shall be credited to such
fund.
(b) shall not be utilized for investment, other than those allowed in this
Code (RA 9520). Such sum of the reserve fund in excess of the share capital may be
used at anytime for any project that would expand the operations of the
cooperative upon the resolution of the general assembly.
(c) Upon the dissolution of the cooperative, the reserve fund shall not be
distributed among the members. The general assembly may resolves:
(i) To establish a usufructuary trust fund for the benefit of any
federation or union to which the cooperative is affiliated; and
(ii) To donate, contribute, or otherwise dispose of the amount for
the benefit of the community where the cooperative operates. If
the members cannot decide upon the disposal of the reserve fund,
the same shall go to the federation or union to which the
cooperative is affiliated.

EDUCATION AND TRAINING FUND (Art 86,# 2)

 An amount for the education and training fund, shall not be more than ten
per centum (10%) of the net surplus.
 The fund shall provide for the training, development and similar other
cooperative activities geared towards the growth of the cooperative
movement:
(a) Half of the amounts transferred to the education and training fund
annually shall be spent by the cooperative for education and training purposes;
while the other half may be remitted to a union or federation chosen by the
cooperative or of which it is a member.

COMMUNITY DEVELOPMENT FUND (Art 86 p.3)

 An amount for the community development fund, which shall not be less
than three per centum (3%) of the net surplus. The community development
fund shall be used for projects or activities that will benefit the community
where the cooperative operates.

39
 OPTIONAL FUND (Art.86 p.4)

 An optional fund, a land and building, and any other necessary fund the total
of which shall not exceed seven per centum (7%).

INTEREST ON SHARE CAPITAL and PATRONAGE REFUND (Art. 86 p. 5)

 The remaining net surplus shall be made available to the members in the form
of interest on share capital not to exceed the normal rate of return our
investments and patronage refunds: Provided, That any amount remaining
after the allowable interest and the patronage refund have been deducted
shall be credited to the reserve fund.
 The principle of patronage refund is a principle of equity wherein an equal right
of members to participate in the organization and to equitably share in the
benefits accruing therefrom is established. IRR 9520, Rule 10 sec 11
 The Revised Implementing Rules of RA 9520 states that “ the amount allocated
for patronage refund shall not less than 30% of the net surplus after deducting
the statutory reserves based on the principle of equity. Provided, further, that
in no case shall the rate of patronage refund be more than twice the rate of
interest on share capital. IRR 9520, Rule 10 sec 11)

XII. SETTLEMENT OF COOP DISPUTES

 Disputes among members, officers, directors, and committee members, and

intra-cooperative, inter-cooperative, intra-federation or inter-federation
disputes shall, as far as practicable, be settled amicably in accordance with the
conciliation or mediation mechanisms embodied in the bylaws of cooperatives
and in such other applicable laws. (Art. 137)
 All disputes must be settled first within the cooperative. If it cant be resolved
at the primary level, it can be mediated at the federation or union level; if the
attempt of mediation proved futile, then the dispute is submitted to the CDA
for arbitration; if the parties are still not satisfied on the arbitral decision, ten
the decision may be appealed at the Office of the President.

Activity:

Answer the following questions on a yellow paper. Write ACTIVITY 6 – COOPERATIVE

MANAGEMENT on the top middle part of your paper. On the left side, second line of
your paper write your surname, first name and middle initial. Under your name, write
your year and section. Please observe margin on both sides i.e.,1 inch on the left and ½
on the right. In grading your answers the rubrics provided on activity 1 topic 1 will be
used.

1) Graphic Organizer/Outline. Out of this lesson come up with a graphic organizer or

outline for each of the topics in this lesson.
2) Why is it important to know these legal bases for a member or would be member of a
cooperative?

ASSESSMENT NO. 4: COOPERATIVE MANAGEMENT

40
 On a sheet of yellow paper, write ASSESSMENT NO. 4- COOPERATIVE MANAGEMENT
on the top middle part. On the second line write your surname, first name and middle
initial under your name should be your year and section. Write your answers only.

I. IDENTIFICATION: Name the legal mandates stated.

______________________1. The Act amending the Cooperative Code of 2008.
______________________2. The first ever cooperative law sponsored by Teodro
Sandiko.
______________________3. The law that provided for the creation of agency that
promote viability and growth of co-ops in the Philippines.
______________________4. The Law that enacted the first cooperative code in the
Philippines.
______________________5. The Act that created the Cooperative Development
Authority.

II. TRUE or FALSE. Write TRUE if the statement is correct and write the CORRECT
ANSWER
________________1. The CDA is governed by its Board of Directors.
________________2. The ICA is a regulatory agency that ensures the operations of
cooperatives.
________________3. The ICA represents the cooperative around the globe.
________________4. The CDA is created by virtue of RA 9520.
________________5. The CDA Board is appointed by the Representatives from
Luzon Visayas, and Mindanao.

III. Fill in the blanks. Fill in the blanks the privileges afforded to cooperatives.

(1) Enjoy the privilege of ____________ their sealed cash boxes or containers,
documents or any valuable papers in the safes of the municipal or city treasurers
and other government offices free of charge.

(2) Cooperatives organized among government employees enjoy the __________

_____ of any available space in their agency, whether owned or rented by the
Government.

(3) Cooperatives rendering special types of services and facilities such as electricity,
transportation, and similar services and facilities shall secure a _________and
such cooperatives shall open their membership to all persons qualified in their
areas of operation.

(4) In areas where appropriate cooperatives exist preferential right to

_____________ government institutions and agencies rice, corn and other grains,
fish and other marine products, meat, eggs, milk, vegetables, tobacco and other
agricultural commodities produced by their members.

(5) Cooperatives and their federations, such as farm and fishery producers and
suppliers, market vendors and such other cooperatives, have preferential rights in
the _______________ of public markets and/or lease of public market facilities,
stalls or spaces.

(6) Cooperatives engaged in __________ services and/or federations are entitled to

loans credit lines, rediscounting of their loan notes, and other eligible papers with

41
 the Development Bank of the Philippines, the Land Bank of the Philippines and
other financial institutions except the Bangko Sentral ng Pilipinas (BSP).

(7) A public transport service cooperative are entitled to financing support for the
acquisition and/or maintenance of land and sea transport equipment, facilities
and parts through the program of the government financial institutions.
(8) Preferential right to the management and _____________ of public terminals and
ports whether land or sea transport where the cooperative operates and on
securing a franchise for active or potential routes for the public transport.

(9) Enjoy the privilege of being represented by the provincial or city fiscal or the
Office of the Solicitor General, _____________, except when the adverse party is
the Republic of the Philippines;

(10) Cooperatives organized by faculty members and employees of educational

institutions shall have preferential right in the _________________of the canteen
and other services related to the operation of the educational institution where
they are employed.

LESSON 6
COOPERATIVE FORMATION

TOPIC
1. General steps in forming cooperatives; and
2. Capital formation
3. Research: Awareness and Formation of Eskwela Kooperatiba

LEARNING OUTCOMES

At the end of the lesson, you should be able to:

1. Enumerate the steps in forming a cooperative;
2. Identify the requirements needed in the formation;
3. Familiarize and understand the contents of the documents required
In the formation and registration of the cooperative;
4. Differentiate articles of Cooperation from by Laws;
5. Fill-out the forms required in registration of the cooperative;
6. Compute the needed capital to run the co-op.; and
7. Analyze and give your point of view on the research study of Eskwela
Kooperatiba.

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 TOPIC 1: GENERAL STEPS IN FORMING COOPERATIVES

Step 1: Organize a core group.

 At least 15 individuals are needed to form a

cooperative;
 From this core group, working committees
like membership, finance, secretariat may
be formed and others as may be determined
who will do all the organizational and paper
works;
 Then, determine the common problems that
need to be solved, the economic condition
of the community and the basic needs you want to provide through a cooperative.
Is there a need for cooperative? Will the people patronize the product or service?
Who are the people who could manage? This will help you classify the kind of
cooperative and be able to use as basis for the required economic survey.

Step 2: Reserve your proposed cooperative name.

 Reserve your proposed cooperative name.

In naming the cooperative, be guided with the following guidelines and

prohibitions:
The word “Cooperative”, “Kooperatiba” or “Cooperativa” shall be
included in the name of the cooperative;
No cooperative name shall be allowed ,if he proposed name is identical
or deceptively or confusingly similar to that of any existing cooperative,
contrary to public policy, moral and existing laws;
The use of “Incorporated”, “corporation”, “company”, “incorporation”,
“partnership, or similar connotation and abbreviation shall not be
allowed. The use of the word federation and union in the proposed
primary cooperative is prohibited except if it part of the regietered name
of association or institution where the members of the proposed
cooperative come from.
Name shall not be written in capital letters except if it is an acronym.
Acronym shall be written

 Secure and fill up Cooperative Name Reservation Request Form (CNRRF).

43
 cda.gov.ph downloads

 This must be submitted to CDA Central Office or any of its Extension Office. A
reservation fee shall apply.

Step 3: Prepare a general statement called an economic survey.

44
  An economic survey is a general statement describing the structure, purpose
economic feasibility of the proposed cooperative, area of operation, size of
membership and other pertinent data. It is in fact, a project feasibility study.

NOTE: you may download pro-forma requirements like economic survey, bylaws, articles of
cooperation and guide to fill-up cooperative by laws and articles at cda.gov.ph then find
downloads. https://cda.gov.ph/index.php/resources/downloads/pro-forma-registration-
documents

GUIDELINES IN PREPARING AN ECONOMIC SURVEY:

1. Background. Write the a short description of the coop enterprise you would like
to establish.
2. Rationale. State the justification for the establishment of the cooperative.
Discuss the necessity for the formation of the cooperative.
3. General Information. This indicates the type of Cooperative, Area of Operation,
Bond of membership, Composition of members, size, Projected increase of
membership, capitalization, and registration.
4. Economic Aspect. State the background information on the economic situation
of the proposed area of operation in relation with the contemplated business
activity/activities of the cooperative. State the economic prospects: survival
chances, competitiveness and the probability of success of the proposed
cooperative. Basic assumption on the services of the proposed cooperative.
Projected volume of business/or capacity of its facilities to serve the members.
Market behavior of the proposed business activity/activities. Demand and
supply of the product to be marketed.
5. Financial Aspect . Source of capital and uses thereof as well the mobilization of
such funds. Illustrate in financial (Peso value) form the assumption under
economic aspect. Financial projections such as: a. Projected balance sheet; b.
Projected income statement (profit and loss statement); c. Projected cash flow;
and d. Return on investment (ROI).
6. Technical Aspect. State the human power requirement of the proposed
business activity/activities if the cooperative and the organization’s capability
to meet those requirements. Expertise in the field that requires specialized
trainings/experiences. Machine capacity and its capability to cope with
production requirements of the business, taking into consideration the demand
for the product.
7. Management Aspect. Discuss the organizational structure of the cooperative
and the number of personnel/staff required and compensation of hired
employees.

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46
47
48
Step 4: Prepare the cooperative's by-laws.

49
Step 5: Prepare the articles of cooperation.

50
GUIDE TO FILL-UP THE COOPERATIVE MODEL OF ARTICLES OF COOPERATION and BY-LAWS

51
COOPERATIVE’S BY-LAWS VIS-À-VIS ARTICLES OF COOPERATION

BY -LAWS ARTICLES OF COOPERATION

 Set of formal documents filed with the
 It contains the rules and regulations
and guidelines enacted by its CDA to legally document the creation
of a cooperative.
members to provide a framework for
its operations and management.  Must be signed by all the cooperators
 Must be signed by all the members on each and every page .
 It contains pertinent information
on the adoption page.
 The By laws is in effect a contract such as the cooperative’s name,
among members and must be principal address, purpose,
formally adopted and/or amended by capitalization in terms of authorized,
its members. subscribed, and paid- up capital,
Art. I - Purposes and Goals composition of the BOD, among
Art.II - Membership others.
Art. III – Administration
Art. IV – Board of Directors Art. I - Name of Cooperative
Art. V – Committees Art.II - Purposes
Art. VI – Officers and Mgmt. Staff Art. III – Goals
Art.VII – Capital Structure Art. IV – Powers and Capacities
Art. VIII – Allocation and Distribution of Art. V – Term of Existence
Net Surplus Art. VI – Common Bond and Field of
Art. IX - Settlement of Disputes Membership
Art. X - Miscellaneous Art.VII – Area of Operation
Art. XI - Amendments Art.VIII - Name and Address of
Cooperators
Art.IX – Board of Directors
Art. X - Capitalization
Art. XI - Subscribed and paid up capital
Art.XII – Arbitral Clause

NOTA BENE:
Amendment to the Articles of Cooperation and By laws may be adopted by at least 2/3 vote of
all members with voting rights without prejudice to the rights of dissenting members to withdraw
their membership under the provisions of the Philippine Cooperative Code of 2008.

The amendment/s shall take place upon approval by the CDA.

Step 6: Secure bond of accountable officer(s).

 A surety bond should be secured from a duly registered insurance or bonding

company.
 Every director, officer and employee handling funds, securities or property on
behalf of the cooperative shall be covered by this. The board of directors shall
determine the adequacy of such bonds.

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Request for Bonding &/or Cancellation of Bond Accountable Officials and Employees

53
Step 7: Execute Treasurer’s Affidavit.

A sworn statement 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 should be
executed and to be attached to the articles of cooperation. The paid-up share capital shall
not be less than Fifteen thousand pesos (P15,000.00).

Step 8: Complete the Pre-Membership Education Seminar (PMES).

A prospective member of a primary cooperative must have completed a Pre-

Registration Seminar (PRS) or Pre-Membership Education Seminar (PMES).

Sample: PRE-REGISTRATION SEMINAR

54
Step 9: Register your cooperative with the Cooperative Development Authority (CDA)

Revised Guidelines of Governing Registration of Cooperatives refer to cda.gov.ph

 The Cooperative Development Authority (CDA) is the sole government agency

mandated to register all types of cooperatives. Its main office is located at 827
Aurora Blvd., Immaculate Conception, Quezon City. For registration of primary
cooperatives, this power has been delegated to the Regional or Extension Offices.

 Prospective cooperatives must submit the following to the CDA Extension Office
where the principal office of the cooperative is located:

1. Economic Survey; Four (4) copies duly notarized

2. Articles of Cooperation and By-Laws; Four (4) copies duly notarized
3. Surety bond of accountable officers;
4. Treasurer's Affidavit;
5. Approved Cooperative Name Reservation Slip;
6. Certificate of PMES;

NOTE: EFFECT OF REGISTRATION

A registered cooperative acquires a juridical personality from the date the CDA
issues a certificate of registration under its official seal.

55
 Activity

OPTION 1: GROUP ACTIVITY

Using the messenger group, google meet or zoom or any platform of your choice, the
class will be divided into groups of not less than 15 members.

Read carefully all the guidelines in filling up the economic survey, cooperative by laws
and articles of cooperation and the Revised Guidelines Governing the Registration of
Cooperatives uploaded at cda.gov.ph. Using the internet proceed to cda.gov.ph then go
to downloads, then enter Pro-forma Registration Documents under Primary Cooperatives.
If you are going to form a student cooperative in your campus, choose the type of
cooperative the group decided to set-up then download the Economic Survey, Articles and
the By Laws as stated in the guideline. Then, follow each of the step enumerated in the
formation of a cooperation. Thereafter, accomplish and submit all the forms required in
the formation.

A complete narrative/documentation should also be submitted on how the group

was able to finish the activity. The group should be able to state also the challenges they
encountered in the formation.

OPTION 2:

Read carefully all the guidelines in filling up the economic survey, cooperative by laws
and articles of cooperation and the Revised Guidelines Governing the Registration of
Cooperatives uploaded at cda.gov.ph. Using the internet proceed to cda.gov.ph then go
to downloads, then enter Pro-forma Registration Documents under Primary Cooperatives.
If you are going to put up a cooperative, what type of cooperative that your community
needs. Download the Economic Survey, Articles and the By Laws as stated in the guideline.
Then, follow each of the step enumerated in the formation of a cooperation. Thereafter,
accomplish and submit all the forms required in the formation.

A complete narrative/documentation should also be submitted on how you are

able to finish the activity. You should be able to state also the challenges you encountered
in the formation.

TOPIC 2: CAPITAL FORMATION

Cooperatives require capital sufficient to finance

their businesses. The greater the amount of capital
held by the cooperatives, the greater their ability to
purchase the materials and technology they need,
invest in training and education and make
improvements to run the business.

Cooperatives may derive their capital for

operation and improvement of the cooperative from
the following sources: (1) Member's share capital; (2) Loans and borrowings including
deposits; (3) Revolving capital which consists of the deferred payment of patronage

56
refunds, or interest on share capital; and (4) Subsidies, donations, legacies, grants, aids and
such other assistance from any local or foreign institution whether public or private:
Provided, That capital coming from such subsides, donations, legacies, grants, aids and
other assistance shall not be divided into individual share capital holdings at any time but
shall instead form part of the donated capital or fund of the cooperative ( Art 72, RA9520).

(1) Member's share capital

 The amount of money that each member will give depends on the number of
shares s/he will subscribe to.
 The par value of a share capital should not be more than ₽1,000. 00, may consist
of common and preferred share capital provided it is stated in the by laws.(Art.
76, RA9520)
 The par value shall be divisible ₽1.00.
 No member shall own more than 10% of the share capital of the cooperative (Art
73, RA9520)
 Share Capital Contribution refers to the value of the paid subscription by a
member in accordance with its Articles of Cooperation.
To understand this better there is a need to know the following: the Authorized
Share Capital, Subscribed Share and the Paid- up Shares.

Authorized Share Capital (ASC) – Amount approved by the CDA , divided into parts
which members will subscribe to in the form of shares. Thus, each member will
contribute money to come up with its capital.

If, the ASC ₽ 1,000,000.00 and the Price Per Share (PPS) is ₽100.00, to get the
Total Parts (TP) = ASC/PPS

Thus: ₽ 1,000,000.00/ ₽100.00 = 10,000 total parts

Note: the General Assembly and the Board of Directors will be the one to decide on
the said amounts.

Subscribed/ Pledged Shares (SS/PS) – the number of shares that a member will
subscribe or pledge.

Suppose a would be member subscribes to 200 out of the 10,000 total parts.

Total Price per Share = SS or PS x PPS

Thus, 200 x ₽ 100.00 = ₽ 20,000.00

Say, a would be member will pledge/subscribe 200 shares , the amount of which
is ₽ 20,000.00.

Here, s/he is not required to pay the whole amount of ₽ 20,000.00 Instead s/he
may give any reasonable amount and pay the remaining balance by installment.

Paid-up Shares (PuS) – the number of the subscribed/pledged shares that the
would be member will pay.

Paid-up Shares (PuS) = Amount Paid (AP)/ Price Per Share (PPS)

57
Say, the would be member will pay ₽ 5,000.00;
Thus, ₽ 5,000/ ₽100.00 = 50 Paid up Shares

Let us continue:

In step 7, the treasurer’s affidavit indicates that 25% of the authorized share
capital must be subscribed, and at least 25% of the total subscription must be
paid.

If the ACS is ₽ 1,000,000.00 and the PPS is ₽100.00 and its TP is 10,000.
The 25% of 10,000 is 2,500.00 parts;
the 2,500 shares x ₽100.00 (PPS) = ₽250,000.00
Thus, the minimum share is 2,500 or ₽250,000.00, at least 25% must be paid.
If all the members subscribed to the total 2,500 shares or ₽250,000.00, then:
2,500 shares x 25% = 625 shares
₽250,000.00 x 25% = ₽62,500, the minimum amount of paid up shares.

To illustrate, study the table below:

Member No. of Amount of No. of Amount of

Subscribed Subscribed Paid up Paid up
Shares Shares Shares Shares
1 125 12500
2 125 12500
3 125 12500
4 125 12500
5 125 12500
6 125 12500
7 125 12500
8 125 12500
9 125 12500
10 125 12500
11 125 12500
12 125 12500
13 125 12500
14 125 12500
15 125 12500
16 125 12500
17 125 12500
18 125 12500
19 125 12500
20 125 12500
Sub-Total 2,500 250000 625 62500

Thus, there are 20 members who subscribed 125 shares each. The price per share
is P100, each member subscribed P12,500 worth of shares. The total subscribed
shares is P250,000 which is 25% of P1,000,000 authorized share capital. In the
given illustration, the number of paid up shares and its amount are left in blank as
this depends to each member (who has not able to pay the whole amount of
his/her subscribed shares), but it must be noted here that the total amount of paid
shares is equal to 625 shares or P62,500. This is 25% of the total subscribed shares
of P250,000.

58
(2) Loans and borrowings including deposits;
 The Board of Directors, upon approval of the General Assembly, may
borrow funds from any source, local or foreign, under such terms and
conditions that best serve the interest of the Cooperative. ( Art 7, sec.3
By Laws)

(3) Revolving capital which consists of the deferred payment of patronage refunds,
or interest on share capital;

 The General Assembly may authorize the Board of Directors to raise a

revolving capital by deferring the payment of patronage refunds and
interest on share capital, or such other schemes as may be legally
adopted.
 The Board of Directors shall issue a Revolving Capital Certificate with serial
number, name, rate of interest, date of retirement and such other
privileges or restrictions as may be deemed just and equitable.

(4) Subsidies, donations, legacies, grants, aids and such other assistance from any local
or foreign institution whether public or private: Provided, That capital coming from
such subsidies, donations, legacies, grants, aids and other assistance shall not be
divided into individual share capital holdings at any time but shall instead form part
of the donated capital or fund of the cooperative (Art 72, RA 9520)

(5) Retention from the proceeds of services /goods procured by members; and

(6) Other sources of funds as may be authorized by law. (Art VII, Sec 1 AOC)

NOTE: PAID UP CAPITALIZATION REQUIREMENT for PRIMARY COOPERATIVES

The paid up capitalization requirement for primary cooperatives shall not
be less than ₽15, 000, except for multi-purpose cooperative which should have
at least ₽100,000 or as required by the feasibility study.

59
TOPIC 3: AWARENESS AND WILLINGNESS in the FORMATION OF ESKWELA
KOOPERATIBA

Study the research conducted below: Analyze and give your point of view in the
research study of Eskwela Kooperatiba. Do you think students in your campus are
willing in the formation of a student cooperative? From among the types of
cooperatives, what type of cooperative is good to form?

60
 ASSESSMENT NO.5: COOPERATIVE MANAGEMENT
Name: ______________________________ Score/Rating: _________
Year and Section: ______________________ Date: ________________

I. Provided below are the steps in the formation of cooperatives, on the

space provided before each statement write the number of correct order or
steps in the formation. Cut this page and submit.

______ Complete the Pre-Membership Education Seminar (PMES).

______ Organize a core group.
______ Prepare the cooperative's by-laws.
______ Prepare a general statement called an economic survey.
______ Execute Treasurer”s Affidavit
______ Prepare the articles of cooperation
______ Reserved your proposed cooperative name.
______ Register your cooperative with the Cooperative Development
Authority (CDA).
______ Secure bond of accountable officer(s).
I. Identification.
__________________1) The legal document signed by each of the organizers
and includes the name of the cooperative, its purposes, scope of business and
others.
__________________2) This is done to check the economic condition of a
community.
__________________3) The person who submits the financial report.
__________________4) The step that gather people and form its group.
__________________5) Conducting this gives introduction of cooperative
ideas and practices and encourage people to join the coop.

II. Solve the problems: Show your solution.

1. The authorized share capital of the cooperative is P500,000. The price per
share is P100 each. What is the total number of parts of their authorized
shares?
______________________________________________________________
2. OMSC-MBO Eskwela Kooperatiba is a multi-purpose Coop. Its officers and
members agreed that the price for each share is P250 each. Their authorized
share capital is P1,000,000. Compute the total number of parts of their
authorized share capital.
_______________________________________________________________
3. The authorized share capital of Brgy. Payompon Vendors Coop is P800,000.
Each share is sold P200.
What is the total number of parts of their authorized share Capital?
_______________________________________________________________
What should be the minimum amount of total subscribed shares?
_______________________________________________________________
What should be their paid-up shares? ________________________________

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 REFERENCES
BOOKS:

Limpo Rose M. (2017). Operating the Coop with Values and Principles. MVM Cooperative,
Cainta Rizal
Limpo Rose M. (2017). Fundamentals of Cooperative Plans, Programs and Policies . MVM
Cooperative, Cainta Rizal
Limpo Rose M. (2017). Fundamentals of Cooperative Cooperative Laws and their Salient
Provisions. MVM Cooperative, Cainta Rizal
Limpo, Rose 2017. Fundamentals of Cooperative. Origin, Philosophy and Concept.
Midtown Village Multi-purpose Cooperative Cainta Rizal.
Ramos, Generoso, Jr., (2018). Fundamentals of Cooperative a module for cooperative
officers, leaders, members and students (future coop leaders). City of Imus
Cooperative Development Office.
INTERNET SOURCES:
https://attyatwork.com/introduction-to-cooperatives-kinds-of-cooperatives-in-the-philippines/

https://encyclopedia2.thefreedictionary.com/History+of+the+cooperative+movement

https://www.britannica.com/topic/Rochdale-Equitable-Pioneers-Society

http://www.cda.gov.ph/resources/issuance

https://www.cda.gov.ph/frequently-asks-questions-faqs

https://www.cda.gov.ph/index.php/resources/downloads/pro-forma-registration-
documents
https://cda.gov.ph/transparency/transparency-seal/120-transparency/transparency-
seal/i-cda-mandate-powers-and-functions-citizen-s-charter-and-contact-information/c-
citizen-s-charter/259-fees-and-charges
https://ched.gov.ph/wp-content/uploads/2017/10/CMO-17-s-2017.pdf

https://ep.franphil.com/a-primer-on-setting-up-a-cooperative-in-the-philippines-part-1
https://eskwelanaga.files.wordpress.com/2011/01/whatis-a-cooperative.pdf
https://www.grocer.coop/articles/cooperative-principles-updated

https://www.google.com/search?q=working+together&source=lnms&tbm

https://www.ica.coop/sites/default/files/publication-files/ica-guidance-notes-en-310629900.pdf
https://images.search.yahoo.com/search/images;_ylt=Awr9DuIsQ3deVt4AtzpXNyoA;_ylu
=X3oDMTE0dWJmOGJpBGNvbG8DZ3ExBHBvcwMxBHZ0aWQDQjk1NjBfMQRzZWMDcGl2
cw--

https://www.ica.coop/en/cooperatives/history-cooperative-movement#top

http://www.lawphil.net/statutes/repacts/ra2009/ra_9520_2009.html

62
https://www.phcci.coop/about-us/cooperative-movement/history-of-cooperative-in-the-
philippines/

https://www.rcampus.com/rubricshowc.cfm?code=AX7963X&sp=yes&

www.merriam-webster.com/dictionary/cooperative

https://www.un.org/esa/socdev/social/cooperatives/documents/survey/background.pdf

RESEARCH
Gulac, et.al. Awareness and Willingness of Omscians in the Formation of Eskwela
Kooperatiba
LAWS/MANDATES
1987 Philippine Constitution

MC No. – 2015-03/ Guidelines for Creation, Organization, Supervision and Monitoring of

Laboratory Cooperatives
RA No. 9520 – An Act Amending the Cooperative Code of the Philippines (RA6938) to be
known as the “Philippine Cooperative Coode of 2008”.

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