TRAINING ON

BASIC COOPERATIVE
COURSE

jho.agas
cds II
cda-armm
This topic covers the fundamental
knowledge of cooperative that all
coops officers should have…

CONTENTS:

1. FUNDAMENTALS OF COOPERATIVES:
WHY, WHAT & HOW?
2. COOPERATIVE VALUES, PRINCIPLES &
PRACTICES

3. THE “ COOP DIFFERENCE”

4. COOP GOVERNANCE & ADMINISTRATION

 SALIENT FEATURES OF
RA NO.6938, 6939 & 9520

March 10, 1990- President Cory Aquino signed into

law RA6938
(Coop Code Of The Philippines)
RA 6939- Companion /Twin Law
 Law creating the CDA
Feb. 17, 2009 – Pres. Gloria M. Arroyo signed into
law RA9520
 (Philippine Cooperative Code of 2008)
 amending RA 6938
 WHAT IS COOPERATIVE?

Cooperative
 Is an autonomous and duly registered association of
persons, with a common bond of interest, who have
voluntarily joined together to achieve their social,
economic, and cultural needs and aspirations by making
equitable contributions to the capital required,
patronizing their products and services and accepting a
fair share of the risks and benefits of the undertaking in
accordance with universally accepted coop principles.
 COOP CONCEPT

C - controlled

O - owned

O - operated

P - patronized
 WHY A COOPERATIVE?
Socio-Economic & Political Problems:
 Lack of job opportunities
 Inadequate income to support the family
 Lack of education/knowledge
 Inequality in the distribution of wealth and
power
 wrong values and beliefs
 People are not united
 Peace and order situation
NATURE & CHARACTER OF COOPERATIVES
COOPERATIVES are:
 Service-oriented
 Community-oriented
 People-oriented
 Owned, managed, and patronized
 Business enterprises
 Develop best through self-help and
mutual help
 Serve best when they answer the real
and felt needs of the members
 Develop best from bottom to top
 OBJECTIVES & GOALS
The primary objective of every coop is to help
improve the quality of life of its members. 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;
 OBJECTIVES & GOALS

(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

(f) Cooperate with the gov’t, other coops and

people-oriented organizations to further the
attainment of any of the foregoing objectives
 COOPERATIVE PRINCIPLES
VOLUNTARY and OPEN MEMBERSHIP
 Coops are voluntary organizations, open to all persons
able to use their and willing to accept the
responsibilities of membership, w/o gender, social,
racial, cultural, political, or religious discrimination.
DEMOCRATIC MEMBER CONTROL
- coops are democratic organizations that are
controlled by their members who actively participate
in setting their policies and making decisions.
- members have equal voting rights of one-member,
one-vote.
 PRINCIPLES….
MEMBER ECONOMIC PARTICIPATION
 Members contribute equitably to, and democratically
control, the capital of their coop.
AUTONOMY AND INDEPENDENCE
- coops are autonomous, self-help organizations controlled
by their members.
EDUCATION, TRAINING AND INFORMATION
- coops shall provide education and training for their
members, elected and appointed representatives, managers,
and employees.
 PRINCIPLES…..
COOPERATION AMONG COOPERATIVES
 -coops serve their members most effectively and strengthen
the coop movement by working together through local,
national, regional, and international structures.

CONCERN FOR COMMUNITY

- coops work for the sustainable development of their
communities through policies approved by their members.
 Cooperative Values, LO 1
Principles & Practice

Values  Self-help
 In co-operatives, people help
each other whilst (at the same
time) helping themselves by
working together for mutual
benefit.

 Self-responsibility
 Individuals within cooperatives
act responsibly and play a full
part in the organization.
 Cooperative Values, LO 1
Principles & Practice

Values  Democracy
 A Co-operative will be
structured so that members
have control over the
organization – one member,
one vote.

 Equality
 Each member will have equal
rights and benefits (according
to their contribution).
 Cooperative Values, LO 1
Principles & Practice

Values  Equity
 Members will be treated
justly and fairly.

 Solidarity
 Members will support each
other and other co-
operatives.
 Cooperative Values, LO 1
Principles & Practice

Ethical Values - In the

Values
tradition of their
founders, co-operative
members believe in the
ethical values of:
 Honesty
 Openness
 Social responsibility
 Caring for others
 COOP Philosophy: LO 1
Nature and Character

Are service oriented Are people oriented

• organized to • not merely economic
serve the instruments concerned
members at a with dividends but are
reasonable cost. tools for human
• are not development.
charitable
institutions.
Owned, managed and
Are community oriented patronized by members
 work for the welfare of • ownership is an
members by integrating
with the community important factor for the
success of coop
 COOP Philosophy: LO 1
Nature and Character
Serve best when respond to
members needs Develop best thru self-help
• needs of members and mutual-help
must be truly assessed
and responded. • if you want something
• members needs as the done, do it yourself with
basis of service and others
products • self determination and
Are business enterprise self-capacity are very
• engage in business with important
social responsibilities. • self-growth over
• generate surpluses to able dependence
continually to improve and
expand services.
• excess of surpluses are
allocated and returned to
members
 COOP Philosophy: LO 1
Nature and Character

Best when developed Development thru multi-

from bottom to top sectoral approach
• ideas must come • help from other
from a group of organization may be
person rather than asked
an individual or requested
• start from something
small to big, one
service to another
service.
 The “Coop Difference” LO 1
COMPARISON OF CO-OPERATIVES WITH OTHER TYPES OF BUSINESS
ENTERPRISES
         
Basic Single Partnership Corporation Co-operative
Difference Proprietorshi
  p
 1. Number of   Only one person  At least two or  At least five  At least 15 persons
Persons Required   more persons (natural (natural persons
for Formation   and juridical can be members
  persons can be only of primaries;
stockholders at the while juridical
same time) persons can be
  members of
federations and/or
unions)

 2. Grant  No separate  Mere agreement  Must be registered Must be registered
Juridical juridical of partners can with SEC with CDA
Personality personality from be a partnership.    
  owner but However, it is  
business name better if
should be registered under
registered with the SEC
DTI
 The “Coop Difference” LO 1
COMPARISON OF CO-OPERATIVES WITH OTHER TYPES OF BUSINESS
ENTERPRISES
         
Basic Single Partnership Corporation Co-operative
Difference Proprietorshi
  p
         
3. Registration Application form Contract of Articles of Articles of Co-
Requirements   partnership Incorporation, By- operation, By-
for   Laws and Bank Laws, Economic
Documentation Statement Survey, Bonds and
    Treasurer’s
Affidavit

         
4. Capitalization Only owner Partners Stockholders pay Members
Contributions contributes contribute cash for amount of contribute (limited
  capital or services shares they want to ten percent of
    to buy subscribed capital
 
 The “Coop Difference” LO 1
COMPARISON OF CO-OPERATIVES WITH OTHER TYPES OF BUSINESS
ENTERPRISES
         
Basic Single Partnership Corporation Co-operative
Difference Proprietorshi
  p
        General
5. Only one Partners Board of Assembly has
Management person decides make a Directors make final decision
Structure   collective final decision  
  decision    

        One member,
6. Voting No voting Vote Vote one vote; no
Rights rights as it proportional proportional to proxy voting in
  concerns only to interest interest; proxy primary co-ops
one person voting allowed
 The “Coop Difference” LO 1
COMPARISON OF CO-OPERATIVES WITH OTHER TYPES OF BUSINESS
ENTERPRISES
         
Basic Single Partnership Corporation Co-operative
Difference Proprietorshi
  p
         
7. Liability Unlimited as to Unlimited as to Limited until Limited until
  owner partner except authorized capital subscribed share
  limited   capital
partnerships  

    Partners pay    
8. Taxability Income tax of tax as share on Profits taxable; Net surplus non-
  owner partners stockholders pay taxable, interests
  tax on dividends on members’
received deposits are not
  subject to tax (Art.
61, RA 9520)
 The “Coop Difference” LO 1
COMPARISON OF CO-OPERATIVES WITH OTHER TYPES OF BUSINESS
ENTERPRISES
         
Basic Single Partnership Corporation Co-operative
Difference Proprietorshi
  p
         
9. Effect of End of business   Corporation Co-operative
Death of operations   continues; heirs continues; heirs
Owner, unless heirs can Partnership inherit shares become
Partner, take over automatically   members if
Stockholder business dissolves qualified
or Member    

         
10. Motive for Profit Profit or Profit Profit and
Existence   service   service
   
 TYPES OF COOPERATIVES

 a. 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;
 b. Consumers Cooperative - is one the primary
purpose of which is to procure and distribute
commodities to members and non- members;
 is one that undertakes joint
c. Producers Cooperative -
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 name and for the account of the
cooperative, shall be deemed a product of the
cooperative and its members;
d. Marketing Cooperative - is one which engages in the
supply of production inputs to members and markets
their products;

e. 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;
f. Multipurpose Cooperative - is one which combines
two (2) or more of the business activities of these
different types of cooperative;

g. 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;
h. 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;
i. Cooperative Bank - is one organized for the primary
purpose of providing a wide range of financial
services to cooperatives and their members;

j. Dairy Cooperative - is one whose members are

engaged in the production of fresh milk which may be
processed and/or marketed as dairy products;
k. 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;
l. Electric Cooperative - is one organized for the primary
purpose of undertaking power generation, utilizing
renewable energy sources, including hybrid systems,
acquisition and operation of substransmission or
distribution to its household members;
m. Financial Service Cooperative - is one organized for
the primary purpose of engaging in savings and credit
services and other financial services;

n. Fishermen Cooperative - is one organized by

marginalized fishermen in localities whose products are
marketed either fresh or processed;
o. Health Services Cooperative - is one organized for
the primary purpose of providing medical, dental, and
other health services;

p. 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;
q. Insurance Cooperative - is one engaged in the
business of insuring life and property of cooperatives
and their members;

r. 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;
s. 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;
u. Other types of cooperative as may
be determined by the Authority.
 Categories of Cooperative

a)In terms of membership: b) In terms of territory,

cooperatives shall be
(i) Primary- the members of categorized according to
which are natural areas of operation which
persons may or may not coincide
(ii) Secondary- the members with the political
of which are
subdivision of the
primaries
country.
(iii) Tertiary- the members of
which are
secondary coops
GOVERNANCE AND
ADMINISTRATION
 General Supreme body where all

Assembly
authorities emanate from

Prepares for Conducts fin.,

and facilitates
the conduct of
election
EleCom BOD ACom. mgt. & social
audit

Sets the strategic

direction & formulates

Secretary Treasurer
policies

Con-Med Com Ethics Com EdCom Other Com

Resp of Con-Med Resp of Ethical Resp of Dev Plans Functions fixed by
Program & service Standards & Admin and imple educ & BOD
& Civil Cases Cases training program

Gen. Manager
Manages the day-
to-day operations

Performs specific tasks/

Mgt. Staff functions related to the
day-to-day operations

Organizational Structure
 POWERS, DUTIES AND RESPONSIBILITIES

GENERAL ASSEMBLY-highest policy-

making body
-compose of members
entitle to vote
POWERS: (cannot be delegated)
-Determine and approve amendments to the articles of coop, & By-Laws
-Elect or appoint members of the BOD, and to remove them for cause.
-Approve developmental plans of the coop.
- Such other matters requiring a two-thirds (2/3) vote of all members of
the general assembly, as provided in the code.
 General
Assembly
 The Code specifies matters that require at lease a 2/3
vote of all the members of the general assembly of a
cooperative. These are:
 To amend the articles of cooperative (Art, 18);
 To divide a cooperative (Art. 20);
 To merge or consolidate cooperatives (Art. 21);
 To ratify a voidable cooperative contract (Art. 47);
 To ratify an act of a disloyal director (Art. 48);
 To remove an officer, director or committee member
(Art. 50) and
 To voluntarily dissolve a cooperative (Art. 64 & 65).

Governance & Administration

 General
Assembly
 The code also requires only a simple majority vote of the
GA, to wit:
 To fix the compensation of directors (Art. 46);
 To elect directors (Art. 33, par 2 & Art. 43);
 To act on membership applications (Art. 28);
 To act on appeals involving termination of memberships (Art. 30);
 To act on reports (Art. 25);
 To authorize the establishment of revolving funds (Art. 79);
 To act an audit committee reports (Art. 81);
 To decrease the amount allotted to the reserve fund when it exceeds the
share capital (Art. 86);
 To donate any portion or the entire amount of the reserve fund upon
the dissolution of the cooperative (Art. 87); and
 To approve petitions for the suspension of payments or declaration of
insolvency under the Insolvency Law (Art. 64).

Governance & Administration

OFFICERS OF THE COOPERATIVE

BOD- shall composed of not less than five (5) nor more
than fifteen (15) members elected by the general assembly
- responsible for the strategic planning, direction-setting and policy-
formulation activities of the coop.
- Shall not hold any other position directly involve in the day to day
operation & management of the coop.
 -Term of two (2) years
 Board of Directors
 Sets the strategic direction & formulates policies
 Within the broad policies laid down by the membership, the board of
directors is the governing body. Acting as a group, the directors employ
the manager, establish specific operating policies and supervise the
management of the cooperative. The directors are the elected
representatives of the members. The powers, duties and responsibilities
are:
 Responsible for the strategic planning, direction-setting and policy formulation activities
of the cooperative.
 Formulates and evaluates general and internal operating policies
 Establishes rules and regulations regarding membership; issues and sells share of stocks.
 Prescribes the form and maintenance of membership records and approve memberships.
 Elect officers of the board, removes them for cause and fills vacancies.
 Exists as a board in a duly-called meeting and their authority does not reside in them as
individuals.
 Hires the best trained and most efficient manager that they can create the best possible
working conditions for him/her that are compatible with the interest of the members and
the success of the cooperatives.
 Determines the duties, responsibilities, and compensation of the general manager and
dismiss him/her for cause

Governance & Administration

 Board of Directors
 The powers, duties and responsibilities are:
 Employs an external auditor
 Determines which employees to be bonded, fixed the amount of their bonds,
and provides for the adequate insurance protection for all facilities, equipment,
and personnel.
 Prescribes the form, extent and nature of financial reports to members.
 Declares interest on capital and patronage refund on business volumes.
 Recommends changes in the by-laws (when the power to do is vested in the
directors)
 Borrows money and issues evidence of indebtedness
 Consolidates funds and decides investments in other cooperatives
 Enters into contracts, sues and be sued in the name of coop
 Renders services, furnishes supplies and markets products for members and
partners in accordance with the purposes of the coops as spelled out in the
organization papers
 Keeps records of all meetings of the board
 Calls special meeting of the board
 Adapts, uses, and alters the cooperative seal.

Governance & Administration

 Board of Directors
 The powers, duties and responsibilities are:
 Observes moral and legal responsibility to serve the best interest of the
members whom they represent rather than their own individual interest.
 Knows and understands the financial operations of the cooperative and satisfy
themselves that the records kept are accurate in every detail.
 Keeps the membership informed and insures that the entire organization is
permeated with spirit of service to and respect for the membership.
 Does not interfere in the day to day operations of the business but should
determine with the membership, the policies of operation and checks to see
these policies are carried out.
 Maintains the cooperative as an efficient business institution worthy of the
good will of the community and area it serves.
 The BOD shall be responsible for the strategic planning, direction setting and
policy-formulation activities of the cooperative.
 Manages the properties of the cooperative.
 Formulates the development philosophy and direction of the Coop.
 Acts on all applications for membership, resignations and in certain cases,
expulsion of members, and
 May exercise all powers of the cooperative which are not reserved for the
general assembly under R.A. Act 6938 and by laws.

Governance & Administration

 COMMITTEES
 ELECTIVE COMMITTEES

AUDIT COMMITTEE
- have the power and duty to continuously monitor the
adequacy and effectiveness of the coop’s management control
system and audit performance of the coop

- Prepares and submits periodic and regular reports to the

Board and to the General Assembly.

- Calls for special assemblies whenever necessary.

- serve as financial consultant to the BODs

ELECTION COMMITTEE
- plan, prepare and supervise the conduct of
all elections
- receive and conduct hearing on election
protests and submit results to the BOD
- proclaim the elected officers to the BOD
and elective committees.
 APPOINTIVE COMMITTEES

EDUCATION & TRAINING COMMITTEE

-Develop, plan, and implement educational and information activities
- Conduct seminars for prospective and regular members
- Conducts the educational program of the Coop which includes among
others, the pre-membership seminars and ownership meetings, the training
of directors, officers, committee members and paid staff of the Coop.
- Provides members with information concerning operations of the Coops
during regular ownership meetings.
- Familiarizes the general public with the aims, purposes and philosophy of
the cooperative movement, and
- Recommends to the BOD related policies and program of education and
training for the Coop.
OTHER COMMITTEES – as may be necessary for the
conduct of the affairs of the cooperative,
- shall assist in the formulation of
policies and rules and in the implementation of the
services of the coop
- powers, functions, &
responsibilities shall be defined in the by-laws.

• Mediation and Conciliation Committee

• Ethics Committee
 Appointive Committee
 CONCILIATION-MEDIATION COMMITTEE
a) Formulate and develop the Conciliation-Mediation Program and ensure that it is
properly implemented;
b) to conciliate, hear and decide all intra-cooperative disputes between and/or
among members, officers, directors and community.
c) issue supplemental rules and procedures concerning conciliation process as may
be deemed necessary (for GA approval)
d) Submit recommendations for improvement to the Board of Directors;
e) Recommend to the Board of Directors any member of the cooperative for
Conciliation-Mediation Trainings as Cooperative Conciliator-Mediator;
f) Issue the Certificate of Non-Settlement (CNS);
g) other powers as may be necessary to ensure speedy, just, equitable and
inexpensive settlement of disputes within the Cooperative.
 Appointive Committee

ETHICS COMMITTEE
- develop Code of Governance and Ethical Standards to be
observed by the members, officers and employees of the
cooperative(for BOD and GA approval)
- disseminate, promote, implement and monitor the
compliance with the Code of Governance & Ethical Standards.
-Conduct initial investigation or inquiry upon receipt of a
complaint involving Code of Governance and Ethical Standards
and submit report to the Board of Directors together with the
appropriate sanctions.
-Recommend ethical rules and policy to the Board of
Directors;
SECRETARY- keep & maintain a complete registry of
all members and records/minutes of all meetings of the
BOD and GA
- give notice of all meetings
called
- keep & maintain the Share and
transfer book and serve as the custodian of the corporate
seal of the coop
- turn over to his successor all
books, records & other properties belonging to the coop
- act as a treasurer in case of
the latter’s absence
TREASURER- take custodies of all monies,
securities and papers acquired by the coop,
- maintain complete records of all its cash transactions
- pay all financial obligations of the coop
as approved by the GM & BOD
- render report and certify the correctness
of the cash position of the coop in all financial statements and
other reports submitted to the BOD, GA, & the CDA.
- turn over to his successor all monies,
papers, books, and other properties of the coop
- acts as Secretary in case of the latter’s
absence
 MANAGEMENT STAFF
MANAGER
- spearhead of all management
Has a dual challenge:
(a) solve the technical business
problems
(b) manage the accounting,
financing, personnel and
other problems of
business operation
- ensure compliance with all administrative and other
requirements of regulatory bodies
General Manager. The General Manager shall:
a. Oversee the overall day to day business operations of the cooperative by providing general direction,
supervision, management and administrative control over all the operating departments subject to such
limitations as may be set forth by the Board of Directors or the General/Representative Assembly;
b. Formulate and recommend in coordination with the operating departments under his/her supervision, the
Cooperative's Annual and Medium Term Development Plan, programs and projects, for approval of the
Board of Directors and ratification of the General/Representative Assembly;
c. Implement the duly approved plans and programs of the Cooperative and any other directive or
instruction of the Board of Directors.
d. Provide and submit to the Board of Directors monthly reports on the status of the Cooperative's operation
vis-à-vis its targets and recommend appropriate policy or operational changes, if necessary;
e. Represent the Cooperative in any agreement, contract, business dealing, and in any other official business
transaction as may be authorized by the Board of Directors;
f. Ensure compliance with all administrative and other requirements of regulatory bodies; and
g. Perform such other functions as may be prescribed in the By-laws or authorized by the
General/Representative Assembly.
ACCOUNTANT/BOOKKEPER
- install an adequate and effective accounting
system w/in the coop
- render reports on the financial condition
and operations of the coop monthly or annually
- provide assistance to the BOD in the
preparation of annual budget
- keep, maintain & preserve all books of
accounts, documents, vouchers, contracts & other records
concerning the business of the coop & make them
available for auditing purposes
 NOTE……..

 All elective officials of the Gov’t shall be an illegible to become

officers & directors of the coop

 No 2 or more persons w/ relationship up to the 3rd civil degree

consanguinity or affinity shall serve as an appointive officer.
 RELATIONSHIP COVERED BY
PROHIBITION
DEGREE RELATIONSHIP

By Consanguinity By Affinity

1st Degree Parents to son/daughter Parents-in-law to son/

daughter-in-law
2nd Degree Grandparent to Grandparent-in-law to
grandchild, Brother/Sister grandchild-in-law,
Brother/Sister-in-law to
sister/brother-in-law

3rd Degree Great grandfather to great Great grandfather-in-law

grandchild, uncle/aunt to to Great grandchild-in-law
nephew/niece Uncle/aunt-in-law to
Nephew/niece-in-law
 SAVING MOBILIZATION & CAPITAL BUILD-UP
PROGRAM (SM CBUP)

CAPITAL BUILD-UP
 A coop shall have a capital formation process for the operation
of its business.
 Article 72- Capital Sources- Coops registered under 9520
may derived their capital from any or all of the following sources:
- Member’s share capital
- Loans and borrowing including deposits
- Revolving capital w/c consists of the deferred
payment of patronage refunds, or interest on share capital
- Subsides, donations, legacies, grants, aids and
such other assistance form any local or foreign institution
whether public or private.
LIMITATION ON SHARE CAPITAL
HOLDINGS-
 No member of a primary coop other than a coop itself shall
own or hold more than 10% the share capital of the coop.

CAPITAL BUILD-UP PROGRAM-

 Allow the continuing growth of the members’ investments in
their coop as their own economic conditions continues to
improve
 SAVING MOBILIZATION
 --Saving is encouraged to coop to augment the group
business that members engage into, it could be used for
expansion of the enterprise.

 -Saving schemes used by most coops:

 1. Piso-piso deposit or one peso a day savings

 2. Birthday regalo (for Christians) & Ramadhan
Regalo (muslim)
 3. Raffle tickets or Raffle draw

 4. Twenty five centavo’s retention to every item being

sold by coop
 5. Other saving scheme.
 ALLOCATION AND DISTRIBUTION OF NET SURPLUS

NET SURPLUS- (ARTICLE 85)

 -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 coop.
 ORDER OF DISTRIBUTION

GENERAL RESERVE FUND

 - at least 10% of net surplus.
- not be less than 50% of the net surplus in the
first 5 years of operation after registration
- shall be used for the stability of the cooperative
and to meet losses.
- shall not be utilized for investment
- upon dissolution, the fund shall not be
distributed among the members
EDUCATION & TRAINING FUND

-not more than 10% of the net surplus

-shall provide for the training, development and
similar other Coop activities geared towards the
growth of the coop movement
- Half of the amount may be remitted to a union
or federation of which it is a member.
COMMUNITY DEVELOPMENT FUND

- Not less than 3% of the net surplus

-Shall be used for projects or activities that
will benefit the community where the
coop operates.
OPTIONAL FUND

-Shall not exceed 7%

-Used for land and building, and other
necessary fund
***The remaining net surplus shall be made
available to the members in the form of Interest
on Share Capital and Patronage Refund.
 THE COOP PROCESS

WELFARE

Articles of
GENERAL
ASSEMBLY Cooperation, By-
OR Elects/Appoints BOD’s Plan & Formulate laws, Rules and
GENERAL Committee Regulation, Other
MEMBERSHIP Members Policies
Other
Officers
 Role of General Assembly:

Be knowledgeable
Be Vigilant
Be Active
 SUCCESS FACTORS
 Members recognition of common needs
 Members determination to help themselves
 Members conviction that group action offer advantageous
 Presence of good members & capable dedicated leaders
 Good record keeping system
 Frequent audit
 Continuous Coop education
 Training of officers & members
 Proper guidance
 Other factor: Financial assistance
 REQUIREMENTS
( per MC No. 2011-15, dated May 6, 2011)

1. Cooperative Name Reservation Notice (CNRN)

2. Economic Survey
3. Articles of Cooperation and the approved By-laws;
3.1 All original;
3.2 The Articles of Cooperation shall be signed by all the cooperators on each
and every page; and
3.3 The By-laws shall be signed by all the members on the adoption page.

4. Treasurer’s Affidavit;
5. Surety Bonds of Accountable Officers;
6. Certificate of Pre-membership Educ. Seminar (PMES) signed by the cooperative
interim Chairman, as validated by the Authority;
7. Undertaking to change name;
8. Undertaking to comply with the auditing and accounting standards prescribed by the
Authority;
9. Undertaking to submit reportorial requirements and to comply with other
requirements prescribed by the other regulatory agency, when applicable;
10. Favorable endorsement/ written verification / authority/ pre-feasibility study, if
applicable; and
11. Registration Fee.
 GENERAL INSTRUCTIONS

1. All interim board of directors must affix their signatures on

the margin of every page thereof except the page where the
names and signatures of cooperators are provided;
2. All four(4) copies of the articles of cooperation shall bear
original signatures;
3. No photocopy of documents shall be accepted;
4. The paper must be in 8.5” x 13” or 8.5” x 14” and the font type
and size is Bookman Old Style, 12;
5. Four (4) copies of documents must be submitted in separate
folders; and
6. The use of metallic objects in fastening the documents is not
allowed.