RA 9520: The Philippine

Cooperative Code of 2008

Approved
• February 17, 2009
• President Gloria M Arroyo
• An amendment to the Cooperative Code of the
Philippines (RA 6938)
• It defines the purpose of creating and operating a
cooperative in the Philippines
Why is the Code created?
•to foster the creation and growth of
cooperatives as a practical vehicle for promoting
self-reliance and harnessing people power
towards the attainment of economic
development and social justice
Government’s role
• ensure the provision of technical guidance, financial
assistance and other services to enable said
cooperatives to develop into viable and responsive
economic enterprises and thereby bring about a
strong cooperative movement that is free from any
conditions that might infringe upon the autonomy or
organizational integrity of cooperatives
Principle of subsidiarity
* a core principle of Catholic social teaching
* states that human affairs should be handled by the
lowest and least centralized level of authority possible.
Subsidiarity applied to Cooperatives
•the cooperative sector will initiate and regulate
within its own ranks the promotion and
organization, training and research, audit and
support services relative to cooperatives with
government assistance where necessary

Which element in the definition of cooperatives is this?

Cooperatives in the Philippines
an autonomous and duly registered association of
persons, with a common bond of interest, who have
voluntarily joined together to achieve their social,
economic, and cultural needs and aspirations by
making equitable contributions to the capital
required, patronizing their products and services and
accepting a fair share of the risks and benefits of the
undertaking in accordance with universally accepted
cooperative principles.
Cooperatives operate on:
•affairs in accordance with Filipino culture, good
values and experience
•universally accepted principles of cooperation
7 Principles
• Voluntary and Open Membership
• Democratic Member Control
• Member Economic Participation
• Autonomy and Independence
• Education, Training and Information
• Cooperation Among Cooperatives
• Concern for Community
Organization and
Registration
Purpose of Cooperatives
• To encourage thrift and savings mobilization
• To generate funds and extend credit to members
• productive
• provident
• To encourage systematic production and marketing
• To provide goods and services and other
requirements
• to develop expertise and skills
Purpose of Cooperatives
• to acquire lands and provide housing benefits
• to insure against losses
• to promote and advance the economic, social and
educational status
• to establish, own, lease or operate cooperative banks,
cooperative wholesale and retail complexes, insurance
and agricultural/industrial processing enterprises, and
pubic markets
Purpose of Cooperatives
• to coordinate and facilitate the activities of the cooperatives
• to advocate for the cause of the cooperative movement
• to ensure the viability of cooperatives through the utilization
of new technologies
• To encourage and promote self-help or self-employment as
an engine for economic growth and poverty alleviation
• To undertake any and all other activities for the effective and
efficient implementation of the provisions of the Code.
Primary Objective

to help improve the quality of life of

its members
Goals
• 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
• Provide optimum social and economic benefits to its
members
• Teach them efficient ways of doing things in a cooperative
manner
Goals
• Propagate cooperative practices and new ideas in
business and management
• Allow the lower income and less privileged groups to
increase their ownership in the wealth of the nation
• Cooperate with the government, other cooperatives
and people-oriented organizations to further the
attainment of any of the foregoing objectives.
Power, Rights and Capacities
• To the exclusive use of its registered name, to sue and
be sued
• Of succession
• To amend its articles of cooperation in accordance
with the provisions of the Code
• To adopt bylaws not contrary to law, morals or public
policy, and to amend and repeal the same in
accordance with the Code
Power, Rights and Capacities
• 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
• To enter into division, merger or consolidation, as provided
in this Code
• To form subsidiary cooperatives and join federations or
unions, as provided in this Code
Power, Rights and Capacities
• 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
Power, Rights and Capacities
• 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;
Power, Rights and Capacities
•To organize and operate schools in accordance
with Republic Act No. 9155, Governance of Basic
Education Act of 2001 and other pertinent laws
• 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
Organizing a Primary
Cooperative
Requirements
•at least 15 (natural) members
•Filipino citizens of legal age
•Have a common bond of interest
•Actually residing/working in the intended area of
operation
Prospective member requirement

•Completion of a Pre-Membership Education

Seminar (PMES)
Type of Cooperative Requirement
•Multipurpose – compliance to requirement set
by the CDA
•Single-purpose – may transform into a MPC or
create subsidiaries only after at least 2 years of
operations