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Cooperatives (Autosaved)

The document discusses cooperatives, defining them as voluntary associations that are registered and have members who contribute equitably to capital to achieve social and economic goals. It outlines the philosophy of cooperation and notes the legal support for cooperatives in the Philippines. Key aspects covered include the Cooperative Code, purposes of cooperatives, organizing a cooperative, types of cooperatives, dissolution process, and key financial accounts for cooperatives.

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53 views

Cooperatives (Autosaved)

The document discusses cooperatives, defining them as voluntary associations that are registered and have members who contribute equitably to capital to achieve social and economic goals. It outlines the philosophy of cooperation and notes the legal support for cooperatives in the Philippines. Key aspects covered include the Cooperative Code, purposes of cooperatives, organizing a cooperative, types of cooperatives, dissolution process, and key financial accounts for cooperatives.

Uploaded by

Olaica
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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COOPERATIVES: ITS

BEING AND ITS


SIGNIFICANCE
COOPERATIVE DEFINITION

• 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 understanding in
accordance with universally accepted cooperative principles.
UNIVERSAL COOP PHILOSOPHY

“People Helping People”


Or
“Mutual Self Help”
THE PHILIPPINE COOPERATIVES…..

• Strongly backed by the Philippine Constitution


• Good Legislative Support:
1. The Cooperative Code
Old (Republic Act 6938)
New (Republic Act 9520)
2. The Cooperative Development Authority
Republic Act 6939
REPUBLIC ACT 9520, ARTICLE 11

• “ Itis the declared policy of the state to foster the creation and
growth of cooperatives as a practical vehicle for promoting self
reliance and harnessing people power towards the attainment
of economic development and social justice….”
THE REPUBLIC 9520 ENABLING FEATURES….

• Stronger statement of policy which encourages autonomy, self regulation,


empowerment
• Adopts the universal statement of coop identity based in the ICA
• Adopts the 7 universal coop principles
• Strongly recognizes the need for conduct of holistic audit for coops
(financial, social and performance)
• Provides the formation of subsidiary coop
• Enabling formation of a federation (3 coops)
COOPERATIVE PRINCIPLES

• Voluntary and Open Membership


• Democratic Member Control
• Member Economic Participation
• Autonomy and Independence
• Education, Training and Information
• Cooperation among Cooperatives
• Concern for Community
PURPOSES OF COOPERATIVES

• To encourage thrift and savings mobilization among the members;


• To generate funds and extend credit to the members for productive and
provident purposes;
• To encourage among members systematic production and marketing;
• To provide goods and services and other requirements to the members;
• To develop expertise and skills among its members;
• To acquire lands and provide housing benefits for the members;
• To insure against losses of the members;
• To promote and advance the economic, social and educational status of the members;
• To stablish, own, lease or operate cooperative banks, cooperative wholesale and retail
complexes, insurance and agricultural/industrial processing enterprises, and public
markets;
• To coordinate and facilitate the activities of 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; and
• To undertake any and all other activities for the effective and efficient
implementation of the provision of this Code.
OBJECTIVES AND GOALS OF A COOPERATIVE

The primary objective of every cooperative is to help improve the quality of live of its
members. Towards this end, the cooperative shall aim to:
• 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;
• 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; and
• Cooperate with the government, other cooperatives and people-oriented organizations
to further the attainment of any of the foregoing objectives.
ORGANIZING A PRIMARY COOPERATIVE

• Fifteen (15) or more natural persons who are Filipino citizens,


of legal age, having a common bond of interest and are actually
residing or working in the intended area of operation. Provided,
that a prospective member of a primary cooperative must have
completed a Pre-Membership Education Seminar (PMES).
LIABILITY OF A COOPERATIVE

A cooperative duly registered under this Code shall have limited


liability.
TERM

• Shall exist for a period not exceeding fifty (50 years) from the date of
registration unless sooner dissolved or unless said period is extended.
The term may be extended for periods not exceeding fifty (50) years in
any single instance by an amendment of the articles of incorporation, in
accordance with the Code. Provided, that no extension can be made
earlier than five (five) years prior to the original or subsequent expiry
date/dates unless there are justifiable reasons for an earlier extension as
may be determined by the Authority.
ARTICLES OF COOPERATION & BY-LAWS
TYPES & CATEGORIES OF COOPERATIVES

• Credit Cooperative
• Consumers Cooperative
• Producers Cooperative
• Marketing Cooperative
• Service Cooperative
• Multipurpose Cooperative
• Advocacy Cooperative
• Agrarian Reform Cooperative
• Cooperative Bank
• Dairy Cooperative
• Education Cooperative
• Electric Cooperative
• Financial Service Cooperative
• Transport Cooperative
CATEGORIES OF COOPERATIVES

• In terms of Membership

1. Primary – The members of which are natural persons;


2. Secondary – The members of which are primaries; and
3. Tertiary – The members of which are secondary cooperatives.
• In terms of Territory
According to areas of operations which may or may not coincide with the
political subdivisions of the country.
DISSOLUTION OF COOPERATIVES

• Voluntary Dissolution
1. Where no creditors are affected
2. Where creditors are affected
• Involuntary Dissolution
1. Dissolution by order of the authority
2. Dissolution by failure to organize & operate
LIQUIDATION OF A COOPERATIVE
ACCOUNTS PECULIAR TO A COOPERATIVE

• Interest on share capital payable – is credited for the amount allocated for interest on share
capital payable to members, set aside in accordance with the by-laws.
• Patronage refund payable – is credited for the amount allocated by the board of directors for
patronage refunds from the cooperative’s yearly net surplus.
• Statutory Reserves:
1. General reserve fund – is credited for at least 10% of the cooperative’s yearly
net surplus.
2. Education & Training Fund – maximum of 10% of net income before reserves.
3. Optional Fund – maximum of 10% of net income before reserves.

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