Chapter 1:History of Cooperative other sectors, and has inspired the

development of financial cooperatives around

and State Policies COOPERATIVE
the world.
MANAGEMENT
1995- In 1995, the ACI adopted the revised
What cooperative means? Declaration on Cooperative Identity, which
contains the definition of a cooperative, the
A cooperative is an association of
values of cooperatives and seven cooperative
persons/organization that is owned and
principles.
controlled by the people to meet their
common economic, social, and/or cultural A. Cooperative values
needs and aspirations through a jointly-owned
and democratically controlled business Cooperatives are based on the values of self-
(enterprise). The people of the cooperative are help, self-responsibility, democracy, equality,
those who use its products, supplies, and/or equity and solidarity.
services. Profits are also often returned back
B. Cooperative Principles
to the members of the cooperative, however,
cooperatives are often more focused on Cooperative principles are the guidelines
services for members than for investments. by which cooperatives put their values into
practice.
History of Cooperative YEAR EVENT
1. Voluntary and open association.
1761- The first records of an existing
2. Democratic control of the members.
cooperative come from Fenwick (Scotland),
where, on March 14, 1761, in a barely 3. Economic participation of the partners.
furnished house, the spinners began selling
the contents of an oat bag in the newly 4. Autonomy and independence
whitewashed front room at a discount. John
5. Education, training and information.
Walker, forming the Fenwick Spinner Society.
6. Cooperation between cooperatives.
1844- In 1844, a group of 28 artisans who
worked in the cotton factories of the town of 7. Feeling of community.
Rochdale, in the north of England, established
the first modern cooperative enterprise, the Robert Owen •
Equitable Society of the Pioneers of Rochdale.
Robert Owen (1771-1858):“The Father of
The weavers had miserable working conditions
Cooperation.” • The first cooperative
and low wages, so they could not afford the
movement, that is, the establishment of a
high prices of food and household items. They
coherent argument for the cooperative
thought that, by gathering their scarce
form of organization, gained momentum in
resources and working together, they could
the early 19th century with the writings
access basic consumer goods at a low price. At
and advocacy efforts of Robert Owen and
first, there were only four products for sale:
William King in England and Charles
flour, oatmeal, sugar and butter.
Fourier in France. Robert Owen and Charles
1862- An independent cooperative model Fourier were both well-known Utopian
developed in Germany by Friedrich Wilhelm Socialists; not only did they envision ideal
Raiffeisen and Franz Hermann Schultz- societies, they tried to create them in
Delitsch. Raiffeisen and Schultz-Delitsch Europe and the United States.
created the first credit cooperatives in 1862.
Since then the model has grown, expanding to
Charles Fourier with the help of his pupils. One noteworthy
group organized by Rizal was the La
Charles Fourier (1772-1837) was a Sociedad de los Abacaleros (Society of
bourgeois, famous French social Abaca Producers). This functioned for only
philosopher whose plans for self-reliant one year. Rizal returned the members
communities were motivated by the French share capital without any loss.
Revolution and his view that the working
class was being dehumanized and TEODORO SANDIKO
repressed.
Teodoro Sandiko, in his travels in Europe,
Dr. William King must have had a close contact with the
cooperative movement in Germany where
WILLIAM KING A Cooperative Developer he came across with the Raiffeisen
and Pragmatist Dr. William King (1786- movement. He was very much impressed
1865), another social reformer in England, by this type of cooperative and he looked
was in many respects more responsible forward for an opportunity to have it
than Robert Owen for spreading the introduced here in the Philippines. As
cooperative idea and for the actual destiny might have its choice, Sandiko had
organization of cooperatives. Although he his chance when he was appointed one of
accepted much of Owen’s social the early governors when Civil
philosophy, he disagreed on how to reach Government, under the Americans, was
those goals. King was more realistic about established.
cooperatives, advocating and inspiring the
development of consumer cooperatives THE RURAL CREDIT LAW
across England.
This time it was sponsored in the Lower
History of Cooperative in Philippines At House by Rep. Rafael Corpuz who
the turn of the century, Filipinos, in succeeded Rep. Barreto from Zambales.
increasing number, traveled and studied The bill was ably presented in both Houses
abroad and brought home with them new and it was finally passed into law on
ideas. It was this group of Filipinos who February 11, 1914 and became Act 2508.
were in close in contact with the new When this Act was finally made into law,
economic movement in Europe. Two names Gov. Sandiko earned a title of Father of
worthy of note were Dr. Jose P. Rizal and Cooperation in this country.
Teodoro Sandiko.
The first rural credit association that was
JOSE P. RIZAL organized under this Law was the
Agricultural Credit Cooperative Association
Rizal, after his side trip to Sandakan, of Cabanatuan, Nueva Ecija. It was formed
Borneo in 1892, requested Governor on October 18.1916. With this initial
Despujol that he and some relatives and organization farmers in the different
friends be permitted to move to that place provinces were organized. At the end of
and found a colony under the cooperative 1926 there were 544 rural credit
plan of Robert Owen. Instead, he was cooperatives organized in the 42 provinces
arrested for treason and banished to and by 1930 there were 571 associations
Dapitan, Zamboanga del Norte. In Dapitan, formed all over the country. In 1935,
Rizal had his ideas in cooperation partially however, about 90% of these cooperatives
fulfilled. He put up a school for the poor were inactive with no funds left in their
community on a purely cooperative basis. treasury. The experiment on rural
He also established a cooperative store
financing, through cooperatives was a • The dominance of the individualistic
failure. attitude instead of the spirit of cooperation
among the people.
MARKETING COOPERATIVES
• Inability of cooperatives to secure
Marketing Cooperatives is one which adequate capital.
engages in the supply of production inputs
to members and markets their products. As • Their dependence on alien suppliers and
soon as the organization of rural credit distributors.
cooperatives was in full swing, The
Cooperative Marketing Law (Act 2425) was • Ineffectiveness of the government and
enacted and approved on December 9, promotion of cooperative organizations.
1927. The rural credit associations were • Inadequate marketing facilities.
designed to help finance the productive
efforts of the farmers. In order to provide Cooperative in the Philippines
incentives to the farmers to produce more
an efficient machinery for the profitable • Cooperatives have been seen for a long
marketing of their products should be time as important economic actors in the
provided. Philippines. They are well recognized in
law; their promotion by a State agency was
Filipino economists and students of written into the constitution in 1987, and
cooperatives in this country have often they have their own up to date Cooperative
attributed the failure of cooperative Code, amended in 2008.
societies in this country to the following
causes: • ICA members represent over 9,432
cooperatives in the country, with a total
• Incompetent management number of memberships of 7,647,800, and
a total number of 226,400 employees.
• Lack of proper understanding of the
principles, practices true aims, and Agricultural Credit and Cooperative
purposes of cooperative associations. Financing Administration (ACCFA)
Building
• Improper use of credits by the borrowers
who, instead of using money borrowed for In recognition of the strategic position
production, spent it for fiestas or luxuries. occupied by our farmers in the social
structure and economic development of
• Defective securities. the country, the Congress of the
• Political interference particularly in the Philippines in 1952 enacted Republic Act
collection of overdue accounts. 821. This law established a system of
liberal credit which is specially designed to
• Lack of compensation of officers. meet the needs of the small farmer. It also
created an administrative agency known as
• Inadequate character and moral the Agricultural Credit and Cooperative
responsibility in handling the other Financing Administration (ACCFA).
fellow’s money.
THE ROLE OF COOPERATIVES
• Lack of adequate safeguard against
unscrupulous officers who took advantage The cooperative has been the policy
of their position to grant loans to instrument of the government in
themselves and their compadres which promoting social justice and economic
later proved disastrous to the system. development. The policy is well spelled out
in the Philippine Constitution of 1987 and capacity to participate in the achievement
in the enabling laws passed by Philippine of the SDGs in seven areas, namely:
legislature at the turn of the century eradication of poverty and hunger, decent
work and economic growth, responsive
Constitutional Provision (1987). production and consumption, reduced
Constitutional Provision (1987). The inequalities, climate action; peace, justice
Constitution provides, among others, a and strong institutions, and gender
mandate to the legislature to create an equality.
agency that will use cooperatives as Major Factor contribute to the Difficulties
instruments of social justice and economic in Institutionalizing Cooperative
development (Article XII Section 15). Thus,
the basic law of the land envisions the 1. Failure to incentivize shareholders
promotion of cooperatives in various
sectors of the economy, the expansion of 2. Power become centralized
economic base and the mobilization of the 3. Wrong people in the wrong places
less privilege members of the society to
actively participate in nation-building. 4. Lack of market or community support

Enabling Laws 5. Not planning for succession

In response to the Constitutional mandate,

Congress of the Philippines (legislature)
passed the Cooperative Code (Republic Act CHAPTER 2: General Concept
6938) and Cooperative Development and Principles Cooperative
Authority (CDA) Charter (RA 6939) on
Management
March 10, 1990. The Cooperative Code
provides for the general concepts and GENERAL CONCEPT AND PRINCIPLES
principles; organization and registration;
membership; administration; dissolution; According to Republic Act No. 9520-
capital; recovery and funds; audit, inquiry Cooperative Code of the Philippines "
and members right to examine; allocation
"ART. 3. General Concepts. — A
and distribution of net surplus; and special
cooperative is an autonomous and duly
provisions relating to agrarian reform
registered association of persons, with a
cooperatives, public cooperatives,
common bond of interest, who have
cooperative banks, credit cooperative and
voluntarily joined together to achieve their
cooperative insurance societies, among
social, economic, and cultural needs and
others.
aspirations by making equitable
Particular Roles of Cooperatives. contributions to the capital required,
patronizing their products and services
Under Philippine Development Plan (2011- and accepting a fair share of the risks and
2016), Cooperatives are expected to benefits of the undertaking in accordance
provide a significant contribution in the with universally accepted cooperative
objectives of creating a) rapid, inclusive principles.
and sustained economic growth, b)
financial inclusion, and c) reduction of
poverty. The cooperative movement in the
Philippines The cooperative movement in
the Philippines is clearly manifesting its
 levels are organized in the same
democratic manner.

(3) Member Economic Participation —

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

(4) Autonomy and Independence —

UNIVERSALLY ACCEPTED COOPERATIVE
Cooperatives are autonomous, self-help
PRINCIPLE
organizations controlled by their members.
— Every cooperative shall conduct its If they enter into agreements with other
affairs in accordance with Filipino culture, organizations, including government, or
good values and experience and the raise capital from external sources, they
universally accepted principles of shall do so on terms that ensure
cooperation which include, but are not democratic control of their members and
limited to, the following: maintain their cooperative autonomy.

(1) Voluntary and Open Membership — (5) Education, Training and Information —
Cooperatives are voluntary organizations, Cooperatives shall provide education and
open to all persons able to use their training for their members, elected and
services and willing to accept the appointed representatives, managers, and
responsibilities of membership, without employees, so that they can contribute
gender, social, racial, cultural, political or effectively and efficiently to the
religious discrimination. development of their cooperatives.

(2) Democratic Member Control — (6) Cooperation Among Cooperatives —

Cooperatives are democratic organizations Cooperatives serve their members most
that are controlled by their members who effectively and strengthen the cooperative
actively participate in setting their policies movement by working together through
and making decisions. Men and women local, national, regional and international
serving as elected representatives, structures.
directors or officers are accountable to the
(7) Concern for Community —
membership. In primary cooperatives,
Cooperatives work for the sustainable
members have equal voting rights of one-
development of their communities through
member, one-vote. Cooperatives at other
policies approved by their members.
ARTICLE 5 Definition of terms (b) Consumer Cooperative

Credit Union — old term for credit One of the primary purposes of this is to
purchase and distribute commodities to its
cooperatives Member - a person, either members and non-members. Consumer
juridical or natural, who has been admitted cooperatives also sell products at lower
by the coops as a member costs to their members. These cooperatives
General Assembly - the full membership of can get items at a reduced cost by
the cooperative; composed of members purchasing in bulk.
who are entitles to vote under the articles (c) Producers Cooperative
of cooperation by-laws
One that undertakes joint production
Board of Directors — the body entrusted whether agricultural or industrial. It is
with the management of the affairs of the formed and operated by its members to
cooperative undertake the production and processing
Committee - anybody entrusted with of raw materials or goods produced by its
specific functions and responsibilities members into finished or processed
products for sale by the cooperative to its
Articles of Cooperation- a document that members and non-members
shows the unique characteristics of the
juridical personality of the cooperative. (d) Marketing Cooperative

By-laws — set of rules that govern the One which engages in the supply of
internal affairs of the cooperative. production inputs to members and
markets their products.
Registration - the operative act granting
juridical personality to a proposed (e) Service Cooperative
cooperative and is evidenced by a One which engages in medical and dental
certificate of registration. care,
Cooperative Development Authority hospitalization,transportation,insurance,ho
(CDA)- the government agency in charge of using,labor,electric light and
the registration and regulation of power,communication,professional and
cooperatives. other services.

TYPES AND CATEGORIES OF (f) Multipurpose Cooperative

COOPERATIVES One which combines two (2) or more of the
(a) Credit Cooperative business activities of these different types
of cooperatives.
One that promotes and undertakes savings
and lending services among its members. It (g) Advocacy Cooperative
generates a common pool of funds to A primary cooperative which promotes and
provide financial assistance to its members advocates cooperativism among its
for productive and provident members and the public through socially-
purposes.They help to protect members oriented projects,education and training,
from exploitation of money lenders who research and communication, and other
charge exorbitant interest from borrowers. similar activities to reach out to its
intended benefeciaries.
(h) Agrarian Reform Cooperative marketed either as fresh or processed
products.
One is organized by marginal farmers
majority of which are agrarian reform (o) Health Service Cooperative
beneficiaries to develop an appropriate
system of land tenure, land development, One organized for the primary purpose of
land consolidation, or land management in providing medical,dental and other health
areas covered by agrarian reform. service

(i) Cooperative Bank (p) Housing Cooperative

One is organized for the primary purpose One organized to assist or provide access
of providing a wide range of financial to housing for the benefit of its members
services to cooperatives and their members who actively participate in the savings
program for housing.It is co-owned and
(j) Dairy Cooperative controlled by its members.

One whose members are engaged in the (q) Insurance Cooperative

production of fresh milk which may be
processed and/or marketed as dairy One engaged in the business of insuring
products. life and poverty of cooperatives and their
members.
(k) Education Cooperative
(r) Transport Cooperative
Education cooperatives exist in a variety of
forms, from early childhood education to One which includes land and sea
undergraduate programs. Preschools, for transportation, limited to small vessels, as
example, can operate as a co-op in which defined or classified under the Philippine
the parent members determine policies maritime laws,organized under the
and serve on committees. Parent provisions of thie Code.
involvement helps reduce costs, which (s) Water Service Cooperative
benefits all co-op members.
One is organized to own, operate, and
(l) Electric Cooperative manage water systems for the provision
One organized for the primary purpose of and distribution of potable water for its
undertaking power generation, utilizing members and their households.
renewable energy sources, including hybrid (t) Workers Cooperative
systems, acquisition, and operation of sub-
transmission or distribution to its One is organized by workers, including the
household members. self-employed, who are at the same time
the members and owners of the enterprise.
(m) Financial Service Cooperative Its principal purpose is to provide
One organized for the primary purpose of employment and business opportunities to
engaging in savings and credit services and its members and manage it in accordance
other financial services. with cooperative principles.

(n) Fishermen Cooperative

One organized by the marginalized

fishermen in localities whose product are
TYPES AND CATEGORIES OF make a profit by selling the
COOPERATIVES merchandise or products at prices that
are higher than their purchase costs.
In terms of membership: 3. Manufacturing- Buys raw materials and
1.PRIMARY- composed of natural persons uses them in making a new product,
therefore combining raw materials, labor
2.SECONDARY- composed of primary and expenses into a product for sale later
coops on.

3.TERTIARY- composed of secondary CHAPTER III: ORGANIZATION AND

coops
REGISTRATION
Cooperatives shall be categorized
according to areas of operations which may
or may not coincide with the political PURPOSE FOR WHICH COOPERATIVE MAY
subdivisions of the country. In terms of ORGANIZED
territory:
Cooperatives may be organized for various
FORMS OF BUSINESS ORGANIZATION purposes, including but not limited to:

Sole Proprietorship -owned by one person; Economic empowerment: To pool resources

the simplest, and the most common form and collectively engage in economic activities
of business organization. It is not separate for mutual benefit and to overcome individual
from the owner. limitations.

Partnership -contract whereby two or more Social welfare: To address social or

persons bind themselves to contribute community needs, such as providing
money, property, or industry to a common affordable housing, healthcare, or education.
and, with the intention of dividing the
profits among themselves. Agricultural production: To facilitate
collective farming, marketing, and distribution
Corporation - artificial being created by of agricultural products.
operation of law, having the right of
succession and the powers, attributes, and Consumer services: To offer members access
properties expressly authorized by law or to goods and services at fair prices, often by
incidental to its existence eliminating intermediaries and reducing costs.

Cooperative - autonomous and duly Worker ownership: To enable employees to

registered association of persons,with a own and manage their workplace, fostering a
common bond of interest, who have more democratic and equitable business
voluntarily joined together to achieve their model.
social, economic, and cultural needs and
Financial services: To provide members with
aspirations by making equitable
access to affordable credit, savings, and other
contrlbutions to the capital required.
financial products and services.
TYPES OF BUSINESS ORGANIZATION
Environmental sustainability: To promote
1. Service- Offers professional skills, environmentally friendly practices and
advice and consultations for a fee. support sustainable development initiatives
2. Merchandising - Buys at wholesale and within a community or industry.
later sells the products at retail. They
COOPERATIVES POWER AND CAPACITIES must have completed a Pre-Membership
Cooperatives possess significant power and Education Seminar (PMES).
capacities, including:
- ―Any newly organized primary cooperative
Economic Empowerment: Cooperatives allow may be registered as multipurpose
members to pool resources, share risks, and cooperative only after compliance with the
collectively benefit from economies of scale, minimum requirements for multipurpose
enhancing their purchasing power and market cooperative to be set by the authority. A
competitiveness. single-purpose cooperative may transform
into a multipurpose or may create a
Social Impact: They promote social cohesion subsidiaries only after at least two (2) years of
and community development by prioritizing operation.
member needs, fostering democratic decision-
making, and reinvesting profits into local COOPERATIVE OBJECTIVES
communities.
The primary objective of every cooperative is
Resilience: Cooperatives often exhibit greater to help improve the quality of life of its
resilience during economic downturns due to members. Towards this end, the cooperative
their collective ownership structure, which shall aim to:
enables them to adapt and innovate in
response to changing circumstances. a) Provide goods and services to its members
to enable them to attain increased income,
Sustainability: Cooperatives tend to prioritize savings, investments, productivity, and
environmental sustainability by promoting purchasing power and promote themselves
responsible practices and resource equitable distribution of net surplus through
management, reducing waste, and supporting maximum utilization of economies scale
local production and consumption. cost sharing and risk-sharing;

Education and Training: Many cooperatives b) Provide optimum social and economic
provide educational and training opportunities benefits to its members;
for members, enhancing their skills and
empowering them to actively participate in c) Teach them efficient ways of doing things
decision-making processes. in a cooperative manner;

Advocacy and Influence: Cooperatives can d) propagate cooperative practices and new
advocate for policies and regulations that ideas in business and management;
support their interests and the broader e) allow the lower income and less privileged
cooperative movement, amplifying their groups to increase their ownership in the
collective voice and impact on local, national, wealth of the nation; and
and international levels.
f) cooperate with the government, other
ORGANIZING A PRIMARY COOPERATIVE cooperatives and people oriented
- Fifteen (15) or more natural persons who organizations to further the attainment of
are Filipino citizens, of legal age, having a any of the foregoing objectives.
common bond of interest and are actually DIVISION OF COOPERATIVES
residing or working in the intended area of
operation, may organize a primary This segment delineates the procedures and
cooperative under this code: Provided, That criteria for dividing cooperatives into
a prospective member of a cooperative separate entities or branches to better serve
distinct member groups or geographic areas.
Examples: multiple cooperatives within a specific
industry, sector, or geographic area.
Geographic Expansion: A cooperative may
establish branch offices or subsidiaries in Examples:
different regions or municipalities to extend
its reach and serve members residing in Sectoral Federation: A federation of
remote or underserved areas, enhancing agricultural cooperatives may be established
accessibility and responsiveness to local to represent the collective interests of
needs. farmers and agricultural producers, advocate
for policy reforms, and provide centralized
Sectoral Specialization: Cooperatives services, such as marketing, processing, and
operating in diverse sectors, such as input supply, to member cooperatives,
agriculture, consumer goods, or financial enhancing their competitiveness and
services, may opt to create specialized resilience.
divisions or units focusing on specific
product lines or services, streamlining Regional Union: A union of cooperatives
operations and maximizing efficiency. operating within a particular region or
province may be formed to promote
MERGER OR CONSULTATION OF collaboration, knowledge-sharing, and
COOPERATIVES collective action among member cooperatives,
facilitating joint initiatives, such as
This section delineates the processes and infrastructure development, capacity-
considerations involved in merging or building, and disaster response, to address
consolidating two or more cooperatives to common challenges and capitalize on shared
achieve economies of scale, enhance opportunities.
efficiency, and strengthen competitiveness.

Examples:
CHAPTER IV: MEMBERSHIP
Strategic Alliance: Two or more cooperatives
operating in complementary sectors or INTRODUCTION
geographic areas may opt for a merger or
consolidation to combine resources, Cooperatives, as a form of business owned
expertise, and market access, enabling them and controlled by the people who use it, are
to offer a broader range of products or the same as an opera in that they, too, have
services and capitalize on synergies. several important elements needed to be
successful. The most essential one is the
Operational Streamlining: Cooperatives people
facing financial challenges, declining
membership, or duplicative services may WHAT IS MEMBERSHIP?
consider merging or consolidating operations
The state of belonging to an organization.
to eliminate redundancies, reduce costs, and
improve operational efficiency, ensuring long- The state or status of being a member.
term viability and sustainability.
WHO CAN BE A MEMBER?
FEDERATION OR UNIONS OF
COOPERATIVES Any natural person, who is a citizen of the
Philippines, a cooperative, or nonprofit
This section elucidates the concept of organization with juridical personality shall
cooperative federations or unions, which be eligible for membership in a cooperative if
serve as umbrella organizations representing the applicant meets the qualifications
prescribed in the bylaws: Provided, That only • Handle members’ products
natural persons may be admitted as members
of a primary cooperative • Order and maintain inventories

COOPERATIVE MEMBERS ARE • Sell, market, process, manufacture,

• The foundation of the cooperative • Conduct lab work

• The reason for the co-op’s existence • Keep accurate records

•The supporters and financiers, and the • Recommend products/services

shapers of the co-op’s future • Handle complaints
• Individuals, businesses, or other • Maintain facilities
organizations (including other co-ops)
KINDS OF MEMBERSHIPS
• The ones that control the cooperative
A COOPERATIVE MAY HAVE TWO KINDS
BOARD OF DIRECTORS OF MEMBERS:
• Holds the key position between members REGULAR MEMBERS - is one who has
and hired management. complied with all the membership
• Makes cooperative policy. requirements and entitled to all the rights
and privileges of membership.
• Has specific responsibilities.
ASSOCIATE MEMBERS - is one who has no
•Sets overall objectives and charts the right to vote nor be voted upon and shall be
cooperative’s course. entitled only to such rights and privileges as
the bylaws.
MANAGERS
MEMBERSHIP OF GOVERNMENT; OFFICER
• Are critical to the success of the AND EMPLOYEES IN THE COOPERATIVES
cooperative.
Government officers and employees can be
• Must have a good working relationship with members of cooperatives. There are, however,
the board of directors. certain prohibitions on their eligibility to hold
• Are hired to operate the business and focus appointive or elective positions.
efforts on everyday operations to serve Thus, officers and employees of the
members. Cooperative Development Authority(CDA) are
• Decide how to best carry out what the disqualified from being elected or appointed
board wants the cooperative to do, subject to to any position in a cooperative, Elective
board review. officials of the government other than
barangay officials are ineligible to become
• Know the difference between their officers and directors of cooperatives.
responsibilities and those of the directors.
Barangay officials, however, are eligible to
EMPLOYEES hold officerships or directorships in á
cooperative
• Promote the cooperative

• Deliver supplies
MEMBERSHIP OF GOVERNMENT; OFFICER Death or Insanity. The death or insanity of a
AND EMPLOYEES IN THE COOPERATIVES member in a primary cooperative, and the
insolvency or dissolution of a member in a
Government employees are eligible to serve secondary or tertiary cooperative may be
as director, committee member, treasurer, considered valid grounds for termination of
secretary, and general manager. membership.
As a bona fide cooperative member, a Majority Vote. Membership in the
government employee may be allowed his cooperative may be terminated by a vote of
head of office to use official time to attend the majority of all the members of the board
general assemblies, board and committee of directors for any of the following causes:
meetings, co-op seminars, conferences,
workshops, technical meetings, or training When a member has not patronized any of
courses, when locally staged or abroad, as the services of the cooperative for an
long as the operations of the of concerned are unreasonable period of time as may be
not paralyzed by such attendance. previously determined by the board of
directors.
LIABILITY OF MEMBERS OF COOPERATIVES
When a member has continuously failed to
A cooperative duly registered under this Code comply with his obligations.
shall have limited liability.
When a member has acted in violation of the
Cooperative shareholders maintain limited bylaws and the rules of the cooperative; and
liability in terms of debts and obligations, For any act or omission injurious or
including liability for unlawful acts prejudicial to the interest or the welfare of
committed by other shareholders and/or the cooperative.
employees. However, cooperative association
members are still held to personal liability REFUND OF INTERESTS
legal standards for their own unlawful
actions. All sums computed in accordance with the
bylaws to be due from a cooperative to a
Cooperatives are subject to a legal doctrine former member shall be paid to him either by
known as ― piercing the corporate veil, ‖ in the cooperative or by the approved
which shareholders could lose limited liability transferee, as the case may be, in accordance
protection in considerably rare with this Code
circumstances. A member shall be liable for
the debts of the cooperative to the extent of CHAPTER V: ADMINISTRATION
his contribution to the share capital of the
GENERAL ASSEMBLY REPUBLIC ACT NO.
cooperative
9520 CHAPTER IV ARTICLE 32
TERMINATION OF MEMBERSHIP
- Is composed of the members of the
Withdrawal of Membership. A member of a cooperative who are entitled to vote under
cooperative may, for any valid reason, the articles of cooperation and the by-laws of
withdraw his membership from the the cooperative.
cooperative by giving a sixty (60) day notice
GENERAL ASSEMBLY SERVICE-BYLAWS
to the board of directors. Subject to the
Article III Administration, Section 3.
bylaws of the cooperative, the withdrawing
member shall be entitled to a refund of his
share capital contribution and all other
interests in the cooperative.
POWERS OF THE GENERAL ASSEMBLY - ―If the board fails to call a regular or a
REPUBLIC ACT NO. 9520 CHAPTER IV special meeting within the given period, the
ARTICLE 33 Authority, upon petition of ten per centum
(10%) of all the members of the cooperative
GENERAL ASSEMBLY - Highest policy- making who are entitled to vote, and for good
body of the cooperative. cause shown, shall issue an order to the
• To determine and approve amendments to petitioners directing them to call a meeting
the articles of cooperation and by-laws. of the general assembly by giving proper
notice as required in this Code or in the
• To elect or appoint the members of the bylaws;
board of directors, and to remove for cause. - - (3) In the case of a newly approved
However in the case of the electric cooperative, a special general assembly
cooperatives registered under this code, shall be called, as far as practicable, within
election of the members of the board shall be ninety (90) days from such approval; ―(4)
held in accordance with its by-laws or election The Authority may call a special meeting of
guideline of such electric cooperative. the cooperative for the purpose of
reporting to the members the result of any
• To approve developmental plans of the examination or other investigation of the
cooperative. cooperative affairs; and ―(5) Notice of any
• Delegate some of its power to a smaller meeting may be waived, expressly or
body of the cooperative- ¾votes of all the impliedly, by any member.
members with voting rights VOTING SYSTEM REPUBLIC ACT NO. 9520
MEETING OF THE GENERAL ASSEMBLY CHAPTER IV ARTICLE 36
REPUBLIC ACT NO. 9520 ARTICLE 34 • Each member of a primary cooperative shall
REGULAR MEETINGS- shall be held annually have only one (1) vote. In the case of members
by the general assembly on a date fixed in the of secondary or tertiary cooperatives, they
bylaws, or if not so fixed, on any dated within shall have one (1) basic vote and as many
(90) days after the close of each fiscal year; incentive votes as provided for in the bylaws
Provided, that notice of regular meetings shall but not to exceed five (5) votes. The votes cast
be sent in writing by posting or publication of by the delegates shall be deemed as votes cast
through other electronic means to all by the members thereof.
members of record. • "However, the bylaws of a cooperative other
SPECIAL MEETINGS- of the general assembly than a primary may provide for voting by
may be called at any time by a majority vote proxy. Voting by proxy means allowing a
of the board of directors or as provided for in delegate of a cooperative to represent or vote
the bylaws: Provided, That a notice in writing in behalf of another delegate of the same
shall be sent one (1) week prior to the cooperative.
meeting to all members who are entitled to COMPOSITION AND TERM OF THE BOARD
vote. However, a special meeting shall be OF DIRECTORS REPUBLIC ACT NO. 9520
called by the board of directors after CHAPTER IV ARTICLE 37
compliance with the required notice within
from at least ten per centum (10%) of the total Unless otherwise provided in the bylaws, the
members who re entitled to vote to transact direction and management of the affairs of a
specific business covered by the call. cooperative shall be vested in a board of
directors which shall be composed of not less
that five (5) nor more than fifteen (15)
members elected by the general assembly for a of five per centum (5%) of all the members
term of two (2) years and shall hold office entitled to vote
until their successors are duly elected an
qualified, or until duly removed for caused. POWERS OF THE BOARD OF DIRECTORS .
REPUBLIC ACT NO. 9520 CHAPTER IV
BONDING OF ACCOUNTABLE OFFICERS ARTICLE 38
REPUBLIC ACT NO. 9520 CHAPTER IV
ARTICLE 56 The board of directors shall be responsible for
the strategic planning, direction-setting and
Every director, officer, and employee handling policy-formulation activities of the
funds, securities or property on behalf of any cooperatives.
cooperative shall be covered by a surety bond
to be issued for a duly registered insurance or DIRECTORS REPUBLIC ACT NO. 9520
bonding company for the faithful performance CHAPTER IV ARTICLE 39
of their respective duties and obligations. The (1) Any member of a cooperative who
board of directors shall determine the under the bylaws of the cooperative,
adequacy of such bonds.. has the right to vote and who possesses
COMPENSATION REPUBLIC ACT NO. 9520 all the qualifications and none of the
CHAPTER IV ARTICLE 46 disqualifications provided in the laws or
bylaws shall be eligible for election as
In the absence of any provisions in the bylaws director.
fixing their compensation, the directors shall
not receive any compensation except for
reasonable per diems: Provided however, That (2) The cooperative may, by resolution of its
the directors and officers shall not be entitled board of directors, admit as directors, or
to any per diem when, in the preceding committee member one appointed by any
calendar year, the cooperative reported a net financing institution from which the
loss or had a dividend rate less than the cooperative received financial assistance solely
official inflation rate for the same year. to provide technical knowledge not available
Any compensation other than per diems may within its membership. Such director or
be granted to directors by a majority vote of committee member not be a member of the
the members with voting rights at a regular or cooperative and shall have no powers, rights,
special general assembly meeting specifically nor responsibilities except to provided
called for the purpose: Provided, That no technical assistance as required by the
additional compensation other than per diems cooperative.
shall be paid during the first year of existence (3) The members of the board of directors
of any cooperative. shall not hold any other position directly
QUORUM REPUBLIC ACT NO. 9520 CHAPTER involved in the day to day operation and
IV ARTICLE 35 management of the cooperative.

A quorum shall consist of at least twenty-five (4) Any person engaged in a business similar
per centum (25%) of all the members entitled to that of the cooperative or who in any way
to vote. In the case of cooperative banks, the has a conflict of interest with it, is disqualified
quorum shall be as provided in Article 99 of from election as a director of said cooperative.
this Code. In the case of electric cooperatives
registered under this Code, a quorum, unless
otherwise provided in the bylaws, shall consist
OFFICERS OF THE COOPERATIVE prepared at least one week before a meeting
and that all reports are in place Ensuring the
The board of directors shall elect from among necessary actions and decisions of the BOD
themselves the chairperson and vice-chair are transmitted to the management for
person and elect or appoint other officers of compliance and implementations.
the cooperative from outside of the board.
Secretary
No two(2) or more persons with relationships
up to the third degree of consanguinity or • Meeting Minutes
affinity nor shall any person engaged in
business similar to that of the cooperative • Record Keeping
shall serve as an appointive office. • Notices and Communication
WHO ARE THE OFFICERS OF COOPERATIVES • Correspondence
Board of Directors- The board of directors • Membership Records
shall elect from among themselves the chair
person and vice-chair person, and appoint • Legal Compliance
other officers of the co-op from outside the
board in accordance with the provisions of the • Board Resolutions
by-laws • Report to Authorities
• CHAIRPERSON • Assisting the Chairperson
• VICE CHAIRPERSON • Meeting Coordination
General Manager- Oversee the overall day-to- Treasurer- Monitoring and review the financial
day business operations of the co op management of the cooperative, subject to
providing general direction, supervision, such limitations and control as maybe
management and administrative control over prescribed by the BOD Ensuring all the cash
all the operating departments subject to such collections are deposited in accordance with
limitations as maybe set forth by the BOD or the policies set by the BOD
the GA.
Treasurer
General Manager
• Financial Management
• Operational Oversight
• Budgeting
• Implementation of Policies
• Financial Reports
• Staff Management
• Bank Transactions
• Financial Management
• Financial Controls
• Member Relations
• Audit Support
• Reporting to the Board
• Compliance
• Strategic Planning
• Investments
• External Relations
• Financial Planning
Secretary- Coordinate with the chairperson
and the GM to make sure that agendas are
Members of Committees created by GA Directors, committees, and leadership roles,
ensuring fair, transparent, and democratic
• Audit Committees elections.
• Election Committees 3. Mediation and Conciliation committee -
• Membership Committee appointed A cooperative's Mediation is a
neutral group responsible for resolving
• Educational and Training Committee disputes among members or between the
cooperative itself.
Other positions as maybe provided in the
by laws 4. Ethics committee - appointed by BOD The
Ethics Committee, is a specialized body
• Internal Auditor responsible for promoting ethical behavior,
• Legal Counsel integrity, and compliance with ethical
standards within a cooperative.
• Ethics Officer
5. Education committee - appointed by BOD
• Committee Chairs The Education Committee is a specialized
group responsible for overseeing educational
COMMITTEES OF COOPERATIVES REPUBLIC initiatives, training programs, and knowledge-
ACT NO. 9520 CHAPTER IV ARTICLE 43 sharing activities within a cooperative.
A cooperative committee is a specialized 6. Other committees as may be necessary for
group within a cooperative organization the conduct of the affairs of the cooperative
responsible for managing specific functions, (ex. Credit committee) Additional committees
distributing workload, promoting member 1. Membership Committee
involvement, and ensuring efficient
cooperative management. 2. Investment Committee

Committees typically consist of members with 3. Marketing Committee

specific expertise or interest in their area of
focus, such as finance or marketing, to ensure 4. Technology Committee
effective decision making. 5. Sustainability Committee
Committees divide cooperative tasks, allowing
CHAPTER 6 RESPONSIBILITIES,
focused attention and expertise, and
promoting active member participation in RIGHTS AND PRIVILAGES
decision-making for cooperative success.
ADDRESS - Every cooperative shall have an
Committees of the cooperative play a crucial official postal address to which all notices and
role in governance, operations, and member communications shall be sent. Such address
engagement within the organization. and every change thereof shall be registered
with the Authority.
1. Audit committee elected by GA An Audit
Committee is a specialized group responsible BOOKS TO BE KEPT ONE (1) Every cooperative
for overseeing financial reporting, internal shall have the following documents ready and
controls, and risk management practices. accessible to its members and representatives
of the Authority for inspection during
2. Election committee - elected by GA An reasonable office hours at its official address:
Election Committee oversees the election ―
process for positions such as Board of
(a) A copy of this Code and all other laws pertaining to its financial and nonfinancial
pertaining to cooperatives; ― operations which are already more than five
(5) years old except those relating to
(b) A copy of the regulations of the Authority; transactions which are the subject of civil,
―(c) A copy of the articles of cooperation and criminal and administrative proceedings. An
bylaws of the cooperative; inventory of the audited documents, records
and books to be disposed of shall be drawn up
―(d) A register of members; and certified to by the board secretary and the
chairman of the audit committee and
―(e) The books of the minutes of the meetings presented to the board of directors which may
of the general assembly, board of directors thereupon approve the disposition of said
and committee; records.
―(f) Share books, where applicable; REPORTS (1) Every cooperative shall draw up
―(g) Financial statement; and regular reports of its program of activities,
including those in pursuance of their socio-
―(h) Such other documents as may be civic undertakings, showing their progress and
prescribed by laws or the bylaws. achievements at the end of every fiscal year.
The reports shall be made accessible to its
―(2) The accountant or the bookkeeper of the members, and copies thereof shall be
cooperative shall be responsible for the furnished to all its members or record. These
maintenance of the cooperative in accordance reports shall be filed with the Authority within
with generally accepted accounting practices. one hundred twenty (120) days from the end
He shall also be responsible for the production of the calendar year. The form and contents of
of the same at the time of audit or inspection. the reports shall be as prescribed by the rules
―The audit committee shall be responsible for of the Authority. Failure to file the required
the continuous and periodic review of the reports shall subject the accountable officer/s
books and records of account to ensure that to fines and penalties as may be prescribed by
these are in accordance with generally the Authority, and shall be a ground for the
accepted accounting practices. He shall also be revocation of authority of the cooperative to
responsible for the production of the same at operate as such. The fiscal year of every
the time of audit or inspection. cooperative shall be the calendar year except
―(3) Each cooperative shall maintain records of as may be otherwise provided in the bylaws.
accounts such that the true and correct ―(2) If a cooperative fails to make, publish and
condition and the results of the operation of file the reports required herein, or fails to
the cooperative may be ascertained therefrom include therein any matter required by the
at any time. The financial statements, audited Code, the Authority shall, within fifteen (15)
according to generally accepted auditing days from the expiration of the prescribed
standards, principles and practices, shall be period, send such cooperative a written notice,
published annually and shall be kept posted in stating its non-compliance and the
a conspicuous place in the principal office of commensurate fines and penalties that will be
the cooperative. imposed until such time that the cooperative
(4) Subject to the pertinent provisions of the has complied with the requirements.
National Internal Revenue Code and other
laws, a cooperative may dispose by way of
burning or other method of complete
destruction any document, record or book
REGISTER OF MEMBER AS PRIMA FACIE ―Upon the filing of the application for
EVIDENCE registration of a cooperative, the bonds of
the accountable officers shall be required
Any register or list of members shares kept by by the Authority. Such bonds shall be
any registered cooperative shall be prima facie renewed manually and the Authority shall
evidence of the following particulars entered accordingly be informed of such renewal.
therein:
PREFERENCE OF CLAIMS
―(1) The date on which the name of any person
was entered in such register or list of member; (1) Notwithstanding the provisions of
and existing laws, rules and regulations to the
contrary, but subject to the prior claim of
―(2) The date on which any such person ceased the Authority, any debt due to the
to be a member. cooperative from the member shall
PROBATIVE VALUE OF CERTIFIED COPIES OF constitute a first lien upon any raw
ENTRIES materials, production, inputs, and products
produced; or any land, building, facilities,
(1) A copy of any entry in any book, equipment, goods or services acquired and
register or list regularly kept in the held, by such member through the
course of business in the possession of proceeds of the loan or credit granted by
a cooperative shall, if duly certified in the cooperative to him for as long as the
accordance with the rules of evidence, same is not fully paid.
be admissible as evidence of the
existence of entry and prima facie (2) No property or interest on property
evidence of the matters and which is subject to a lien under paragraph
transactions therein recorded. (1) shall be sold nor conveyed to third
(2) ―(2) No person or a cooperative is parties without the prior permission of the
possession of the books of such cooperative. The lien upon the property or
cooperative shall, in any legal interest shall continue to exit even after
proceedings to which the cooperative is the sale or conveyance thereof until such
not a party, be compelled to produce lien has been duly extinguished. ―(3)
any of the books of the cooperative, the Notwithstanding the provisions of any law
contents of which can be proved and to the contrary, any sale or conveyance
the matters, transactions and accounts made in contravention of paragraph (2)
therein recorded, unless by order of a hereof shall be void.
competent court. INSTRUMENT FOR SALARY OR WAGES
BONDING OF ACCOUNTABLE OFFICER DEDUCTION
Every director, officer, and employee (1) A member of a cooperative may,
handling funds, securities or property on notwithstanding the provisions of
behalf of any cooperative shall be covered existing laws to the contrary, execute an
by a surety bond to be issued for a duly instrument in favor of the cooperative
registered insurance or bonding company authorizing his employer to deduct
for the faithful performance of their from his/her salary or wages,
respective duties and obligations. The commutation of leave credits and any
board of directors shall determine the other monetary benefits payable to him
adequacy of such bonds. by the employer and remit such amount
as maybe specified in satisfaction of a
 debt or other demand due from the TAX AND OTHER EXEMPTION
member to the cooperative. Cooperatives transacting business with
both members and non members shall not
―(2) Upon the execution of such instrument be subjected to tax on their transactions
and as may be required by the cooperative with members. In relation to this, the
contained in a written request, the transactions of members with the
employer shall make the deduction in cooperative shall not be subject to any
accordance with the agreement and taxes and fees, including not limited to
deduction in accordance with the final taxes on members’ deposits and
agreement and remit forthwith the amount documentary tax. Notwithstanding the
so deducted within ten (10) days after the provisions of any law or regulation to the
end of the payroll month to the contrary, such cooperatives dealing with
cooperative. The employer shall make the nonmembers shall enjoy the following tax
deduction for as long as such debt or other exemptions
demand remains unpaid by the employee.
―(1) Cooperatives with accumulated
―(3) The term ―employer‖ as used in this reserves and undivided net savings of not
article shall include all private firms and more than Ten million pesos
the national and local governments and (P10,000,000.00) shall be exempt from all
government-owned or controlled national, city, provincial, municipal or
corporations who have under their barangay taxes of whatever name and
employer a member of a cooperative and nature. Such cooperatives shall be exempt
have agreed to carry out the terms of the from customs duties, advance sales or
instrument mentioned in paragraphs (1) compensating taxes on their importation of
and (2) of this article. machineries, equipment and spare parts
―(4) The provisions of this article shall used by them and which are not available
apply to all similar agreements referred to locally a certified by the department of
in paragraph (1) and were enforced prior to trade and industry (DTI). All tax free
the approval of this Code. importations shall not be sold nor the
beneficial ownership thereof be transferred
PRIMARY LIEN to any person until after five (5) years,
otherwise, the cooperative and the
Notwithstanding the provision of any law transferee or assignee shall be solidarily
with the contrary, a cooperative shall have liable to pay twice the amount of the
primary lien upon the capital, deposits or imposed tax and / or duties.
interest of a member for any debt due to
the cooperative from such a member. ―(2) Cooperatives with accumulated
reserves and undivided net savings of more
TAX TREATMENT OF COOPERATIVE than Ten million pesos (P10,000,000.00)
Duly registered cooperatives under this shall fee the following taxes at the full rate:
Code which do not transact any business ―(a) Income Tax – On the amount allocated
with non-members or the general public for interest on capitals: Provided, That the
shall not be subject to any taxes and fees same tax is not consequently imposed on
imposed under the internal revenue laws interest individually received by members:
and other tax laws. Cooperatives not falling Provided, further, That cooperatives
under this article shall be governed by the regardless of classification, are exempt
succeeding section. income tax from the date of registration
with the Authority;
 ―(b) Value-Added Tax On transactions with cooperative by duly authorized internal
non-members: Provided, however, That revenue officers for internal revenue tax
cooperatives duly registered with the purposes only, after previous authorization
Authority; are exempt from the payment of by the Authority
value added tax; subject to Sec. 109, sub-
sections L, M and N of Republic Act No. ―(4) In areas where there are no available
9337, the National Internal Revenue Code, notaries public, the judge, exercising his ex
as amended: Provided, That the exempt officio capacity as notary public, shall
transaction under Sec. 109 (L) shall include render service, free of charge, to any
sales made by cooperatives duly registered person or group of persons requiring the
with the Authority organized and operated administration of oath or the
by its member to undertake the production acknowledgment of articles of cooperation
and processing of raw materials or of and instruments of loan from cooperatives
goods produced by its members into not exceeding Five Hundred Thousand
finished or process products for sale by Pesos (P500,000.00).
the cooperative to its members and non- ―(5) Any register of deeds shall accept for
members: Provided, further, That any registration, free of charge, any instrument
processed product or its derivative arising relative to a loan made under this Code
from the raw materials produced by its which does not exceed Two Hundred Fifty
members, sold in then name and for the Thousand Pesos (P250,000.00) or the deeds
account of the cooperative: Provided , of title of any property acquired by the
finally, That at least twenty five per cooperative or any paper or document
centum (25%) of the net income of the drawn in connection with any action
cooperatives is returned to the members in brought by the cooperative or with any
the form of interest and/or patronage court judgment rendered in its favor or any
refunds; instrument relative to a bond of any
―(c) All other taxes unless otherwise accountable officer of a cooperative for the
provided herein; and ― faithful performance of his duties and
obligations.
(d) Donations to charitable, research and
educational institutions and reinvestment ―(6) Cooperatives shall be exempt from the
to socioeconomic projects within the area payment of all court and sheriff’s fees
of operation of the cooperative may be tax payable to the Philippine Government for
deductible. and in connection with all actions brought
under this Code, or where such actions is
―(3) All cooperatives, regardless of the brought by the Authority before the court,
amount of accumulated reserves and to enforce the payment of obligations
undivided net savings shall be exempt contracted in favor of the cooperative.
from payment of local taxes and taxes on
transactions with banks and insurance ―(7) All cooperatives shall be exempt from
companies: Provided, That all sales or putting up a bond for bringing an appeal
services rendered for non-members shall against the decision of an inferior court or
be subject to the applicable percentage for seeking to set aside any third party
taxes sales made by producers, marketing claim: Provided, That a certification of the
or service cooperatives: Provided further, Authority showing that the net assets of
That nothing in this article shall preclude the cooperative are in excess of the amount
the examination of the books of accounts of the bond required by the court in similar
or other accounting records of the
cases shall be accepted by the court as a ―(5) Preferential treatment in the allocation
sufficient bond. of fertilizers, including seeds and other
agricultural inputs and implements, and in
―(8) Any security issued by cooperatives rice distribution shall be granted to
shall be exempt from the provisions of the cooperatives by the appropriate
Securities Act provided such security shall government agencies;
not be speculative.
―(6) Preferential and equitable treatment in
PRIVILEGES OF COOPERATIVE the allocation or control of bottomries of
Cooperatives registered under this Code, commercial shipping vessels in connection
notwithstanding the provisions of any law with the shipment of goods and products
to the contrary, be also accorded the of cooperatives;
following privileges:
―(7) Cooperatives and their federations,
―(1) Cooperatives shall enjoy the privilege such as farm and fishery producers and
of depositing their sealed cash boxes or suppliers, market vendors and such other
containers, documents or any valuable cooperatives, which have for their primary
papers in the safes of the municipal or city purpose the production and/or the
treasurers and other government offices marketing of products from agriculture,
free of charge, and the custodian of such fisheries and small entrepreneurial
articles shall issue a receipt acknowledging industries and federations thereof, shall
the articles received duly witnessed by have preferential rights in the management
another person; of public markets and/or lease of public
―(2) Cooperatives organized among market facilities, stalls or spaces: Provided,
government employees, notwithstanding That these rights shall only be utilized
any law or regulation to the contrary, shall exclusively by cooperatives: Provided,
enjoy the free use of any available space in further, That no cooperative forming a
their agency, whether owned or rented by joint venture, partnership or any other
the Government; similar arrangement with a non-
cooperative entity can utilize these rights;
―(3) Cooperatives rendering special types of
services and facilities such as cold storage, ―(8) Cooperatives engaged in credit services
ice plant, electricity, transportation, and and/or federations shall be entitled to
similar services and facilities shall secure a loans credit lines, rediscounting of their
franchise therefore, and such cooperatives loan notes, and other eligible papers with
shall open their membership to all persons the Development Bank of the Philippines,
qualified in their areas of operation; the Land Bank of the Philippines and other
financial institutions except the Bangko
―(4) In areas where appropriate Sentral ng Pilipinas (BSP); ―The Philippine
cooperatives exist, the preferential right to Deposit Insurance Corporation (PDIC) and
supply government institutions and other government agencies, government-
agencies rice, corn and other grains, fish owned and controlled corporations and
and other marine products, meat, eggs, government financial institutions shall
milk, vegetables, tobacco and other provide technical assistance to registered
agricultural commodities produced by their national federations and unions of
members shall be granted to the cooperatives which have significant
cooperatives concerned; engagement in savings and credit
operations in order for these federations
and unions to establish and/or strengthen
their own autonomous cooperative deposit socialized housing projects. This financing
insurance systems; shall be in the form of blanket loans or
long-term wholesale loans to qualified
―(9) A public transport service cooperative cooperatives, without need for individual
may be entitled to financing support for processing. ―The Authority, in consultation
the acquisition and/or maintenance of land with the appropriate government agencies
and sea transport equipment, facilities and and concerned cooperative sector, shall
parts through the program of the issue rules and regulations on all matters
government financial institutions. It shall concerning housing cooperatives.
have the 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 shall be exempt from
prequalification bidding requirements
notwithstanding the provisions of Republic
Act No.9184, otherwise known as, the
Government Procurement Act;

―(11) Cooperative shall 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 shall have the 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 shall
create a special window for financing
housing projects undertaken by
cooperatives, with interest rates and terms
equal to, or better than those given for