What is A Cooperative ?
|Objectives of a Cooperative|
The primary objective of every Cooperative is to provide goods and services to its members and thus enable them to attain increased income and savings, investments, productivity and purchasing power and promote among them equitable distribution of net surplus through maximum utilization of economies of scale, cost-sharing and risk-sharing without however, conducting the affairs of the cooperative for eleemosynary or charitable purposes.
|Objectives of a Cooperative|
Every Cooperative shall conduct its affairs in accordance with Filipino culture and experience and the universally accepted principles of cooperation such as:
|Types of Cooperatives|
|Credit Cooperative||promotes thrift and savings among its members and creates funds in order to grant loans for productive and provident purposes.|
|Consumer Cooperative||The primary purpose is to procure and distribute commodities to members and non-members.|
|Producers Cooperative||undertakes joint production whether agricultural or industrial.
|Marketing Cooperative||engages in the supply of production inputs to members, and markets their products;
|Service Cooperative||engages in medical and dental care, hospitalization, transportation, insurance, housing, labor, electric light and power, communication and other services|
|Multi-Purpose Cooperative||combines two (2) or more of the business activities of these different types of cooperatives.|
|What are the Categories of Cooperatives|
Cooperative shall be categorized according to membership and territorial consideration as follows:
Those cooperatives the member of which are cooperatives shall be known as federation or unions, as the case may be; and in terms of territory, cooperative shall be categorized according to areas of operations which may or may not coincide with the political subdivisions of the country.
|What are the kinds of Membership in a Cooperative|
|A cooperative has two kinds of members: regular members and associate members.
|Cooperatives follow certain operational guidelines. These are practical response to local needs. Some are adopted from standard international
practices, others are local innovations. But all these are aimed at perfecting cooperative operations. They are:
|What are the purposes in Organizing a Cooperative|
|1. To encourage thrift and savings mobilization among the members;
2. To generate funds and extend credit to the members for productive and provident purposes;
3. To encourage among members systematic production and marketing;
4. To provide goods and services and other requirements to the members;
5. To develop expertise and skills among its members;
6. To acquire lands and provide housing benefits for the members;
7. To insure against losses of the members;
8. To promote and advance the economic, social and educational state of the members;
9. To establish, own, lease or operate cooperative banks, cooperative wholesale and retail
complexes, insurance and agricultural/industrial processing enterprises, and public markets;
10. To coordinate and facilitate the activities of cooperatives; and
11. To undertake any and all other activities for the effective and efficient implementation of the
provision of R.A.6939.
|How do you organize a Primary Cooperative?|
|Organizing a cooperative can be complex and simple. It requires an understanding of the basic needs of the prospective cooperative members. It
demands patience from the organizer who must make the cooperative’s long-term goals and objectives, and its visions a real part of the members’ lives.
But it can be too easy because the Cooperative Code of the Philippines (RA 6938) has devised very clear-cut steps for the cooperative organizer and members. The following are the basic information that the prospective members should understand before organizing a cooperative.
What are the general steps in forming a Cooperative ?
There are six steps suggested in setting up a cooperative.
FIRST. Get organized. You must have at least 15 members to do that.
SECOND. Prepare a general
statement called an economic survey. This statement will help
THIRD. Draft the
cooperative’s by-laws. The by-laws contain the rules and regulations
FOURTH. Draft the articles of
cooperation. Mandatory contents of the articles of
bond of your accountable officer(s), normally the treasurer, or the
your cooperative with the Cooperative Development Authority (CDA).
In every step, you may consult CDA. The CDA emphasizes education as a key to the success of cooperatives.
|How to Register a Primary Cooperative
Once you have organized your cooperative, your work does not end there. The cooperative now needs a legal personality so that it can do all the acts that a cooperative is supposed to perform. With a legal personality, the cooperative can borrow money, sell its goods and services, deliver goods and enter into all sorts of business transactions. So that your cooperative can do all these, you must register your cooperative. Here is how you do it.
|Where to Register your Cooperative
The Cooperative Development Authority (CDA) is the only government agency mandated to register all types of cooperatives. Its main office is located at 5th and 6th Floors, Ben-Lor Building, 1184 Quezon Avenue, Quezon City. To facilitate the flow of its services, extension offices have been set up. These are located in (a) Dagupan City; (b) Tuguegarao, Cagayan; (c) Baguio City; (d) San Fernando, Pampanga; (e) NCR-Quezon City; (f) Calamba, Laguna; (g) Naga City; (h) Iloilo City; (I) Cebu City’ (k) Kidapawan; (l) Tacloban City; (m) Davao City; (n) Zamboanga City; and (o) Butuan City.
|What are the general requirements for Registering a Cooperative
You will need four copies each of the Economic Survey, By-laws and Articles of Cooperation.
The Articles of Cooperation should be duly notarized and accompanied by the following:
It must be noted that no member may own more than 20% of the subscribed share capital; and each share must not be less than PhP 1.00.00
|CDA Memorandum Circular No. 02-03, Series of 2002 thereby amending Memorandum Circular No. 92-004, Series of 1992 provides the schedule of fees as follows: