Professional Documents
Culture Documents
1. What is a cooperative?
The Cooperative Development Authority (CDA) which was created by Republic Act
No. 6939 is the government agency that has the obligation to promote and help
develop cooperatives.
In law, the registration of the cooperative is the operative act that grants juridical
personality to a proposed cooperative and is evidenced by a certificate of registration
[Art. 5, par. 7].
6. What remedy has an applicant for registration if the application is denied by the
CDA?
The applicant may appeal to the Office of the President within 90 days from receipt of
the notice of denial, provided that failure on the part of the Office of the President to
act on the appeal within 90 days from the filling thereof shall mean the approval of
the application [Art. 16].
Any natural or juridical person who adheres to the principles governing cooperatives
and to the articles of cooperation of particular cooperative and has been submitted to
its membership is a member thereof [Art. 5 (1)].
Who qualifies for membership of a cooperative?
Any natural person, who is a citizen of the Philippines and is of legal age or a juridical
person like a cooperative or non-profit organization is qualified to be a member of
cooperative, provided that the person meets the qualifications prescribed in the bylaws
of the cooperative [Art. 26].
10. When does an applicant for membership in a cooperative acquire his rights as a
member?
The member may withdraw his membership from the cooperative by giving a 60-day
notice to the board of directors [Art. 31, par. 1]. Although the provision does not state
that the notice should be written.
A general assembly of cooperative members is the meeting of the full membership for
the purpose of exercising the rights and discharging the obligations of the cooperative
as provided by the Code, its articles of cooperation and bylaws [Art. 5, par. 2].
The board is composed of not less than 5 and not more than 15 members [Art. 38].
Not less than 15 persons are needed to organize and register a cooperative. They must
also have a common bond of interest [Art. 10].
18. What qualifications are required of the persons organizing and registering
a cooperative?
They must be Filipino citizens and residents of or working in the area where the
cooperative will operate [Art. 10]. They must all be of legal age. However, minors
may organize laboratory cooperatives [see Nos. 16-18 & 66, above].
A cooperative has a basic term of 50 years from the date of registration. The term may
be shortened by dissolving it [Art. 13], for example, by action of the general
assembly.
The term may be extended - for another 50 years provided that no extension may be
made earlier than 5 years prior to the original or subsequent expiry date of the term or
unless there are justifiable reasons for an earlier extension as may be determined by
the CDA [Art. 13].
22. What books, records of account and documents are required to be kept by a
cooperative?
The failure of cooperative to prepare and submit an annual report is a ground for the
revocation of its certificate of registration or its authority to operate as such [Art. 54,
par. 1].
The share capital of a cooperative is the money paid or required to be paid for the
conducts of its operations [Art. 77].
27, What is the extent of the right of members to examine cooperative records?
Members have the right to examine and copy cooperative records within reasonable
office hours on business days. Only the cost of reproduction of the documents they
copy shall be charged to them [Art. 84, par. 1; 216, 217, 346, 347].
-To deposit sealed cash boxes or containers, documents or any valuable papers in the
public safes free of charge;
-Cooperatives organized among government employees shall enjoy the free use of any
available space in their agency;
-Preferential right to supply government institutions and agencies rice and other
grains, fish and other marine products, and other agricultural commodities produced
by their members,
-Preferential treatment in the allocation of fertilizers and in rice distribution;
-Cooperatives and their federations shall have preferential rights in management of
public market and/ or lease of public market facilities, stall or spaces; and
-Credit cooperatives and/or federation shall be entitled to loans, credit lines
rediscounting of their loan notes, and other illegible papers with the Development
Bank of the Philippines (DBP), the Philippines National Bank (PNB), and other
financial institutions except the Central Bank of the Philippines (CB).
Yes.
CDA Memorandum Circular No. 2004-05, Series of 2004 thereby amending MC No.
02-03, Series of 2002 provides the schedule of fees as follows:
The initial registration fee to be imposed shall be 1/10 of 1% of the authorized share
capital or the basic fee below whichever is higher.