Cooperative principles

Cooperative and Its PrinciplesReported by:

Gerry O. Gatawa

ART. 2. DECLARATION OF POLICYIt is 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.

Encourage the private sector to undertake the actual formation and organization of cooperatives and shall create an atmosphere that is conducive to the growth and development of these cooperatives.

ART. 3. GENERAL CONCEPTS

A Cooperative is an: Autonomous Duly registered associations of persons With common bond of interest Who have voluntary joined together to achieve

their social, economic, and cultural needs Making equitable contributions to the capital

required

ART. 3. GENERAL CONCEPTS

A Cooperative is an (Continued...): Patronizing their products and services Accepting a fair share of the risks and

benefits of the undertaking In accordance with generally accepted

cooperative principles

Registration; necessary• A cooperative must be registered with the CDA in the

region where it is located. The registration is one of the functions of the CDA. The

CDA may establish extension offices all over the country. Federation and unions must also be registered with the

CDA as well as their division, mergers, consolidations, dissolutions, liquidations, and the transfer of all or substantially all their assets and liabilities.

Reasonable fees and charges may be collected by the CDA for the registration of cooperatives.

ART. 4. COOPERATIVE PRINCIPLES

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Voluntary and open membership

• Cooperatives are voluntary organizations• open to all persons • able to use their services • willing to accept the responsibilities of

membership

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voluntary

Democratic Member Control

Cooperatives are : • democratic organizations. • controlled by their members• directors or officers are accountable to the membership. • members have equal voting rights

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democratic

Member economic participation

• Members contribute equitably to the capital of their cooperative. They shall receive limited compensation or limited interest, if any, on capital subscribed and

paid up as a condition of membership.

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Autonomy and independence

• cooperatives are autonomous, • self-help organizations

controlled by their members. • ensure democratic control of

their members • Maintain their cooperative

autonomy

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& independence

Education, training and information

Cooperatives shall provideeducation and training for their members, elected and appointed representatives, managers, and employees.

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Cooperation among cooperatives

Cooperatives serve their members most effectivelyand strengthen the cooperative movement by working together through local, national, regional and international structures.

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cooperation

Concern for community

Cooperatives work for the sustainable development of their communities through policies approved by their members.

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ART. 5. Definition of Terms Members

Includes a person either natural or juridical who adhering to the principles set forth in the Cooperative Code and in the Articles of Cooperative

Has been admitted by the cooperative as member

ART. 5. Definition of Terms (Continued…)

General Assembly

The full membership of the cooperative duly assembled for the purpose of exercising all the rights and performing all the obligations pertaining to cooperatives, as provided by the Cooperative Code, its Articles of Cooperation and Bylaws.

Provided that the cooperatives with numerous and dispersed membership, the general assembly may be composed of delegates elected by each sector, chapter or district of the cooperative in accordance with the rules and regulations of the Cooperative Development Authority

ART. 5. Definition of Terms (Continued…)

Board of Directors

The body entrusted with the management of the affairs of the cooperative under its Articles of Cooperation and Bylaws

ART. 5. Definition of Terms (Continued…)

Committee The body entrusted with specific functions and

responsibilities under the bylaws or resolution of the general assembly or the board of directors

ART. 5. Definition of Terms (Continued…)

Articles of Cooperation The articles of cooperation registered under the

Cooperative Code and includes a registered amendment.

ART. 5. Definition of Terms (Continued…)

Bylaws The registered bylaws registered under the Cooperative

Code and includes any amendment thereof..

ART. 5. Definition of Terms (Continued…)

Registration The operative act granting juridical personality to a

proposed cooperative and is evidenced by a certificate of registration.

ART. 5. Definition of Terms (Continued…)

Cooperative Development Authority The government agency in charge of the registration and

regulation of cooperatives as such hereinafter referred to as the Authority

ART. 5. Definition of Terms (Continued…)

Universally Accepted Principles The body of cooperative principles adhered to

worldwide by cooperatives

ART. 5. Definition of Terms (Continued…)

Representative Assembly The full membership of a body of representatives elected

by each of the sectors, chapter or district of the cooperative duly assembled for the purpose of exercising such powers lawfully delegated unto them by the general assembly in accordance with its laws

ART. 5. Definition of Terms (Continued…)

Officers of the Cooperative Include the members of the board of directors, members

of the different committee created by the general assembly, general manager or chief executive officer, secretary, treasurer and members holding other positions as may be provided by their by laws

ART. 5. Definition of Terms (Continued…)

Social Audit A procedure wherein the cooperative assesses its social

impact and ethical performance vis-à-vis its stated mission, vision, goals and code of social responsibility for cooperatives to be established by the Authority in consultation with the cooperative sector. It enables the cooperative to develop a process whereby it can account for its social performance and evaluate its impact in the community and be accountable for its decisions and actions to its regular members.

ART. 5. Definition of Terms (Continued…)

Performance Audit An audit on the efficiency and effectiveness of the

cooperative as a whole; its management and officers; and its various responsibility centers as basis for improving individual team or overall performance and for objectively informing general membership on such performance

ART. 5. Definition of Terms (Continued…)

A Single-Line or Single-Purpose Cooperative Include cooperative undertaking activities which are

related to its main line of business purpose.

ART. 5. Definition of Terms (Continued…)

Service Cooperatives Those which provide any type of service to its members,

including but not limited to, transport, information and communication, insurance, housing, electric, health services, education, banking, and savings and credit

ART. 5. Definition of Terms (Continued…)

Subsidiary Cooperative Refers to three or more primary cooperatives, doing the

same line of business, organized at the municipal, provincial, city, special metropolitan political subdivision, or economic zones created by law, registered with the Authority to undertake business activities in support of its member-cooperatives.

Thank you…

“Sa kooperatiba ay may liwanag ang buhay”