FUNDAMENTALS OF

COOPERATIVES
Cooperative Development
Authority
PRETEST
True or False

1. A Cooperative is CAPITALIZED,
OWNED, OPERATED and
PATRONIZED by its MEMBERS
2. There are six (6)
COOPERATIVE PRINCIPLES

3. The business activities of Credit

Cooperatives are savings and
deposit and lending/microfinancing
4. A Multipurpose Cooperative is a
combination of two (2) or more business
activities of different types of
cooperatives.

5. A Primary Cooperative is
composed of juridical persons
6. There are four common bond of
membership, and these are: RESIDENTIAL,
ASSOCIATIONAL, INSTITUTIONAL AND
OCCUPATIONAL

7. Pre-Registration Seminar (PRS) is not

mandatory

8. Paid-up capital should not be less

than P25,000
9. Articles of Cooperation is a contract
between the member and the cooperative
in which the member acknowledged and
signed

10.By Laws contains general rules and

guidelines enacted by its members to provide
a framework for its operations and
management
PRETEST
True or False

1. A Cooperative is CAPITALIZED,
OWNED, OPERATED and
PATRONIZED by its MEMBERS
TRUE
2. There are six (6) COOPERATIVE
PRINCIPLES
FALSE

3. The business activities of Credit

Cooperatives are savings and
deposit and
lending/microfinancing
TRUE
 4. A Multipurpose Cooperative is a
combination of two (2) or more business
activities of different types of
cooperatives.
TRUE
5. A Primary Cooperative is composed of juridical
persons
FALSE
 6. There are four common bond of
membership, and these are: RESIDENTIAL,
ASSOCIATIONAL, INSTITUTIONAL AND
OCCUPATIONAL
TRUE
7. Pre-Registration Seminar (PRS) is not mandatory
FALSE

8. Paid-up capital should not be less

than P25,000
FALSE
 9. Articles of Cooperation is a contract
between the member and the cooperative
in which the member acknowledged and
signed
TRUE

10.By Laws contains general rules and

guidelines enacted by its members to provide
a framework for its operations and
management
TRUE
The Cooperative Development Authority
(CDA) is the sole government agency
mandated to register all types of
cooperatives.
Its main office is located at 827 Aurora Blvd.,
Immaculate Conception, Quezon City. For
registration of primary cooperatives, this
power has been delegated to the Regional
or Extension Offices.
Region Office:
92 Valencia St.
Leganes, Iloilo
The Agency’s
Mandates,
Vision,
Mission,
Powers and
Functions
 MANDATE
Promote the viability and growth of
cooperatives as instruments of equity,
social justice and economic development in
fulfillment of the mandate in section 15,
Article XII of the Constitution.
VISION
By 2025, CDA is ASEAN’s
benchmark of EXCELLENCE in
Cooperative Development.
MISSION
To provide developmental, regulatory
and quasi-judicial services to
cooperatives thereby giving access to
socio-economic opportunities to their
members.
Empowering Cooperatives, Empowering
the Filipino People!
History of Cooperatives
Throughout the World
and the Philippines
 What is a Cooperative?
Art. 3. RA 9520 Cooperative Code of 2008

 “ A Cooperative is:
❖ An autonomous duly registered association of persons
❖ with common bond of interest
❖ who have voluntarily joined together to achieve their social,
economic, and cultural needs and aspirations
❖ by making equitable distributions to the capital required
❖ patronizing their products and services and
❖ accepting a fair share of the risks and benefits of the
undertaking in accordance with universally accepted
cooperative principles.”
 OPERATED

CAPITALIZED OWNED

PATRONIZED
A cooperative is an enterprise or organization that is capitalized,
owned by and operated for the benefit of those (members) using
its services.
Article 4 R.A. 9520
THE COOPERATIVE
PRINCIPLES
Cooperative Principles……
Voluntary and Open Membership
Cooperatives are voluntary organizations, open to all
persons able to use their services and willing to accept
the responsibilities of membership, without:
racial cultural
social political

gender religious

discrimination
Cooperative Principles……
Democratic Member Control

Cooperatives are :
• democratic organizations controlled by
their members
• directors or officers are accountable to
the members
• members have equal voting rights
Cooperative Principles……
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.
Cooperative Principles……
Autonomy and Independence

Cooperatives are AUTONOMOUS, SELF-HELP

ORGANIZATIONS controlled by their members. If
they enter into agreements with other
organizations, they shall do so on terms that ensure
democratic control of their members and maintain
their cooperative autonomy.
Cooperative Principles……

Education, Training and Information

Cooperatives shall provide

education and training for
their members, elected and
appointed representatives,
managers, and employees.
Cooperative Principles……
Cooperation Among Cooperatives

Cooperatives serve their members most effectively

and strengthen the cooperative movement by working
together through local, national, regional and
international structures.
Cooperative Principles……

Concern for Community

Cooperatives work for the sustainable
development of their communities through
policies approved by their members.
Organization (Article 10)
❑ Pre-Registration Seminar (PRS) is now
mandatory;
❑ Paid-up capital should not be less than
P15,000;
❑ It is encouraged to register first as
single-purpose cooperative;
❑ May apply as multi-purpose coop (MPC)
only after 2 years and when the
requirements for MPC are met;
❑ Must identify a reasonable and realistic
capital build-up program
Types
of

30
 CREDIT
Engages in:
Encouraging thrift and
savings
Extending
Credit/Loan/Microfinancing
 CONSUMERS
Engages in: Procurement and distribution of commodities:
retail

wholesale

restaurant/canteen operation water refilling and etc.)

 PRODUCERS

 Manufacturing/Processing of raw
materials into finished or processed
products and selling these.
MARKETING
Engages in the
supply of
production inputs to
members and
market their
products.
 AGRARIAN
REFORM
Engages in:
Credit,Production, Processing,
Storage and Transport
Marketing of farm products for
Agrarian Reform Beneficiaries
and their immediate families
 ADVOCACY
Engages in: Promoting and advocating
cooperativism among its members and
the public
 DAIRY

Engages in:
Production of fresh milk
Processing of milk to dairy products
including, milk variants and cheese for
business and human consumption
FISHERMEN

Engages in:
Processing and marketing
of Aquatic Products of the
members
Seaweeds harvesting,
processing and marketing
WORKERS
one organized by workers,
including the self-
employed, who are at
same time the members
and owners of the
enterprise. Its principal
purpose is to provide
employment and business
opportunities to its
members and manage it
in accordance with
cooperative principles
LABOR SERVICE

Engaged exclusively in
job-contracting and
sub-contracting
services to third party
 MULTIPURPOSE
Combination of two (2) or more
business activities of these
different types of cooperatives.
INSURANCE
Engaging in the
business of
insuring life and
property of
Cooperatives and
their members
HEALTH SERVICE

organized for the primary

purpose of providing
medical, dental and other
health services
WATER SERVICE
Engages in:
• Operation and Management
of Water Supply System
• Distribution of Potable Water
Engages in:
ELECTRIC
The distribution and supply of
electricity within its franchise
area;
Power generation utilizing new
and renewable energy sources
Operation and acquisition of sub-
transmission of electricity;
 TRANSPORT

Engages in:
• Provide public transport services
• Engage in allied services or businesses such as:
a. Importation, distribution and marketing of
petroleum products
b. Operation of gasoline stations and transportation
service centers
c. Importation, distribution and marketing of spare
parts and supplies
d. Marketing of vehicle/drivers insurance policies.
HOUSING
 Providing affordable and
decent housing to its
members
 Procurement and
distribution of housing
materials
 Acquisition of land,
construction of houses or
buildings, site
development and/or
property management of
housing projects
AGRICULTURE
Engages in:
Raising animals or culturing
plants
Facilitating
the procurement
of farm inputs/implements
for the members
Processing and marketing
of the members
products/produce
Storing
and transporting of
members’ products/produce.
Providing credit facility
 COOPERATIVE BANK

organized for the primary purpose of providing

a wide range of financial services to
cooperatives and their members;
 EDUCATION
Engages in:
1. School Operations
2. Training Center
3. Review Center
FINANCIAL SERVICE

is one organized for the primary purpose

of engaging in savings and credit
services and other financial services
 SMALL SCALE MINING
Engages in:
Extracting and
removing of minerals
or ore-bearing
materials from the
ground.
Common Bond of Membership
The Bond of
membership shall refer
to the condition where
the members associate
themselves to attain
their common goals
and objectives
 RESIDENTIAL
-members are
residing or working
within the area of
operation
 ASSOCIATIONAL
members come from a registered
and/or recognized association,
group, club, fraternity, and other
similar aggrupation.
 OCCUPATIONAL
members come from same or allied
profession or actual occupation.
 INSTITUTIONAL

members consist of employees,

workers and/or officers of a particular
institution.
Categories of Cooperatives
 Primary Cooperatives
Members are natural persons only.
 Secondary Cooperatives

Members are juridical persons such as

PRIMARY COOPERATIVES
It is categorized into:
❖Union

❖Federation
 Tertiary Cooperatives
➢Members are also juridical persons, but
membership is SECONDARY
COOPERATIVES

➢It is also categorized into:

❖Union
❖Federation
Union – is the one whose members are
primary and/or secondary cooperatives to
better represent the interest and welfare of
the member cooperatives at the city,
provincial, regional, and national level.
Federation – is the one whose members are
primary and/or secondary cooperatives
engaged in a single line or multi-purpose
business.
 Nature and
Characteristics of
Cooperatives

63
 Nature and Characteristics of Cooperatives

PARTICULARS ORDINARY CORPORATIONS PARTNERSHIP COOPERATIVE

LEGAL BASIS OF ORGANIZATION CORPORATION LAW PARTNERSHIP LAW RA 9520 AND RA 11364

PRIMARY PURPOSE OR MOTIVATION TO MAKE PROFIT TO MAKE PROFIT SERVICE ABOVE PROFIT

MEMBERS ACCEPT THE

RESPONSIBILITIES OF
BASIC REQUISITE FOR CAPACITY TO BUY SHARES CAPACITY TO INVEST MEMBERSHIP AND MAKE USE OF
MEMBERSHIP/OWNERSHIP OF STOCKS OR RENDER SERVICE THE SERVICES
GENERALLY, NON-
CUSTOMER GENERALLY, NON-MEMBERS MEMBERS MEMBERS-CUSTOMERS
EQUAL VOTING
BASIS OF VOTING SHARES OF COMMON STOCK RIGHTS ONE MEMBER, ONE VOTE
BODS AND HIRED SHARED OR MEMBERS, BOARD OF
COMPONENTS OF MANAGEMENT MANAGEMENT APPOINTED DIRECTORS, MANAGEMENT

PRINCIPLES GOVERNING BUSINESS MANAGEMENT PARTNERSHIP COOPERATIVE BUSINESS AND

OPERATIONS PRINCIPLES PRINCIPLES MANAGEMENT PRINCIPLES
 Nature and Characteristics of Cooperatives

RATE OF INTEREST OF SHARE LIMITED AND CONFORMS WITH

CAPITAL NO LIMIT NO LIMIT GOVERNMENT REGULATIONS

PRO-RATED TO THE
BASIS OF DISTRIBUTION OF CAPITAL SHARE CAPITAL AND
SAVINGS/PROFIT SHARE OF STOCK CONTRIBUTION PATRONAGE

CONTINUOUS EDUCATION
EDUCATIONAL PROGRAM PROGRAM

TAX EXEMPT
65 NET SAVING NOT
TAX TREATMENT SUBJECT TO TAX SUBJECT TO TAX MORE THAN P10,000,000.00
 Nature and Characteristics of Cooperatives
SERVICE ORIENTED

Cooperatives are
organized to
serve their
members by
providing goods
and services at
reasonable cost.
 Nature and Characteristics of Cooperatives
COMMUNITY ORIENTED

Cooperatives work for the

welfare of their members
by integrating themselves
into the life of the
community in particular
and the nation in general.
Nature and Characteristics of Cooperatives

PEOPLE ORIENTED
Cooperatives are
the mechanisms
of change for
total human
development
 Nature and Characteristics of Cooperatives

OWNED, MANAGED and PATRONIZED by MEMBERS

Cooperatives are member-owned, member-

controlled and member-used. It is very important
that members have full authority to manage and
control their cooperative.
 Nature and Characteristics of Cooperatives

BUSINESS ENTERPRISES
any profit or nonprofit enterprise or organization or
other form of organization engaged in or carrying on any
business activity within this state
Nature and Characteristics of Cooperatives

DEVELOP BEST THROUGH SELF-HELP

AND MUTUAL RESPECT

Self Help- the use of one's own efforts and

resources to achieve things without relying on
others.
Nature and Characteristics of Cooperatives

SERVE BEST WHEN THEY ANSWER THE

REAL AND FELT NEEDS OF THE
MEMBERS

Before any cooperative is

organized, the real needs of the
members are identified and
recognized. The assisting
agency or agencies should
make the real need be felt by
the members.
Nature and Characteristics of Cooperatives

DEVELOP BEST FROM BOTTOM TO TOP

.
Being mass-based organizations, they
develop best from the bottom to top.
Organizationally, their development
should be from the primary level to the
secondary, tertiary and up to the apex.
Why so?
Nature and Characteristics of Cooperatives

Develop best from bottom to top!

Because: Primary cooperatives become the

foundation stones of the apex. Like a house the roof
topples down when the foundation is weak.
Nature and Characteristics of Cooperatives

THE DEVELOPMENT OF COOPERATIVES ARE

ENHANCED THROUGH MULTI-SECTORAL APPROACH

A multi-sectoral approach
involves the participation of all
sectors (government, non
government & the cooperative
sector) from the planning
stage to the implementation,
evaluation and monitoring of
all activities.
COOPERATIVE
PRACTICES
 COOPERATIVE PRACTICES
Capital Formation
Main source
❖ Capital should be contributed by members
 COOPERATIVE PRACTICES

Capital Formation
Other Sources
❖ Borrowings, Grants and Donation
COOPERATIVE PRACTICES
Cash Trading
COOPERATIVE PRACTICES

Selling Market Price

COOPERATIVE PRACTICES
Constant Expansion
COOPERATIVE PRACTICES
Quality Standardized Goods
 COOPERATIVE PRACTICES
Cooperative wholesale or interlending
COOPERATIVE PRACTICES
Minimize Expenditures
Organization & Functional Structure of
Cooperatives
What is an organizational structure?

A system that defines the

hierarchy within an organization.

It identifies:
• Job
• Function
• To whom one reports to
 What is the purpose of an
Organizational Structure?
❖to clarify relationships

❖lines of authority

❖ways of communicating
that best suits
the organization
 GENERAL ASSEMBLY
AUDIT BOARD OF ELECTION
COMMITTEE DIRECTORS COMMITTEE

SECRETARY

TREASURER

EDUCATION AND MEDIATION AND

ETHICS
TRAINING CONCILIATION GAD COMMITTEE
COMMITTEE COMMITTEE COMMITTEE

OTHER
MANAGEMENT AND
COMMITTEE
STAFF
MC 2011-07
The General Assembly (Article 32)

The general assembly shall be composed of

such members who are entitled to vote
under the articles of cooperation and in
the by-laws of the cooperative.
 GENERAL ASSEMBLY
A General Assembly is the highest policy-making body of
the cooperative .

Exclusive Powers which cannot be delegated:

• To determine and approve amendments to the articles of

cooperation and by laws

• To elect or appoint members of the board of directors and

remove them for a cause

• To approve developmental plans of the cooperative

 GENERAL ASSEMBLY
Member – any natural person who is a
citizen of the Philippines or a
cooperative and has complied with all
the membership requirements.
 Kinds of Membership
REGULAR MEMBER

- Entitled to all the rights and

privileges of members
- Has the right to vote and seek
any elective or appointive position
- Owns Common Share Capital
 Kinds of Membership
ASSOCIATE MEMBER
- Has no right to vote and
be voted upon and shall be
entitled only to such rights and
privileges as may be provided in
the by-laws.
- Owns Preferred Share
Capital
 Can an associate member be considered
as regular member ?

• meets the minimum requirement for

membership

• continues to patronize the services of

the cooperative for two (2) years

• signifies intention to become a regular

member
DUTIES AND RESPONSIBILITIES OF A MEMBER
 DUTIES AND RESPONSIBILITIES OF A MEMBER

✓ Pay the installment of his share capital subscription as

it falls due and participate in the capital build-up and
savings mobilization activities of the cooperative

✓ Patronize the coop’s businesses and services

✓ Participate in the membership education programs
✓ Attend and participate in the deliberation
of all matters taken during general
assembly meetings
✓ Observe and obey all lawful orders, decisions, rules
and regulations adopted by the Board of Directors
and the general assembly; and

✓ Promote the goals and objectives of the Cooperative,

the success of its business, the welfare of its
members and the cooperative movement in general.
Right to Examine (Article 83)
❑A member has right to
examine coop records
within reasonable hours during
business day
❑Any officer who refuses to
allow a member to examine
may be punished under article
140 of the Code
❑The exercise of this right must
be for legitimate purpose and
in good faith
 Inspection of Books
Coop members and CDA representatives may inspect
during reasonable hours at official address the following:

❑ Copy of RA 9520 and all laws pertaining to coop

❑ Copy of CDA issuances
❑ Copy of articles/bylaws
❑ Register of members
❑ Books of minutes (GA, bod, committee meetings)
❑ Share books
❑ Financial statements
❑ Other documents required to be maintained
 RIGHTS OF A MEMBER REGULAR ASSOCIATE

Participate on all matters

deliberated upon during
general assembly
meetings;
Vote and Seek any
elective or appointive
position, subject to the
provisions of the By-
Laws of the cooperative
 RIGHTS OF A MEMBER REGULAR ASSOCIATE

Avail himself of the

services of the coop,
subject to certain
condition as may be
prescribed by the BODs
Inspect and examine the
books of accounts, the
minutes books, the share
register, and other
records of the coop
during office hours
 RIGHTS OF A MEMBER REGULAR ASSOCIATE
Has preference in the
payment of Interest on
Share Cap. and in the
distribution of net asset
of the cooperative in
case of liquidation
Such other rights and
privileges as may be
prescribed by the
General Assembly/Law
 Call for Special General
Assembly
❑Majority vote of board of directors
❑10% of members entitled to vote
❑CDA upon petition of 10% of members
entitled to vote
❑CDA (to report to members the result of
examination or investigation of
cooperative affairs)
 Quorum (Article 35)
❑For all coops:
- at least 25% of members
entitled to vote

❑For electric coops:

- 5% of members entitled to
vote, unless by-laws provide
otherwise
 Committees (Article 43)
❑ Elective Committees:
- Audit
- Election
❑ Appointive Committees:
- Ethics
- Conciliation-Mediation
- Gender and Development
- Education and Training
- Credit
FINANCING/CAPITALIZATION
OF COOPERATIVES
 FINANCING OF
COOPERATIVES
Authorized Share Capital
– refers to the capitalization of
the cooperative as provided in
the Articles of Cooperation
approved by the Authority.
Subscribed Share Capital

that part of approved Authorized

Capital which has been
subscribed or have been
contracted to buy by the
cooperators
At least 25% of Authorized
Capital
Paid-up Share Capital

 The portion of a member’s

share capital that has been
paid
 Minimum-P 15,000.00 (total
paid-up capital from each
members)
Par Value
 value of a single common or
preferred share set-out in the
Articles of Cooperation

 P100 - P1000

 Different par values

 Increase or decrease
 AMOUNT OF AMOUNT OF
NAME OF NO. OF SUBSCRIBED SUBSCRIBED SHARE NO. OF PAID-UP PAID-UP SHARE
COOPERATOR SHARE CAPITAL CAPITAL SHARE CAPITAL CAPITAL
A 40 4000.00 10 1000.00
B 40 4000.00 10 1000.00
C 40 4000.00 10 1000.00
D 40 4000.00 10 1000.00
E 40 4000.00 10 1000.00
F 40 4000.00 10 1000.00
G 40 4000.00 10 1000.00
H 40 4000.00 10 1000.00
I 40 4000.00 10 1000.00
J 40 4000.00 10 1000.00
K 40 4000.00 10 1000.00
L 40 4000.00 10 1000.00
M 40 4000.00 10 1000.00
N 40 4000.00 10 1000.00
O 40 4000.00 10 1000.00
TOTAL 600 60000.00 150 15000.00
 Share Capital Holdings of
Members
❑ Limited to not more than 10 percent
of the share capital
❑ Heirs are entitled to the shares of
decedent
❑ Heirs are subject to membership
qualifications
❑ Member-heirs shares not to exceed
10%
❑ Excess shares revert to coop upon
payment to the heir of the value of
such excess shares
 Requirements for Assignment
of Share Capital (Article 74)
❑ The member has held such share capital
contribution or interest for not less than 1
year
❑ The assignment is made to:
- Cooperative; or
- Member of the cooperative
- Person within the field of
membership
❑ The board of directors has approved such
assignment
Cooperative Vision,
Mission and Goals
A Vision states what the organization aspires to become in the future.

A Mission reflects the organization's past and present by stating why

the organization exists and what role it plays in society.

Goals are the more specific aims that organizations pursue to reach
their visions and missions.
Cooperative Strategic Plan
It is the process by
which an
organization
determines its
strategy or direction
and decides to
allocate all its
resources to
maintain that
strategy.
Strategic Planning

Strategic planning is a process through which

business leaders map out their vision for their
organization’s growth and how they’re going to
get there.
A strategic plan is the result of the strategic planning
process. At its most basic, it’s a tool used to define
your organization’s goals and what actions you’ll take
to achieve them.
Typically, your strategic plan should include:
• Your company’s vision statement
• Your company’s mission statement
• Your organizational goals, including your long-term
goals and short-term, yearly objectives
• Any plan of action, tactics, or approaches you plan
to take to meet those goals
 Policies and programs of the
Cooperative
1. Annual Development Plan allows objectives to be set for the
coming year, and for these to be reviewed in an annual review which
the curate and training incumbent will undertake.
A. Education and Training Programs the process of molding the
behavior, improving the knowledge and skills of officers, management,
staff and members to do their job and responsibilities in an efficient
way.
 GAD programs
 Membership Education Programs
B. Social Development Programs - refer to the set of activities and
projects that the cooperative implements to achieve its social goals.
 ARTICLES of
COOPERATION
and
BY-LAWS
Trainer's Training for Coop Development Officers
 Articles of Cooperation
A contract between the member
and the cooperative in which the
member acknowledged and signed.
 By-Laws

Contains general rules and guidelines

enacted by its members to provide a
framework for its operations and
management.
 REVISED
RULES and
REGULATION
IMPLEMENTING
CERTAIN
PROVISIONS
of R.A. 9520
RULE 3

MULTI-PURPOSE COOPERATIVE
❑ Refers
to a cooperative which combines
two or more business activities

❑ Nocooperative shall be registered as a

MPC unless it has been in operation for
2 years.

❑ Only coops with 100,000 paid-up may

transform to MPC
 RULE 5
PROCEDURE FOR MERGER &
CONSOLIDATION
▪ Merger is a union of two or more existing
cooperatives belonging to the same
category whereby the surviving
cooperative, retaining its identity, absorbs
one or more constituents' cooperatives.
▪ Consolidation is a union of two or more
cooperatives belonging to the same
category to form a new cooperative
called the consolidated cooperative.
 RULE 6
GUIDELINES FOR LABORATORY
COOPERATIVES
❑ Lab coop is a cooperative duly recognized
by the Authority, formed and managed
principally by minors and is affiliated with
another registered cooperative which is
called the guardian cooperative.
❑ Issuanceof Certificate of Recognition does
not bestow upon the Lab coop a juridical
personality.
 RULE 7
❑ Officers of the Cooperative
a. Board of Directors
b. Members of committees created by
GA
c. Gen. Manager/CEO
d. Secretary
e. Treasurer
f. Med. Comm. members
g. Ethics Comm.
h. Audit Comm.
RULE 7
❑ Training requirements, regardless of
size and type:
a. Minimum 16 hours on
fundamentals of coops
b. Another 16 hours on
governance and management of
coops
❑ In the case of micro-coops, they
shall only undergo 16 hours of
fundamentals, governance and
management of cooperatives
 RULE 7
❑Forcoops engaged in savings and
credit operations who have @ least
5M worth of deposit liabilities shall
be required to undergo additional
specialized training on financial
management, risk management
and credit management.
 RULE 7
❑Sanctions for Non-Compliance.

1. Willful failure to comply despite

due notice shall be a ground for non
issuance of COC for the succeeding
year.
2. Failure of any officer/s to
undergo the trainings shall disqualify
him to hold any succeeding or future
elective or appointive position.
 RULE 8
REPORTS REQUIRED FOR COOPS
❑ Within
30 calendar days from receipt of
notice of non-compliance, the
accountable officers or cooperative
may request for reconsideration on
grounds of excusable delay.

❑ Coopswith assets less than 3M shall be

exempt from monetary fines but maybe
meted with non-issuance of COC.
RULE 10
CAPITALIZATION AND ACCOUNTING
PROCEDURES OF COOPS

❑ Share capital is one source of

capitalization consisting of common and
preferred shares.
❑ Share capital is considered equity that
should not be used to offset obligations or
withdrawn while membership subsist.
❑ The par value should not be less than 100
nor more than 1,000 pesos.
RULE 10
CAPITALIZATION AND ACCOUNTING
PROCEDURES OF COOPS
❑ It is prohibited to issue multiple types of
common shares with different par
values
❑ It is likewise prohibited to increase or
decrease the par value by way of
amendment
❑ No member shall hold more that 10%
of the share capital of the coop
RULE 10
CAPITALIZATION AND ACCOUNTING
PROCEDURES OF COOPS
❑ Other sources would be:
a. Loans and borrowings
including deposits
b. Revolving capital thru
deferred payment of PR & ISC
c. Subsidies, grants, donations,
aids and other assistance from
local & foreign institution
RULE 10
CAPITALIZATION AND ACCOUNTING
PROCEDURES OF COOPS
❑Accounting Procedure shall
follow the generally accepted
accounting principles and
practices.
❑SCA and its Accounting
Manual prescribed by CDA
shall be used.
RULE 11
SOCIAL AUDIT
❑ Isa procedure where the cooperative
assess its social impact and ethical
performance vis-à-vis its stated goals
and social missions.

❑ Itis the systematic review of the

attitudes, values, behaviors, and
degree of interaction of people within
the cooperative.
RULE 11
SOCIAL AUDIT
❑ Uponapproval of Accreditation
Guidelines for S.A., the following shall
apply:

a. Coop with @ least 1B assets –

External S.A.
b. Coop with less than 1B assets –
Internal Auditor or Audit Comm.
 Cooperative Development Authority
Charter of 2019 (RA 11364)
 Signed into law by Pres. Rodrigo Roa Duterte-
August 8, 2019
 Took effect on August 29, 2019
 CDA shall be an attached agency of the
Department of Trade and Industry
 One of the salient features is the Authority have
37 powers, functions and responsibilities.
 DEVELOPMENTAL

REGISTRATION ADJUDICATION/QUASI-JUDICIAL
AND REGULATION
Powers, Functions and
Responsibilities
37 enumerated powers,
functions and responsibilities
Developmental
Registration and Regulation
Adjudication/Quasi -Judicial
Powers
QUASI-JUDICIAL POWERS

 Conduct investigations;

 File necessary charges, discipline,

suspend and/or remove erring officers and
members of the cooperative;

 Issue cease and desist orders to

cooperatives and responsible parties
QUASI-JUDICIAL POWERS
 Issueorders and notices to preserve the
assets and documents of the cooperatives
subject of the dispute or litigation;

 Implement and enforce its decision and

orders with the assistance of deputized law
enforcement agencies or the local
government unit concerned as may be
necessary;
QUASI-JUDICIAL POWERS

 Issue subpoena ad testificandum and

subpoena duces tecum for the parties to
appear and produce documents in any
proceedings of the Authority;

 Order the examination of all documents,

papers, files and records of any cooperative
or person under investigation;
QUASI-JUDICIAL POWERS

 Cite for contempt any person guilty of

misconduct in the presence of the Authority
which seriously interrupts any hearing or
inquiry;

 Order the suspension or cancellation of the

certificate of registration of cooperatives
and/or the revocation of the letter of authority
and/or certificate of authority to establish and
operate satellite or branch offices; and
QUASI-JUDICIAL POWERS

 Order the dissolution and liquidation of

cooperatives as well as the transfer of all or
substantially all of their assets and liabilities;

 Hear and decide inter-cooperative and intra-

cooperative disputes, controversies and/or
conflicts, without prejudice to filing of civil and/or
criminal cases by the parties concerned before the
regular courts: provided, that all decisions of the
Authority are appealable directly to the Court of
Appeals;
The board of directors

 Collegial policy-making body of the

authority composed of the Chairperson
and six (6) members of the board.

 The Secretaries of (DTI) and (DILG) or

their alternates shall serve as ex-
officio members of the board.
The board of directors
One board director shall come from each of the following
cluster of cooperatives:
a) credit and financial services, banking, and
insurance;
b) consumers, marketing, producers, and logistics;
c) human services: health, housing, workers, and labor
service;
d) education and advocacy
e) agriculture, agrarian, aquaculture, farmers, dairy,
and fisherfolk;
f) public utilities: electricity, water, communications,
and transport;
 Administrator of the Authority
 Appointed by the President of the Philippines
with the rank of an Assistant Secretary,

 Execute and administer the policies, decisions,

orders and resolutions approved by the Board and

 Responsible for the general executive direction

and supervision of the work and operation of the
Authority.

 The Administrators shall be assisted by five (5)

Deputy Administrators.
Partnership with the Cooperative
Sector

A strong partnership between the Authority

and the cooperative sector and the
academe shall be established in
implementing the developmental functions
of the Authority to ensure the maximum
participation of the cooperative sector on
matters of government plans, projects and
policies affecting cooperatives.
 Apex Organizations and a
national alliance
The Authority, the cooperative sector, and
the academe shall formulate guidelines for
the implementation of the partnership that
may give rise to the recognition of apex
organizations and a national alliance
representing all types and categories of
cooperatives, that shall function as the
overall consultative and coordinating body
with the Authority .
Cooperatives in the Education System

The history, philosophy, concepts,

values, principles and practices of
cooperatives and their role in nation
building shall be part of the
curriculum of both in formal and non-
formal education.
Other features

CDA as attached agency of Department of

Trade and Industry (DTI) for policy and
program coordination for cooperatives;

CDA as regular voting member of the

Regional Development Council