LAW ON COOPERATIVES COOPERATIVE: is an autonomous and duly registered association of persons,

with a common bond of interest, who have voluntarily joined together to achieve their social, economic,
and cultural needs and aspirations by making equitable contributions 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. COOPERATIVE PRINCIPLES: ART. 4.
Cooperative Principles. - Every cooperative shall conduct its affairs in accordance with Filipino culture,
good values and experience and the universally accepted principles of cooperation which include, but
are not limited to, the following: (1) 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 gender, social, racial, cultural, political or religious discrimination; (2) Democrative
Member Control - Cooperatives are democratic organizations that are controlled by their members who
actively participate in setting their policies and making decisions. Men and women serving as elected
representatives, directors or officers are accountable to the membership. In primary cooperatives,
members have equal voting rights of one-member, one-vote. Cooperatives at other levels are organized
in the same democratic manner. (3) Member Economic Participation - Members contribute equitably to,
and democratically control, the capital of their cooperatives. 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 -
Cooperatives are autonomous, self-help organizations controlled by their members. If they enter into
agreements with other organizations, including government, or raise capital from external sources, they
shall do so on terms that ensure democratic control of their members and maintain their cooperative
autonomy. (5) Education, Training and Information - Cooperatives shall provide education and training
for their members, elected and appointed representatives, managers, and employees, so that they can
contribute effectively and efficiently to the development of their cooperatives. (6) Cooperation Among
Cooperatives - Cooperatives serve their members most effectively and strengthen the cooperative
movement by working together through local, national, regional and international structures. (7)
Concern for Community - Cooperatives work for the sustainable development of their communities
through policies approved by their members. CHARACTERISTICS SIMILAR TO A CORPORATION Liability: A
cooperative duly registered shall have limited liability. Separate personality: A cooperative can be likened
to a corporation with a personality separate and distinct from its ownermembers. Right of Succession: A
cooperative likewise has a right of succession in the sense that heirs may inherit share capital subject to
the requirement that they are qualified to be members and signify intent to become a member. Term:
for a period not exceeding 50 years from the date of registration; may be extended for periods not
exceeding 50 years, but no extension can be made earlier than 5 years prior to the original or
subsequent expiry date/dates unless there are justifiable reasons. Note, however, that this is no longer a
similarity since a corporation now, generally, has perpetual existence under the Revised Corporation
Code. ORGANIZATION AND REGISTRATION ARTICLES OF COOPERATION: filed with the Cooperative
Development Authority (Authority) which shall be signed by the organizers and acknowledged by them if
natural persons, and by the chairpersons or secretaries, if juridical persons, before a notary public. It
shall set forth: a. The name of the cooperative which shall include the word cooperative; b. The purpose
or purposes and scope of business for which the cooperative is to be registered; c. The term of existence
of the cooperative; d. The area of operation and the postal addresses of its principal office; e. The
names, nationality, and the postal addresses of the registrants; f. The common bond of membership; g.
The list of names of the directors who shall manage the cooperative; and h. The amount of its share
capital, the names and residences of its contributors and a statement of whether the cooperative is
primary, secondary or tertiary Economic survey: Every group of individuals or cooperatives intending to
form a cooperative shall submit to the CDA a general statement describing among other the structure
and purposes of the proposed cooperative; provided, that the structure and actual staffing pattern of the
cooperative shall include a bookkeeper; provided further, that they shall not be allowed to operate
without the necessary personnel and shall also submit an economic survey, indicating therein: 1. Area of
operation; 2. Size of membership; and 3. Other pertinent data in a format provided by the CDA.