(NAR) VOL. 22 NO. 2, APRIL - JUNE 2011
(a) Advocacy Cooperative – is a primary cooperative which promotes and advocates cooperativism among its members and the public through socially-oriented projects, education and training, research and communication, and other similar activities to reach out to its intended beneficiaries.
(b) Agrarian Reform Cooperative – is one organized by marginal farmers majority of which are agrarian reform beneficiaries for the purpose of developing an appropriate system of land tenure, land development, land consolidation or land management in areas covered by agrarian reform.
(c) Area of Business Operation – shall refer to the principal place of business of cooperative where the cooperative conducts its business as provided for in their articles of cooperation and by-laws.
(d) Area of Operation – shall refer to the area where the cooperative members come from as provided for in their articles of cooperation and by-laws.
(e) Authority - refers to the Cooperative Development Authority.
(f) Bond of Membership – shall refer to the condition where members associate themselves to attain their common goals and objectives which may either be residential, occupational, associational, and institutional.
(g) Business Transaction – refers to any business activity or livelihood engaged in by the cooperative where such cooperative generates savings.
(h) Cooperative – is an autonomous and duly registered association of persons, with a common 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.
(i) Consumers Cooperative – is one the primary purpose of which is to procure and distribute commodities to members and non-members.
(j) Credit Cooperative – shall refer to one that promotes and undertakes savings and lending services among its members. It generates a common pool of funds in order to provide financial assistance and other realted financial services to its members for productive and provident purposes.
(k) Dairy Cooperative – is one whose members are engaged in the production of fresh milk which maybe processed and/or marketed as dairy products.
(l) Education Cooperative – is one organized for the primary purpose of owning and operating licensed educational institutions, notwithstanding the provisions of Republic Act No. 9155, otherwise known as the Governance of Basic Education Act of 2001.
(m) Fishermen Cooperative – is one organized by marginalized fishermen in localities whose products are marketed either fresh or processed products.
(n) Health Services Cooperative – is one organized for the primary purpose of providing medical, dental, and other health services.
(o) Housing Cooperative – is one organized to assist or provide access to housing for the benefit of its regular members who actively participate in the savings program for housing. It is co-owned and controlled by its members.
(p) Marketing Cooperative – is one which engages in the supply of production inputs to members and markets their products.
q) Multipurpose Cooperative – is one which combines two (2) or more of the business activities of these different types of cooperatives.
(r) Primary Cooperative – is a cooperative the members of which are natural persons except electric cooperative, water service cooperative and other cooperatives which the implementing rules and regulations of RA9520 or the Authority may allow.
(s) Producers Cooperative – is one that undertakes joint production whether agricultural or industrial. It is formed and operated by its members to undertake the production and processing of raw materials or goods produced by its members into finished or processed products for sale by the cooperative to its members and non-members. Any end product or its derivative arising from the raw materials produced by its members sold in the name and for the account of the cooperative shall be deemed a product of the cooperative and its members.
(t) Registration – is the operative act of the Authority granting judicial personality to a proposed cooperative and is evidenced by the Certificate of Registration.
(u) Share – Refers to a unit of capital in primary cooperative the par value of which is fixed at any figure not more than One Thousand Pesos (P1,000.00) and should be divisible by one peso may be divided into common share capital and preferred share capital.
(v) Share Capital – shall refer to the money paid or required to be paid by the members for the conduct of the operation of the cooperative.
(w) Service Cooperative – is one which engages in medical and dental care, hospitalization, transportation, insurance, housing, labor, electric light and power, communication, professional, and other services.
(x) Transport Cooperative – is one which includes land and sea transportation, limited to small vessels as defined or classified under the Philippine Maritime Laws, organized under the provisions of this Code.
(y) Water Service Cooperative – is one organized to own, operate and manage water systems for the provision and distribution of potable water for its members and their households.
(z) Workers Cooperative - is one organized by workers, including the self-employed, who are at the same time 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.
1. Cooperative Name Reservation Notice (CNRN); (1 copy only)
2. Economic Survey;
3. Articles of Cooperation and the approved By-laws;3.1 All original;4. Treasurer’s Affidavit;
3.2 The Articles of Cooperation shall be signed by all the cooperators on each and every page; and
3.3 The By-Laws shall be signed all the members on the adoption page.
5. Surety Bonds of accountable officers;
6. Certificate of Pre-Membership Seminar (PMES) signed by the cooperative Interim Chairman, as validated by the Authority;
7. Undertaking to change name;
8. Undertaking to comply with the auditing and accounting standards prescribed by the Authority
9. Undertaking to comply with other requirements prescribed by the other regulatory agency, when applicable;
10. Favorable endorsement/written verification/authority/pre-feasibility study, if applicable; and
11. Registration fee.
12. Other Specific Requirements for each type of cooperative:12.1. Multi-Purpose Cooperative
a) Detailed feasibility study
b) Undertaking to maintain separate books of accounts for each business activity
12.2. Agrarian Reform Beneficiaries Cooperative
a) Mother CLOA in case of plantation based ARBs;
b) Written verification from Department of Agrarian Reform (DAR) to the effect that the cooperative organization is needed and desired by the beneficiaries, economically viable, at least majority of the members are agrarian reform beneficiaries.
12.3. Housing Cooperatives
a) Copy of the Pre-Feasibility Study of the housing projects undertaking certified as reviewed by National Housing Authority (NHA).
12.4. Transport Cooperatives
a) Certification of Cooperative Education and Transport Operation Seminar (CETOS) by Office of Transport Cooperatives (OTC)
12.5. Water Service Cooperative
a) Proof of Land ownership
b) Well Drilling Data
(a) Residential - members working and/or actually and physically residing in the same place.
(b) Institutional - members consist of employees, workers and/or officers of a particular institution.
(c) Associational - members come from a registered and/or recognized association, group, club, fraternity, religious group, cultural and other similar aggrupation.
(d) Occupational - members come from same or allied profession or actual occupation.
(a) The following persons shall be bonded:
(1) Chairperson
(2) Treasurer and Cashier;
(2) Manager;
(3) Warehouseman;
(4) Loan/deposit Collectors;
(5) Signatories of checks and other financial instruments; and
(6) Such other persons as may be authorized by the cooperative to act as a custodian of funds merchandise, inventories, securities and other assets of the cooperative.
(b) The board of directors shall determine the adequacy of such bonds. For this purpose, the Board of Directors shall be guided based on the initial networth of the cooperative which shall include the paid-up capital, the membership fees and the other assets of the cooperative at the time of registration.
(a) An application for registration shall be finally disposed by the Authority within the period of Sixty (60) days from the filing of complete documentary requirements. Otherwise, the application is deemed approved unless the cause of the delay is attributable to the applicant.
(b) In the case of denial by the Authority, appeal of such denial may be sent to the Office of the President within ninety (90) days from receipt of the notice of denial.
(c) The failure of the Office of the President to act on the appeal within ninety (90) days from the filing thereof shall mean the approval of said application.