PICPA Bldg.

, Mandaluyong
City
A cooperative is an autonomous and 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
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
cooperatives principles.

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

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Cooperatives are :
democratic organizations.
controlled by their members
directors or officers are
accountable to the
membership.
members have equal voting
rights 5
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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 cooperatives are autonomous,
self-help organizations controlled
by their members.
ensure democratic control of their
members
Maintain their cooperative
autonomy
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 cooperatives shall provide
education and training for their
members, elected and appointed
representatives, managers, and
employees.

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Cooperatives serve their
members most effectively
and strengthen the
cooperative movement by
working together through
local, national, regional
and international 9
cooperatives work
for the sustainable
development of
their communities
through policies
approved by their
members.
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(1) To encourage thrift and savings
mobilization among the members;

(2) To generate funds and extend credit

to the members for productive and
provident purposes;

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(3) To encourage among members
systematic production and
marketing;
(4) To provide goods and services and
other requirements to the members;
(5) To develop expertise and skills
among its members;
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(6) To acquire lands and provide
housing benefits for the members;
(7) To insure against losses of the
members;
(8) To promote and advance the
economic, social and educational
status of the members;
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(9) To establish, own, lease or operate
cooperative banks, cooperative
wholesale and retail complexes,
insurance and agricultural/industrial
processing enterprises, and public
markets;
(10) To coordinate and facilitate the
activities of cooperatives;
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(11) To advocate for the cause of the
cooperative movement;
(12) To ensure the viability of
cooperatives through the
utilization of new technologies;

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(13) To encourage and promote self-
help or self-employment as an
engine for economic growth and
poverty alleviation; and
(14) To undertake any and all other
activities for the effective and
efficient implementation of the
provisions of this Code.
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This should be enumerated specifically
by the cooperative in their articles of
cooperation the type of business that
they will engage into.

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(a)Credit Cooperative
(b) Consumers Cooperative;
(c) Producers
(d) Marketing Cooperative
(e) Service Cooperative
(f) Multi-purpose Cooperative;
(g) Insurance Cooperative
(h) Agrarian Reform Cooperative
(i) Cooperative Bank
(j) Dairy Cooperative
(k) Education Cooperative
(l) Electric Cooperative 21
(m) Financial Service Cooperative
(n) Fishermen Cooperative
(o) Health Services Cooperative
(p) Housing Cooperative
(q) Advocacy Cooperative
(r) Transport Cooperative
(s) Water Service Cooperative
(t) Workers Cooperative
(u) Other types of cooperatives as may be
determined by the Authority
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(1) To the exclusive use of its
registered name,
(2) To sue and be sued;
(3) Of succession;
(4) To amend its articles of
cooperation in accordance with
the provisions of this Code;
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(5) To adopt by-laws not contrary to
law, morals or public policy, and
to amend and repeal the same in
accordance with the Code;

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(5) To purchase, receive, take or grant,
hold, convey, sell, lease, pledge,
mortgage, and otherwise deal with such
real and personal property as the
transaction of the lawful affairs of the
cooperative may reasonably and
necessarily require, subject to the
limitations prescribed by law and the
Constitution;

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(6) To enter into division, merger or
consolidation

(7) To form a subsidiary cooperative

(8) To join federations or unions

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(9) To avail of loans, be
entitled to credit and to
accept and receive grants,
donations and assistance
from foreign and domestic
sources.

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(10) To avail of preferential
rights granted to
cooperatives under
Republic Act No. 7160,
otherwise known as the
Local Government Code,
and other laws.
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(11) To organize and operate schools
in accordance with Republic Act
No. 9155
(12) To exercise such other powers
granted by the Code or as stated
in its articles of cooperation.

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 OrganizationalStructure
Organizational Structure

G.A.
G.A.

AUDIT
AUDIT BOARD
BOARDOF
OF ELECTION
ELECTION
COMMITTE
COMMITTE DIRECTORS
DIRECTORS COMMITTEE
COMMITTEE

Treas.
EDCOM CRECOM
Sec. EDCOM
OTHERS
OTHERS
MANAGER
MANAGER ETHICS
ETHICS MEDCOM
COMMITTEE MEDCOM
COMMITTEE
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They follow all business norms like:
Compliance with all business
requirements such as but not limited
to business permits; registration with
BIR; social legislation and labor laws;
Adherence to local laws;
Healthy competition;
Open trade;
Cash trading
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They follow all business norms
like:
Selling at market price
Avoid destructive competition
among coops
Adequate capitalization
Adherence to business
governance
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 Constant expansion
Quality Standardized Goods
Minimize Expenditures
Comply with basic requirements of
a business enterprise.

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mphwang 021710

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