Lesson 4 - General Concepts and Principles

REPUBLIC ACT No.
9520
GENERAL CONCEPTS AND PRINCIPLES
Presented by: Ferlhyn Joy C. Miguel, LPT

Amended Republic Act 6938 (Cooperative
Code of the Philippines)
Signed into law on February 17, 2009
Published in Daily Tribune 0n March 7, 2009
Effectivity
Date: 15 days after publication
(March 23, 2009)
ART 3. GENERAL CONCEPTS
A cooperative is an autonomous and duly registered

association of person, with a common bond of
interest, who have voluntarily joined together to
achieve their social, economic and cultural needs
and aspiration by making equitable contribution
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.
ART. 4 COOPERATIVE PRINCIPLES
• Patterned after the Principles as formulated by the

International Co-operative Alliance (ICA)
> Voluntary and Open Membership
> Democratic Member Control
> Member Economic Participation
> Autonomy and Independence
> Education, Training and Information
> Cooperation Among Cooperatives
> Concern for Community
 :
 "(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.
 "(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.
 "(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.
ART. 5 DEFINITIONS
 Member
includes a person either natural or
juridical who adhering to the principles set
forth in this Code and in the Articles of
Cooperative, has been admitted by the
cooperative as member;
 Board of Directors
shall mean that body entrusted with the
management of the affairs of the cooperative
under its articles of cooperation and bylaws;
 Committee
shall refer to any body entrusted with specific
functions and responsibilities under the bylaws or
resolution of the general assembly or the board of
directors;
 Articles of Cooperation means the articles
of cooperation registered under this Code
and includes a registered amendment
thereof;
 Bylaws means the bylaws registered under
this Code and includes any registered
amendment thereof;
 Registration means the operative act
granting juridical personality to a proposed
cooperative and is evidenced by a certificate
of registration;
 Cooperative Development Authority refers
to the government agency in charge of the
registration and regulation of cooperatives
as such hereinafter referred to s the
Authority;
 Universally Accepted Principles means
that body of cooperative principles adhered
to worldwide by cooperatives;
 Social Audit
- is a procedure wherein the cooperative

assesses its social impact and ethical
performance
 Officers of the Cooperative
- shall include the members of the board of
directors, members of the different committees
created by the general assembly, general manager
or chief executive officer, secretary, treasurer, and
members holding other positions as may be
provided for in their bylaws;
 Performance Audit
-shall refer to 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 the general membership on
such performance;
A Single-Line or Single-Purpose
Cooperative shall include cooperative
undertaking activities which are related to its
main line of business or purpose;
Service Cooperatives are 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;
 End of Chapter 1: GENERAL
CONCEPTS AND
PRINCIPLES

Lesson 4 - General Concepts and Principles

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REPUBLIC ACT No.

GENERAL CONCEPTS AND PRINCIPLES

Presented by: Ferlhyn Joy C. Miguel, LPT

Signed into law on February 17, 2009

Published in Daily Tribune 0n March 7, 2009

A cooperative is an autonomous and duly registered

• Patterned after the Principles as formulated by the

- is a procedure wherein the cooperative

Service Cooperatives are those which provide

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