How to

Organize a
Cooperative?
Organizing a
Cooperative
 FIRST
Get organized. You
must have at least 15
members to do that.
 Who may become members of a primary
cooperative?

Filipino of legal age; a common bond of

interest qualifications
Board of Directors
Exercise his rights only after having paid
the fees and acquired shares
 What are the kinds of membership in the
Cooperative?
REGULAR MEMBERS ASSOCIATE MEMBERS

Has complied with all Has no right to vote

the requirements nor be voted
Entitled to all right Entitled to rights and
and privileges stated privileges stated in the
in Cooperative Code coops by-laws only
and the coops by-laws *Meets up the minimum
requirements of regular
membership, continues to
patronize the cooperative for
(2) years
 Can government officers and
employees join a cooperative?
CDA officer or employee shall be
disqualified to be elected or appointed
to any position
Elected government officials of the
government shall be ineligible to
become officers and directors
Any government employee may, in the
discharge of his duties as member in the
cooperative, use official time provided
that the operations of the office where
he works are not adversely affected.
 If Memberships Denied
May appeal to the General Assembly
The General Assembly may opt to create
an appeal and grievance committee, which
members served for (1) year and shall
decide appeals on membership application
within 30 days upon receipt.
If it fails to decide within 30 days, the appeal
is deemed approved in favor of the applicant
 Termination of Membership
Withdrawal of member
Death or insanity of a member in primary,
and the insolvency of dissolution in
secondary and tertiary
 Vote of the majority of all the members of
the board of directors
has not patronized the services of the
cooperative for an unreasonable period of time
as may be fixed by the board of directors
continuously failed to comply with his
obligations
has acted in violation of the bylaws and the rules
of the cooperative
For any act or omission injurious or prejudicial to
the interest or the welfare of the cooperative
 SECOND

Reserve your proposed

cooperative name.
 Cooperative Name Reservation Request
Form (CNRRF)
Submitted to CDA Central Office or its
Extension Office
Reservation fee shall apply
 THIRD
Prepare a general
statement called an
economic survey.
 Economic Survey
A general statement describing the
structure and purposes of the proposed
cooperative
A project feasibility study (economic
feasibility)
Structure
Describes the kind of cooperative being set
up whether it is primary, secondary or
tertiary and whether it is a credit, consumer
transport or any other type of coop.
Purpose
Defines the primary, secondary and other
objectives of the cooperative
Cooperatives area of operation
Size of membership
 FOURTH

Prepare the
cooperatives by-
laws.
 By-laws
contain the rules and regulations
governing the operation of the cooperative
set of rules that determines how a
cooperatives is to be run without
confusion
 The qualifications for admission to
membership and the payment to be made or
interest to be acquired as a conditions for the
exercise of the right of membership;
The rights and liabilities of membership;
The procedure to be followed in cases of
termination of membership;
The rules and procedures on the agenda,
time, place, and manner of calling,
convening, conducting meetings, quorum
requirements, voting systems, and other
matters relative to the business affairs of the
general assembly, board of directors, and
committees;
 The condition for transfer of a share of interest;
The general conduct of the affairs of the
cooperative , including the powers and
duties of the general assembly, board of
directors, committees and the officers, and
their qualifications and disqualifications;
The manner in which capital may be raised
and the purposes for which it can be
utilized;
The mode of custody and investment of net
surplus;
 The accounting and auditing systems;
The manner of loaning and borrowing,
including the limitations thereof;
The methods of distribution of net surplus;
The manner of adopting, amending,
repealing, and abrogating by-laws;
A conciliation or mediation mechanism for
the amicable settlement of disputes among
members, directors, officers and committee
members of the cooperative; and
Other matter incident to the purposes and
activities of the cooperative.
 FIFTH
Prepare the articles of
cooperation.
 Articles of Cooperation
is a duly notarized document that legally
binds all the signatories in the formation
of a cooperative
BUT.. It shall be signed by each of the
organizers and acknowledged by them if
natural persons, and by the chairpersons
or secretaries, if juridical persons, before
a notary public
 the name of the cooperative, which shall
include the word cooperative
the purpose or purposes and scope of
business for which the cooperative is to be
registered
the term of existence of cooperative (not
more than 50 years)
the area of operation and the postal
address of its principal office
 the names, nationality and the postal
addresses of the registrants
the common bond of membership
The list of names of the directors who shall
manage the cooperative
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
 SIXTH
Secure bond of
accountable officer(s).
 secured from a duly registered insurance or
bonding company
Every director, officer and employee
handling funds, securities or property on
behalf of the cooperative shall be covered
by this
The amount of the bond is to be decided
upon by the Board of Directors
 SEVENTH
Execute Treasurers
Affidavit.
 Sworn statement of treasurer
elected by the subscribers attached
to the articles of cooperation
At least 25% of the authorized share
capital has been subscribed
At least 25% of the total
subscription has been paid (shall
not be less than P15,000)
 Illustration
Upon Registering
ASC = P400,000 par value = P100
= 4,000 shares * not more than P1,000/share
Articles of Cooperation
member subscribes at least 10 shares (P1,000)
subscribe not more than 400 shares (P40,000)
To be registered
SSC = at least 1,000 shares (P100,000)
* 25% of ASC
PSC = at least 250 shares (P25,000)
* 25% of SSC
* not less than P15,000
 EIGTH
Complete the Pre-
Membership Education
Seminar (PMES).
 All prospective member must have
completed PMES
Certificate of PMES
 NINTH
Register your cooperative
with the Cooperative
Development Authority (CDA).
 Submit the required documents
in (4) copies and duly notarized
Economic Survey
Articles of Cooperation
By-Laws
Surety bond of accountable officers
Treasurers Affidavit
Approved Cooperative Name Reservation Slip
Certificate of PMES