Midterm Flashcards
business owned by “members -owners” Coops are democratically controlled by their member-owners, and unlike a traditional business each member gets a voice in how the business is run.
COOPERATIVE
Services or goods provided by the Coop benefit and serve the members owners.
is an association of persons (organizations) that is owned and controlled by the people to meet their common economic, social and/or cultural needs and aspirations through a jointly owned and democratically.
COOPERATIVE
What is the main purpose of cooperative?
The purpose of a cooperative is to realize the economic, cultural and social needs of the
Organization’s members and its surrounding community. Cooperative often have
A strong commitment to their community and a focus on
Strengthening the community they exist in or serve.
Seven Principles of a Cooperative:
- Voluntary and Open Membership – Membership in a cooperative is open to all people who can reasonably use its services and stand willing to accept the responsibilities of membership, regardless of race, religion, gender, or economic circumstances.
- Democratic Member Control- Cooperatives are democratic organizations controlled by their members, who actively participate in setting policies and making decisions. Representatives (directors/trustees) are elected among the membership and are accountable to them. In primary cooperatives, members have equal voting rights (one member, one vote); cooperatives at other levels are organized in a democratic manner.
- Members Economic Participation - Members contribute equitably to, and democratically control, the capital of their cooperative. At least part of that capital remains the common property of the cooperative. Members allocate surpluses for any or all of the following purposes: developing the cooperative; setting up reserves; benefiting members in proportion to their transactions with the cooperative; and supporting other activities approved by the membership.
- Autonomy and Independence – Cooperatives are autonomous, self-help organizations controlled by their members. If they enter into agreements with other organizations, including governments, or raise capital from external sources, they do so on terms that ensure democratic control as well as their unique identity.
- Education, Training and Information – Education and training for members, elected representatives (directors/trustees), CEOs, and employees help them effectively contribute to the development of their cooperatives. Communications about the nature and benefits of cooperatives, particularly with the general public and opinion leaders, help boost cooperative understanding.
- Cooperation among Cooperatives – By working together through local, national, regional and international structures, cooperatives improve services, bolster local economies, and deal more effectively with social and community needs.
- Concern for Community – Cooperatives work for the sustainable development of their communities through policies supported by the membership.
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Articles of incorporation area set of formal documents filed with a government body to legally document the creation of a corporation. Articles of incorporation generally contain pertinent information, such as the firm’s name, street address, agent for service of process, and the amount and type of stock to be issued.
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REPORTS REQUIRED TO BE SUBMITTED FOR COOPERATVE
- Cooperative Annual Performance Report (CAPR)
- Audited Financial Statement duly stamped “Received” by BIR
- Socio Audit Report – MC 2018-01
- Performance Report – MC 2013-15
- List of Officers and Training Undertaken completed Required Regular Report
- All Registered shall file with the authority a copy of the required reports either
through personal, registered mail, courier or electronic means, within 120 days from
The end of every calendar year. Penalty of P100 per report per day.
(18) Types of Cooperatives:
- Credit Cooperative, which promotes thrift and savings among its members and creates funds in order to grant loans for productivity
- Consumer Cooperative, the primary purpose of which is to procure and distribute commodities to member and non-members.
- Producers Cooperative, which is that undertakes joint production whether agricultural or industrial.
- Marketing Cooperatives is one which engages in the supply of production inputs to members and markets their products.
- Service Cooperatives is one which engages in medical and dental care, hospitalization, transportation, insurances, housing, labor, electric, light and power, communication, professional and other services, Community Health & Development Cooperative Hospital.
- Multipurpose Cooperative is one which combines two or more of the business activities of these different types of cooperatives.
- 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.
- Cooperative Bank is one organized for the primary purpose of providing a wide range of financial services to cooperatives and their members.
- Dairy Cooperative is one whose members are engaged in the production of fresh milk which may be processed and/or marketed as diary produced by the Federation of Davao Dairy Products.
- Education Cooperative is one organized for the primary purpose of owning and operating licensed educational institution
- Electric Cooperative is one organized for a the primary purposed of undertaking power generations, utilizing renewable energy source including hybrid systems, acquisitions and operation of subtransmission or distribution to its household members.
- Multipurpose Cooperative is one which combines two or more of the business activities of these different types of cooperatives.
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13 Health Services – Example Olympus Health and Diagnostic Clinic
- Housing cooperative is a group of people who manage and control the housing in which they live. Each person is a member of the housing cooperative and has an equal say in decision-making. No member individually owns or makes profit at the expense of another
- Financial Service – is a way to structure a financial institution so that it is owned and operated by the members (e.g. Credit Union)
- Fishermen Cooperative – Where a community or a group of communities have an exclusive access to a fish resources.
17 Water Service – Cooperatives organized to own, operate and manage water systems for the provision and distribution of potable water for its members and their households
- Workers Cooperative – Entre-Worker Cooperative (EWC) is an autonomous association of persons who voluntarily pool their resources and work skills in order to own and operate a stable enterprise
Reference RA 9520
Organizational Structure
- General Assembly
- Election Committee
- Audit/Supervisory Committee
- Board of Directors Management
- Staff Election and Training Committee
- Ethics Committee
- Mediation and Conciliation Committee
- Secretary
- Treasurer
It is the declared policy of the State to foster the creation and growth of cooperatives as a practical vehicle for promoting self-reliance and harnessing people power towards the attainment of economic development and social justice
RA 9520
An Act Reorganizing and Strengthening the Cooperative Development Authority, Repealing for the Purpose Republic Act No. 6939, Creating The Cooperative Development Authority. Be it enacted by the Senate and House of Representatives of the Philippine Congress assembled:
Republic Act No. 11364
The (6) MAIN FEATURES of Co-operative Stores are as follows:
- Open and voluntary membership
- Service Motive
- Capital
- Cash Sale
- Democratic Management
- Elimination of middlemen
CHARACTERISTICS of Co-operative Stores:
(1) A consumers’ co-operative society is a voluntary association of persons and is registered under the Co-operative Societies Act.
(2) The membership of these stores is open to all the adults.
(3) There is a democratic control and management of the affairs of these societies.
(4) Goods are sold to members or non-members on cash basis.
(5) Capital of these societies is raised by issuing shares to the members. The shares are usually of smaller denomination, so that persons having limited income could also contribute and become members of the societies. Right to withdraw the capital is also given to the members as and when they like.
(6) Every member is allowed to cast one vote irrespective of the number of shares purchased by him. The societies operate on the principle of ‘one member one vote’.
(7) Very less amount is spent on advertising. This is because the goods are mainly purchased for the members.
(8) The accounts of these societies are regularly audited by an auditor appointed by the Registrar of Co-operative Societies.
(9) The goods are purchased by the societies in bulk thereby availing the economies of large scale purchasing.
(10) The members are given dividend on the amount of shares held by them.
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Cooperative Law Selected for the Legal Framework Analysis The Republic Act No. 9520, otherwise known as the “_______________,” has been selected for the study. Likewise, the place of national cooperative legislation in the hierarchy of legal forms rests on this national cooperative law. The 1987 Philippine Constitution recognizes the legitimacy of cooperatives and the cooperative movement in the Philippines.
“Philippine Code of 2008,”
Cooperatives Before World War II “COOPERATIVISM” as an ideology of cooperation has already been embedded into the FILIPINO CULTURE whose concept of mutual self-help of “BAYANIHAN” (Cooperation) preceded the era of Spanish colonization of the Filipino people.
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is said to be the FIRST ORGANIZER of an AGRICULTURAL MARKETING COOPERATIVE in 1986 while in exile in Dapitan, Zamboanga del Norte. He got the idea of cooperatives during his travel to Europe.
Dr. Jose P. Rizal, the national hero
