Tiêu đề Reg2 Cooperative - Chapter I - III.docx ✅

COOPERATIVE CODE: CHAPTER I - III Republic Act No. 9520: AN ACT AMENDING THE COOPERATIVE CODE OF THE PHILIPPINES TO BE KNOWN AS THE PHILIPPINE COOPERATIVE CODE OF 2008 Approved: February 17, 2009 CHAPTER I: GENERAL CONCEPTS AND PRINCIPLES [Art. 1] Title This Act shall be known as the “Philippine Cooperative Code of 2008”. [Art. 2] Declaration of Policy 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's power towards the attainment of economic development and social justice. ● The State shall encourage the private sector to undertake the actual formation and organization of cooperatives and shall create an atmosphere that is conducive to the growth and development of these cooperatives. ● Toward this end, the Government and all its branches, subdivisions, instrumentalities and agencies shall ensure the provision of technical guidance, financial assistance and other services to enable said cooperatives to develop into viable and responsive economic enterprises and thereby bring about a strong cooperative movement that is free from any conditions that might infringe upon the autonomy or organizational integrity of cooperatives. ● Further, the State recognizes the principle of subsidiarity under which the cooperative sector will initiate and regulate within its own ranks the promotion and organization, training and research, audit and support services relative to cooperatives with government assistance whe re necessary. [Art. 3] General Concepts Cooperative – an autonomous and duly registered association of persons, with a 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 cooperative principles. Characteristics Similar to a Corporation: 1. Liability: A cooperative duly registered shall have limited liability. 2. Separate Personality: A cooperative can be likened to a corporation with a personality separate and distinct from its owner-members. 3. Right of Succession: A cooperative likewise has a right of succession in the sense that heirs may inherit share capital subject to the requirement that they are qualified to be members and signify intent to become a member. 4. *Term: for a period not exceeding 50 years from the date of registration; may be extended for periods not exceeding 50 years, but no extension can be made earlier than 5 years prior to the original or subsequent expiry date/dates unless there are justifiable reasons. [Art. 4] Cooperative Principles Every cooperative shall conduct its affairs in accordance with Filipino culture, good values and experience and the universally accepted principles of cooperation which include, but are not limited to, the following: (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. Cooperatives at other levels are organized in the same democratic manner. (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