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NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session
23 NOV-8 P6*47
)
RECEIVED BV
SENATE
S. B. No. ^480
Introduced by Senator Joseph Victor G. Ejercito
AN ACT
AMENDING REPUBLIC ACT NO. 6938, OTHERWISE KNOWN AS THE 
"COOPERATIVE CODE OF THE PHILIPPINES", AS AMENDED, AND FOR 
OTHER PURPOSES
EXPLANATORY NOTE
Foreign investments could contribute to the growth and expansion of 
cooperatives, enabling them to explore new markets, improve products and services, 
and modernize their operations. This, in turn, may lead to greater economic 
opportunities and benefits for both cooperative members and the communities they 
serve.
It is important to note that any potential changes to the Negative List or the 
"Philippine Cooperative Code of 2008" would require careful consideration, stakeholder 
consultations, and balance between encouraging foreign investments and 
safeguarding national interests. The ultimate goal should be to enhance the 
cooperative sector's capacity to serve its members and contribute to the overall 
development of the country.
The amendments to Republic Act No. 6938, otherwise known as the 
"Cooperative Code of the Philippines" would aim to facilitate foreign investments in the 
cooperative sector while ensuring that control of cooperatives remains in the hands of 
Filipino natural-born citizens.


The bill seeks to facilitate foreign investments in the cooperative sector by 
easing the citizenship requirements for cooperative members. It proposes that 
foreigners be allowed to invest up to 40% of the membership shares in cooperatives, 
but it also includes a provision that a majority of the cooperative members must be 
Filipino natural-born citizens. This measure is intended to strike a balance between 
encouraging foreign investment and ensuring that control of cooperatives remains in 
the hands of local citizens.
In view of the foregoing, approval of this bill is urgently sought.
w
JOSEPH VICTOR G. EJERCITO


NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
Second Regular Session 
)
SENATE
S.B. No. 2480
ot tiic £■ ■ -trTr
23 NOV-8 P6 -47
received B\'‘ .
Introduced by Senator Joseph Victor G. Ejercito
AN ACT
AMENDING REPUBLIC ACT NO. 6938, OTHERWISE KNOWN A STHE 
"COOPERATIVE CODE OF THE PHILIPPINES", AS AMENDED, AND FOR 
OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
1 
Section 1. Article 10 of Republic Act (R.A.) No. 6938, as amended by R.A. No.
2 
9520, shall be amended to read as follows:
3 
"ART. 10. Organizing a Primary Cooperative. - Fifteen (15) or more natural
4 
persons who are [Filipino citizenD,] of legal age, having a common bond of
5 
interest and are actually residing or working in the Intended area of operation
6 
FOR AT LEAST SIX (6) MONTHS, may organize a primary cooperative
7 
under this Code: Provided, That a prospective member of a primary
8 
cooperative must have completed a Pre-Membership Education Seminar
9 
(PMES): PROVIDED FURTHER, THAT MAJORITY OF SUCH SHALL BE
10 
FILIPINO CITIZENS."
11 
XXX"
12 
Sec. 2. Article 26 of R.A. No. 6938, as amended by R.A. No. 9520, shall be
13 
amended to read as follows:
14 
"ART. 26. Kinds of Membership. - A cooperative may have two (2) kinds of
15 
members, to wit: (1) regular members and (2) associate members.
16 
"A regular member is one who has complied with all the membership
17 
requirements and entitled to all the rights and privileges of membership.


1 
An associate member is one who has no right to vote nor be voted upon and
2 
shali be entitied only to such rights and privileges as the bylaws may provide:
3 
Provided, That an associate who meets the minimum requirements of regular
4 
membership, continues to patronize the cooperative for two (2) years, and
5 
signifies his/her intention to remain a member shall be considered a regular
6 
member. PROVIDED, FURTHER THAT, MAJORITY OF ALL MEMBERS,
7 
WHETHER REGULAR OR ASSOCIATE, SHALL BE FILIPINO CITIZENS.
8 
XXX"
9 
Sec. 3. Article 73 of R.A. No. 6938, as amended by R.A. No. 9520, shall be
10 
amended to read as follows:
11 
"ART. 73. Limitation on Share Capital Holdings. - No member of primary
12 
cooperative other than cooperative itself shall own or hold more than [ten]
13 
FORTY per centum [(40%)] (40%) of the share capital of the cooperative.
14 
"Where a member of cooperative dies, his heir shall be entitled to the shares
15 
of the decedent: Provided, That the total shareholding of the heir does not
16 
exceed [tee] FORTY per centum [(10%)] (40%) of the share capital of the
17 
cooperative: Provided further. That the heir qualify and is admitted as
18 
members of the cooperative: Provided finaiiy. That where the heir fails to
19 
qualify as a member or where his total shareholding exceeds [tee] FORTY
20 
per centum [(10%)] (40%) of the share capital, the share or shares excess
21 
will revert to the cooperative upon payment to the heir of the value of such
22 
shares."
23 
Sec. 4. Repeaiing Ciause. - All laws, decrees, executive orders, issuances, or
24 
regulations inconsistent which the provisions of this Act are hereby revised or
25 
amended accordingly.
26 
Sec. 5. Separabiiity Clause. - If any part of this Act is declared unconstitutional
27 
or invalid, such parts or provisions thereof not so declared shall remain valid and
28 
subsisting.
29 
Sec. 6. Effectivity Clause. -This Act shall take effect fifteen (15) days after its
30 
publication in at least two (2) newspapers of general circulation.
Approved,