Source: http://attyatwork.com/republic-act-9520-philippine-cooperative-code-of-2008/
Timestamp: 2017-08-17 21:30:43
Document Index: 620475434

Matched Legal Cases: ['ART. 3', 'ART. 4', 'ART. 11', 'ART. 31', 'ART. 59', 'ART. 60', 'ART. 70', 'ART. 71', 'ART.76', 'ART.77', 'ART.78', 'ART. 79', 'ART. 84', 'ART. 108', 'ART. 118', 'ART. 121', 'ART. 125', 'ART. 128', 'ART. 142', 'ART.145', 'ART.146']

Republic Act 9520: Philippine Cooperative Code of 2008 – AttyAtWork.com
Republic Act 9520: Philippine Cooperative Code of 2008
[Refer to the full text of Republic Act No. 9520, also known as the Philippine Cooperative Code of 2008, which amended Republic Act 6938. See also An Introduction to Cooperatives in the Philippines and Joint Rules and Regulations in Cooperative Taxation.]
ARTICLE 1. Title. – This Act shall be known as the “Philippine Cooperative Code of 2008“.
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 where necessary
ART. 3. General Concepts. – A cooperative is 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.
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 compensation or limited interest, if any, on capital subscribed and paid as a condition of membership. Members allocate surpluses for any or all of the following purposes: developing the cooperative by setting up reserves, part of which should at least be indivisible; benefitting members in proportion to their partonage of the cooperative’s business; and, supporting other activities approved by the 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.
(2) General Assembly shall mean the full membership of the cooperative duly assembled for the purpose of exercising all the rights and performing all the obligations pertaining to cooperatives, as provided by this Code, its articles of cooperation and bylaws: Provided, That for cooperatives with numerous and dispersed membership, the general assembly may be composed of delegates elected by each sector,chapter or district of the cooperative in accordance with the rules and regulations of the Cooperative Development Authority;
(10) Representative Assembly means the full membership of a body of representatives elected by each of the sectors, chapter or district of the cooperative duly assembled for the purpose of exercising such powers lawfully delegated unto them by the general assembly in accordance with its bylaws;
(16) Subsidiary Cooperative refers to three or more primary cooperatives, doing the same line of business, organized at the municipal, provincial, city, special metropolitan political subdivision, or economic zones created by law, registered with the Authority to undertake business activities in support of its member-cooperatives.”
(10) To coordinate and facilitate the activities of cooperatives;
ART. 11. Economic Survey. – Every group of individuals or cooperatives intending to form a cooperative under this Code shall submit to the Authority a general statement describing, among others the structure and purposes of the proposed cooperative: Provided, That the structure and actual staffing pattern of the cooperative shall include a bookkeeper; Provided, further, That they shall not be allowed to operate without the necessary personnel and shall also submit an economic survey, indicating therein the area of operation, the size of membership, and other pertinent data in a format provided by the Authority.
(e) The names, nationality, and the postal addresses of the registrants;p>
(5) No cooperative, other than a cooperative union as described under Article 25 hereof, shall be registered unless the articles of cooperation is accompanied with the bonds of the accountable officers and a sworn statements of the treasurer elected by the subscribers showing that at least twenty-five per centum (25%) of the authorized share capital has been subscribed and at least twenty-five per centumProvided, That in no case shall the paid-up share capital be less than Fifteen thousand pesos (P15,000.00). (25%) of the total subscription has been paid:
The Authority shall periodically assess the required paid-up share capital and may increase it every five (5) years when necessary upon consultation with the cooperative sector and the National Economic and Development Authority (NEDA).
(3) The surviving or the consolidated cooperative shall possess all the assets, rights, privileges, immunities and franchises of each of the constituent cooperatives;
(b) Consumers Cooperative is one of the primary purpose of which is to procure and distribute commodities to members and non-members;
Cooperative unions may assist the national and local governments in the latter’s development activities in their respective jurisdictions.”
ART. 31. Refund of Interests. – All sums computed in accordance with the bylaws to be due from a cooperative to a former member shall be paid to him either by the cooperative or by the approved transferee, as the case may be, in accordance with this Code.”
(2) The death or insanity of a member in a primary cooperative, and the insolvency or dissolution of a member in a secondary or tertiary cooperative may be considered valid grounds for termination of membership: Provided, That in case of death or insanity of an agrarian reform beneficiary-member of a cooperative, the next-of-kin may assume the duties and responsibilities of the original member.
Where any of the first two conditions set forth in the preceding paragraph is absent, in the case of a contract with a director, such contract may be ratified by a three-fourths (3/4) vote of all the members with voting rights, present and constituting a quorum in a meeting called for the purpose: Provided, That full disclosure of the adverse interest of the directors involved is made at such meeting, and that the contract is fair and reasonable under the circumstances.
(3) The term “employer” as used in this article shall include all private firms and the national and local governments and government-owned or controlled corporations who have under their employer a member of a cooperative and have agreed to carry out the terms of the instrument mentioned in paragraphs (1) and (2) of this article.
ART. 59. Primary Lien. – Notwithstanding the provision of any law with the contrary, a cooperative shall have primary lien upon the capital, deposits or interest of a member for any debt due to the cooperative from such a member.
ART. 60. Tax Treatment of Cooperative. – Duly registered cooperatives under this Code which do not transact any business with non-members or the general public shall not be subject to any taxes and fees imposed under the internal revenue laws and other tax laws. Cooperatives not falling under this article shall be governed by the succeeding section.
(a) Income Tax – On the amount allocated for interest on capitals: Provided, That the same tax is not consequently imposed on interest individually received by members: Provided, further, That cooperatives regardless of classification, are exempt income tax from the date of registration with the Authority;
The Authority, in consultation with the appropriate government agencies and concerned cooperative sector, shall issue rules and regulations on all matters concerning housing cooperatives.”
Nothing in this Article, however, precludes creditors from seeking protection from said insolvency law.”
ART. 70. Rules and Regulations on Liquidation. – The Authority shall issue the appropriate implementing guidelines for the liquidation of cooperatives.”
ART. 71. Capital. – The capitalization of cooperatives and the accounting procedures shall be governed by the provisions of this Code and the regulations which shall be issued.
ART.76. Shares.- The term “share” refers to a unit of capital in a primary cooperative the par value of which may be fixed to any figure not more than One thousand pesos (P1,000.00). The share of capital of a cooperative is the money paid or required to be paid for the operations of the cooperative. The method for the issuance of share certificates shall prescribed in its bylaws.
ART.77. Fines. – The bylaws of a cooperative may prescribe a fine on unpaid subscribed share capital. Provided, that such fine is fair and reasonable under the circumstances.
ART.78. Investment of Capital. – A cooperative may invest its capital in any of the following:
ART. 79. Revolving Capital. – The general assembly of any cooperative may authorize the board of directors to raise a revolving capital to strengthen its capital structure by deferring the payment of patronage refunds and interest on share capital or by the authorized deduction of a percentage from the proceeds of products sold or services rendered, or per unit of product or services handled. The board of directors shall issue revolving capital certificates with serial number, name, amount, and rate of interest to be paid and shall distinctly set forth the time of retirement of such certificates and the amounts to be returned.”
ART. 84. Safety of Records. – Every cooperative shall, at its principal office, keep and carefully preserve the records required by this Code to be prepared and maintained. It shall take all necessary precaution to prevent its loss, destruction or falsification.”
(d) If within any period of time specified in the bylaws, any subscriber who has not fully paid his subscribed share capital or any non-member patron who has accumulated the sum necessary for membership but who does not request nor agree to become a member or fails to comply with the provisions of the bylaws for admission to membership, the amount so accumulated or credited to their account together with any part of the general fund for nonmember patrons shall be credited to the reserve fund or to the education and training fund of the cooperative, at the option of the cooperative.”
The Authority, in consultation with the concerned government agencies and cooperative sector, shall issue appropriate rules and regulations pertaining to the provisions of this Chapter.”
The BSP and the Authority, in consultation with the concerned cooperative sector, shall issue appropriate rules and regulations pertaining to the provisions of this Chapter.”
ART. 108. Implementing Rules. – The Insurance Commission and the Authority, in consultation with the concerned cooperative sector, shall issue the appropriate rules and regulations implementing the provisions of this Chapter.”
(1) Interlending of surplus fund;”(2) Mutual benefits;”(3) Deposit guarantee;”(4) Bonding;”(5) Education and training;”(6) Professional and technical assistance;”(7) Research and development;”(8) Representation; and “(9) Other services needed to improve their performance.
Existing support organizations such as federations of credit cooperatives, credit cooperatives at the provincial, regional and national levels may continue as such under this Code.”
ART. 118. Conversion of Credit Cooperatives to Financial Service Cooperatives. – Existing credit and multipurpose cooperatives with savings and credit facilities shall formally inform the Authority of its intention to continue performing its present functions. Should the said cooperatives decide to exercise enhanced functions, it shall notify the Authority and satisfy the requirements for conversion to financial service cooperative.”
(a) The functions of credit cooperatives and other cooperatives, including multipurpose cooperatives, that provide savings and credit to their members, and”(b) Other financial services subject to regulation by the BSP.
>ART. 121. Regulation and Supervision. – The Authority shall exercise lead regulatory powers and supervision over the operations of the financial service cooperatives, to wit:
(d) Establish a savings guarantee system for the protection of their affiliates’ member-depositors within three (3) years from the approval of this Code;
ART. 125. Prohibition. – The terms credit cooperative, financial service cooperative and financial service cooperative federation shall be used exclusively by those who are duly registered under this Code, and no person, group of persons, or organizations shall use the said terms unless duly registered with the Authority. Violations of this prohibition shall be punishable in accordance with Article 140 of this Code.”
>ART. 128. Voting Requirement for Registration. – In compliance with the referendum as a voting procedure, the required number of votes for registration with the Authority shall be twenty percent (20%) of all members in good standing.
The Authority, in consultation with the concerned cooperative sector, shall issue appropriate rules and regulations pertaining to the provisions of this Chapter.”
For this purpose, the Authority shall constitute a list of qualified voluntary arbitrators.”
The annual appropriate for the oversight committee shall be charged to the budget of both Houses of Congress in the General Appropriations Act (GAA).”
ART. 142. Interpretation and Construction. – In case of doubt as to the meaning of any provision of his Code or the regulations issued in pursuance thereof, the same shall be resolved liberally in favor of the cooperatives and their members.
ART.145. Separabilty Clause. – Should any part of this code be declared unconstitutional, the validity of remaining provision hereof shall remain in full and effect.
ART.146. Effectivity Clause. – This code shall take effect fifteen (15) days from its publication in a newspaper of general circulation.
Approved:>
House of Represenattives
Posted in Business & Corporate and tagged Cooperative Code of the Philippines, cooperatives, Philippine Cooperative Code of 2008, Republic Act No. 6938, Republic Act No. 9520 on April 9, 2009 by Atty. Fred.Leave a comment
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