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Frequently Asked Questions on Cooperative Development Authority
A cooperative is an association of persons who voluntarily join together for economic, social, or educational purposes.
Yes, the different types of cooperatives include:
Credit Cooperative: Promotes savings among members and provides loans for productivity.
Consumer Cooperative: Procures and distributes commodities to members and non-members.
Producers Cooperative: Engages in joint agricultural or industrial production.
Service Cooperative: Provides services such as medical care, housing, transportation, insurance, and more.
Multi-Purpose Cooperative: Combines two or more business activities from other types of cooperatives.
Cooperatives are categorized based on
Membership and territory:
Primary: Members are natural persons.
Secondary: Members are primary cooperatives.
Tertiary: Members are secondary cooperatives.
Territory Categories: Cooperatives can be categorized according to their area of operation, which may or may not align with political subdivisions.
Cooperatives enjoy several privileges, including:
Free deposit of sealed cash boxes, documents, or valuable papers in public safes.
Preferential rights to supply government institutions with agricultural products and services.
Preferential treatment in fertilizer allocation and rice distribution.
Priority in the management and leasing of public market spaces.
Government employee cooperatives can use available space in their agencies for free.
Meanwhile, credit cooperatives are entitled to loans, credit lines, and rediscounting of loan notes with the Development Bank of the Philippines (DBP), the Philippine National Bank (PNB), and other institutions (except the Central Bank).
At least 15 persons are required to organize and register a cooperative. These individuals must share a common bond of interest.
Organizers must be Filipino citizens and either residents or employees in the area where the cooperative will operate.
Yes, minors can organize a cooperative. However, cooperatives organized by minors are considered laboratory cooperatives and must be affiliated with a registered cooperative. They are governed by special guidelines from the Cooperative Development Authority (CDA).
Authorized capital share refers to the money paid or required to be paid for a cooperative's operations.
A cooperative's capital can come from:
Members' share capital
Loans and borrowings, including deposits
Revolving capital (deferred payment of patronage refunds or interests on share capital)
Subsidies, donations, grants, and assistance from local or foreign institutions
Yes, cooperatives must maintain the following records at their main office:
A copy of the cooperative laws, regulations, and articles of cooperation
A register of members
Minutes of general assemblies, board meetings, and committee meetings
Share books (if applicable)
Financial statements
Other documents as prescribed by law or the by-laws
Failure to submit an annual report can lead to the revocation of the cooperative’s Certificate of Registration or authority to operate.
A cooperative has two types of members:
Regular Member: A person who has fulfilled all membership requirements and is entitled to the full rights and privileges of membership, as defined in the Cooperative Code and the cooperative's by-laws.
Associate Member: A person who has no voting rights and cannot run for a position. Their rights and privileges are limited to those specified by the cooperative’s by-laws.
An applicant becomes a member when the board of directors approves their application. They can exercise their rights once they fulfill any payment obligations due to the cooperative.
Yes, membership can be terminated either voluntarily or involuntarily if the member fails to comply with the cooperative's rules and regulations.
Yes, minors can become members, but only in laboratory cooperatives. These cooperatives are designed as training grounds for future membership in regular cooperatives and must be affiliated with a registered cooperative.
You can register your cooperative at the Cooperative Development Authority (CDA) main office in Quezon City. Regional applications can be submitted to the CDA's extension offices located around the country.
CDA registration does not require renewal. However, cooperatives must submit annual status reports as part of their ongoing compliance.