HECO (finals) - COOPERATIVES

Cooperatives

An autonomous association of persons united voluntarily to meet economic, social, and cultural needs and aspiration through a jointly-owned and democratically-controlled enterprise

Business nature of Cooperatives

Business organization owned and operated by a group of individuals for their mutual benefits

Rochdale Pioneers

A group of 28 weavers and artisan in Rochdale, formed in 1844

Goal of Rochdale Pioneers

To open their own store selling food items they could not afford due to poverty from the Industrial Revolution

Capital of Rochdale Pioneers

One pound sterling per person for a total of 28 pounds

Opening Date of Rochdale Pioneers

December 21, 1844

Initial Goods of Rochdale Pioneers

Butter, sugar, flour, oatmeal and candles

Robert Owen (1771-1858)

"Father of the Cooperative Movement." and helped found the first British trade union

The New Moral World

The book Robert Owen wrote

Claude Henri de Rouvroy, Saint-Simon (1760-1825)

One of the founders of modern socialism

Louis Blanc (1811-1882)

Principle: "From each according to his abilities, for each according to his needs."

Social Workshops

Louis Blanc proposed this and was financed by the state but controlled by workers

Charles Fourier (1772-1837)

Developed "Fourierism", based on a universal principle of harmony in the material universe, organic life, animal life, and human society

Philippine Cooperative Code of 2008

Other term for "The Governing Law: Republic Act No. 9520"

Republic Act No. 6938

This is the previous law prior to RA 9520

Purpose of RA 9520

To foster creation and growth of cooperatives as a practical vehicle for promoting self-reliance and harnessing people power

Voluntary and Open Membership

Available to all regardless of background

Democratic Member Control

One-member, one-vote in primary cooperatives

Member Economic Participation

Members contribute equitably to capital and receive limited interest

Autonomy and Independence

Self-help organizations controlled by members

Cooperation among Cooperatives

Working together through local to international structures

Cooperative Education

Providing education for members, officers, and the public

Concern for Community

Working for sustainable development (a new provision)

Credit Cooperative

Promotes savings and lending services, provides financial assistance for productive purposes

Consumers Cooperative

Procures and distributes commodities to members and non-members

Producers Cooperative

Undertakes joint production (agricultural or industrial) and processing of raw materials

Marketing Cooperative

Supplies production inputs to members and markets their products

Service Cooperative

Engages in medical/dental care, transportation, insurance, housing, labor, power, etc.

Multipurpose Cooperative

Combines two or more business activities of different cooperative types

Advocacy Cooperative

Promotes cooperativisim through socially-oriented projects, education, and training

Agrarian Reform Cooperative

Organized by marginal farmers/beneficiaries for land tenure and development

Other Specialized Cooperative Types

Cooperative Bank, Dairy, Education, Electric, Financial Service, Fishermen, Health Services, Housing, Insurance, Transport, Water Service, and Workers Cooperatives

Primary Membership

Members are natural persons

Secondary Membership

Members are primaries

Tertiary Membership

Members are secondary cooperatives

Regular Members

Entitled to all rights, including the right to vote and be voted upon

Associate Members

No right to vote or be voted upon.

Associate to Regular Members process

- Have been a member for 2 continuous years

- Patronize the cooperative

- Signify intention to become regular

Liability of a Member

Liable for debts only to the extent of their contribution to share capital

Term of Existence of a Member

Not exceeding 50 years from registration unless extended

5 years

Extensions cannot be made earlier than ___ prior to expiry

Articles of Cooperation

Must include the name, purpose, term, are of operation, registrants, common bond, and directors

Success Factors

Equal treatment of members, pooling of resources, full cooperation, and active patronizing of resources