Philippine Cooperative Code of 2008 (Republic Act No. 9520) Vocabulary

Vocabulary terms and definitions established under Republic Act No. 9520, the Philippine Cooperative Code of 2008.

Philippine Cooperative Code of 2008

The law, enacted under Republic Act No. 9520 on February 17, 2009, amending Republic Act No. 6938 to govern the creation, operation, regulation, and growth of cooperatives in the Philippines.

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.

Principle of Subsidiarity

The principle recognized by the State under which the cooperative sector initiates and regulates within its own ranks the promotion, organization, training, research, audit, and support services relative to cooperatives, with government assistance where necessary.

Member

A person, either natural or juridical, who, adhering to the principles set forth in the Code and in the Articles of Cooperation, has been admitted by the cooperative as a member.

General Assembly

The full membership of the cooperative duly assembled for the purpose of exercising all the rights and performing all the obligations pertaining to cooperatives, representing the highest policy-making body of the cooperative.

Board of Directors

That body entrusted with the management of the affairs of the cooperative under its articles of cooperation and bylaws, responsible for strategic planning, direction-setting, and policy-formulation activities.

Committee

Any body entrusted with specific functions and responsibilities under the bylaws or resolution of the general assembly or the board of directors.

Articles of Cooperation

The articles of cooperation registered under Republic Act No. 9520, including a registered amendment thereof.

Bylaws

The bylaws registered under Republic Act No. 9520, including any registered amendment thereof.

Registration

The operative act granting juridical personality to a proposed cooperative, as evidenced by a certificate of registration issued by the Authority.

Cooperative Development Authority (Authority)

The government agency in charge of the registration and regulation of cooperatives in the Philippines.

Representative Assembly

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 powers lawfully delegated unto them by the general assembly in accordance with its bylaws.

Officers of the Cooperative

Includes members of the board of directors, members of different committees created by the general assembly, general manager or chief executive officer, secretary, treasurer, and members holding other positions provided in their bylaws.

Social Audit

A procedure wherein the cooperative assesses its social impact and ethical performance vis-a-vis its stated mission, vision, goals, and code of social responsibility for cooperatives established by the Authority in consultation with the cooperative sector.

Performance Audit

An audit on the efficiency and effectiveness of the cooperative as a whole, its management and officers, and its various responsibility centers as a basis for improving performance and informing the general membership.

Single-Line or Single-Purpose Cooperative

A cooperative undertaking activities which are related to its main line of business or purpose.

Service Cooperatives

Cooperatives which engage in providing medical and dental care, hospitalization, transportation, insurance, housing, labor, electric light and power, communication, professional, and other services to their members.

Subsidiary Cooperative

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.

Credit Cooperative

A financial organization owned and operated by its members that promotes and undertakes savings and lending services to generate a common pool of funds for productive and provident purposes.

Consumers Cooperative

A cooperative the primary purpose of which is to procure and distribute commodities to members and non-members.

Producers Cooperative

A cooperative that undertakes joint production (agricultural or industrial) and is operated by its members to process raw materials or goods into finished products for sale by the cooperative.

Marketing Cooperative

A cooperative which engages in the supply of production inputs to members and markets their products.

Multipurpose Cooperative

A cooperative which combines two (2) or more of the business activities of different types of cooperatives.

Advocacy Cooperative

A primary cooperative which promotes and advocates cooperativism among its members and the public through socially oriented projects, education and training, research, and communication.

Agrarian Reform Cooperative

A cooperative organized by marginal farmers, majority of which are agrarian reform beneficiaries, for the purpose of developing an appropriate system of land tenure, land development, land consolidation, or land management in areas covered by agrarian reform.

Cooperative Bank

A bank organized under the Code for the primary purpose of providing a wide range of financial services to cooperatives and their members, supervised by the Bangko Sentral ng Pilipinas (BSP).

Dairy Cooperative

A cooperative whose members are engaged in the production of fresh milk which may be processed and/or marketed as dairy products.

Education Cooperative

A cooperative organized for the primary purpose of owning and operating licensed educational institutions.

Electric Cooperative

A cooperative organized for the primary purpose of undertaking power generation utilizing renewable energy sources, including hybrid systems, and the acquisition and operation of subtransmission or distribution to its household members.

Financial Service Cooperative

A financial organization owned and operated by its members authorized to provide savings and credit functions exclusively to its members, alongside other financial services regulated by the Bangko Sentral ng Pilipinas (BSP).

Housing Cooperative

A cooperative organized to assist or provide access to housing for the benefit of its regular members who actively participate in the savings program for housing.

Insurance Cooperative

A cooperative engaged in the business of insuring the life and property of cooperatives and their members.

Transport Cooperative

A cooperative including land and sea transportation, limited to small vessels as defined under Philippine maritime laws, organized under the provisions of the Code.

Water Service Cooperative

A cooperative organized to own, operate, and manage water systems for the provision and distribution of potable water for its members and their households.

Workers Cooperative

A cooperative organized by workers, including the self-employed, who are at the same time the members and owners of the enterprise, with the principal purpose of providing employment and business opportunities.

Primary Cooperative

A category of cooperative whose members are natural persons.

Secondary Cooperative

A category of cooperative whose members are primary cooperatives.

Tertiary Cooperative

A category of cooperative whose members are secondary cooperatives.

Federation of Cooperatives

An organization of registered cooperatives formed according to business activity to complement, augment, or supplement member activities, carry on educational work, render advisory and bookkeeping services, or enter into joint ventures.

Cooperative Unions

Non-business organizations formed by registered cooperatives and federations to represent member interests, analyze and disseminate information, sponsor studies, and promote cooperative principles across jurisdictions.

Regular Member

A cooperative member who has complied with all membership requirements and is entitled to all the rights and privileges of membership.

Associate Member

A member who has no right to vote nor be voted upon and is entitled only to such rights and privileges as the bylaws may provide.

Laboratory Cooperative

A cooperative organized by minors, affiliated with a registered cooperative, and governed by special guidelines promulgated by the Authority.

Pre-Membership Education Seminar (PMES)

A seminar required to be completed by a prospective natural person before organizing or joining a primary cooperative.

Net Surplus

The excess of payments made by members for loans, goods, or services availed from the cooperative, or the difference of rightful amounts due to members, which is not construed as profit but returned to members as prescribed by the Code.

Cooperative Estate

Landholdings such as plantations, estates, or haciendas acquired by the State for the benefit of worker-beneficiaries under CARP, which are collectively owned by worker-beneficiaries under a cooperative set-up.

Public Service Cooperative

A cooperative organized to render public services (such as power, transportation, communications, ice plants, or markets) under a franchise or certificate of public convenience and necessity issued by the appropriate government agency.

Joint Congressional Oversight Committee on Cooperative (JCOCC)

A body created under Article 138 composed of the Chairmen of the Senate and House Committees on Cooperatives plus four members each from both Houses, tasked to review/approve the IRR and monitor the proper implementation of the Code.