Concepts and Types of Cooperatives

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A Lecture for PMES …

A Lecture for PMES
Cooperative Development Authority
Dagupan Extension Office

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  • 1. "ART. 3. General Concepts. - A cooperative is anautonomous and duly registered association ofpersons, with a common bond of interest, whohave voluntarily joined together to achieve theirsocial, economic, and cultural needs andaspirations by making equitable contributions tothe capital required, patronizing their productsand services and accepting a fair share of the risksand benefits of the undertaking in accordancewith universally accepted cooperative principles. "ART. 3. RA 9520
  • 2. ART. 23. Type and Categories of Cooperatives. – (1) Types of Cooperatives – Cooperatives may fall under any of the following types:Tubao Credit Cooperative "(a) Credit Cooperative is one that promotes and undertakes savings and lending services among its members. It generates a common pool of funds in order to provide financial assistance to its members for productive and provident purposes;
  • 3. "(b) Consumers Cooperative is one ofthe primary purpose of which is toprocure and distribute commoditiesto members and non-members
  • 4. "(c) Producers Cooperative is one thatundertakes joint production whetheragricultural or industrial. It is formed andoperated by its members to undertake theproduction and processing of rawmaterials or goods produced by itsmembers into finished or processedproducts for sale by the cooperative to itsmembers and non-members. Any endproduct or its derivative arising from theraw materials produced by its members,sold in the name and for the account ofthe cooperative, shall be deemed aproduct of the cooperative and itsmembers;cralaw
  • 5. d) MarketingCooperative is onewhich engages in thesupply of productioninputs to membersand markets theirproducts
  • 6. "(e) Service Cooperative is onewhich engages in medical anddental care, hospitalization,transportation, insurance, housing,labor, electric light and power,communication, professional andother services; Community Health & Development Cooperative Hospital (CHDCH) |
  • 7. "(f) Multipurpose Cooperative isone which combines two (2) ormore of the business activities ofthese different types ofcooperatives;
  • 8. "(g) Advocacy Cooperative is aprimary cooperative whichpromotes and advocatescooperativism among its membersand the public through socially-oriented projects, education andtraining, research andcommunication, and other similaractivities to reach out to itsintended beneficiaries;
  • 9. Agrarian ReformCooperative is one organizedby marginal farmers majority of which areagrarian reform beneficiaries for the purposeof developing an appropriate system of landtenure, land development, land consolidationor land management in areas covered byagrarian reform
  • 10. i) Cooperative Bank is oneorganized for the primarypurpose of providing a widerange of financial services tocooperatives and theirmembers;
  • 11. j) Dairy Cooperative is onewhose members are engagedin the production of fresh milkwhich may be processedand/or marketed as dairy produced by the Federation of Davao Dairyproducts;
  • 12. "(k) Education Cooperative is oneorganized for the primary purposeof owning and operating licensededucational institutionsnotwithstanding the provisions ofRepublic Act No. 9155, otherwiseknown as the Governance of BasicEducation Act of 2001; Cebu City Community School
  • 13. "(l) Electric Cooperative is oneorganized for the primarypurposed of undertaking powergenerations, utilizing renewableenergy sources, including hybridsystems, acquisition and operationof subtransmission or distributionto its household members;
  • 14. Financial Service"(m)Cooperative is one organized for theprimary purpose of engaging in savings andcredit services and other financial services;
  • 15. "(n)Fishermen Cooperative is oneorganized by marginalized fishermen in localities whose productsare marketed either as fresh or processed products;
  • 16. Health Services"(o)Cooperative is one organizedfor the primary purpose of providing medical,dental and other health services;
  • 17. Housing"(p)Cooperative is one organized toassist or provide access to housing for the benefit ofits regular members who actively participate in thesavings program for housing. It is co-owned andcontrolled by its members;
  • 18. "(q)Insurance Cooperative isone engaged in the business of insuring lifeand poverty of cooperatives and theirmembers;
  • 19. Transport"(r) Biliran Philippines Transport CooperativeCooperative is one whichincludes land and sea transportation, limitedto small vessels, as defined or classified underthe Philippine maritime laws, organized underthe provisions of this Code; Negros Air Transport Cooperative Transport Workers Alliance The Caticlan Boracay Services Cooperative Transport Multi-Purpose Cooperative
  • 20. Water Service"(s)Cooperative is one organized toown, operate and manage waters systems forthe provision and distribution of potable waterfor its members and their households;
  • 21. Workers Cooperative"(t) is oneorganized by workers, including the self-employed,who are at same time the members and owners of theenterprise. Its principal purpose is to provideemployment and business opportunities to itsmembers and manage it in accordance withcooperative principles
  • 22. Other types of"(u)cooperative asmay be determined bythe Authority.
  • 23. Reference: RA 9520 www.cda.gov.ph