The revised implementing rules and regulations of the Philippine Cooperative Code of 2008 (RA 9520) highlight several key changes, including redefining certain terms, restricting the registration of multipurpose cooperatives, restructuring training requirements for cooperative officers, simplifying reporting requirements, and clarifying the roles of partner agencies in cooperative registration and regulation. The revisions also address subsidiary cooperatives, representative assemblies, mergers and consolidations, and capitalization and accounting procedures.

1. SALIENT POINTS IN THE REVISED
IMPLEMENTING RULES AND
REGULATIONS OF R.A. 9520
CDA Dagupan Extension
Office

2. NOTE: Those words and
phrases highlighted in orange are
the changes effected by the IRR
CDA Dagupan Extension
Office

3. • The Cooperative Development Authority scored a
landmark victory with the signing of the Revised Rules
and Regulations Implementing Certain and Special
Provisions (IRR) of the Philippine Cooperative Code of
2008, otherwise known as R.A. 9520, on March 18, 2015
by Senator Manuel M. Lapid, Chair, Senate Committee on
Cooperatives, and Cong. Cresente C. Paez, Chair, House
Committee on Cooperatives, at the Legend Hotel, Manila.

4. • After almost three years of rigorous work on the
amendments of the Cooperative Law that started in
the last quarter of 2012 marked by numerous
consultations with the cooperative sector, different
government agencies, the Congress and Senate, the
law is finally approved and set for implementation
fifteen (15) days after its publication in the Official
Gazette or in a newspaper of general circulation.
•

5. Among the highlights of the amendments of the proposed IRR are as follows:
• Inclusion of new terms defined including the re-definition and
enhancement of terms as used in the IRR;
• Re-structuring the relationship between the subsidiary
cooperative and its parent cooperative;
• Restrictive approach to the registration of Multipurpose
cooperative;
• Re-engineering the concept of laboratory cooperative and its
relationship with its guardian cooperative;
• Re-packaging the training requirements for officers of the
cooperative as defined in RA 9520;
• Simplifying the reportorial requirements for cooperatives and
rationalizing the reports submitted to CDA;
• Re-polishing the guidelines on Voluntary Arbitration;
• Simplifying and clarifying the roles of partner agencies in the
registration and regulation of cooperatives i.e. electric
cooperatives, insurance cooperatives, transport service
cooperatives;

6. INTEREST ON SHARE CAPITAL
Interest earned by the members’ paid-up capital
computed by multiplying the rate of interest on
share capital by member’s average shares.
rate of interest on share capital is computed
by dividing the amount allocated for the total
interest on share capital by the monthly average
share. (total average share month)
Definition of Terms:

7. REVOLVING CAPITAL
•Amount constituting the patronage refund and
interest on share capital of the members, the
payment of which has been deferred by the
cooperative.
•Corresponding revolving capital certificate shall be
issued to the members.

8. COOPERATIVE BANK
•A cooperative organized primarily to provide a wide
range of financial services to cooperatives and their
members.

9. INSURANCE-LIKE ACTIVITY
•refers to any activity involving regular collection of
premiums, fees, contributions, or charges prior to the
occurrence of a contingent event and the payment of
guaranteed benefits upon the occurrence of such
event.
•The term excludes risk pooling practices such as
“damayan” or “abuloy’ system wherein an individual
or group of individuals voluntarily pledge and
contribute a certain amount of money to a fund and
the benefits are not pre-determined but are
contingent to amounts collected.

10. LABOR SERVICE COOPERATIVE
•refers to a cooperative that is engaged in
providing a specific labor, job, or service to a
principal under a contracting or subcontracting
arrangement as may be defined under existing
laws and in accordance with the cooperative
principles set forth under R.A. 9520

11. ELECTION DEPUTIES
•refers to members from each sector, chapter or
district duly elected during the general
assembly meeting approving the adoption of the
representative assembly who will conduct the
election of the sector, chapter or district.

12. SERVICE COOPERATIVE
•refers to those which provide any type of
service to its members, including but not
limited to, transport, information and
communication, insurance, housing, electric,
health services, education, banking and
savings and credit.

13. WORKERS COOPERATIVE
• organized by workers, including the self-
employed, who are at the same time the
members and owners of the enterprise.

14. RULE 1 - REPRESENTATIVE ASSEMBLY
• Applies to a cooperative with numerous and dispersed
membership opting to conduct its general assembly
meeting by way of representative assembly as provided for
under Art. 5 (2) and (10) of R.A. 9520
• Adoption of representative assembly shall be stipulated in
their by-laws.
• Number of the members of the cooperative shall be at
least one thousand (1000)

15. • Number of elected representatives of a sector,
chapter or district as provided in the by-laws and
shall be within the range of 1% to 10% of the total
number of the regular members entitled to vote in
the sector, chapter or district.
[which shall not be less than one hundred (100)
members.]
• The term of office of the Representative or Delegate
shall be provided in the by-laws. It shall not exceed
two (2) years, commencing on the first regular
representative assembly meeting

16. RULE 2 - SUBSIDIARY COOPERATIVE
A parent cooperative may organize a subsidiary
cooperative provided:
•It has a total net worth of at least Fifty Million Pesos
(50,000,000.00) as shown in its latest Audited Financial
Statement. (10,000,000.00)
•The dissolution of either cooperative shall not affect
the existence of the other.
•In case of dissolution of the parent cooperative, the
Subsidiary Cooperative shall subsequently amend its
cooperative name to remove the words “Subsidiary
Cooperative of (Name of Parent Cooperative)”.

17. RULE 3 - MULTI-PURPOSE COOPERATIVE
•No cooperative shall be registered as a multi-
purpose cooperative unless it has been in
operation for at least two (2) years.
(Any newly organized primary cooperative
may be registered as multi-purpose cooperative
only after compliance with the minimum
requirements for multi-purpose cooperatives to
be set by the Authority.)

18. RULE 4 - DIVISION OF COOPERATIVES
• In addition to the regular requirements for
registration of cooperatives, a written approval
or recommendation from the concerned
government agency, if applicable, shall be filed
with the Authority.

19. RULE 5 - PROCEDURE FOR MERGER OR CONSOLIDATION
• Duly approved board resolution of each constituent
cooperatives to enter into merger or consolidation;
• Calling of a General/Representative Assembly to
present and approve the Proposal and Plan of Merger
or Consolidation of each constituent cooperative an the
Amendment/New Articles of Cooperation and By-laws;
• Execution of a Memorandum of Understanding to
Merge or Consolidate, stating the creation of a joint
committee to formulate the plan and proposal to merge
or consolidate.

20. RULE 7 - FUNCTIONS, RESPONSIBILITIES AND TRAINING REQUIREMENTS OF
DIRECTORS, OFFICERS AND COMMITTEE MEMBERS
TRAINING REQUIREMENTS OF COOP OFFICERS
• All officers of the cooperative are required to undergo a
minimum of sixteen (16) hours of training on the fundamentals of
cooperatives AND another sixteen (16) hours on governance and
management of coops within the first half of their term.
• Wilful failure of any officer/s of a coop to undergo the prescribed
trainings shall disqualify said officers to hold any elective or
appointive position.
• Wilful failure of the coop to comply with the training requirements
despite due notice from the Authority shall be a ground for non-
issuance of Certificate of Compliance for the next succeeding year.

21. RULE 7 - FUNCTIONS, RESPONSIBILITIES AND TRAINING REQUIREMENTS
OF DIRECTORS, OFFICERS AND COMMITTEE MEMBERS
TRAINING REQUIREMENTS OF THE OFFICERS OF
Micro Cooperatives
• The officers are only required to undergo sixteen
(16) hours of training on the fundamentals,
governance and management of cooperatives.
The content of the training program shall be
prescribed by the Authority in consultation with
the accredited training providers.
(mandatory 14 courses)

22. RULE 7 - FUNCTIONS, RESPONSIBILITIES AND TRAINING
REQUIREMENTS OF DIRECTORS, OFFICERS AND COMMITTEE MEMBERS
TRAINING REQUIREMENTS OF THE OFFICERS OF Cooperatives engaged in
Savings and Credit Operations
The officers shall be required to undertake
additional sixteen (16) hours of specialized training on
financial management, risk management and credit
management provided that these cooperatives have at least
Five Million Pesos (P5,000,000.00) worth of a deposit liabilities
based on the latest audited financial statement of the
cooperative.

23. RULE 8 - REPORTS REQUIRED FOR COOPERATIVES
• Submit annual Cooperative Annual Progress Report (CAPR)
with the following attachments:
* Social Audit Report (SAR);
* Performance Audit Report (PAR), including
copies of the semi-annual report on mediation
and conciliation;
* Audited Financial Statement (AFS); and
* List of Officers and Trainings Undertaken/Completed.
o CAPR including all of the reports shall be part of the report
of the cooperative to its members during the annual
general assembly meeting.

24. RULE 8 - REPORTS REQUIRED FOR COOPERATIVES
• Cooperatives with assets of three million pesos
(P3,000,000.00) and below are exempted from
penalties. But shall not be issued a Certificate
of Compliance for non-submission of the
required reports.
• In addition to the CAPR and its attachments,
ELECTRIC COOPERATIVES are required to
submit List of Members issued with share
capital certificate

25. RULE 8 - REPORTS REQUIRED FOR COOPERATIVES
Sanction for Delayed Submission
• Failure to file the required regular reports with the
corresponding attachments on time shall subject the
Accountable Officers to a fine of one hundred pesos
(P100.00) per day of delay.
• Delay shall commence on the day following the last day
prescribed for filing the report.
• Partial compliance shall be considered non-compliance
and the coop shall be in delay until fully complied with.

26. RULE 10 - CAPITALIZATION AND ACCOUNTING
PROCEDURES OF COOPERATIVES
• Issuance of preferred share capital shall be prescribed in
the by-laws and it shall not exceed twenty five (25%) of the
total authorized capital of the cooperative.
• A Subscription Agreement shall be executed upon the
admission of a member in the coop and whenever additional
subscription is desired, it shall be made after the member has
fully paid his initial subscription.
• Share Certificates shall be issued by the cooperatives at the
end of every calendar year based on the number of shares fully
paid for the said period.

27. The implementation and effectivity of these IRR
shall be subject to the Memorandum Circulars
that may be issued by CDA, and any other
processes that may be required to be
undertaken)

28. The Board of Administrators
Cooperative Development Authority
NELON B. ALINDOGAN
Administrator
PENDATUN B. DISIMBAN
Administrator
MERCEDES D. CASTILLO
Administrator
EULOGIO T. CASTILLO, Ph.D.
Administrator – Officer-In-Charge

29. THANK YOU