The Philippine Cooperative Code of 2008 Republic Act No 9520
The Philippine Cooperative Code of 2008 Republic Act No 9520
The Philippine Cooperative Code of 2008 Republic Act No 9520
Background
o Amended the Coop Code
The Philippine Cooperative promulgated in 1990;
o Discussed in four (4) Congresses
Code of 2008 (starting the 11th Congress up to the
(Republic Act No. 9520) 14th) spanning over ten (10) years;
Salient Features o Approved by the Bicameral Committee
on November 18,2008;
4th NATIONAL TRIPARTITE CONFERENCE o Signed into law last February 17,2009
The Republic Act No. 6938 The Republic Act No. 9520
o Exclusive use of registered names, to sue o Form subsidiary cooperatives and join
and be sued; federations and unions;
o Of succession; o Avail of loans, credits, grants, donations
o To amend its articles; from domestic and foreign sources;
o To adopt its bylaws not contrary to law, o Avail of preferential rights under RA7160;
morals or public policy o Organize and operate schools in
o Deal with real and personal property accordance with RA 9155
o Enter into division, merger or consolidation
o Kinds of Membership
1. Regular member one who has complied
with all the membership requirements and
o Functions should complement, augment entitled to all rights and privileges of
or supplement but does not conflict , membership.
compete with, nor supplant the business or 2. Associate member one who has no right to
vote or be voted upon and shall be
economic activities of its members.
entitled only to such rights and privileges
as the by laws may provide.
o Filed within 120 days from close of calendar year o Not subject to taxes and fees imposed
o Regular activities including socio-civic under NIRC and other tax laws for
undertakings
cooperatives transacting business with
o Must show their progress and achievements
members only
o The form and contents of the report shall be
prescribed by the rules of the Authority o Transactions with members are not subject
o Liability for non-submission is fines and other to taxes and fees, including final tax on
penalties imposable until the cooperative has members’ deposits and documentary tax
complied with the requirements
Capital Audit
o Subsidies, donations, legacies, grants, and
aids shall not be divided into individual o Financial audit conducted by external
share capital holdings anytime but subject auditor in good standing with PICPA and
to escheat proceedings upon dissolution accredited by Board of Accountancy and
o Limitation on share capital held by one CDA
member reduced from 20% to 10% o Social and performance audits may be
o Reasonable and realistic member capital conducted by an independent social
build-up program to allow the continuing auditor accredited by CDA
growth f the members’ investment in the
coop
o Based on the 7th Cooperative Principle – o At least10% of net surplus; however, in first 5
Concern for Community years after registration, this is not less than 50%
of the net surplus
o Defined as the systematic review and o Not for than 10% for CETF; half to be used by
appraisal of the cooperative in relation to the cooperative; other half is remitted to the
the development of its most essential federation/union chosen by the cooperative
building blocks-its members, its people, o Federation/ union should submit: (a) list of
contributing cooperatives; business
and its distinctive contribution to the consultancy assistance with nature and cost;
development of its community and society and (c) training activities specifying the
as a whole. nature, participants, and cost
Other Provisions