BAF_73_-_II_COOPERATIVE-_STEPS_IN_FORMING_A_COOPERATIVE.pdf

STEPS IN FORMING A COOPERATI VE  Practical Knowledge: Understanding these steps provides you with the practical knowledge needed to start a cooperative, which can be invaluable in your future careers. Legal Compliance: Knowing the proper procedures ensures that you can fo...

STEPS IN FORMING A COOPERATI VE  Practical Knowledge: Understanding these steps provides you with the practical knowledge needed to start a cooperative, which can be invaluable in your future careers. Legal Compliance: Knowing the proper procedures ensures that you can form a cooperative that complies with legal requirements. Efficient Planning: Familiarity with these steps allows for more efficient planning and execution when forming a cooperative. Avoiding Pitfalls: By understanding the process, you can anticipate and avoid common pitfalls in cooperative formation.  Step 1: Individuals who are interested in forming a cooperative should organize themselves into a core group. The first activity of the core group is to Step 2: The core group will then conduct a pre- membership seminar. The core group can ask a cooperative specialist from the CDA to help conduct the seminar.  The Cooperative D e v e l opm e n t A u t h o r i t y What is (CDA) is the government agency responsible for the registering and regulating function cooperatives in the Philippines to be allowed to of CDA? operate legally in the country. History of the Cooperative Development Authority (CDA) Initiative for the development of cooperative started in 1941 with the National Cooperative Administration (NCA) The Word War II intervened in the operation of many cooperatives. After the WW2 was the creation of the Emergency Control Administration (ECA) History of the Cooperative Development Authority (CDA) The Cooperative Administration Office (CAO) was then established. Several measure was then inacted such as: - Agricultural Credit and Cooperative Financing Administration (ACCFA) - The Code of Agrarian Reform. History of the Cooperative Development Authority (CDA) During the martial law, Presidential Decree No. 1 abolished the CAO and organized the Bureau of Cooperative Development. The creation of the Bureau of Cooperative Development during martial law and the subsequent reforms after the People Power Revolution in 1986.  History of the Cooperative Development Authority (CDA) The Bureau of Agricultural Cooperatives Development (BACOD) was created in 1987 under Executive Order No. 116. In 1988, Sen. Aquilino Q. Pimentel Jr., heeding the call of the sector sponsored and co-authored a bill to enact the Cooperative Code. The bill was passed and signed into law on March 10, 1990, Republic Act No. 6938 or the Cooperative Code of the Philippines and Republic Act No. 6939 CDA Charter.  Article XII of the Philippine Constitution (National Economy and Patrimony) States the creation of an agency to promote the viability and growth of cooperatives as instruments for social justice and economic development.  Promote the VIABILITY and GROWTH of a cooperative Instruments of EQUITY, SOCIAL JUSTICE and ECONOMIC DEVELOPMENT. In fulfillment of the mandate in Section 15, Article XII of the Constitution.  To ensure the safe and sound operations of cooperatives. It is a declared policy of the state to foster the creation and growth of cooperatives as a practical vehicle for promoting self reliance and harnessing people power towards the attainment of economic development and social justice.  An effective and efficient regulatory agency working towards the development of viable, sustainable, social responsive, and globally competitive cooperatives.  RA 6938: An act to ordain a Cooperative Code of the Philippines RA 6939: An Act creating the Cooperative Development Authority to promote the viability and growth of cooperatives as instruments of equity, social justice, and economic development RA 11364 an Act Reorganizing and strengthening the Cooperative Development Authority In pursuant to the mandate, CDA has the power and responsibility over the development, regulation, and adjudication of cooperatives. What specific powers do you think the CDA has regarding cooperatives? DEVELOPMENT REGISTRATIONS AND REGULATIONS ADJUDICATION Step 3: After the seminar, conduct your first general meeting. Things to accomplish during the meeting: - Have a final list of your members. - Agree on the type of cooperative that you will form, as well as the name of your cooperative. - Elect the members of the Board of Directors and members of the different committees. Step 4: The chairman, together with the Documentation Committee, will prepare the following documents needed in registering the cooperative. Economic survey (4 copies) Articles of Cooperation (4 copies, notarized) Bylaws of the Cooperative (4 copies) Surety bond of accountable officers Treasurer's Affidavit Approved Cooperative Name Reservation Slip Certificate of Pre-Membership Education Seminar What is Economic Survey? A statement describing the structure, purposes and economic feasibility of the proposed cooperative A Sample of Economic Survey What is Articles of Cooperation? A legal document signed by the organizers stating the name, goals and objectives, place of operation of the cooperative and others A Sample of Articles of Cooperatio n What is Bylaws of the Cooperative? The rules adopted by a cooperative for the management and regulation of its members and its activities  Bylaws of the Cooperative The Bylaws of each cooperative shall provide: 1. The qualifications for admission of membership, payments to be made and benefits of being a member; 2. The rights, responsibilities and obligations of each member; 3. The circumstances under which a member may be removed or terminated; and 4. The conditions under which the transfer of a share or interest of the members shall be allowed Bylaws of the Cooperative (c) Rules on agenda, place, manner of calling and quorum on meetings and elections (d) Powers and duties of the General Assembly, Board of Directors and other officers; their qualifications and disqualifications (e) Sources of funds (f) Custody and investment of net surplus (Who will handle the money earned and saved from the business activities of the cooperative, and where to invest it.) (g) Accounting and auditing systems (h) Manner of lending and borrowing of money (i) Distribution of net surplus (j) Adopting and amending bylaws (k) Settlement of disputes among members and officers (l) Other matters referring to the activities of the cooperative Step 5: Register your cooperative at the Cooperative Development Authority (CDA). You will pay a registration fee which shall not be less than P250.00, payable through money order. After evaluating the documents that you’ve submitted, the CDA will issue a certificate of registration to your cooperative. Five main steps in forming a cooperative. Let's recap: 1. Form a core group 2. Conduct a pre-membership seminar 3. Hold the first general meeting 4. Prepare documentation 5. Register with the CDA COOPER ATIVE PRINCIP LES The Co-operative principles are guidelines by which Co- operatives put their values into practice.  Self-help Self-responsibility Ethical values of honesty Democracy Openness Equality Social responsibility Equity and Caring for others Solidarity  1st Principle: Co-operatives are voluntary organizations Open to all persons who are: - able to use their services - willing to accept the responsibilities of membership - without gender, social, racial, political or religious discrimination.  2nd Principle: o Co-operatives are democratic organizations controlled by their members, who actively participate in setting their policies and making decisions. o Elected representatives are accountable to the membership. o In primary co-operatives, members have equal voting rights (one member - one vote) o Co-operatives at other levels are also organized in a democratic manner.  3rd Principle: o Members contribute to the capital through equity and democratically control o Limited compensation to equity. o Surpluses may be allocated: - as reserves to develop their Co-operative - to distribute Patronage - to any other activity approved by the members that benefits the members.  4th Principle o Co-operatives are autonomous, self-help organizations controlled by their members. o If co-operatives enter into agreements with other organizations, including governments, or raise capital from external sources, they should do so on terms that ensure democratic control by members and maintain their autonomy.  5th Principle o Co-operatives provide education and training for their members, elected representatives, managers and employees so that, they contribute effectively to the development of their Co-operatives. o Inform the general public - particularly the young people and opinion leaders - about the nature and benefit of Co-operation.  6th Principle o Co-operatives serve their members most effectively and strengthen the co-operative movement by working together through o Local. o National. o Regional and o International structures.  7th Principle o Co-operatives work for the sustainable development of their communities through policies approved by their members. 1st Principle: 2nd Principle: 3rd Principle: 4th Principle: 5th Principle: 6th Principle: 7th Principle: The Coooperative Principles are the foundation for understanding cooperatives and their functioning. These principles make co-operatives distinct from other organizations.