Published — January 8, 2021
The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of your own lawyer to address your legal concerns, if any.
Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
A cooperative is eligible to register as BMBE, read more here: REGISTER AS BMBE AND ENJOY THE PERKS
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A cooperative is an association of persons with common bond of interest
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A cooperative is based on volunteerism
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Cooperatives enjoy privileges under the law
Money at the service of life can be managed in the right way by cooperatives, on the condition that it is a real cooperative where capital does not have command over men but men over capital. – Pope Francis
What is a cooperative?
The law says:
A cooperative is an autonomous and duly registered association of persons with 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.
As defined above, cooperative is an association of persons. These persons have common bond of interest. Their interest may have something to do with their social, economic, or cultural needs. Take note that the organization or the formation of a cooperative is based on their shared or common interest. This interest is what makes a member voluntarily join such cooperative. This interest is what makes the cooperative exists, otherwise, there is no cooperative to speak of.
In a cooperative, members patronize their own products and/or services. Also, the members of the cooperatives agree to make a fair contribution to the required capital.
What are the privileges that may be enjoyed by cooperatives?
The law says:
Among the common privileges that may be enjoyed by the cooperatives are the following:
- The privilege of depositing their sealed cash boxes or containers, documents or any valuable papers in the safes of the municipal or city treasurers and other government offices free of charge.
- Cooperatives organized among government employees enjoy the free use of any available space in their agency, whether owned or rented by the Government.
- Cooperatives rendering special types of services and facilities such as cold storage, ice plant, electricity, transportation, and similar services and facilities shall secure a franchise and such cooperatives shall open their membership to all persons qualified in their areas of operation.
- The preferential right to supply government institutions and agencies rice, corn and other grains, fish and other marine products meat, eggs, milk, vegetables, tobacco and other agricultural commodities produced by their members.
- The preferential treatment in the allocation of fertilizers and in rice distribution.
- The preferential and equitable treatment in the allocation or control of bottomries of commercial shipping vessels.
- They have preferential rights in management of public markets and/or lease of public market facilities, stall or spaces.
- They are entitled to loans, credit lines, rediscounting of their loan notes, and other eligible papers with the Development Bank of the Philippines, the Philippine National Bank, the Land Bank of the Philippines and other financial institutions except the Central Bank of the Philippines.
- Cooperatives transacting business with the government is exempt from prequalification bidding requirements.
- The privilege of being represented by the provincial or city fiscal or the Office of the Solicitor General, free of charge, except when the adverse party is the Republic of the Philippines.
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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Gud mrning sir..
May i know whether the trainings that wud be attended by the coop officers be given official time by the head of office. This refers to the employees coop.. Where officers are govt employee..
Pls give us specific provisions that wud be our basis in securing permission from the head of office.. Thank you po