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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.
AT A GLANCE:
Former President Gloria Macapagal-Arroyo, by virtue of PROCLAMATION NO. 493, October 29, 2003, declared the month October of 2004 and every year thereafter as Cooperative Month to encourage wider participation of all sectors of society in nation-building through cooperativism.
This proclamation is in line with the policy of the State to foster the creation and growth of cooperatives as a vehicle for promoting self-reliance and harnessing people power towards the attainment of economic development and social justice as declared in Article 2 of the Cooperative Code of the Philippines.
What is a cooperative?
According to the 2023 Basic Information on Cooperatives released by the Cooperative Development Authority (CDA), a cooperative is an autonomous and duly registered association of persons, with a 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.
What are the types of cooperatives?
Cooperatives may fall under any of the following types:
- Advocacy Cooperative
- Agrarian Reform Cooperative
- Agriculture Cooperative
- Consumer Cooperative
- Cooperative Bank
- Credit Cooperative
- Dairy Cooperative
- CSF Cooperative
- Education Cooperative
- Electric Cooperative
- Financial Service Cooperative
- Fishermen Cooperative
- Health Services Cooperative
- Housing Cooperative
- Insurance Cooperative
- Labor Service Cooperative
- Marketing Cooperative
- Multipurpose Cooperative
- Producers Cooperative
- Professional Service Cooperative
- Service Cooperative
- Small Scale Mining Cooperative
- Technology Service Cooperative
- Transport Cooperative
- Water Service Cooperative
- Workers Cooperative
- Other types of cooperatives as may be determined by the Authority.
Purposes of cooperatives
According to Article 6 of Republic Act (RA) No. 6938, otherwise known as the “Cooperative Code of the Philippines” as amended by RA No. 9520, a cooperative may be organized and registered for any or all of the following purposes:
“(1) To encourage thrift and savings mobilization among the members;
“(2) To generate funds and extend credit to the members for productive and provident purposes;
“(3) To encourage among members systematic production and marketing;
“(4) To provide goods and services and other requirements to the members;
“(5) To develop expertise and skills among its members;
“(6) To acquire lands and provide housing benefits for the members;
“(7) To insure against losses of the members;
“(8) To promote and advance the economic, social and educational status of the members;
“(9) To establish, own, lease or operate cooperative banks, cooperative wholesale and retail complexes, insurance and agricultural/industrial processing enterprises, and public markets;
“(10) To coordinate and facilitate the activities of cooperatives;
“(11) To advocate for the cause of the cooperative movements;
“(12) To ensure the viability of cooperatives through the utilization of new technologies;
“(13) To encourage and promote self-help or self-employment as an engine for economic growth and poverty alleviation; and
“(14) To undertake any and all other activities for the effective and efficient implementation of the provisions of this Code.
Therefore, considering that cooperatives have an important role in speeding up our country’s economic growth and in providing financial benefits to its members, it is only fitting that the government encourage all sectors to participate in the creation, growth and development of cooperatives in the Philippines.
And in line with these objectives of the government, former President Gloria Macapagal-Arroyo, by virtue of PROCLAMATION NO. 493, October 29, 2003, declared the month of October 2004 and every year thereafter as Cooperative Month to encourage wider participation of all sectors of society in nation-building through cooperativism.
Role of the CDA
According to the aforesaid proclamation, the CDA shall, in coordination with other agencies of government, primary cooperatives, local, regional and national federations and union of cooperatives and the cooperative development councils, initiate activities and programs within the month to raise the consciousness of our people to join the cooperative movement and uphold the principles and values of cooperativism.
RELATED ARTICLES:
Cooperative and its Powers | Alburo Law Offices
ON TAXABILITY OF COOPERATIVES – ALBURO LAW OFFICES
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Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding legal services, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/ 0917-5772207/ 09778050020.
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