Mabudyang, Reymos C.

Assignment 2 in PPA228: Administration of cooperative

Note: The amendment are in bold and italics words.

Section 3. General Concepts. - A cooperative is a duly registered association of persons, with

a common bond of interest, who have voluntarily joined together to achieve a lawful common
social or economic end, making equitable contributions to the capital required and accepting a
fair share of the risks and benefits of the undertaking in accordance with universally accepted
cooperative principles.

"ART. 3. General Concepts. - 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

1. Answer: In the old law, it scope is wider which is vulnerable to be dictated by other
powerful organization and the cooperative is not completely separate organization to
govern it’s own. In the amendments in the new law, it reiterated the autonomous
operation of the cooperative that it is completely acting as separate from other
people which are not member. As autonomous the have all the rights or power to
govern its own without any intervention of other organization.

Section 4. Cooperative Principles. - Every cooperative shall conduct its affairs in accordance
with Filipino culture and experience and the universally accepted principles of cooperation which
include the following:

(1) "Open and Voluntary Membership": Membership in a cooperative shall be voluntary

and available to all individuals regardless of their social, political, racial or religious
background or beliefs.

"ART. 4. Cooperative Principles. - Every cooperative shall conduct its affairs in

accordance with Filipino culture, good values and experience and the universally
accepted principles of cooperation which include, but are not limited to, the
following:

"(1) Voluntary and Open Membership - Cooperatives are voluntary

organizations, open to all persons able to use their services and willing to
accept the responsibilities of membership, without gender, social, racial,
cultural, political or religious discrimination.

2. Answer: In the amendments in this section about membership, it put some addition
on the values of the acceptance of anyone who would to become members. Just like
 it was emphasize on the last word about religious discrimination that in becoming a
member it should not look religion as one of the requirement or as basis. It should be
open to all and anybody is free to establish its own cooperative. Thus, it is really on
the emphasis it should be always in a democratic way.

Section 11. Economic Survey. - Every group of individuals or cooperatives intending to form a
cooperative under this Code shall submit to the Cooperative Development Authority a general
statement describing the structure, purposes and economic feasibility of the proposed
cooperative, indicating therein the area of operation, the size of membership and other pertinent
data.

"ART. 11. Economic Survey. - Every group of individuals or cooperatives

intending to form a cooperative under this Code shall submit to the Authority a
general statement describing, among others the structure and purposes of the
proposed cooperative: Provided, That the structure and actual staffing pattern of
the cooperative shall include a bookkeeper; Provided, further, That they shall not
be allowed to operate without the necessary personnel and shall also submit an
economic survey, indicating therein the area of operation, the size of membership,
and other pertinent data in a format provided by the Authority.

3. Answer: In the amendments in this section, the old law did not include the presence
of a bookkeeper before establishing a cooperative. In the amendment in the new law
it reiterates that in the staffing pattern, there should be always a bookkeeper and the
cooperative will not be allowed to operate without having the required personnel
even they have the by-laws. It is solely based that once a cooperative submit its by-
laws there is an assurance that they will continue to established the coop and it will
not go as good for presentation or for compliance only.

Section 12. Liability. - A cooperative shall be registered under this Code, with limited liability.

"ART. 12. Liability. – A cooperative duly registered under this Code shall have
limited liability.

4. Answer: In the amendments in this section, it only a matter of the word shall and will
that made a big difference. In the old law, cooperative with only limited liability are
allowed to be registered under the law which predict that cooperative at first was
registered because they have limited liability but sooner even they do not meet the
standard set by law, it still continue its operation. In the amendments it will give an
authoritarian way of the implementation of the law mandating all registered
cooperative shall have always a limited liability.

Section 27. Kinds of Membership. - A cooperative may have two (2) kinds of members, to wit:
(1) regular members and (2) associate members. A regular member is one who is entitled to all
the rights and privileges of membership. An associate member is one who has no rights to vote
nor be voted upon and shall be entitled only to such rights and privileges as the by-laws may
provide.
A cooperative organized by minors shall be considered a laboratory cooperative and must be
affiliated with a registered cooperative. A laboratory cooperative shall be governed by special
guidelines to be promulgated by the Cooperative Development Authority.

"ART. 26. Kinds of Membership. – A cooperative may have two (2) kinds of
members, to wit: (1) regular members and (2) associate members.

"A regular member is one who has complied with all the membership
requirements and entitled to all the rights and privileges of membership. An
associate member is one who has no right to vote nor be voted upon and shall be
entitled only to such rights and privileges as the bylaws may provide: Provided,
That an associate who meets the minimum requirements of regular membership,
continues to patronize the cooperative for two (2) years, and signifies his/her
intention to remain a member shall be considered a regular member.

"A cooperative organized by minors shall be considered a laboratory cooperative

and must be affiliated with a registered cooperative. A laboratory cooperative
shall be governed by special guidelines to be promulgated by the Authority.

5. Answer: In this amendment it’s all about membership, in the new law it gave an
opportunity for associate members to become regular member to be able to fully
enjoy the benefits. In the old law, it never mention about becoming a regular member
those who are associate members. In the new law, they were given the chance, of
course if they meet the condition or requirements set therein.