| How to Organize a Cooperative? |
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Organizing a cooperative can be complex and simple. It requires an understanding of the basic needs of the prospective cooperative members. It demands patience from the organizer who must make the cooperative’s long-term goals and objectives, and its visions a real part of the members’ lives. But it can be too easy because the Cooperative Code of the Philippines (RA 6938) has devised very clear-cut steps for the cooperative organizer and members. The following are the basic information that the prospective members should understand before organizing a cooperative. There are six steps suggested in setting up a cooperative. |
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FIRST.Get organized.You must have at least 15 members to do that. |
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At once determine the common problems you would want solved and the basic needs you would want provided for through a cooperative. You may want to include increasing your production, marketing your produce, credit assistance, power generation, banking or insurance and other similar needs. Determining your problems and needs will also help you classify the kind of cooperative you will be organizing. Even before a cooperative is set up, a dedicated core group people who will do all the organizational and paper works is a must. From this core group, working communities may be formed to set things moving. These committees may include membership, finance, executive, secretariat to name a few. |
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SECOND. Prepare a general statement called an economic survey |
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This statement will help you measure your cooperative’s chances of success. |
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THIRD. Draft the cooperative’s by-laws. |
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The by-laws contain the rules and regulations governing the operation of the cooperative. |
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FOURTH. Draft the articles of cooperation. |
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Mandatory contents of the articles of cooperation are the following: (a) the name of the cooperative, which must include the word “cooperative”; (b) the purpose or purposes and scope of business of the cooperative; (c) the term of existence of cooperative;(d) the area of operation and the postal addresses of the registrant-cooperators; (e) the common bond of membership; (f) the names of the directors who shall manage the cooperative; (g) the amount of share capital; (h) the names and residences of its contributors, and (i) the type of cooperative, whether it is primary, secondary or tertiary. |
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FIFTH. Secure bond foraccountable officer(s). |
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The accountable officers normally are the Treasurer and the Manager. The amount of the bond is to be decided upon by the Board of Directors, based on the initial net worth of the cooperative which includes the paid-up capital, membership fees and other assets of the cooperative at the time of registration. |
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SIXTH. Register your cooperative with the Cooperative Development Authority (CDA). |
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Submit the following required documents:
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