AN ACT AMENDING THE COOPERATIVE CODE OF THE PHILIPPINES TO BE KNOWN AS THE ''PHILIPPINE COOPERATIVE CODE OF 2008''

Republic Act No. 9520

Summary of the Philippine Cooperative Code of 2008 (Republic Act No. 9520):

Definitions and General Concepts (Art. 5)
- Defines key terms used in the law, such as "cooperative", "general assembly", "board of directors", "committees", "articles of cooperation", "by-laws", "registration", "universally accepted principles", and others.

Organization and Registration (Art. 6-25)
- Outlines the purposes for which cooperatives can be organized (Art. 6).
- Specifies the requirements for organizing a primary cooperative, including having at least 15 natural persons as members, completing a pre-membership education seminar, and conducting an economic survey (Art. 10-11).
- Describes the contents and registration process for articles of cooperation and by-laws (Art. 14-16).
- Allows for the division, merger, and consolidation of cooperatives under certain conditions (Art. 20-22).
- Categorizes cooperatives into types (e.g., credit, consumer, producer, marketing, service, multipurpose) and categories (primary, secondary, tertiary) (Art. 23).
- Outlines the functions of federations and unions of cooperatives (Art. 24-25).

Membership (Art. 26-31)
- Defines regular and associate members, and allows for the organization of laboratory cooperatives by minors (Art. 26).
- Specifies the process for applying for membership, terminating membership, and refunding interests upon withdrawal (Art. 28-31).

Administration (Art. 32-51)
- Outlines the powers and composition of the general assembly (Art. 32-36).
- Describes the composition, powers, and responsibilities of the board of directors (Art. 37-40).
- Specifies the requirements for officers, committees, and the general manager (Art. 41-44).
- Covers the liability of directors, officers, and committee members, as well as their compensation and dealings (Art. 45-49).
- Addresses the illegal use of confidential information (Art. 49).
- Outlines the process for removing officers (Art. 50).

Responsibilities, Rights, and Privileges of Cooperatives (Art. 51-62)
- Requires cooperatives to maintain certain records and submit reports to the Cooperative Development Authority (CDA) (Art. 52-53).
- Grants cooperatives certain rights and privileges, such as exemptions from taxes, fees, and charges, and preferential treatment in certain areas (Art. 60-62).

Insolvency of Cooperatives (Art. 63)
- Allows cooperatives unable to fulfill obligations to creditors to apply for remedies under the Insolvency Law.

Dissolution of Cooperatives (Art. 64-70)
- Outlines the procedures for voluntary and involuntary dissolution of cooperatives, as well as the liquidation process (Art. 64-69).
- Authorizes the CDA to issue guidelines for the liquidation of cooperatives (Art. 70).

Capital, Property, and Funds (Art. 71-79)
- Specifies the sources of capital for cooperatives, including members' share capital, loans and borrowings, revolving capital, and subsidies/donations (Art. 72).
- Limits individual members' share capital holdings to 10% in primary cooperatives (Art. 73).
- Outlines the requirements for transferring share capital contributions or interests (Art. 74).
- Requires cooperatives to have a capital build-up program (Art. 75).
- Defines shares and allows for the imposition of fines on unpaid subscribed share capital (Art. 76-77).
- Specifies how cooperatives can invest their capital (Art. 78).
- Describes the concept of revolving capital (Art. 79).

Audit, Inquiry, and Members' Right to Examine (Art. 80-84)
- Requires cooperatives to undergo annual financial, performance, and social audits (Art. 80).
- Grants members the right to examine certain records of the cooperative (Art. 83).
- Requires cooperatives to maintain and preserve records (Art. 84).

Allocation and Distribution of Net Surplus (Art. 85-86)
- Defines net surplus and specifies the order of distribution, including allocations for reserve funds, education and training funds, community development funds, and patronage refunds (Art. 85-86).

Agrarian Reform Cooperatives (Art. 87-94)
- Defines agrarian reform cooperatives and outlines their purposes and objectives (Art. 87-88).
- Introduces the concept of cooperative estates for worker-beneficiaries (Art. 89).
- Grants agrarian reform cooperatives preferential rights and privileges, such as the lease of public lands and the exclusive right to certain economic activities in agrarian reform areas (Art. 91-93).
- Specifies the requirements for the organization and registration of agrarian reform cooperatives (Art. 94).

Public Service Cooperatives (Art. 109-113)
- Defines public service cooperatives and outlines their coverage (Art. 109).
- Specifies the registration requirements for public service cooperatives (Art. 110).
- Outlines the regulation of public service cooperatives by the CDA and other government agencies (Art. 111).
- Allows transportation service cooperatives to engage in allied businesses related to transportation services (Art. 112).
- Requires transportation service cooperatives to obtain certificates of good standing for the renewal of franchises and vehicle registrations (Art. 113).

Credit Cooperatives (Art. 114-118)
- Defines credit cooperatives and outlines their objectives (Art. 115).
- Specifies the requirements for the organization and registration of credit cooperatives (Art. 116).
- Allows credit cooperatives to organize chapters, subsidiaries, leagues, and federations (Art. 117).
- Introduces the concept of conversion of credit cooperatives to financial service cooperatives (Art. 118).

Financial Service Cooperatives (Art. 119-125)
- Defines financial service cooperatives and outlines their functions (Art. 119).
- Specifies the types of members in financial service cooperatives (Art. 120).
- Outlines the regulatory and supervisory powers of the CDA over financial service cooperatives (Art. 121).
- Requires the Bangko Sentral ng Pilipinas (BSP) to prescribe prudential rules and regulations for financial service cooperatives (Art. 122).
- Allows financial service cooperatives to organize federations (Art. 123).
- Requires the CDA to designate a unit to perform regulatory and supervisory functions for financial service cooperatives (Art. 124).
- Prohibits the unauthorized use of the terms "credit cooperative", "financial service cooperative", and "financial service cooperative federation" (Art. 125).

Electric Cooperatives (Art. 126-134)
- Outlines the purposes and objectives of electric cooperatives (Art. 126).
- Specifies the requirements for the registration of electric cooperatives with the CDA (Art. 127-129).
- Allows electric cooperatives registered with the National Electrification Administration (NEA) to retain the word "cooperative" in their names without registering with the CDA (Art. 130).
- Outlines the effects of registration with the CDA on electric cooperatives (Art. 132).
- Specifies the requirements for the issuance and distribution of share capital in electric cooperatives (Art. 133).
- Authorizes the CDA to cancel the registration of electric cooperatives under certain conditions (Art. 134).

Miscellaneous Provisions (Art. 135-138)
- Requires cooperatives to comply with labor laws, social security laws, and other relevant laws (Art. 135).
- Requires the CDA to establish a register of cooperatives (Art. 136).
- Outlines the procedures for settling disputes through conciliation, mediation, and voluntary arbitration (Art. 137).
- Establishes a Joint Congressional Oversight Committee on Cooperatives (JCOCC) to review and approve implementing rules and regulations (Art. 138).

Final Provisions (Art. 139-146)
- Authorizes the CDA to issue implementing rules and regulations (Art. 139).
- Outlines penal provisions for various offenses related to cooperatives (Art. 140).
- Requires the printing and distribution of the Code (Art. 141).
- Provides guidelines for the interpretation and construction of the Code (Art. 142).
- Repeals inconsistent laws and decrees (Art. 143).
- Includes transitory provisions for the registration of existing cooperatives and the treatment of electric cooperatives (Art. 144).
- Includes a separability clause (Art. 145).
- Specifies the effectivity date of the Code (Art. 146).