Cooperative Code of the Philippines (Republic Act No. 9520)
Definition
The Philippine Cooperative Code of 2008, Republic Act No. 9520, is the governing statute for cooperatives in the Philippines. It defines cooperatives as autonomous associations of persons united voluntarily to meet common economic, social, and cultural needs through a jointly-owned enterprise, provides for their registration and supervision by the Cooperative Development Authority, and grants duly registered cooperatives tax exemptions and other incentives.
Identities (Wikipedia/Wikidata/DBpedia)
- Wikipedia: N/A
- Wikidata: N/A
- DBpedia: N/A
Also Known As
RA 9520; Philippine Cooperative Code of 2008.
Examples and Analogies
A savings cooperative accepts deposits from teacher-members and lends back to them at fair rates, with surplus returned as dividends, operating much like a credit union. The Code treats each cooperative as a democratic enterprise, one member one vote, in contrast to corporations where votes follow share ownership.
Usage Scenarios
Groups register as credit, consumer, producer, marketing, service, or multipurpose cooperatives with the CDA, adopt by-laws, hold general assemblies, and file annual reports. The Code’s provisions guide governance by boards and committees, audit, dissolution, and the federation of cooperatives into unions.
Strategies
Successful cooperatives invest in member education, professional management, and consolidated business activities like joint marketing of farm produce. Government programs and the CDA’s regulatory role push sound financial practices and the Konkreto at Ayos na Kooperatiba compliance framework.
Security and Safety Measures
The Code mandates annual audits, surety bonds for accountable officers, reserve funds, and limits on loans to insiders to protect member assets. Registration with the CDA provides legal personality and a supervision layer against fly-by-night schemes masquerading as cooperatives.
Historical Context
RA 9520, signed in February 2009, updated the 1990 cooperative statutes that had accompanied the sector’s revival after martial law. It consolidated decades of cooperative development since the first credit cooperatives promoted in the early American period, strengthening autonomy while retaining state support.
Challenges and Controversies
Weak governance, uncollected loans, and splits among founding members still sink many cooperatives, while debates persist over the extent of tax privileges and the CDA’s regulatory capacity. Fake cooperatives used in investment scams have also tested the registration system.
Related Topic
Cooperative Development Authority