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Co-op Code Changes Proposed

Posted July 19, 2022


It has been 13 years since the Cooperative Code was signed into law by then President Gloria Arroyo. COOP-NATCCO Partylist Representative Felimon Espares has proposed changes.

Changes for the Cooperative Code are up and coming as COOP-NATCCO Partylist Rep Felimon Espares filed in Congress a Bill on proposed amendments to the to the law defining the framework and organization of co-operatives.

Rep. Espares was accompanied by about 25 co-op leaders as he filed the Bill – and 7 other Bills - on July 6.

The Cooperative Code or Republic Act 9520 was signed into law on February 17, 2009.   

Among the proposed amendments are: 

Article 14. Increase minimum Share Capital for non-agricultural cooperatives to P25,000, from P15,000.  Minimum Share Capital requirement for agricultural co-ops remains at P15,000.

Article 16. For registration of co-ops, all applications for registration shall be finally disposed of by the Cooperative Development Authority within a period of THIRTY (30) days, from 60 days.

Article 23. Service co-operatives may also engage in water service and Primary co-operatives may affiliate with Tertiary Co-operatives, not just secondary co-ops.

Article 26. An associate member who meets ALL 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.  

Article 35. A quorum shall consist of at least twenty-five per centum (25%) of all the members entitled to vote. FOR PRIMARIES Requirement SHALL BE BASED ON THE NUMBER OF MEMBERS IN GOOD STANDING:  

(1) BELOW 10,000 – 25%

(2) UP TO 25,000 – 20%

(3) UP TO 50,000 – 15%

(4) MORE THAN 50,000 MEMBERS – 10%

The quorum shall in no case be lower than Ten Percent (10%) or as provided for in the by-laws.

Article 60. Patronage Refund and Interest on Share Capital given to members shall be exempt from tax.

Article 61. All cooperatives [regardless of the amount of accumulated reserves and undivided net savings shall be] ARE exempt from payment of local taxes and taxes on transactions with banks and insurance (under certain conditions).

Article 67. The decision of the CDA to suspend or revoke the registration of a co-op may be appealed to the Secretary of the Department of Trade and Industry within 30 days. 

Article 75. Capital Build-Up.- The bylaws of every cooperative shall require reasonable and realistic member capital build-up AND/OR DEPOSITS BUILD-UP  program to allow the continuing growth of the members' investment AND SAVINGS DEPOSITS in their cooperative as their economic conditions continue to improve.

Article 86. The reserve fund shall be used for the stability of the cooperative, and to meet net losses in its operations INCLUDING LOSSES INCURRED DURING A PANDEMIC, A STATE OF EMERGENCY AND OTHER SUCH FORCE MAJEURE.  The general assembly may decrease the amount allocated to the reserve fund when the reserve fund already exceeds the share capital. 

Article 86. Half of the Co-operative Education & Training Fund (CETF) shall be spent by the cooperative for education and training purposes; while the other half [may] SHALL be remitted to a union or federation chosen by the cooperative or of which it is a member.  

Article 86. Community Development Fund must be spent only in the communities where a co-operative operates within one year.  The CDF may also be used for the benefit of members and employees under exceptional circumstances.  And if the Optional Fund is insufficient, the co-op may charge deficiency to Direct Expenses.

Article 115.  A credit co-operative is defined as a financial organization OR INTERMEDIARY owned and operated by its members . . .



  • COOP-NATCCO Partylist
  • Cooperative Code
  • Cooperative Law
  • Cooperative Rules
  • philippines
  • R.A. 9520

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