Lectured by Edil Unson Acting ARD Webinar on the Fundamentals of Co-ops viA tULONG bALITA oNLINE JN 22, 2021

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KO-OP BALITAAN IN PARTNERSHIP WITH
TULONG BALITA ONLINE
JAN.22, 2021

3. COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
Basic Differences With Other Business Model
Bases for
Comparison
SINGLE
PROPRIETORSHIP
PARTNERSHIP CORPORATION COOPERATIVE
Number of
persons
required for
formation
Only one person At least two or
more
At least 5
persons are
required to form
a corporation.
(natural
and juridical
persons
can be
stockholders at
the same time)
At least 15 natural
persons are
required to form
a primary coop
(3 primary
coops are
required to
form a
federation)
Grant of
Juridical
Personality
No separate
juridical personality
from owner
but business name
should be registered
with the DTI
Mere agreement
of partners can
be a partnership.
However,
it is better if
registered
under the SEC
Must be
registered with
SEC
Must be registered
with CDA

4. COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
Basic Differences With Other Business Model
Bases for
Comparison
SINGLE
PROPRIETORSHIP
PARTNERSHIP CORPORATION COOPERATIVE
Registration
Requirements for
Documentation Application Form
Contract of
Partnership
Articles of
Incorporation, By
–laws and Bank
Statement
Articles of
Cooperation,
By-laws,
Economic Survey,
Bonds of
Accountable
Officers
and
Treasurer’s
Affidavit
Capitalization
Contributions
Only the owner
contributes capital
Partners contribute
cash or
services/industry
Stockholders pay
for the amount of
shares he wants to
buy
A member can
subscribe
up to 10%
of the total
subscribed
share capital

5. COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
Basic Differences With Other Business Model
Bases for
Comparison
SINGLE
PROPRIETORSHIP
PARTNERSHIP CORPORATION COOPERATIVE
Management
Structure
Only one person
decides
Partners make a
collective decision
Board of Directors
make final decision
General Assembly
has the
final decision
Voting No voting rights
Votes proportional to
the extent of interest
of each partners
Votes proportional
to no. of stocks
owned by
stockholder; proxy
voting allowed
One member,
one vote;
no proxy voting in
primary coops

6. COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
Basic Differences With Other Business Model
Bases for
Comparison
SINGLE
PROPRIETORSHIP
PARTNERSHIP CORPORATION COOPERATIVE
Liability Owner assumes
full liability
All partners are
equally liable
except in
limited partnerships
Limited up to
authorized capital
Member’s liability
is only up to his/her
subscribed
share capital
Taxability Owner is liable
for Income tax
Partners pay tax on
share as partner
Profits taxable;
stockholders pay
tax on dividends
received
Co-ops which
transact
business with
their members ONLY
are tax exempt

7. COOPERATIVE DEVELOPMENT AUTHORITY
DAGUPAN EXTENSION OFFICE
Basic Differences With Other Business Model
Bases for
Comparison
SINGLE
PROPRIETORSHIP
PARTNERSHIP CORPORATION COOPERATIVE
Basis of
Distribution of
Surplus/Profit
Owner enjoys
all the profits
All partners equally
share in the
profit or
based on
Partnership
Agreement
Stockholder’s
share in the profit
is dependent
on the no. of
stocks which he
holds
Member’s share in
the surplus is based
on his paid-up
share capital and
patronage refund or
volume of business
he/she contributed
to the co-op
Governing
Principles
Purely Business
Management
Principles
Partnership
Principles as
stipulated by
the partners
Purely Business
Management
Principles
Co-op Values
& Principles
and Business
Management

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ART. 4. COOPERATIVE
PRINCIPLES

9. COOPERATIVE PRINCIPLES
• are systems or ideas that determine
the essential characteristics of the
cooperative and to distinguish them
from other forms of organization and
enterprise. These principles are
universal.
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10. COOPERATIVE PRINCILES
• Are universal, applied by all
cooperatives everywhere and
invariable.
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11. 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, political or religious
discrimination.
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12. DEMOCRATIC MEMBER
CONTROL
Cooperatives are democratic organizations
controlled by their members, who actively
participate in setting their policies and making
decisions.
Men and women serving as elected representatives
are accountable to the membership.
In primary cooperatives members have equal
voting rights (one member, one vote).
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13. MEMBER ECONOMIC PARTICIPATION
Members contribute equitably to, and democratically
control the capital of their cooperative. At least part
of that capital is usually the common property of the
cooperative.
Members usually receive limited compensation, if
any, on capital subscribed as a condition of
membership.
Members allocate surpluses for any or all of the
following purposes: developing their cooperative, for
setting-up reserves; benefiting members in
proportion to their transactions with the cooperative;
and supporting other activities approved by the
membership.
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14. AUTONOMY AND INDEPENDENCE
Cooperatives are autonomous, self-help
organizations controlled by their members.
If they enter into agreements with other
organizations, including the government, or
raise capital from external sources, they do so
on terms that ensure democratic control by
their members and maintain their cooperative
autonomy.
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15. EDUCATION, TRAINING AND INFORMATION
Cooperatives provide education and training for
their members, elected officers, manager, and
employees so they can contribute effectively to
its development and growth.
They inform the general public - particularly
young people and opinion leaders - about the
nature and benefits of cooperation
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COOPERATION AMONG COOPERATIVES
Cooperatives serve their
members most effectively
and strengthen the cooperative
movement by working together
through local, national, regional
and international structures.

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cooperatives work
for the sustainable
development of
their communities through policies
approved by their members.
CONCERN FOR COMMUNITY

18. Cooperartive practices are the
practical application of those
principles as developed by
cooperators in a given country , in
accordance with their particular
conditions and circumstances . They
may vary from one country to
another and from time to time.
COOPERATIVE PRACTICES

19. 1. Capital Formation
Capital structure highly influences the
success and failure of cooperatives.
Past failures proved that capital should
really be contributed by the members.
COOPERATIVE PRACTICES

20. 2. Cash Trading
This is business done on cash
and carry basis. The customer
enjoys at least the use of the
goods and services for the cash
payment he/she gives.

21. 3. Selling Market Price
Cooperatives offer goods and
services at prevailing market prices.
This promotes stability. It can cope
with operational expenses and cover
up the negative effect of shrinkage,
depreciation, and losses.

22. 4. Constant Expansion
Cooperatives are associations for the
development and business of community
services. As organizations, they have to
grow for community services. Expansion
is a must. It is done intensively and
extensively.

23. 5. Quality Standardized Goods
Cooperatives are intended to develop
communities through the production of
high-quality goods and provision of
better services. Cooperatives could help
by patronizing only standardized
products and services of high quality.

24. 6. Cooperative wholesale or interlending
(cooperative bank)
Cooperatives can be organized with enough
people and capital. They answer to the
needs of the community. Needs arise when
there are people. The expansion of
membership may result in wholesale
business. In fact, to be effective, wholesale
business, interlending (cooperative bank)
could be done by primary societies.

25. 7. Minimize Expenditures
A significant factor favoring the growth of
cooperatives is being a community
project. Officers do not receive
remuneration. If they get compensation,
it is only in the form of allowances, per
diems or honoraria. When audit shows
the cooperative is not capable or afford
the minimum wage, only employees get
paid regularly.

26. COOPERATIVE PRACTICES IDENTIFIED IN
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1. Establishment of a branch/Satellite
2. Establishment of a Laboratory Co-op
3. Expansion of Area of Operation
4. In placed Communication and education Program
5. With Co-op Website to constantly update members
6. Electronic Transaction
7. Computerized loan processing, bookkeeping, and
FS preparation

27. COOPERATIVE PRACTICES IDENTIFIED IN
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8. Board do not receive any compensation
9. Commitment to good governance
10. Conduct of Mid year GA/ Twice
11. Conduct of Mid Year assessment and year
end assessment
12. Regular BOD Meetings (Twice)

28. COOPERATIVE PRACTICES IDENTIFIED IN
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18.Allocate allowance for Probalble
Losses on Loans (With Credit Activty)
19.Aplication of CTE
20.Compliant in the submission of
Mandatory Reports
21..Regular Monitoring fo DOSRI
(Directors Officers and Related Interest)
22.Compute the Soundness of the
operation of the cooperative

29. COOPERATIVE PRACTICES IDENTIFIED IN
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23. Linkage to other Networks
(Fed/Unions/Apex Organizations)
24. Updated Records
25. Self Reliant (Continuous savings
mobilization and capital build-up to
avoid outside loans)
26. Regular Meetings
27. Plan and Budget
27. Involvement to community

30. THANKS FROM THE :
 Slideshares of:
 Sir Alexander Raquepo
 Dir. Josefina B. Bitonio
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