SAN PEDRO RESETTLEMENT AREA COOPERATIVE
Blk 5 Lot 3 Barangay United Bayanihan, San Pedro, Laguna
Tel: No. (02) 8847-9641
PRE-MEMBERSHIP EDUCATION SEMINAR
HANDOUT
Part 1: Why a Pre-Membership Education Seminar?
Pre-Membership Education Seminar or PMES is the first step to take before joining a
[Link] should have background about cooperative, its meaning, its principles,
type of cooperative, etc.
Reasons for a Pre-Membership Education Seminar
Gather information that can guide the participants in deciding to join or organize
a cooperative;
Know the duties and responsibilities of members, officers and management staff
of cooperative;
Know the existing rules and regulations followed by cooperative;
Understand why a cooperative is important than other organizations;
Know the different types of cooperatives and their services; and
Know the sources of financing of cooperative, etc.
Part 2: What is Cooperative and why joining cooperative?
What is Cooperative?
The general concepts of a cooperative as per Article 3 of Republic Act 9520 otherwise
known as “Philippine Cooperative Code of 2008” is an autonomous and duly registered
association of persons, with a common interest ,who voluntarily joined together to
achieve their social, economic, and cultural needs and aspirations by making equitable
contributions to the capital required, patronizing their products and services and
accepting a fair share of the risk and benefits of the undertaking in accordance with
universally accepted cooperative principles.
WHY should you be joining a cooperative?
COOPS are vehicle for:
providing goods & services to its members, enabling them to attain in-creased
income, savings, investments, productivity & purchasing power; promoting
entrepreneurial attitude thru cost-sharing and risk-taking;
providing maximum benefits to members thru better ways in carrying out
business ideas which as individuals cannot be executed;
Providing lower income groups an opportunity to participate & increase their
ownership of the nation’s wealth.
WHAT Coops can do?
give members access to credit
make modern technology available
rationalize production & marketing
mobilize savings & human resources
raise income level
provides goods & services at lower cost
provide services which government cannot provide
COOPERATIVE PRINCIPLES
(Article 4 of Republic Act 9520)
The cooperative principles are guidelines by which cooperatives put their values into
practice.
Voluntary and Open Membership
Democratic Member Control
Member Economic Participation
Autonomy and Independence
Education, Training and Information
Cooperation among Cooperatives
Concern for Community
Type and Categories of Cooperative (Article 23 0f R.A. 9520)
Based on Economic Functions
1. Consumers’ Coops
2. Producers’ Coops
3. Marketing Coops
4. Service Coops
Credit
Health
Farming
Multi-Purpose
In terms of membership, cooperatives are classified as: (a) Primary, wherein the
members are natural persons of legal age; (2) Secondary, the members of which are
primaries; and (3) Tertiary, the member of which are secondaries upward to one or
more apex organizations. Cooperatives whose members are cooperatives are called
federations or unions.
Some reasons for failure of COOPS:
Inadequate capital Too small margins
Over-expansion due to initial
Limited membership success
High savings returns and
Inability to meet local competition inadequate Capital reserve
Overstocking of merchandise
Undue extension of credit & Lack of strong cooperative
conflicting price policies network
High overhead cost
SUCCESS FACTORS IN COOPERATIVE
OPERATIONS:
Continuous cooperative Good record keeping
education Frequent audits
Members’ conviction that group Sufficient financing
action offers more advantages Sound operating policies
Members’ determination to help Adequate volume of business
themselves Honest and efficient management
Presence of dedicated leaders
INDIVIDUAL VALUED CONTRIBUTIONS
Remain more loyal Meet his obligations and pay
Communicate and provide bills regularly
feedback Develop a favorable climate &
Take greater interest understanding between
Patronize the cooperative members and officers
Stay with the coop when the Promote progressive attitude
going gets rough Build member confidence in
Offer more constructive management
criticism & suggestions Help stop rumors & defend
Informs his neighbors about the coop
the coop Develop a pride among
Serves as an effective themselves & the community
salesman of the coop Inform the community of the
Promote cooperative products coops contribution
and services
COOPERATIVE VALUES
SELF-HELP HONESTY
SELF-RESPONSIBILITY OPENNESS
EQUALITY SOCIAL RESPONSIBILITY
EQUITY CARING FOR OTHERS SOLIDARITY
Difference between Cooperative and Typical Corporation
Like typical corporations, the members of a cooperative have limited liability so they are
not personally responsible for the company's debts, nor are they personally responsible
if the company breaks the law. Like a corporation, a cooperative continues to exist even
when the original owners/members leave.
However, there are four fundamental differences between the two:
1. Cooperatives are formed to serve the needs of their members, while corporations
exist primarily to make a profit.
2. Board members come from the cooperative membership, whereas non-
shareholders can be elected to sit on a corporation's board.
3. Each member gets one vote in a cooperative, while corporate shareholders get a
vote for each share they own.
4. Cooperatives are taxed differently as per article 60 and 61 of Republic Act 9520
otherwise known as “Philippine Cooperative Code of 2008”.
Part 3: What are the basic laws that govern and administration of cooperative in
the Philippines?
Republic Act 9520 otherwise known as “Philippine Cooperative Code of 2008” ;
Republic Act 6939 creating the Cooperative Development Authority (CDA).
Part 4: About San Pedro Resettlement Area Cooperative
Background/History;
San Pedro Resettlement Area Cooperative was first registered as pre-cooperative on
July 16, 1976 and was finally registered as a full pledge cooperative on November 6,
1976. It has different names back then, SPRAWSAI, SPRAWSCI, SPRACI and the
latest now is SPRAC.
San Pedro Resettlement Area Cooperative is a Primary Multi-Purpose Cooperative in
accordance with Republic Act 9520 otherwise known as “Philippine Cooperative Code
of 2008”.
As stated in its Article of Cooperation, its purposes are:
To encourage thrift and savings mobilization among the members;
To generate funds and extend credit to the members for productive and provident
purposes;
To manage and operate a Water Distribution System for domestic consumptions
of member and non-members;
To operate water refilling station and sell to members and non-members
Below is the Organizational Structure of San Pedro Resettlement Area Cooperative on
which the General Assembly is the highest policy making body of the cooperative as
stated in SPRAC By-Laws (Section 1 of Article IV-Government).
