Legal Basis

            Republic Act No.  9520, also known as the “Philippines Cooperative Code of 2008” declares that it is the policy of  the State to foster the creation and growth of cooperatives as a practical vehicle for promoting self-reliance and harnessing people power towards the attainment of economic development and social justice. Towards this end, the State shall encourage the private sector to undertake the actual formation and organization of cooperatives. Thus, it shall ensure the provision of technical guidance, financial assistance and other services to enable cooperatives to develop into viable and responsive economic enterprises. RA 9520 also stipulates that the primary objective of every cooperative is to provide goods and services to its members and thus enable them to attain increased income & savings, investments, productivity and purchasing power and promote among them equitable distribution of net surplus through maximum utilization of economies of scale, cost-sharing and risk-sharing without, however, conducting the affairs of the cooperative for charitable purposes. The cooperative shall provide maximum economic benefits to its members, teach them efficient ways of doing things in a cooperative manner, propagate cooperative principles and practices, promote new ideas in business and management and allow the lower income groups to increase their ownership in the wealth of this nation.





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