Topics: Business, Cooperative, Stock market Pages: 3 (768 words) Published: March 2, 2014
Cooperative shall mean only organizations composed primarily of small producers and of consumers who voluntarily join together to form business enterprises which they themselves own, control and patronize. A small producer shall mean a self-employed individual who, by himself or with this family provides the primary labor requirements of his business enterprise or one who earns at least fifty percent of his gross income from the payment proceeds or income of the labor he provides. Principle of Cooperatives

(a) Open membership — Membership in a cooperative should be voluntary and available without artificial restriction or any social, political, racial or religious discrimination, to all persons who can make use of its services and are willing to accept the responsibilities of membership. (b) Democratic control — In primary cooperatives irrespective of the number of shares owned, each member can only cast one vote in deciding upon the affairs of the cooperative. The affairs of the cooperative shall be administered by persons elected or appointed in a manner agreed by the members and accountable to them. In other than primary cooperatives, administration shall be conducted in a suitable democratic form. (c) Limited interests to capital — Share capital shall earn only limited interests, the maximum rate of interests to be established by the Department of Local Government and Community Development from time to time. (d) Patronage refund — Net income after the interest on capital has been paid shall be redistributed among the members in proportion to their patronage. (e) Cooperation among cooperatives. All, in order to best serve the interest of their members and communities, shall actively cooperate with other cooperatives at local, national, and international levels. (f) Cooperative education. All cooperatives shall make provision for the education of their members, officers and employees and of the general public based on the principles of...
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