Short title.
Section 1
SECTION 1. Short title.—This Act shall be known as the "Philippine Non-Agricultural Co-operative Act."
RA 2023 CHAPTER I.—Preliminary Provisions
Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails.・Read the official text ↗
Declaration of policy and objectives.
Section 2
SEC. 2. Declaration of policy and objectives.—It is hereby declared to be the policy of Congress to assist the people to develop their enterprises on a co-operative basis to strengthen their economic independence within the framework of this Act by the promotion of organized methods of industrial production, marketing, distribution and credit, the improvement of processes and other activities and the removal of conditions which hamper the growth of a rising standard of living with a view to promote the general well-being of the people and to expand the national economy. In furtherance of this policy, the Government shall encourage and assist in the establishment of a system of co-operative banks all over the country which shall provide banking facilities and reasonable credit for the non-agricultural co-operatives and encourage the distribution of consumer requirements through co-operatives by the establishment of a system of co-operative wholesale societies all over the country which shall provide steady and wholesale source of consumer requirements and act as a link between producers and consumers co-operatives by adopting a policy of gradual transfer of the business of procurement of consumer requirements from the National Marketing Corporation (NAMARCO) to the Philippine Co-operative Wholesale Society. To achieve this policy, the Central Bank of the Philippines, the Department of Commerce and Industry and all other departments, agencies or instrumentalities of the Government shall, in cooperation with the Administrator, provide technical guidance, financial assistance and other facilities to develop a sound and stable co-operative movement in the Philippines.
—Definitions.
Section 3
SEC. 3.—Definitions.—As used in this Act and unless a different meaning is intended in the context— "Co-operative" means a non-profit organization of natural or juridical persons registered in accordance with this Act to achieve common benefits of an economic and social character on a co-operative basis; "Co-operative" refers to non-agricultural co-operatives. "Co-operative basis" includes— open and voluntary membership; democratic control—one member one vote; limited interest on capital—not exceeding the limitations provided in this Act; and distribution of savings to members in proportion to their participation in the business of the cooperative. "Federation of Co-operatives" means a co-operative the primary object of which is to co-ordinate and facilitate the activities of its member co-operatives and to foster the growth of the co-operative movement; "Member" includes both a person who subscribes to the articles of incorporation of a co-operative and a person, either natural or juridical, who agrees to join the co-operative and is admitted to membership after registration in accordance with the by-laws and the regulations promulgated under this Act; "Regulations" means the regulations promulgated under this Act; "By-laws" means the by-laws registered under this Act and includes a registered amendment of the by-laws; "Board" means the board of directors to whom the management of the affairs of the co-operative is entrusted under Section 38 of this Act; and "Administrator" means the administrator of the Co-operatives Administration Office.
Scope.
Section 4
SEC. 4. Scope.— Every co-operative under the jurisdiction of the Co-operatives Administration Office existing at the time of the approval of this Act which has been registered under existing co-operative laws (Commonwealth Act five hundred sixty-five, Act twenty-five hundred eight and Act thirty-four hundred twenty-five, all as amended) shall be deemed to be registered under this Act, and its by-laws shall, so far as they are not inconsistent with the provisions of this Act, continue in force and be deemed to be registered under this Act. All executive and administrative orders, rules and regulations and notices issued, all transactions entered into and suits and proceedings instituted under the said Acts shall be deemed, so far as may be, to have been issued, entered into, or instituted under this Act.
References.
Section 5
SEC. 5. References.—Upon the approval of this Act, all references to existing laws affecting non-agricultural cooperatives shall be construed as references to this Act, and no proceedings instituted and pending or anything done shall be deemed to have been invalid on the ground that such laws did not refer to this Act.
Exemption of co-operatives from certain provisions of the Act.
Section 6
SEC. 6. Exemption of co-operatives from certain provisions of the Act.—Upon recommendation of the Administrator, the Secretary of Commerce and Industry may, by regulation to be published in the Official Gazette, exempt any co-operative or type of co-operatives from any of the provisions of this Act, or may direct that such provisions shall apply to such co-operative or type of co-operatives with such modifications as may be specified in the regulation: Provided, however, That no regulation shall be issued without giving to such co-operative or type of co-operatives an opportunity to present its case.
Corporation Law not applicable.
Section 7
SEC. 7. Corporation Law not applicable.—The provisions of the Corporation Law shall not apply to co-operatives.
Back to RA 2023 — full text
Provisions on this page are reproduced verbatim from official open data. See the attribution line.
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).