Section 1
SECTION 1. Fifteen or more persons, citizens of the Philippines or of the United States, residents of the Philippines, may organize a cooperative association for the mutual benefit of the members thereof. Any association or corporation organized under other laws of the Philippines, at least sixty-one per centum of the capital of which is owned by citizens of the Philippines or of the United States, may, by the affirmative of the members or stockholders holding two-thirds of its capital, organize a cooperative association or convert itself into a cooperative association under the provisions of this Act: Provided, that no such association or corporation organizing a cooperative association under this Act shall own or hold more than twenty per centum of the authorized capital of the sane, unless the majority of the capital of such association or corporation is owned by the Government.