Cooperative Principles.
Article 4
ART. 4. Cooperative Principles. — Every cooperative shall conduct its affairs in accordance with Filipino culture and experience and the universally accepted principles of cooperation which include the following: Open and Voluntary Membership — Membership in a cooperative shall be voluntary and available to all individuals regardless of their social, political, racial or religious background or beliefs. Democratic Control — Cooperatives are democratic organizations. Their affairs shall be administered by persons elected or appointed in a manner agreed upon by the members. Members of primary cooperatives shall have equal voting rights on a one-member-one-vote principle: Provided, however, That, in the case of secondary and tertiary cooperatives, the provisions of Article 37 of this Code shall apply. Limited Interest in Capital — Share capital shall receive a strictly limited rate of interest. Division of Net Surplus — Net surplus arising out of the operations of a cooperative belongs to its members and shall be equitably distributed for cooperative development, common services, indivisible reserve fund, and for limited interest on capital and/or patronage refund in the manner provided in this Code and in the articles of cooperation and bylaws. 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 cooperation. Cooperation Among Cooperatives — All cooperatives, in order to best serve the interest of their members and communities, shall actively cooperate with other cooperatives at local, national, and international levels.