Open and Voluntary Membership vs. Associational Membership in Philippine Cooperatives: Explanation and Reconciliation
I. The Legal Principle of Open and Voluntary Membership
One of the universally accepted cooperative principles adopted in the Philippines is Open and Voluntary Membership.
Under the Philippine Cooperative Code of 2008 (Republic Act No. 9520), cooperatives are voluntary organizations open to all persons who can use their services and are willing to accept the responsibilities of membership, without discrimination based on social, political, racial, or religious considerations.
The principle means:
- No person can be compelled to join a cooperative.
- Qualified persons should not be arbitrarily excluded.
- Membership is based on willingness to participate and comply with the cooperative’s requirements.
- Members may voluntarily withdraw subject to legal and bylaw requirements.
This principle protects the cooperative from becoming an exclusive club while ensuring democratic participation.
II. What is Associational Membership?
RA 9520 introduced the concept of Associational Members.
Section 5(2) of RA 9520 defines an associational member as:
A member who has no right to vote nor be voted upon and shall be entitled only to such rights and privileges as provided by the bylaws.
An associational member is therefore a limited member who may enjoy services and benefits but does not possess the full governance rights of a regular member.
Examples include:
- Patron members
- Affiliate members
- Youth members
- Institutional partners
- Beneficiaries in transition to regular membership
Associational members are often admitted to broaden participation without immediately granting ownership and control rights.
III. Apparent Conflict
At first glance, a question arises:
If membership is open and voluntary, why are some members classified merely as associational members and denied voting rights?
This appears contradictory because cooperative principles emphasize equality and democratic control.
IV. Legal Reconciliation
There is actually no conflict.
1. Open Membership Refers to Admission
The principle of open and voluntary membership governs access to the cooperative.
It answers the question:
“Who may join?”
Associational membership expands rather than restricts access because it allows individuals or entities to participate even if they do not yet qualify for regular membership.
Thus, associational membership is often a mechanism for inclusion.
2. Democratic Control Refers to Governance
Another cooperative principle is Democratic Member Control.
This principle answers:
“Who governs the cooperative?”
Governance rights are generally reserved to regular members because they:
- Own the cooperative;
- Assume full obligations;
- Subscribe and pay share capital;
- Bear risks and responsibilities.
Associational members may enjoy services but do not necessarily bear the same level of ownership responsibility.
3. Different Classes of Membership are Permitted by Law
RA 9520 expressly recognizes:
- Regular members
- Associate members (often referred to in practice as associational members)
The law allows different rights and privileges provided such distinctions are stated in the bylaws.
The distinction is therefore not discriminatory but statutory.
4. Associate Members May Become Regular Members
Section 5 of RA 9520 further provides that:
An associate member who meets the minimum requirements of regular membership and continues to patronize the cooperative for two years shall become a regular member.
This provision demonstrates that associate membership is intended as a pathway rather than a permanent exclusion.
The law encourages progression toward full membership.
V. Practical Examples
Example 1: Farmers’ Cooperative
A newly settled farmer wishes to join but has not yet completed the required cooperative education training.
The cooperative may admit him as an associate member while he completes the requirements.
This promotes openness while preserving governance standards.
Example 2: Multi-Purpose Cooperative
A cooperative permits family members of regular members to avail themselves of certain services.
These family members may be admitted as associate members without voting rights.
This expands service reach without altering democratic control.
Example 3: Credit Cooperative
A depositor may initially become an associate member before meeting the share capital requirements for regular membership.
The cooperative remains open while ensuring that voting power remains with member-owners.
VI. Jurisprudential and Policy Perspective
The essence of cooperativism is not merely admission but member ownership and democratic control.
Open membership prevents exclusion.
Associational membership facilitates inclusion.
Regular membership protects democratic governance.
Accordingly:
Open and voluntary membership determines who may enter the cooperative, while associational membership determines the extent of participation until full membership qualifications are met.
The two concepts complement rather than contradict each other.
VII. Conclusion
There is no legal inconsistency between the cooperative principle of Open and Voluntary Membership and the statutory concept of Associational Membership.
Open and voluntary membership ensures that qualified persons are not unfairly denied entry into the cooperative. Associational membership, on the other hand, is a lawful classification that allows broader participation while reserving governance rights for regular members who have assumed full ownership responsibilities.
In effect:
- Open Membership = Access
- Associational Membership = Membership Classification
- Regular Membership = Full Ownership and Democratic Control
Thus, associational membership serves as an instrument for inclusion and growth while preserving the cooperative’s democratic character.
Bibliography
- Republic Act No. 9520. Philippine Cooperative Code of 2008.
- Cooperative Development Authority. Revised Rules and Regulations Implementing Certain Provisions of RA 9520.
- International Cooperative Alliance. Statement on the Cooperative Identity and Cooperative Principles.
- Cooperative Development Authority. Memorandum Circulars and Governance Guidelines on Cooperative Membership and Democratic Control.
- Commentaries and Jurisprudence on Philippine Cooperative Law. Various legal commentaries discussing membership rights, associate membership, and cooperative governance under RA 9520.