QuestionsQuestions (CDA MEMORANDUM CIRCULAR NO. 2011-17)
It is issued pursuant to the powers of the Cooperative Development Authority under Republic Act No. 6939 and RA 9520, specifically citing Sections 1 & 3(a) of RA 6939 on the State policy to promote cooperative viability and the CDA’s authority to formulate integrated plans and programs.
To provide for the orderly and systematic establishment and operation of a cooperative branch and to prescribe minimum requirements to ensure continuous growth in membership and expansion of business undertakings.
All cooperatives intending to set up a branch and those with existing branches are covered, except cooperative banks.
It refers to the area where the cooperative members come from as provided in the cooperative’s Articles of Cooperation and By-Laws.
A “Branch” is a business office outside the principal office with full cooperative activities and business operation. A “Branch Office” is a place where branch operation provides necessary services to members (typically limited services) and complements the principal office activities.
It is a document issued by the CDA authorizing the operation of a cooperative branch.
Examples include: (1) Office with signage; (2) Operational structure with Manual of Operation; (3) Management staff; (4) Operational plan and budget; (5) Books of Accounts; (6) full business operation; (7) cooperative activities such as accepting membership applications and conducting PMES/meetings; (8) display of CDA/permit items like certificates and business plate/permit.
Minimum paid-up capital: Primary—PHP 2,000,000; Secondary—PHP 5,000,000; Tertiary—PHP 10,000,000.
Primary—PHP 1,000,000; Secondary—PHP 3,000,000; Tertiary—PHP 5,000,000 available start-up operating capital per branch.
The cooperative must have track record of actual operational growth and viability and must not have incurred net loss for the last three consecutive years. Its net worth must be progressive for the last three years from the date of application.
Net worth is computed as Total Equity inclusive of Members’ equity, donations/grants and reserve funds less unbooked allowances and probable losses, receivables and investment.
A letter request signed by the Chairman or General Manager (authorized by the Board), plus: (1) business plan with activities/products/services and 3-year financial projections; (2) general assembly resolution authorizing the branch and commitment of investment/allocation for the proposed site; (3) organizational set-up showing staffing pattern with core team (manager, bookkeeper, staff); (4) certification signed by Chairman/GM confirming presence of Manual of Operations for Branch and the exact location of the proposed branch.
Yes. Primary—PHP 500; Secondary—PHP 2,000; Tertiary—PHP 3,000 for each branch.
No. The circular states that no cooperative shall be allowed to operate a branch without the necessary Certificate of Authority after compliance with the requirements.
Primary and Secondary applications: approved by the Extension Office Director where the cooperative is registered. Tertiary applications: approved by the Executive Director. The approving office must send an official notice and copy of the Certificate of Authority to the extension office where the branch will be established if outside the registered jurisdiction.
The new location must be within the registered area of operation (otherwise amend area of operation); notice of relocation/transfer must be posted three (3) months prior; and CDA must be notified three (3) months before actual transfer.
The extension office where the branch is located may validate required elements. The branch directly reports its operation to its principal office, since the branch is an extension of cooperative business; the complete report (including branch operations) is the responsibility of the principal office within the jurisdiction of the EO where it is registered.
At least: (1) send/post notice of closure in the branch office at least three (3) months prior to closure; (2) send notice of closure to CDA via registered mail to the EO at least three (3) months prior, with reasons; and (3) submit a certification signed by the branch office manager and noted by the Chairman to CDA at least ten (10) working days after closure, with a certified true copy of the board resolution authorizing closure.
Violation: ground for cancellation of the certificate of authority and closure of the branch, without prejudice to applicable administrative sanctions under RA 9520. False certification: (1) on the cooperative—non-issuance of Certificate of Good Standing (CGS) for one (1) year; (2) on the certifying officer—a fine of PHP 10,000 if the certification is found false and/or fraudulent.
It takes effect fifteen (15) days following approval by the Board of Administrators and filing of a copy with the Office of Administrative Register (ONAR).