Question & AnswerQ&A (CDA MEMORANDUM CIRCULAR NO. 2013-10)
No member in a primary cooperative shall own more than ten percent (10%) of the total subscribed share capital of the cooperative.
No member of Secondary and Tertiary Cooperatives should own more than ten percent (10%) of the total subscribed share capital of the Cooperative Federation or Union.
The minimum paid-up share capital for a Secondary Federation is Php 500,000.00 and for a Tertiary Federation is Php 5,000,000.00 or as required by a feasibility study, whichever is higher.
No, there is no minimum paid-up share capital required for Union Federations and Unions.
No, the paid-up share capital of a federation shall in no case be less than Php 500,000 for Secondary or Php 5,000,000 for Tertiary cooperatives, even if the feasibility study requires otherwise.
Amendments such as those in CDA Memorandum Circular No. 2013-10 are approved by the CDA Board of Administrators through a Board Resolution.
Yes, the minimum number of members in a Secondary or Tertiary Cooperative shall conform to the ten percent (10%) limitation on capital share holdings.
CDA Memorandum Circular No. 2011-05, S-2011 (Limitation on Share Capital Holdings) and CDA Memorandum Circular No. 2011-18, S-2011 (Revised Guidelines in the Registration of Cooperative Federation and Union) were amended.
The ten percent (10%) limitation is imposed to prevent concentration of ownership in cooperatives, promoting democratic control and equity among members.
Dr. Emmanuel M. Santiaguel, Ph. D., Chairman of the Board of Administrators, signed the circular.