CDA MEMORANDUM CIRCULAR NO. 2013-04

: Article 75 requires the by-laws of every cooperative to provide for a reasonable and realistic member capital build-up program to allow the continuing growth of members' investment as their economic conditions improve.
: The purpose is to enable the continuous growth of members' investments in their cooperative as their economic conditions improve.
: The by-laws may prescribe a fine on unpaid subscribed share capital, provided that such fine is fair and reasonable under the circumstances.
: All cooperatives are enjoined to adopt a policy of continuing subscription on share capital, including requiring members to subscribe additional capital upon full payment of their initial subscription.
: Cooperatives must execute a subscription agreement upon the admission of members and whenever additional subscriptions are made by members upon full payment of their initial subscription.
: No, cooperatives are prohibited from increasing or decreasing the par value of the share capital by amending their Articles of Cooperation and By-laws.
: The Memorandum Circular took effect immediately upon its approval on February 7, 2013.
: It was approved by the CDA Board of Administrators through Board Resolution No. 047, s-2013, dated February 7, 2013, signed by the Chairman Emmanuel M. Santiaguel, Ph. D.