QuestionsQuestions (MEMORANDUM CIRCULAR NO. 2015-07)
It is issued pursuant to Section 3 of Republic Act No. 6939, which authorizes the Cooperative Development Authority to adopt and promulgate guidelines for matters within its regulatory mandate—here, governing the registration of multipurpose cooperatives.
The State policy is to foster the creation and growth of cooperatives as vehicles for self-reliance and people power toward economic development and social justice. The purpose of the Circular is to ensure orderly registration of multipurpose cooperatives consistent with RA 9520, its IRR, and related CDA issuances.
They govern (1) the registration of multipurpose cooperatives and (2) the operation of existing cooperatives registered with the CDA.
A cooperative may not be registered as multipurpose unless it has been in operation for at least two (2) years.
A multipurpose cooperative is one that combines two (2) or more business/economic activities.
It must have a minimum paid-up share capital of at least P100,000.00 or the amount required in the feasibility study, whichever is higher.
It must have paid-up capital of P100,000.00 or above; if the minimum paid-up capital is not met, it must cease its operation with regard to the other business activity.
Key items include: Cooperative Name Reservation Notice (if change of name); Amended Articles of Cooperation and By-laws; board and secretary resolution approving amendments by at least 2/3 vote; surety bond of accountable officers; audited financial statements showing profitable operations for past two (2) years; undertaking to change name if another has prior right; favorable endorsement from other government agencies if applicable; detailed feasibility study for each proposed business activity; and certificate of compliance with auditing/accounting standards prescribed by the CDA.
Amendments must be approved by at least two-thirds (2/3) vote of all members with voting rights, as stated in a resolution certified by the cooperative’s secretary and by the majority of the Board of Directors.
It must submit audited financial statements showing profitable operations for the past two (2) years.
Cooperatives covered by the rule must maintain separate recording in the books of account for each business activity.
The amendment fee must be paid after approval of the amendments, and payment must be collected before the issuance of the Certificate of Registration of Amendment.
It must be filed and registered with the CDA Extension Office (EO) that has jurisdiction over the principal office of the proposed multipurpose cooperative.
Amendments of selected types of cooperatives pursuant to MC 2012-08 and tertiary cooperatives with national coverage should be forwarded to the CDA Central Office, which registers the amendments.
All single-purpose cooperatives intending to register as multipurpose must be subjected to validation before registration. The CDA Extension Office must conduct on-site validation in accordance with Office Order No. 2015-04.
The procedures for registration of multipurpose cooperatives follow the same procedures outlined for registration of amendments, as approved by the Board of Administrators.
It is required to register/amend as a single-purpose cooperative.
It must amend its Articles of Cooperation to delete the unundertaken purpose.
If any provision is declared null and void or unconstitutional, the other provisions not affected continue to be in force and effect.
They take effect upon approval of the Board of Administrators and fifteen (15) days after submission with the Office of National Administrative Registry (ONAR).