Question & AnswerQ&A (MEMORANDUM CIRCULAR NO. 2015-07)
These guidelines are titled the "Guidelines Governing the Registration of Multipurpose Cooperatives."
The State's declared policy is to foster the creation and growth of cooperatives as practical vehicles for promoting self-reliance and harnessing people power towards economic development and social justice.
The purpose is to ensure the orderly registration of multipurpose cooperatives in compliance with the requirements under RA 9520, its Revised Implementing Rules and Regulations, and relevant administrative issuances by the Cooperative Development Authority (CDA).
Only cooperatives that have been in operation for at least two (2) years may be registered as multipurpose cooperatives.
A multipurpose cooperative is defined as a cooperative which combines two (2) or more business/economic activities.
The minimum paid-up capital required is One Hundred Thousand Pesos (Php100,000.00) or as required in the feasibility study, whichever is higher.
Key documents include: Cooperative Name Reservation Notice (CNRN) if changing name, amended Articles of Cooperation and By-Laws, Board resolution approving amendments, surety bond of accountable officers, audited financial statements showing profitability for the past two years, feasibility study, favorable endorsement from government agencies if applicable, and proof of compliance with auditing and accounting standards prescribed by the Authority.
The copies must indicate the proposed amendments properly, such as by underscoring or enclosing the changes in parentheses or brackets, printed in specified paper sizes, and written in English, Filipino, or local dialect with English translation prevailing in case of confusion.
Applications should be filed with the CDA Extension Office having jurisdiction over the principal office of the cooperative, except for certain cooperatives under MC 2012-08 or tertiary cooperatives with national coverage, which are filed with the CDA Central Office.
Single-purpose cooperatives intending to become multipurpose cooperatives must undergo on-site validation conducted by the CDA Extension Office in accordance with Office Order No. 2015-04.
Such a cooperative is required to register or amend itself as a single-purpose cooperative.
The cooperative must amend its Articles of Cooperation to delete the non-undertaken business purpose.
If the cooperative's paid-up capital is below Php100,000.00, it must cease operation of the additional business activity.
An amendment fee as imposed by the Authority must be paid after approval of the amendments but before issuance of the Certificate of Registration of Amendment.
The separability clause provides that the other provisions not affected shall continue in force and effect.