Question & AnswerQ&A (CDA MEMORANDUM CIRCULAR NO. 2013-14)
The main purpose is to provide guidelines for the orderly issuance and distribution of share capital certificates of electric cooperatives in compliance with Article 133 of Republic Act No. 9520.
Article 133 mandates electric cooperatives to issue and distribute share certificates under the name of their members, considering previous equity contributions, amortization through payments, capital build-up, and other capital contributions.
It applies to all electric cooperatives registered under RA 9520 that undertake power generation using renewable energy, acquisition and operation of sub-transmission or distribution, including new distribution utilities registering with the Authority.
A share capital certificate is a document issued under the electric cooperative's seal evidencing that a member has contributed money or property corresponding to his share in the cooperative.
It must contain the serial number, name and address of cooperative, name and address of member, number of fully paid shares, par value of each share (not more than Php1,000), total value of shares contributed, date, printed names and signatures of chairman and secretary, and the seal of the cooperative if any.
The member must present an I.D. issued by the cooperative or any valid I.D. Alternatively, a member can authorize a representative via a letter of authorization with both the member's and the authorized person's IDs presented.
The cooperative may issue a duplicate certificate upon proof of loss, destruction, or defacement through an Affidavit of Loss or a similar document, or if the original certificate is surrendered.
Preferably annually during the Electric Cooperative's General Assembly Meeting.
Previous equity contributions, the amortization component, payments made, capital build-up, and other capital contributions.
The secretary must submit a list of issued share capital certificates with their value along with the annual mandatory report.
All CDA Department Heads, Division Chiefs, Regional Directors, and Technical Personnel (CDS) are responsible for monitoring compliance and conducting inspections.
Electric cooperatives failing to comply may be sanctioned according to applicable laws after due notices.
The report must be submitted within one hundred fifty (150) days after the end of the calendar year.
The Memorandum Circular became effective immediately upon approval.