QuestionsQuestions (CDA MEMORANDUM CIRCULAR NO. 2011-05)
At least 25% of the authorized share capital must be subscribed, and at least 25% of the total subscription must be paid up, evidenced by the treasurer’s sworn statement and accompanying requirements.
The treasurer elected by the subscribers provides the sworn statement to show compliance that at least 25% of authorized share capital is subscribed and at least 25% of total subscription is paid.
No. The rule applies to cooperatives other than a cooperative union; cooperative unions are expressly excluded from the stated requirement.
At least 25% of the authorized share capital must be subscribed, and at least 25% of the subscribed share capital must be paid up.
Yes. The circular states the requirement applies to common share capital only.
A member of a primary cooperative other than a cooperative itself may not own or hold more than 10% of the share capital of the cooperative.
The circular specifies that no member in a primary cooperative shall own more than 10% of the total subscribed share capital.
Preferred share capital may not exceed 25% of the total authorized share capital of the cooperative.
No. For both common and preferred share capital, no fractional shares shall be issued.
The member’s ownership must not exceed 10% of the total subscribed share capital of the primary cooperative.
Compute (1) subscribed/authorized share capital and ensure it is at least 25%; and (2) paid-up/total subscription and ensure it is at least 25%.
The subscription-and-payment 25% rule applies to common share capital only.
It cites Article 14 and Article 73 of RA 9520.
To limit the extent to which a cooperative may allocate its authorized capital to preferred shares, ensuring preferred shares remain within the cap established by the circular.
Article 14 deals with registration requirements via the 25% authorized subscription and 25% paid-up subscription; Article 73 deals with restricting individual member ownership to 10% of the cooperative’s share capital (as clarified by the circular regarding total subscribed share capital).