CDA MEMORANDUM CIRCULAR NO. 2011-05

: At least twenty-five percent (25%) of the authorized share capital must be subscribed.
: At least twenty-five percent (25%) of the total subscribed share capital must be paid.
: No. A cooperative, other than a cooperative union, shall not be registered unless it complies with the Twenty-Five Percent Rule with the required sworn statement of the treasurer.
: No member of a primary cooperative, other than a cooperative itself, shall own or hold more than ten percent (10%) of the share capital of the cooperative.
: No, the Twenty-Five Percent Rule applies only to common share capital. However, preferred share capital, if provided in the bylaws, must not exceed twenty-five percent (25%) of the total authorized share capital.
: No, fractional shares shall not be issued for both common and preferred share capital.
: The treasurer elected by the subscribers must submit the sworn statement showing compliance.
: The purpose is to ensure a fair share capital structure, prevent concentration of ownership, and promote participative membership in cooperatives.
: Yes, the 10% limitation does not apply to a cooperative itself as a member of another primary cooperative.
: It was approved on February 22, 2011 per BOA Resolution No. 31-2011.