QuestionsQuestions (CDA MEMORANDUM CIRCULAR NO. 2008-01)
It sets guidelines for the issuance of a Certificate of Good Standing (CGS) to support the proper and transparent implementation of the incentives policy for registered cooperatives under RA 6938 (Cooperative Code of the Philippines) and RA 6939 (Charter of CDA). It also establishes CDA administrative responsibilities to ensure proper implementation.
A cooperative that conducts its affairs per its by-laws and the relevant laws (RA 6938 and RA 6939) and has complied with statutory reports, whether it is operating on net surplus or net loss.
A cooperative that has performed business and cooperative operation, including those that have not commenced business and cooperative operation within two (2) years from the date of registration.
A cooperative that has not performed business and cooperative operation for at least two (2) consecutive years, as determined by actual inspection conducted on the cooperative.
If it failed to submit all basic statutory reportorial requirements to CDA. The Circular cites the IRR of the Cooperative Code: failure to file the annual report is a ground for revocation/cancellation, and no certificate (of whatever kind) shall be issued to a cooperative that has not filed its annual report.
If a cooperative has not commenced business and operation within two (2) years after its registration date, or has not carried on business for two (2) consecutive years, CDA may strike off its name from the register for dissolution. As a result, the Circular states a CGS may not be issued to such a cooperative.
If it secures the CGS within ninety (90) days from the date of its registration with CDA, it is exempt from requirements (a), (b), (c), (e), (f), and (g).
If it applies beyond ninety (90) days from registration, it must comply with requirement (d): submission of minutes of the AGM for the preceding fiscal year including election results, in accord with its by-laws.
Board Resolution No. 290, s. 2003, which granted Administrators authority to approve CGS according to geographical jurisdiction, is repealed.
Yes. Upon recommendation of the concerned Extension Office Director, the Board may waive requirements if compliance is deemed impossible due to force majeure, calamity, or fortuitous events. Waivable items are the statutory reports for the preceding year, updated bond, and AGM minutes for the preceding year (if provided in by-laws). Other requirements in Section 6 still must be complied with.
Certification fee: Php 200.00 for every CGS issued including certification of no pending case. Additional penalties: Php 300.00 for every year of failure to secure a CGS; and Php 300.00 for late filing for CGS.
On or before April 30 of the current year. Requests received after April 30 are considered “late filing” and incur the Php 300.00 penalty.
A CGS issued on or before July 13, 2007 is effective one (1) year from issuance. For August 1, 2007 to December 31, 2007, CGSs remain valid until December 31, 2008. Thereafter, a CGS is valid until April 30 of the succeeding year. During the first year, CDA will not impose the penalty on applicants who have not secured a CGS or Certificate of Operation for FY 2007.