Minimum Paid-up Capital Requirements for Federations and Unions
- Secondary cooperative federations must have a minimum paid-up capital of Php 500,000.00.
- Tertiary cooperative federations require a minimum paid-up capital of Php 5,000,000.00 or the amount stated in a feasibility study, whichever is higher.
- Cooperative unions have no minimum paid-up capital requirement.
- For federation registration, the paid-up capital may follow the feasibility study capital requirements, but it shall not be less than the prescribed minimum amounts.
Ownership Rules and Membership Number Constraints
- No member in secondary and tertiary cooperatives should own more than ten percent (10%) of the total subscribed share capital.
- The required minimum number of members in secondary and tertiary cooperatives must always observe the ten percent (10%) ownership limitation on share capital holdings.
Amendments and Regulatory Authority
- The amendments modify provisions in CDA Memorandum Circulars No. 2011-05 and No. 2011-18 issued in 2011.
- The amendment was approved by CDA Board Resolution No. 045, s-2013 dated February 7, 2013.
- The regulatory framework ensures equitable distribution of ownership among cooperative members and sets financial viability standards for federations and unions.