Law Summary
Imposition of Fines on Unpaid Subscribed Share Capital
- By-laws may authorize fines on unpaid subscribed share capital.
- Any imposed fines must be fair and reasonable given the circumstances.
Mandatory Continuing Subscription Policy
- Cooperatives must adopt a policy for continuing subscription on share capital.
- Members are required to subscribe to additional shares after full payment of initial subscription.
- Subscription agreements must be executed upon admission of new members and upon additional subscriptions by existing members.
Issuance of Share Certificates
- Share certificates must be issued at least annually at the end of the calendar year.
- Issuance is based on the number of fully paid shares during the period.
Prohibition on Multiple Types and Variable Par Value Shares
- Cooperatives are prohibited from issuing multiple types of common shares.
- Cooperatives cannot issue shares with different par values.
- Cooperatives are also prohibited from increasing or decreasing par value via amendments to Articles of Cooperation and By-laws.
Effectivity
- The memorandum circular takes effect immediately upon approval.
Authorities and Approvals
- Approved pursuant to CDA Board Resolution No. 047, s-2013 dated February 7, 2013.
- Signed by Emmanuel M. Santiaguel, Ph. D., Chairman of the Board of Administrators.