Law Summary
Legal Bases
- Rooted in Republic Act No. 6939 and RA 9520.
- Enforces the state's policy to promote cooperative growth for economic and social development.
- CDA empowered to determine other cooperative types.
Purpose
To ensure orderly registration of primary agriculture cooperatives following RA 9520 and other applicable laws.
Scope
Covers primary agriculture cooperatives engaged in raising or cultivation of plants, animals for economic gain.
Definition of Terms
- Area of Operation: Geographic boundaries of cooperative activities and membership.
- Associate Member: A member with limited rights—no voting privileges.
- Authority: Refers to the Cooperative Development Authority.
- Authorized Share Capital: Capital approved as stated in Articles of Cooperation.
- Bond of Membership: Common connection among members.
- Cooperative: Autonomous member association adhering to cooperative principles.
- Agriculture Cooperative: Primary cooperative focused on raising plants, animals, fungi.
- Agriculture: The art and science of farming for economic purposes.
- Registration: Authority’s act granting juridical personality to cooperatives.
- Regular Member: Member with full rights after fulfilling requirements.
- Share: Unit of capital with a fixed par value between P100 and P1,000.
- Share Capital: Money paid or to be paid by members for cooperative operations.
Jurisdiction
Applicants shall file registration with the designated CDA Extension Office with jurisdiction.
Documentary Requirements
- Cooperative Name Reservation Notice (Original)
- Economic Survey
- Articles of Cooperation and By-Laws (signed)
- Treasurer’s Affidavit
- Surety Bonds of Accountable Officers
- Pre-Membership Seminar Certificate
- Undertakings to comply with auditing and regulatory standards
- Tax Identification Numbers of members
- Registration Fee
Cooperative Business Activities
- Raising and cultivation of plants and animals
- Procurement of farm inputs
- Processing and marketing of produce
- Additional services related to cost reduction and value addition
- Allied services like storage and transport
Form and Style of Documents
- Printed on 8.5" x 13" or 8.5" x 14"
- Written in English, Filipino, or local dialect with English translation
- Font: Bookman Old Style, size 12 preferred
- In case of ambiguity, English translation prevails
Registration Procedures
- Technical assistance available from Extension Office
- Submission as per Memorandum Circular 2015-01
- Validation and verification within specified timelines
- Validator submits report within five days after validation
Membership Requirements
- Minimum of 15 Filipino natural persons
- Common bond of interest
- Residing or working in cooperative’s operational area
Capital Requirements
- Authorized share capital as per Articles of Cooperation
- At least 25% must be subscribed and paid prior to registration
- Minimum paid-up capital of P15,000
Cooperative Name and Restrictions
- Must include "Agriculture," "Cooperative," or equivalent Filipino terms
- Names must not be identical, confusingly similar or contrary to public morals
- Discourages use of words like "development" and "integrated"
- Prohibits use of "Incorporated," "Corporation," "Federation," or "Union" in primary cooperative names
Common and Preferred Shares
- Articles of cooperation must provide for preferred shares if associate members exist
- Preferred shares not exceeding 25% of authorized share capital
- By-Laws must define the rights of preferred shareholders
- Common share capitalization adheres to 25% subscription and payment rule
- No member may own over 10% of subscribed shares
Bond of Membership
- Residential: members residing in operational area
- Occupational: members engaged in agricultural activities
- Associational: members from registered associations or groups
Dual Membership
- By-laws may restrict members from joining competing cooperatives within the same area without consent
Bonding of Accountable Officers
- Required bonds for Chairperson, Treasurer, Manager, Warehouseman, collectors, signatories, and other custodians
- Adequacy of bonds determined by Board based on net worth at registration
Monitoring and Inspection
- CDA Extension Office shall actively monitor and inspect cooperatives for compliance
Separability Clause
- Invalid provisions will not affect remaining guidelines
Repeal Clause
- Earlier inconsistent circulars and guidelines revoked or modified
Effectivity
- Effective fifteen days after filing with Office of National Administrative Registry
- Approved by CDA Board of Administrators as of August 18, 2015