Coverage
- The Circular applies to all electric cooperatives registered under RA 9520.
- Covered entities include electric cooperatives undertaking power generation using renewable energy or hybrid systems, and those involved in sub-transmission or distribution.
- Newly registered distribution utilities under the Authority are also covered.
Definition and Nature of Share Capital Certificates
- The share capital certificate is a document issued by an electric cooperative under its seal evidencing a member’s contribution in money or property.
- It confirms the member's participation and equity share in the cooperative.
Form and Content Requirements
- Certificates may be typed or handwritten and must be in English or Filipino.
- Mandatory contents include:
- Serial number of the certificate
- Name and address of the issuing cooperative
- Name and address of the member
- Number of shares fully paid-up
- Par value per share (maximum Php 1,000)
- Total value of shares contributed
- Date of issuance
- Printed names and signatures of the chairman and secretary
- Cooperative’s seal, if available
Conditions for Issuance
- Share capital certificates shall not be issued unless the full amount of the subscription, along with any interest and expenses, has been paid in full.
Procedures for Claiming and Issuance of Duplicates
- Members claiming certificates must present valid identification issued by the cooperative or other valid ID.
- Members may authorize another person to claim on their behalf through an authorization letter and IDs of both parties.
- Duplicate certificates may be issued upon loss, destruction, defacement, mutilation, or surrender of the original, supported by an Affidavit of Loss or equivalent proof.
Distribution Guidelines
- Certificates shall be distributed annually, preferably during the General Assembly Meeting of the cooperative.
- Distribution must consider:
- Previous equity contributions
- Amortization components
- Payments made
- Capital build-up
- Other capital contributions
Reporting Requirements
- The cooperative secretary must submit a list of issued share capital certificates, including their values, along with the annual mandatory report.
- CDA officers are tasked to monitor compliance with the Circular and report cooperatives that comply with Article 133 within 150 days after the calendar year ends.
Enforcement and Sanctions
- CDA Extension Office officials must conduct monitoring and inspections enforcing compliance.
- Non-compliant cooperatives shall face sanctions per applicable laws after due notice.
Effectivity
- The Memorandum Circular takes effect immediately upon issuance as approved by the CDA Board Resolution No. 065, s-2013.