Subsidiary Cooperative Networth Policy

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CDA MEMORANDUM CIRCULAR NO. 2013-09: Subsidiary Cooperative Networth Policy

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Title Supreme Court: Subsidiary Cooperative Networth Policy

Law: Cda Memorandum Circular No. 2013-09

Decision Date: Feb 7, 2013

Parent cooperatives must maintain a minimum net worth of Ten Million Pesos in their latest audited financial statements to organize subsidiary cooperatives, allowing for multiple subsidiaries based on this financial requirement.

parent cooperative

cooperative law

A

Multiple Subsidiary Cooperatives and Minimum Net Worth

The parent cooperative may organize more than one subsidiary cooperative.
For each subsidiary cooperative to be organized, the parent cooperative's net worth must be at least Ten Million Pesos (P10,000,000.00) multiplied by the number of subsidiaries.
- Example: One subsidiary requires P10,000,000.00; two subsidiaries require P20,000,000.00, and so forth.

Compliance with Additional Requirements

Apart from meeting the net worth threshold, the parent cooperative must also comply with other requirements stated in Section 2, Rule II of the Implementing Rules and Regulations (IRR) of R.A. 9520.

Authority and Enforcement

The policy is formalized by the Cooperative Development Authority (CDA) through Memorandum Circular No. 2013-09.
Approved by CDA Board Resolution No. 050, s-2013, dated February 7, 2013.

Purpose and Guidance

The memorandum serves as official guidance for cooperatives on the net worth requirement when organizing subsidiary cooperatives under Section 2(2), Rule II of the IRR to R.A. 9520.

END