Core definitions for registration framework
- “Authority” refers to the Cooperative Development Authority.
- “Federation” is defined as a cooperative whose members are primary cooperatives doing the same line of business.
- “Primary Cooperative” is defined as a cooperative whose members are natural persons.
- “Secondary Cooperative” is defined as a cooperative whose members are primary cooperatives.
- “Tertiary Cooperative” is defined as a cooperative whose members are secondaries.
- “Union” is defined as a cooperative whose members are registered cooperatives and/or federations, organized to represent the interest and welfare of all types of cooperatives at the provincial, city, regional, and national levels.
- “Registration” is defined as the operative act of the Authority granting juridical personality to a proposed cooperative, evidenced by the certificate of registration.
Scope: who must follow these guidelines
- The guidelines cover all federations and unions applying for registration with the Authority.
- The guidelines exclude federations and unions covered by Chapters XII, XIII, and XVI & XVII of R.A. 9520.
Minimum registration requirements
Registration requires compliance with minimum requirements on membership, paid-up capital, area of coverage, business activity, bonding, fees, and documentary submissions.
Membership minimums are set as follows:
- For a Secondary Federation: 3 primary coops.
- For a Union (secondary category): 15 primary coops.
- For a Tertiary Federation: 3 secondary Coops.
- For a Union (tertiary category): 15 secondary coops.
Paid-up share capital minimums are set as follows:
- Secondary Federation: Php 500,000.00; the Union has None.
- Tertiary Federation: Php 5,000,000.00 or feasibility study requirement whichever is higher; the Union has None.
For federation registration, the capital requirement stated in the feasibility study may be followed, but the federation’s paid-up share capital must in no case be less than the amounts stated above.
Area of coverage must be at one of these levels:
- municipal/city, district, provincial, regional, or national.
Members must be doing the same line of business activity.
Business activity limitations provide that:
- A federation may engage in cooperative enterprises authorized under Article 6 of R.A. 9520 that compliments, augments, or supplements member activities.
- A federation must not conflict with, compete with, or supplant members’ business or economic activities.
Bonding requirement mandates:
- Accountable officer/s of the proposed federation must be covered by sufficient Surety Bond.
- The bond amount depends primarily on the amount of accountabilities handled by the officer/s, as determined by the Board of Directors.
Fees, feasibility study, and required documents
Registration fee is computed as follows:
- The registration fee is one tenth (1/10) of one (1%) percent of the authorized share capital or the amounts prescribed in the CDA schedule of fees, whichever is higher.
The registration fee must be paid on or before the issuance of the Certificate of Registration.
The Feasibility Study requirement is:
- Four (4) copies of the Feasibility Study must be submitted.
- The Feasibility Study must include:
- Organizational Structure.
- Purposes/Objectives.
- Area of Operation.
- Number of Member and Potential Members.
- Feasibility broken into:
- technical aspect of federation operation.
- management aspect.
- financial aspect, including 3 years projection, contribution, subsidies.
- A provision incorporating cooperative education and training programs.
For a cooperative union, feasibility study may be replaced by a three year development plan.
Articles of Cooperation and By-laws must be submitted as:
- Four (4) copies each of the Articles of Cooperation and the By-laws.
Treasurer’s Affidavit must be:
- A duly notarized document attached to the Articles of Cooperation stating the total amount received from members share capital contribution, membership fee, donations or subsidies.
General Assembly Resolution must be:
- A duly notarized resolution stating that the general assembly approved the membership and the exact amount of share capital/dues to be contributed for affiliation.
Additional documentary requirements include:
- BOD Resolution on authorized representative.
- A certification of the chairperson of member primaries stating:
- the Line of business activity engage in; and
- compliance/adherence to the accounting and auditing standards as prescribed by the Authority.
- Other documents as the Authority may prescribe.
Place of registration and responsible CDA offices
- Extension Offices of the Authority register all federations/unions.
- If a proposed federation/union operates with interegional coverage, registration is made in the Extension Office where the principal office is located.
- The Central Office of the Authority registers tertiary cooperatives with national coverage.
Policies, prohibition, and registration process
A federation must engage in economic activity.
A union must actively advocate for the benefit and welfare of its members and must regularly implement plans and programs for the advancement of members’ interest.
No federation/union is registered without complying with the minimum membership requirement stated in the guidelines.
Federations/unions are prohibited from conducting audit service to their members.
Registration procedures follow the same procedures for primary cooperatives:
- The procedures for registration of cooperative federations/unions follow the same procedures outlined for the registration of primary cooperatives, as approved by the Board of Administrators.
Effectivity rule for operational use
- The guidelines take effect fifteen days upon:
- approval by the Board of Administrators, and
- registration with the Office of the National Administrative Register (ONAR).