Title
Guidelines for Cooperative Federation/Union Registration
Law
Cda Memorandum Circular No. 2011-18
Decision Date
Jun 7, 2011
The Cooperative Development Authority establishes revised guidelines for the registration of cooperative federations and unions, detailing membership requirements, capital contributions, and operational scopes to enhance cooperative governance and representation.
A

Scope of the Guidelines

  • Applicable to all federations and unions applying for registration.
  • Excludes those covered by specific chapters (XII, XIII, XVI, XVII) of Republic Act 9520.

Membership Requirements

  • Federation minimum members:
    • Secondary federation: at least 3 primary cooperatives.
    • Tertiary federation: at least 3 secondary cooperatives.
  • Union minimum members:
    • Secondary union: at least 15 primary cooperatives.
    • Tertiary union: at least 15 secondary cooperatives.

Paid-up Capital Requirements

  • Federation minimum paid-up capital:
    • Secondary: Php 500,000.
    • Tertiary: Php 5,000,000 or per feasibility study, whichever is higher.
  • Unions have no minimum paid-up capital requirement.
  • Feasibility study capital requirements may be followed but not below stated minimums.

Area of Coverage

  • Federations/unions can be organized at municipal/city, district, provincial, regional, or national levels.
  • Members must engage in the same line of business activity.

Business Activity of Federations

  • Can engage in cooperative enterprises authorized under RA 9520 Article 6.
  • Enterprises must complement or supplement, not compete with or supplant members' business activities.

Bonding Requirement

  • Officers accountable for federation funds must be covered by surety bonds.
  • Bond amount depends on the officers' accountability determined by the Board of Directors.

Registration Fee

  • One-tenth (1/10) of one percent (1%) of the authorized share capital or as prescribed in CDA fee schedule, whichever is higher.
  • Fee payment upon or before issuance of the Certificate of Registration.

Feasibility Study and Development Plan

  • Federations must submit four copies of a feasibility study including:
    • Organizational structure
    • Purposes/objectives
    • Area of operation
    • Membership numbers and potential members
    • Technical, management, financial aspects with 3-year projection
    • Inclusion of cooperative education and training programs
  • Unions may substitute feasibility study with a three-year development plan.

Articles of Cooperation and By-laws

  • Four copies of both must be submitted.

Treasurer’s Affidavit

  • Notarized document attached to Articles of Cooperation showing total received funds from share capital, fees, donations, or subsidies.

General Assembly Resolution

  • Notarized resolution showing approval of membership and exact share capital or dues contributed to proposed federation/union.

Other Documentary Requirements

  • Board of Directors resolution on authorized representative.
  • Certification by chairpersons of member primaries stating line of business and adherence to accounting/auditing standards.
  • Other documents as may be required by the CDA.

Place of Registration

  • Registration handled by CDA Extension Offices.
  • Federations/unions with interregional coverage registered where principal office is located.
  • Tertiary cooperatives with national coverage registered by CDA Central Office.

Federations and Unions Policies

  • Federations engage in economic activities.
  • Unions advocate benefits/welfare and implement member advancement programs.
  • Compliance with minimum membership is mandatory for registration.
  • Prohibited from conducting audit services for members.

Registration Procedures

  • Registration follows the same procedures as primary cooperatives as approved by the Board of Administrators.

Effectivity

  • Guidelines effective 15 days after Board approval and registration with the Office of the National Administrative Register (ONAR).

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