Title
Revised Cooperative Registration Guidelines
Law
Cda Memorandum Circular No. 2015-01
Decision Date
May 19, 2015
The "Revised Guidelines Governing the Registration of Cooperatives" ensures the orderly registration of cooperatives in compliance with Republic Act No. 9520, outlining requirements and procedures for primary, secondary, and tertiary cooperatives in the Philippines.

Law Summary

Purpose and Coverage

  • Issued to ensure orderly registration of cooperatives complying with RA 9520, its IRR, and CDA issuances.
  • Applies to all cooperatives except those defined under specified chapters of RA 9520.

Definitions

  • Defines key terms such as Area of Business Operation, Area of Operation, Authority (CDA), Bond of Membership, Business Transaction, types of cooperatives (primary, secondary, tertiary), Share and Share Capital, Federation, Union, and related terminologies.

Types of Cooperatives

  • Recognizes various types including Advocacy, Agrarian Reform, Consumers, Credit, Dairy, Education, Fishermen, Health Services, Housing, Marketing, Multipurpose, Producers, Service, Transport, Water Service, Workers, and others determined by CDA.

Jurisdiction for Registration

  • Applications filed with CDA Extension Office having jurisdiction over the cooperative's principal office.
  • Secondary/tertiary cooperatives register locally unless tertiary cooperatives operate nationally, in which case it is with CDA Central Office.

Primary Cooperatives - Membership and Capital

  • Minimum 15 Filipino natural persons with a common bond required.
  • Share capital requirements: 25% subscribed, 25% paid up before registration, with minimum paid-up capital typically not less than PHP 15,000 (PHP 100,000 for multipurpose).
  • Transport cooperatives have special capital rules under RA 9520 IRR.

Naming and Registration Requirements for Primary Cooperatives

  • Name must include "Cooperative" and specify type; no names identical or confusingly similar to existing cooperatives.
  • Prohibited use of certain terms like "Incorporated," "Federation," or "Union" in primary cooperative names.
  • Documents required include name reservation notice, economic survey, articles of cooperation, bylaws, treasurer's affidavit, surety bonds, and others.
  • Specific requirements exist for different cooperative types, e.g., feasibility study for multipurpose, endorsements for professional or agrarian reform cooperatives.

Documentation and Share Capital Rules

  • Documents printed on specific paper size, written in English or Filipino with English translation prevailing.
  • Share capital may comprise common and preferred shares; preferred shares capped at 25% of authorized capital.
  • No member may own more than 10% of subscribed share capital.

Bond of Membership

  • Four categories: Residential, Institutional, Associational, Occupational.
  • Only one common bond to be adopted by any cooperative.

Dual Membership and Bonding of Officers

  • Bylaws may prohibit members from joining same-type cooperatives in the same area unless resignation occurs.
  • Accountable officers must be bonded, including chairperson, treasurer, manager, warehouseman, collectors, and authorized custodians.
  • Bonds determined by board based on net worth including paid-up capital and assets.

Registration Approval and Appeals

  • CDA to dispose applications within 60 days, otherwise deemed approved unless delay is applicant's fault.
  • Denials appealable to Office of the President within 90 days; failure to act within 90 days deemed approval.

Registration of Secondary and Tertiary Cooperatives

  • Minimum members: Secondary federations (10 primary coops), unions (15 primary coops), tertiary federations (10 secondary coops), unions (15 secondary coops).
  • Minimum paid-up capital for secondary federations: PHP 500,000; tertiary federations: PHP 5,000,000 or higher if per feasibility study.
  • Federations/unions registered with appropriate CDA Extension Office; national tertiary cooperatives registered with Central Office.
  • Federations engage in economic activities complementing members; unions advocate for members' welfare.
  • Federations/unions cannot conduct audit services for members.

Validation Requirement

  • CDA must verify compliance with basic requirements and cooperative principles before registration through on-site validation.
  • Ensures adherence to cooperative definition on bond of interest, voluntariness, and business willingness.

Separability, Review, and Repeal

  • Invalid provisions do not affect validity of other provisions.
  • Guidelines subject to automatic review three years after effectivity.
  • All previous inconsistent circulars and guidelines repealed or modified.

Effectivity

  • Effective upon Board approval and fifteen days after filing with the Office of National Administrative Registry (ONAR).

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