MEMORANDUM CIRCULAR 2015-01 Series of 2015 SUBJECT : REVISED GUIDELINES GOVERNING THE REGISTRATION O COO!ERATIVES Pursuant to Republic Act No. 6939, the Cooperative Development Authority hereby adopts and promulgates the ollo!ing revised guidelines governing the registration o cooperatives.
Ar"i#$e I Ti"$e “Revis evised ed Guid Guidelin elines es Gove Governin rning g the "his guideline shall be #no!n as the “R Registration of Cooperatives” . Ar"i#$e II !o$i#% $t is the dec ecla larred polic icy y o th the e %t %ta ate to fos foster ter the cre creati ation on an and gr growt owth h of cooperatives coopera tives as practical vehicles or promotin promoting g sel&reliance sel&reliance and harness harnessing ing people po!er to!ards the attainment o economic development and social 'ustice.
Ar"i#$e III !&r'ose "his guideline is issued or the orderly registr registration ation o cooperatives in compliance !ith !it h the re re(ui (uire remen ments ts as pr provi ovided ded un under der RA 9)* 9)*+, +, $mp $mplem lement enting ing Rul ules es and Regulations, and relevant administrative issuances by CDA.
Ar"i#$e IV Co(er)*e "his shall govern the registra registration tion o all types and categories o cooperatives intending to register as such ecept those cooperatives de-ned under Chapters $$, $$$, /$ and /$$ o R.A. 9)*+.
Ar"i#$e V De+,i"io, of Ters Ters As used in this guideline, the ollo!ing terms shall be de-ned as0 1a2 Are) of B&si,ess O'er)"io, shall reer to the principal place o business o cooperative !here the cooperative conducts its business as provided or in their articles o cooperation and by&la!s. 1b2 Are) of O'er)"io, shall reer to the area !here the cooperative members come rom as provided or in their articles o cooperation and by&la!s. 1c2 A&".ori"% shall reer to the Cooperative Development Authority. 1d2 Bo,/ of Meers.i' shall reer to the condition !here members associate themse the mselve lves s to att attain ain the their ir com common mon goa goals ls an and d ob' ob'ect ective ives s !h !hich ich may eit either her be residential, occupational, associational, and institutional. 1e2 B&si,ess Tr),s)#"io, sh shall all reer reer to any business business activity activity or li livel veliho ihood od engaged in by the cooperative !here such cooperative generates savings.
12 Coo'er)"i(e shall reer to the autonomous and duly registered association o persons, !ith a common o interest, !ho have voluntarily 'oined together to achieve their social, economic, and cultural needs and aspirations by ma#ing e(uitable contributions to the capital re(uired, patroni4ing their products and services and accepting a air share o the ris#s and bene-ts o the underta#ing in accordance !ith universally accepted cooperative principles. 1g2 e/er)"io, shall reer to a cooperative the members o !hich are primary cooperatives doing the same line o business. 1h2 I,"er-re*io,)$ shall reer to the cooperative5s area o operation covering t!o or more ad'acent regions. 1i2 !ri)r% Coo'er)"i(e shall reer to a cooperative the members o !hich are natural persons ecept electric cooperative, !ater service cooperative and other cooperatives !hich the implementing rules and regulations o RA9)*+ or the Authority may allo!. 1'2 Re*is"r)"io, shall reer to the operative act o the Authority granting 'udicial personality to a proposed cooperative and is evidenced by the Certi-cate o Registration. 1#2 Se#o,/)r% Coo'er)"i(e shall reer to a cooperative the members o !hich are primary cooperatives. 1l2 S.)re shall reer to a unit o capital in primary cooperative the par value o !hich is -ed at any -gure not more than One Thousand Pesos (P1,000.00) and should be divisible by one peso may be divided into common share capital and preerred share capital. 1m2 S.)re C)'i")$ shall reer to the money paid or re(uired to be paid by the members or the conduct o the operation o the cooperative. 1n2 Ter"i)r% Coo'er)"i(e shall reer to a cooperative the members o !hich are secondaries. 1o2 U,io, shall reer to a cooperative the members o !hich are registered cooperatives andor ederations organi4ed purposely to represent the interest and !elare o all types o cooperatives at the provincial, city, regional, and national levels.
Ar"i#$e VI T%'es of Coo'er)"i(es As de-ned under %ection *3 o RA 9)*+ the types o cooperatives are, as ollo!s0 1a2 Advocacy Cooperative is a primary cooperative !hich promotes and advocates cooperativism among its members and the public through socially&oriented pro'ects, education and training, research and communication, and other similar activities to reach out to its intended bene-ciaries. 1b2 Agrarian Reorm Cooperative is one organi4ed by marginal armers ma'ority o !hich are agrarian reorm bene-ciaries or the purpose o developing an appropriate system o land tenure, land development, land consolidation or land management in areas covered by agrarian reorm. 1c2 Consumers Cooperative & is one the primary purpose o !hich is to procure and distribute commodities to members and non&members.
1d2 Credit Cooperative shall reer to one that promotes and underta#es savings and lending services among its members. $t generates a common pool o unds in order to provide -nancial assistance and other realted -nancial services to its members or productive and provident purposes. 1e2 Dairy Cooperative is one !hose members are engaged in the production o resh mil# !hich maybe processed andor mar#eted as dairy products. 12 7ducation Cooperative is one organi4ed or the primary purpose o o!ning and operating licensed educational institutions, not!ithstanding the provisions o Republic Act No. 98)), other!ise #no!n as the overnance o :asic 7ducation Act o *++8. 1g2 ;ishermen Cooperative & is one organi4ed by marginali4ed -shermen in localities !hose products are mar#eted either resh or processed products. 1h2
erent types o cooperatives. 1l2 Producers Cooperative & is one that underta#es 'oint production !hether agricultural or industrial. $t is ormed and operated by its members to underta#e the production and processing o ra! materials or goods produced by its members into -nished or processed products or sale by the cooperative to its members and non& members. Any end product or its derivative arising rom the ra! materials produced by its members sold in the name and or the account o the cooperative shall be deemed a product o the cooperative and its members. 1m2 %ervice Cooperative & is one !hich engages in medical and dental care, hospitali4ation, transportation, insurance, housing, labor, electric light and po!er, communication, proessional, and other services. 1n2 "ransport Cooperative & is one !hich includes land and sea transportation, limited to small vessels as de-ned or classi-ed under the Philippine =aritime ?a!s, organi4ed under the provisions o this Code. 1o2 @ater %ervice Cooperative & is one organi4ed to o!n, operate and manage !ater systems or the provision and distribution o potable !ater or its members and their households. 1p2 @or#ers Cooperative & is one organi4ed by !or#ers, including the sel&employed, !ho are at the same time members and o!ners o the enterprise. $ts principal purpose is to provide employment and business opportunities to its members and manage it in accordance !ith cooperative principles. 1(2 ther types the re(uirements or the organi4ation, membership, capitali4ation shall be determined and prescribed by the Authority in separate guidelines.
Ar"i#$e VII J&ris/i#"io,
All applications or registration o cooperative and amendment thereto shall be -led and registered !ith the !" #$tension O%ce (#O) having 'urisdiction over the principal oBce o the proposed cooperative. $n case o secondary or tertiary cooperative that shall operate !ith municipalcity, provincial, regional or inter®ional coverage shall be registered in the !" #$tension O%ce where its principal o%ce is located . "he CDA Central Bce shall register tertiary cooperatives !ith national coverage and selected types o cooperatives including amendments thereto prescribed by la!, rules and circular issued by the Authority !hich are or!arded by concerned 7tension Bce together !ith the validation report. ;or this purpose, tertiary cooperatives with national coverage shall reer to a cooperative !hose area o operation covers three or more regions in ?u4on, /isayas and =indanao.
Ar"i#$e VIII !ri)r% Coo'er)"i(es Se#"io, 1 N&er of eers re3&ire/ for Re*is"r)"io, &ifteen (1') or more natural persons !ho are &ilipino citiens, having a common bond o interest and are residing or !or#ing in the intended area o operations are re(uired or registration. %ection *. C)'i")$ Re3&iree,"s *.8. "ll primary cooperatives shall be organi4ed !ith share capital. "he authori4ed share capital o a cooperative shall be provided or in its Articles o Cooperation. At least t!enty -ve percent 1*)2 o the authori4ed share capital shall be subscribed by the members and at least t!enty -ve percent 1*)2 o the subscribed share capital shall be paid by the members prior to registration. *.*. "he paid up capitalization requirement for primary cooperatives shall not be less than &ifteen Thousand Pesos (P1',000.00) e$cept or multipurpose cooperative !hich should have at least One undred Thousand (P100,000.00) or as re(uired by the easibility study !hichever is higher. *.3. $n the case o "ransport Cooperatives, capital re(uirements shall be in accordance !ith Rule / %ection ) o $RR, RA9)*+. %ection 3. Coo'er)"i(e N)e ),/ !ro.ii"io, 3.8. "he !ord 4Coo'er)"i(e4 6oo'er)"i)7 or Coo'er)"i() shall be included in the name o the cooperative, !hich name shall li#e!ise speciy the type o cooperative in accordance !ith Article *3 o RA 9)*+. 3.*. No cooperative name shall be allo!ed by the Authority i the proposed name is identical or deceptively or conusingly similar to that o any eisting cooperative, contrary to public policy, moral and eisting la!s. "he use o the !ords Edevelopment and Eintegrated in the cooperative name shall be discouraged. 3.3. "he use o E$ncorporated, Ecorporation, Ecompany, Eincorporation, partnership, or other similar connotation and abbreviation shall not be allo!ed. $n addition, the use o the !ord Eederation and Eunion in the name o the proposed primary cooperative is li#e!ise prohibited ecept i it is part o the registered name o association or institution !here the members o the proposed cooperative come rom.
3.F. Name shall not be !ritten in all capital letters ecept i it is an acronym. Acronym shall be !ritten ater the ull name o cooperative. %ection F. Re*is"r)"io, Re3&iree,"s "he ollo!ing documents shall be submitted to the Authority in &our (*) copies ecept or item 182 belo!0 F.8. Cooperative Name Reservation Notice 1CNRN2G 18 copy only2 F.*. 7conomic %urveyG F.3. Articles o Cooperation and the approved :y&la!sG F.3.8. All originalG F.3.*. "he Articles o Cooperation shall be signed by all the cooperators on each and every pageG and F.3.3. "he :y&?a!s shall be signed all the members on the adoption page. F.F. "reasurerHs ABdavitG F.). %urety :onds o accountable oBcersG F.6. Certi-cate o Pre&=embership %eminar 1P=7%2 signed by the cooperative $nterim Chairman, as validated by the AuthorityG F.I. Jnderta#ing to change nameG F.K. Jnderta#ing to comply !ith the auditing and accounting standards prescribed by the AuthorityG F.9. Jnderta#ing to comply !ith other re(uirements prescribed by the regulatory agency, !hen applicableG
other
F.8+. ;avorable endorsement!ritten veri-cationauthoritypre&easibility study, i applicableG and F.88. Registration ee. %ection F.a ther %peci-c Re(uirements or each type o cooperative0 F.a.8. =ulti&Purpose Cooperative F.a.8.a. Detailed easibility studyG and F.a.8.b Jnderta#ing to maintain separate boo#s o accounts or each business activity F.a.*. Agrarian Reorm :ene-ciaries Cooperative F.a.*.a =other C?A in case o plantation based AR:sG and F.a.*.b @ritten veri-cation rom Department o Agrarian Reorm 1DAR2 to the e>ect that the cooperative organi4ation is needed and desired by the bene-ciaries, economically viable, at least ma'ority o the members are agrarian reorm bene-ciaries. F.a.3.
F.a.3.a. Copy o the Pre&;easibility %tudy o the housing pro'ects underta#ing certi-ed as revie!ed by National center, etc. and speciying the -nancial, technical including architectural, plans, etc.2 F.a.9. %mall %cale =ining Cooperative F.a.9.a. Jnderta#ing to comply !ith the regulatory re(uirements prescribed by other regulatory agencyG
F.a.I.b. Certi-cation rom =ines eo&%cience :ureau Regional Bce that the members are licensed miners i the area o business operation is !ithin the Peoples %mall&%cale =ining AreaG and F.a.I.c. "a $denti-cation numbers o all cooperators. %ection ). S&issio, of Do#&e,"s . "he documents re(uired or registration shall be printed in an K.) 83 or K.) 8F and may be !ritten in 7nglish or in ;ilipino or other local dialect !ith appropriate 7nglish translation. As ar as practicable, the tet should use boo#man old style 8*. $n case o conusion in the interpretation o the provisions, the 7nglish translation shall prevail. %ection 6. Coo, ),/ !referre/ S.)re 6.8. "he share capital o a cooperative may consist o common share capital and preferred share capital if the latter is provided for under the cooperatives+ articles of cooperation and by laws. %hould the cooperative !ish to have common and preerred shares, statements to that eect should appear in the "rticles of ooperation specifying the amount of shares to be oered for common shares and for preferred share. ered. 6.*. %hould preerred share capital be o>ered, the rights and privileges o holders o preerred shares shall be provided or in the :y&la!s o the cooperative. 6.3. Preerred share capital shall not eceed "!enty ;ive 1*)2 percent or one& ourth 18F2 o the total authori4ed share capital o the cooperative. 6.F. "he paid up and subscription o the common share capital contribution should strictly adhere to the t!enty&-ve percent 1*)2 re(uirement based on the authori4ed capital share. 6.). No member shall o!n more than "en 18+2 percent o the subscribed share capital o the cooperative. %ection I. Bo,/ of Meers.i' "he bond o membership is categori4ed into our 1F2. Only one common bond or -eld of membership will be adopted by the cooperative. "he categories are the ollo!ing0 I.8. Resi/e,"i)$ & members !or#ing andor actually and physically residing in the same place. I.*. I,s"i"&"io,)$ & members consist o employees, !or#ers andor oBcers o a particular institution. I.3. Asso#i)"io,)$ & members come rom a registered andor recogni4ed association, group, club, raternity, religious group, cultural and other similar aggrupation. Recogni4ed association means legitimate aggrupation o persons !hich is validated to be publicly #no!n in a particular community and is able to present certi-cation rom applicable government entity or substantial proo o visible activity in the communityG and I.F. O##&')"io,)$ & members come rom same or allied proession or actual occupation. %ection K. D&)$ Meers.i'. A prospective cooperative may include in its by&la!s a provision not allo!ing members o eisting cooperatives o the same type !ithin
the same area o operation to be a member o the proposed cooperative unless they resign rom the ormer. %ection 9. Bo,/i,* Re3&iree,"s of A##o&,")$e O8#ers 9 E'$o%ees of ".e Coo'er)"i(e $n order to meet any contingency that may arise in the operations o the cooperative accountable oBcersemployees o cooperatives shall submit a surety bond or the aithul perormance o their unctions in accordance !ith Articles 8F1)2 and 1)62 o the Code and in accordance !ith the ollo!ing sub& sections0 9.8. "he ollo!ing persons shall be bonded0 9.8.8. Chairperson 9.8.*. "reasurer and CashierG 9.8.3. =anagerG 9.8.F. @arehousemanG 9.8.). ?oandeposit CollectorsG 9.8.6. %ignatories o chec#s and other -nancial instrumentsG and 9.8.I. %uch other persons as may be authori4ed by the cooperative to act as a custodian o unds merchandise, inventories, securities and other assets o the cooperative. 9.*. "he board o directors shall determine the ade(uacy o such bonds. ;or this purpose, the :oard o Directors shall be guided based on the initial net!orth o the cooperative !hich shall include the paid&up capital, the membership ees and the other assets o the cooperative at the time o registration. %ection 8+. Re3&ire/ !erio/ for A''ro()$ of Re*is"r)"io, 8+.8. An application or registration shall be -nally disposed by the Authority !ithin the period o Sixty (6! days rom the -ling of complete documentary reuirements. ther!ise, the application is deemed approved unless the cause o the delay is attributable to the applicant. 8+.*. $n the case o denial by the Authority, appeal o such denial may be sent to the Bce o the President !ithin ninety ("! days from receipt of the notice of denial. 8+.3 "he ailure o the Bce o the President to act on the appeal !ithin ninety 19+2 days rom the -ling thereo shall mean the approval o said application.
Ar"i#$e I Re*is"r)"io, of Se#o,/)r% ),/ Ter"i)r% #oo'er)"i(es %ection 8. Re3&iree,"s for Re*is"r)"io, "he ollo!ing shall be the minimum re(uirements or registration0 8.8. Meers.i' "he minimum number o members in a ederation or union pursuant to :A instruction dated =ay *3, *+88 is recommended, as ollo!s0
C)"e*or%
8.8.8 %econdary 8.8.8 "ertiary
e/er)"io,
8+ primary Coops 8+ secondary coops
U,io,
8) primary coops 8) secondary coops
8.*. !)i/-&' C)'i")$ "he minimum paid&up share capital or any proposed ederationunion shall be, as ollo!s0
C)"e*or%
8.*.8 %econdary 8.*.* "ertiary
e/er)"io,
U,io,
Php )++,+++.++ Not applicable Php ),+++,+++.++ or Not applicable easibility study re(uirement !hichever is higher
organi4ed
at the
8.F. B&si,ess A#"i(i"% the ederation can engage in any cooperative enterprise authori4ed under Article 6 o RA 9)*+ that compliments, augments, or supplements but does not conLict, compete !ith, nor supplant the business or economic activities o its members. 8.). Bo,/i,* Re3&iree," Accountable oBcers o the proposed ederation shall be covered by suBcient %urety :ond. "he amount o the bond shall depend primarily on the amount o accountabilities the oBcers are handling as determined by the :oard o Directors. 8.6. Re*is"r)"io, ee "he registration ee to be paid by the proposed ederation shall be one tenth (1/10) of one (1) percent of the authoried share capital or the amounts prescribed in the !" schedule of fees , !hichever is higher . Payment o the registration ee shall be collected on or beore the issuance o the Certi-cate o Registration. 8.I. e)sii$i"% S"&/% & ;our 1F2 copies o the ;easibility %tudy containing the ollo!ing items shall be submitted to the Authority0 8.I.8 rgani4ational %tructure 8.I.* Purposesb'ectives 8.I.3 Area o peration 8.I.F Number o =ember and Potential =embers 8.I.) ;easibility 8.I.).8 technical aspect o ederation operation
8.I.).* management aspect 8.I.).3 -nancial aspect, 3 years pro'ection, contribution, subsidies 8.I.).F shall incorporate provision speciying cooperative education and training programs $n the case o cooperative union, easibility study can be replaced by a three year development plan. 8.K. Ar"i#$es of Coo'er)"io, ),/ B%-$);s ;our 1F2 copies each o the Articles o Cooperation and the :y&la!s shall be submitted to the Authority. 8.9. Tre)s&rer
Ar"i#$e V)$i/)"io, Re3&iree,"
"he CDA 7tension Bce concerned shall ensure that proposed cooperatives applying or registration must have complied -rst !ith the basic re(uirements or the organi4ation and registration o the proposed cooperative by conducting the re(uisite validation procedure prescribed belo!. %ection 8. b'ective. "he Authority recogni4es the importance o veri-cationvalidation as an essential pre®istration unction to ensure that the proposed cooperative applying or registration !ith the Authority has met the minimum re(uirement o the la!. %ection *. Rationale. @hile proposed cooperatives comply !ith the documentary re(uirements, it has been observed that others are not complianct !ith the cooperative conceptual de-nition on common bond o interest, voluntariness, and !illingness to underta#e the business in accord !ith the generally accepted cooperative principles. %ection 3. %cope. All types and categories o cooperatives shall be sub'ected to veri-cationvalidation beore registration. n&site validation o the proposed cooperative5s principal oBce address and gathering o relevant inormation including but not limited to its adherence to the cooperative principles, concept and values carried out by the cooperatorsoBcers necessary in the submission o complete validation report.
Ar"i#$e I Se')r)i$i"% C$)&se $ any provision o this guideline is declared null and void or unconstitutional, the other provisions not a>ected thereby shall continue to be in orce and e>ect.
Ar"i#$e II A&"o)"i# Re(ie; "his guideline shall be sub'ect to automatic revie! three years rom e>ectivity thereo.
Ar"i#$e III Re'e)$ All previous circulars andor guidelines issued by the Authority !hich are inconsistent !ith this guideline are hereby repealed or modi-ed accordingly.
