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Pursuant   to   Section   3   of   Republic   Act   No.   6939,   the   Cooperative Development Authority hereby adopts and promulgates the following guidelines governing the registration of multipurpose cooperatives.

Article I
Title
These  Guidelines   shall  be  known  as  the  “Guidelines   Governing   the Registration of Multipurpose Cooperatives”.

Article II
Policy
It is the declared policy of the State to foster the creation and growth of cooperatives  as  practical  vehicles  for  promoting  self-reliance  and  harnessing people  power  towards  the  attainment  of  economic  development   and  social justice.

Article III
Purpose
These Guidelines is issued for the orderly registration of multipurpose cooperatives in compliance with the requirements as provided under RA 9520, Revised   Implementing   Rules   and   Regulations,   and   relevant   administrative issuances by the Authority.

Article IV
Coverage
This shall govern the registration of multipurpose cooperatives and operation of existing cooperatives registered with the Authority.

No cooperative  shall be registered  as a multipurpose  cooperative  unless it has been in operation for at least two (2) years.

Article V
Definition of Terms
As used in these guidelines, the following terms shall be defined as:

(a) Agriculture cooperative – refers to a primary cooperative which or whose members are involve/engage  in raising/culture  of plants, animals, fungi, and other living organism for productive and economic purpose and in related activities that lead to the reduction of cost and/or value addition of outputs.

(b)  Agrarian  Reform  Cooperative  (ARCo)  –  shall  refer  to  one  organized  by marginal farmers majority of which are Agrarian Reform Beneficiaries, duly registered with the Authority, for the purpose of developing an appropriate system of land tenure, land development, land consolidation or land management  in  areas  covered  by  agrarian  reform.  It  shall  also  refer  to Agrarian Reform Beneficiaries Cooperative (ARB Coop) as defined in DAR Administrative Order No. 05, Series of 2009

(c)  Amendment – shall refer to changes for legitimate purposes in any provision stated in the Articles of Cooperation and By-Laws of the cooperative in accordance with the prescribed requirements under RA 9520 and other issuances by the Authority.

(d)  Authority – shall refer to the Cooperative Development Authority.

(e)  Certificate of Registration of Amendment – shall refer to an official document issued by the Authority under its official seal which shall serve as conclusive evidence of such registered amendment.

(f)   Cooperative – shall refer to the autonomous and duly registered association of persons, with a common of interest, who have voluntarily joined together to  achieve  their  social,  economic,  and  cultural  needs  and  aspirations  by making  equitable  contributions   to  the  capital  required,  patronizing   their products and services and accepting a fair share of the risks and benefits of the   undertaking   in   accordance   with   universally   accepted   cooperative principles.

(g)  Multipurpose Cooperative – shall refer to a cooperative, which combines two (2) or more business/economic activities.

(h)  Primary Cooperative –shall refer to a cooperative the members of which are natural  persons  except electric  cooperative,  water service  cooperative  and other cooperatives which the implementing rules and regulations of RA9520 or the Authority may allow.

(i)   Paid-up  Share  Capital  – shall  refer  to the  portion  of the  member’s  share capital that has been paid.

(j)   Validation – shall refer to an activity or series of activities aimed at ensuring that the proposed cooperative is organized and registered for the primary purpose  and  benefit  of  the  intended  group.  (verify  the  definition  to  office order on validation)

Article VI
Minimum Capitalization Requirements
With the exception of the agriculture cooperatives and agrarian reform cooperatives, only those cooperatives with a minimum paid-up capital of One Hundred Thousand Pesos (P100,000.00) or as required in the feasibility study, whichever   is   higher,   may   be   allowed   to   transform   into   a   multipurpose cooperative.

Article VII
Requirements for Registration of Amendment
Section  1. The following  documents  shall be submitted  to the Authority  in Three (3) copies except for item (1) below:

a.     Cooperative Name Reservation Notice(CNRN), in case of change of name;

b.     Amended Articles of Cooperation and By-Laws;

c.     A Resolution certified by the cooperative's  Secretary and by the majority of the Board of Directors stating the fact that said amendments have been duly approved  by at least  two-thirds  (2/3)  vote  of all the  members  with  voting rights;

d.     Surety Bond of Accountable Officers;

e.     Audited Financial  Statement  showing profitable  operations  for the past two (2) years;

f.     Undertaking  to  Change  Name  in  the  event  that  another  cooperative  has acquired a prior right to the use of the proposed name;

g.     Favorable Endorsement from Other Government Agencies, if applicable;

h.     Detailed  Feasibility  Study  indicating  viability  of  each  proposed  business activity; and

i.     Certificate   that   the   cooperative   has   complied   with   the   auditing   and accounting standards prescribed by the Authority

No cooperative  shall be registered  as a multipurpose  cooperative  unless it has been in operation for at least two (2) years.

Section   2. Submission   of   Documents.   The   documents   required   for registration of amendment shall be printed in an 8.5” x 13” or 8.5” x 14” and may

be written in English or in Filipino or other local dialect with appropriate English translation.  As far as practicable,  the text should use bookman  old style 12. In case of confusion  in the interpretation  of the provisions,  the English translation shall prevail.

The copies of the amended articles and bylaws required under Section 1 (b) above  shall  contain  the  amendments  sought  to be approved  by the  Authority properly indicated by underscoring  or any other means enclosed in parenthesis or bracketed the specific provision/s proposed to be changed.

Section 3. Book of Accounts. Cooperatives covered by this Rule shall be required   to  maintain   separate   recording   in  the  books  of  account for  each business activity.

Section 4. Amendment Fee. The required amendment fee in the amount imposed by the Authority in accordance with the Schedule of Fees under MC No.
2004-07 dated July 16, 2004 and MC 2014-03 dated July 23, 2014 shall be paid by  the  cooperative   after   approval   of  such   amendments.   Payment   of  the amendment fee shall be collected before the issuance of the Certificate of Registration of Amendment.

Article VIII
Jurisdiction
All applications  for registration  of amendment  shall be filed and registered with the CDA Extension Office (EO) having jurisdiction over the principal office of the proposed multipurpose cooperative.

However, applications for amendments of selected types of cooperatives pursuant to MC 2012-08 and tertiary cooperatives with national coverage should be   forwarded   to   the   CDA   Central   Office   which   shall   register   the   said amendments.

Article IX
Registration Procedure
The procedures  for registration  of multipurpose  cooperative  shall follow the same procedures  outlined  for the registration  of amendments,  as approved  by the Board of Administrators.

Article X
Evaluation of Amendments
The  Authority,  upon  receipt  of  the  complete  required  documents,   shall evaluate  the  same  with  due  regard  to  the  provisions  of  the  Code  and  other relevant laws.

Article XI
Validation Requirement
All single purpose cooperatives intending to register as multi-purpose cooperative shall be subjected to validation before registration.

The CDA Extension Office having jurisdiction over the principal office of the proposed   multipurpose   cooperative   shall   conduct   the   on-site   validation   in accordance with Office Order No. 2015-04.

Article XII
Amendments for Existing Cooperatives
The  following  cooperatives  shall  be  required  to  amend  their  Articles  of Cooperation and By-laws:

1.     Multipurpose  cooperatives  found  to be operating  a single-business  activity shall be required to register/amend as single purpose cooperative

2.     Any  Multipurpose  cooperative  whose  purpose  indicated  in  the  Articles  of Cooperation   has   not   been   undertaken   after   two   years   from   date   of registration,  said  cooperative  shall  amend  its  Articles  of  Cooperation  to delete the said purpose.

3.     Single-purpose   cooperative   found  to  be  operating  with  more  than  one business/economic  activity.  Provided,  that  said  cooperative  has  a paid-up capital of Php100,000.00  and above, Provided  further, that if the minimum paid up capital is not met, the said cooperative shall cease its operation with regard to the other business activity.

Article XIII
Separability Clause
If any provision of this guideline is declared null and void or unconstitutional, the other provisions not affected thereby shall continue to be in force and effect.

Article XIV
Repeal
All previous circulars and/or guidelines issued by the Authority which are inconsistent with these guidelines are hereby repealed or modified accordingly.

Article XV
Effectivity
These guidelines shall take effect upon the approval of the Board of Administrators  and fifteen (15) days after submission with the Office of National Administrative Registry (ONAR).

Approved  by the CDA Board of Administrators  pursuant  to Resolution  No.
234 S-2015 dated September 29, 2015.