SALIENT FEATURES OF

RA 9520 AND ITS

REVISED IRR AND
RELEVANT
MEMORANDUM
CIRCULARS
 REPUBLIC ACT NO. 9520
PHILIPPINE COOPERATIVE CODE OF 2008
I. GENERAL CONCEPTS AND PRINCIPLES X. ALLOCATION AND DISTRIBUTION OF NET
II. ORGANIZATION AND REGISTRATION SURPLUS
XI. AGRARIAN REFORM COOPERATIVES
III. MEMBERSHIP
IV. ADMINISTRATION XII. COOPERATIVE BANKS

V. RESPONSIBILITIES, RIGHTS AND PRIVILEGES XIII. INSURANCE COOPERATIVE

OF COOPERATIVES
VI. INSOLVENCY OF COOPERATIVES
VII. DISSOLUTION OF COOPERATIVES
VIII.CAPITAL, PROPERTY, AND FUNDS
IX. AUDIT, INQUIRY AND MEMBER’S RIGHT TO
EXAMINE
XIV.PUBLIC SERVICE COOPERATIVE
XV. CREDIT COOPERATIVES
XVI.FINANCIAL SERVICE COOPERATIVES
XVII.ELECTRIC COOPERATIVE
XVIII.MISCHELLANEOUS PROVISIONS
 REVISED IMPLEMENTING RULES AND
REGULATIONS OF RA 9520
RULE 1: REPRESENTATIVE ASSEMBLY COMMITTEE MEMBERS
RULE 2: SUBSIDIARY COOPERATIVE RULE 8: LIQUIDATION OF
RULE 3: MULTI-PURPOSE COOPERATIVE COOPERATIVES
RULE 4: DIVISION OF COOPERATIVE RULE 9: CAPITALIZATION AND
ACCOUNTING PROCEDURES OF
RULE 5: PROCEDURE FOR MERGER AND COOPERATIVES
CONSOLIDATION
RULE 10: SOCIAL AUDIT OF
RULE 6: LABORATORY COOPERATIVES COOPERATIVE
RULE 7: FUNCTIONS, RESPONSIBILITIES RULE 11: FINANCIAL SERVICE
AND TRAINING REQUIREMENTS OF COOPERATIVE
DIRECTORS, OFFICERS AND
RULE 12: VOLUNTARY ARBITRATION
 REVISED IMPLEMENTING RULES AND
REGULATIONS OF RA 9520
RULE 1: HOUSING COOPERATIVES
RULE 2: AGRARIAN REFORM COOPERATIVES
RULE 3: INSURANCE COOPERATIVES
RULE 4: WATER SERVICE COOPERATIVES
RULE 5: TRANSPORATION SERVICE COOPERATIVES
RULE 6: ELECTRIC COOPERATIVES
RULE 7: DAIRY COOPERATIVES
RULE 8: LABOR SERVICE COOPERATIVE AND WORKERS COOPERATIVE
 ARTICLE 44 OF RA 9520

FUNCTIONS, RESPONSIBILITES
AND TRAINING REQUIREMENTS
OF DIRECTORS, OFFICERS AND
COMMITTEE MEMBERS

(IN RELATION TO RULE 7 OF THE IRR

AND MC NO. 2015-09)
 ARTICLE 44 OF RA 9520

“The functions and responsibilities of directors,

officers and committee members, as well as
their training requirements, shall be in
accordance with the rules and regulations
issued by the Authority.”
 REVISED IRR and M.C. NO. 2015-09
OLD IRR and M.C. NO. 2011-27, ((REVISED GUIDELINES IMPLEMENTING THE NEW
2012-07 TRAINING REQUIREMENTS OF COOPERATIVE
OFFICERS)
Covers the following officers: Covers the following officers:
1. BOD 1. BOD
2. Secretary 2. Secretary
3. Treasurer 3. Treasurer
4. Audit Committee 4. Election Committee
5. Election Committee 5. Audit Committee
6. Mediation/Conciliation 6. Ethics Committee
Committee 7. Mediation and Conciliation Committee
7. General Manager/Chief 8. Other Committees created by the GA
Executive Officer and BOD; and
8. Ethics Committee 9. General Manager or Chief Executive
Officer
OLD IRR and M.C. NO. 2011-27,
REVISED IRR and M.C. NO. 2015-09
2012-07
Trainings to be attended depends on Section 3. Required Trainings for Cooperative Officers
the position. CATEGORY TRAINING COURSE NO. OF
e.g. BOD – Basic Coop. Course, Coop. OF COOP. HOURS
Management and Governance, Fin’l Micro- *Fundamentals of 8
Management, Policy Development, cooperatives – Cooperatives
Leadership and Value Re-Orientation Assets of P3M *Governance & Mgmt. of 8
(FIRST YEAR); Conflict Mgmt., and below Coops.
Parliamentary Procedures, Strategic All other *Fundamentals of 16
Planning, Orientation on Labor and cooperatives Cooperatives
other Related Laws (SECOND YEAR) *Governance & Mgmt. of 16
Secretary – Basic Coop. Course, Coops.
Records Management, Basic Addtl. Trainings *Financial Mgmt. 8
Computer Program (FIRST YEAR); – savings and
Parliamentary Procedures (SECOND credit with P5 *Risk Mgmt. 4
YEAR) worth of deposit
based on latest *Credit Mgmt. 4
AFS
 OLD IRR and M.C. NO. 2011-27, 2012-
REVISED IRR and M.C. NO. 2015-09
07
Period of Compliance: Period of Compliance:
- All trainings shall be fully complied Cooperative officers shall complete the required
with by the end of the second year. trainings within the FIRST HALF OF THEIR TERM.

Inclusion in the Cooperative Election Inclusion in the Cooperative Election Guidelines:

Guidelines: -Same
-Policy required all officers to comply -Provision that non-compliance with the training
with the mandatory training requirements during the term shall be one of
requirements and the person the grounds for disqualification for future
responsible to ensure compliance election or appointment in any position in the
thereof, which shall be election cooperative.
committee, in case of elective officers, -Provision that the coop. shall ensure that all
and in case of appointive officers, the officers shall undertake / comply with the
BOD. training during his/her half of his/her term.
-Disqualification in case of non-
compliance.
 REVISED IRR and
OLD IRR and M.C. NO. 2011-27, 2012-07
M.C. NO. 2015-09
Section 7. Duration of Trainings Attended. All trainings attended by
cooperative officers shall be considered valid compliance with the
intent of this Rule for a period of five (5) years from date of issuance
of the Certificate of Training. After which, they shall be required to DELETED
undergo re-training of the same.

Section 8. Sanctions for non-compliance:

8.1. For the Cooperative Officers. Failure of a cooperative officer to comply with
the required trainings during his/her term shall be a ground for his/her
disqualification as future officer of the cooperative in any position until he/she
has complied with the required trainings.
8.2. For the Cooperative. Willful failure of the concerned cooperative to comply
with the training requirements for its officers, despite notice shall be a ground for
the non-issuance of the Certificate of Compliance (formerly CGS) to the
cooperative for the next immediate year.
 OLD IRR and M.C. NO. 2011-27,
REVISED IRR and M.C. NO. 2015-09
2012-07
Submission of the required report on the List of Officers and Trainings
Undertaken/Completed:

The report shall reflect the specific
names and positions of all the
incumbent officers of the cooperative
and the trainings these officers have
undertaken/completed for the year
being reported in compliance to
training requirements for
cooperative officers.
The cooperative shall submit an annual report
which shall reflect the specific names and
positions of all the incumbent officers of the
cooperative and the required trainings these
officers have undertaken/completed for the
year being reported in compliance to training
requirements for cooperative officers. The
cooperative shall submit the report even if
the cooperative officers have not complied
or partially complied with the required
trainings.
 ARTICLE 46 OF RA 9520

COMPENSATION
(IN RELATION TO MC NO. 2013-07)
 ARTICLE 46 OF RA 9520
ART. 46. Compensation. (1) In the absence of any provisions in the bylaws fixing their
compensation, the directors SHALL NOT RECEIVE any compensation EXCEPT FOR
REASONABLE PER DIEMS: Provided however, That the directors and officers shall not be
entitled to any per diem when, in the preceding calendar year, the cooperative reported a
net loss or had a dividend rate less than the official inflation rate for the same year. ANY
COMPENSATION OTHER THAN PER DIEMS may be granted to directors by a majority vote
of the members with voting rights at a regular or special general assembly meeting
specifically called for the purpose: Provided, That no additional compensation other than
per diems shall be paid during the first year of existence of any cooperative.

"(2) The compensation of officers of the cooperative as well as the members of the
committee as well as the members of the committees created pursuant to this Code or its
bylaws may be fixed in the bylaws.

"(3) Unless already fixed in the bylaws, the compensation of all other employee shall be
determined by the board of directors.
 MC NO. 2013-17

GUIDELINES GOVERNING THE

GRANT OF COMPENSATION
TO COOPERATIVE
DIRECTORS AND OFFICERS
(Clarificatory Guidelines in the
Implementation of Art. 46 of RA 9520)
 TERMS TO REMEMBER
COMPENSATION Includes all forms of remuneration.

Refers to any remuneration given for

services rendered, like salary which is a
compensation paid regularly, as by month.

Does not imply an immediate payment, or

direct return, nor the payment of cash fare
or its equivalent.

Any remuneration by whatever name or

euphemism it is designated.
 TERMS TO REMEMBER
PER DIEM Refers to the allowance given as a
reimbursement for extra expenses incurred
by one in the performance of his duties.

HONORARIUM A gesture of appreciation for the service of

one with expertise of professional standing
in recognition of his broad and superior
knowledge in specific fields.

Given to official/employee not as a matter of

obligation but in appreciation for services
which admits of no compensation in money.
 PRIMARY BASIS AND PROHIBITION ON
COMPENSATION OF DIRECTORS
General Rule: COMPENSATION FIXED IN THE BY LAWS
If NO BY-LAWS PROVISION On Compensation:
BOD CANNOT RECEIVE COMPENSATION EXCEPT FOR
REASONABLE PER DIEM
Exception:
IF AUTHORIZED BY MAJORITY VOTE OF ALL MEMBERS WITH
VOTING RIGHTS AT A REGULAR OR SPECIAL GENERAL ASSEMBLY
SPECIFICALLY CALLED FOR THAT PURPOSE
NOTE: ONLY REASONABLE PER DIEM SHALL DURING THE FIRST YEAR
OF EXISTENCE OF THE COOPERATIVE.
 SUSPENSION OF GRANT OF PER DIEM
a. When the cooperative incurred NET LOSS IN THE
PRECEDING YEAR; OR
b. When the DIVIDEND RATE of the cooperative FELL BELOW
the official national inflation rate during the preceding year.
EFFECTS:
a. DIRECTORS AND OFFICERS SHALL NOT RECEIVE ANY
PER DIEM UNTIL SUCH TIME THAT THE COOPERATIVE
RECOVERS.
b. UPON RECOVERY, PER DIEM SHALL NOT BE
COMPOUNDED AND NO RECOVERY OF PER DIEM
DURING THE PERIOD OF SUSPENSION SHALL BE
ALLOWED.
 COMPENSATION OF COMMITTEE MEMBERS
AND COOPERATIVE EMPLOYEES

Committee Members:
FIXED IN THE BY LAWS

Cooperative Employees:
SHALL BE DETERMINED BY THE BOD
SUBJECT TO EXISTING LABOR LAWS
 ARTICLE 53 OF RA 9520

REPORTS
(IN RELATION TO RULE 8 OF IRR AND
MC NO. 2015-04)
 ARTICLE 53 OF RA 9520
"ART. 53. Reports. (1) Every cooperative shall draw up regular reports of its program of
activities, including those in pursuance of their socio-civic undertakings, showing their
progress and achievements at the end of every fiscal year. The reports shall be made
accessible to its members, and copies thereof shall be furnished to all its members or
record. These reports shall be filed with the Authority within one hundred twenty (120)
days from the end of the calendar year. The form and contents of the reports shall be as
prescribed by the rules of the Authority. Failure to file the required reports shall subject
the accountable officer/s to fines and penalties as may be prescribed by the Authority, and
shall be a ground for the revocation of authority of the cooperative to operate as such. The
fiscal year of every cooperative shall be the calendar year except as may be otherwise
provided in the bylaws.

"(2) If a cooperative fails to make, publish and file the reports required herein, or fails to
include therein any matter required by the Code, the Authority shall, within fifteen (15)
days from the expiration of the prescribed period, send such cooperative a written notice,
stating its non-compliance and the commensurate fines and penalties that will be imposed
until such time that the cooperative has complied with the requirements.
 RULE 8.

REPORTS REQUIRED
FOR COOPERATIVES
(IN RELATION TO MC NO.
2015-04 )
 REQUIRED REPORTS
OLD IRR REVISED IRR; MC No. 2015-04
Cooperative Annual Performance Report Cooperative Annual Performance
(CAPR) Report (CAPR)
Social Audit Report including its program
of activities in pursuance of its socio-civic
undertakings showing its achievements at
the end of every fiscal year

Performance Report
Audited Financial Statements duly
stamped “ Received “ by BIR
List of Officers and Trainings *
Undertaken/Completed.
 ATTACHMENTS TO CAPR
PRIMARY CDA-REGISTERED
SECONDARY AND TERTIARY COOPS
COOPS ELECTRIC COOPS
Social Audit Report including its programs of activities pursuant to its socio-civic goals of the
cooperative
Performance Audit Report, including copies of the semi-annual reports on mediation and
conciliation as received by the Authority pursuant to EO 97
Audited Financial Statements (not necessarily stamped “Received” by BIR)
List of Officers and Trainings Undertaken/Completed
List of affiliates and cooperatives which have remitted
their respective CETF
Business consultancy assistance to include the nature
and cost, including the use of CETF
Other training activities undertaken specifying therein (not an attachment) List of
the nature, participants, and cost of each activity members issued with
Share Capital Certificate
 OLD IRR REVISED IRR; MC No. 2015-04
FILING Filed within SAME
OF one hundred
REPORTS twenty (120) The date of mailing the required reports either by
days from the registered mail, by courier service, or by electronic
end of every means shall be considered the date of filing.
calendar year
either through Electronic filing – printed copy should be
personal, submitted within five (5) days from date of
registered transmission. (NO PRINTED COPY – NON-
mail courier, COMPLIANCE)
or electronic
means Any material alterations or tampering, which
made the electronic documents different from the
original shall be considered as if no report has been
filed and the electronic documents have never been
received.
 OLD IRR REVISED IRR; MC No. 2015-04
FORM OF The reports shall be The reports shall be typewritten or
REPORT/S typewritten or printed in a printed in a form prescribed by the
form prescribed by the Authority, duly certified by the
Authority. The Chairperson Accountable Officers as specified in
and the General Manager Section 8 hereof.
shall certify to the
truthfulness of the statement
Accountable Officers - employees or
contained in the reports.
officers of the cooperative responsible
for the preparation of the required
regular reports and its attachments, and
in whose fault or negligence the delay
may be attributed.

PARTIAL Delay shall only apply to NON-COMPLIANCE and the

COMPLIAN reports not submitted. cooperative shall be in delay until such
CE time that the filing of the required
reports have been fully complied with.
 OLD IRR REVISED IRR; MC No. 2015-
04
DELAY DUE TO Failure to submit shall not Delay may be excused,
FORTUITOUS be considered a delay. provided that the Authority
EVENT (FIRE, Provided, That the is given due notice within
NATURAL Authority shall be fifteen (15) days from the
CALAMITIES, officially notified of the cessation of the cause of the
STRIKE, LOCK-OUT, occurrence of such delay. Thereafter, the
ETC.) AFFECTING fortuitous events.
cooperative shall be given
COOP.
another thirty (30) days to
OPERATIONS
file the required report, the
lapse of which shall
consider the cooperative in
delay.
 OLD IRR REVISED IRR; MC No. 2015-04

P100 PER DAY OF DELAY

Cooperatives with assets of

SANCTION Three Million Pesos
FOR P100 PER DAY PER (Php3,000,000.00) and below
DELAYED REPORT shall be exempted from the
FILING monetary penalties but may be
meted the penalty of non-
issuance of Certificate of
Compliance.
 NOTE:

•THE CAPR INCLUDING ALL OF

THE REPORTS SHALL BE MADE
PART OF THE ANNUAL REPORT
OF THE COOPERATIVE TO ITS
MEMBERS DURING THE ANNUAL
GENERAL ASSEMBLY MEETING.
 TRANSITORY PROVISION ON
COMPUTATION OF PENALTIES
• MICRO COOPERATIVES
• No monetary penalties shall be imposed

• SMALL, MEDIUM AND LARGE COOPERATIVES

• From May 1, 2015 to July 13, 2015 – P100/day/report (5
required reports)
• From July 14, 2015 or at any time thereafter – P100/day
 MEMORANDUM CIRCULARS RELEVANT
TO SUBMISSION OF REPORTS

- MC NO. 2012-09 – POLICY CLARIFICATION RE:

ACCOUNTABLE OFFICERS
- MC NO. 2016-07 – AMENDED GUIDELINES GOVERNING
THE ISSUANCE OF CERTIFICATE OF COMPLIANCE
- MC NO. 2012-05 – RULES IMPLEMENTING THE TRUTH
AND LENDING ACT
 MC NO. 2012-09

POLICY CLARIFICATION
RE: ACCOUNTABLE OFFICERS
 ACCOUNTABLE OFFICER
REPORT PREPARATION APPROVAL
CAPR Compliance General Manager /
Officer Chairman of BOD
Audited FS Finance Manager / BOD Chairman
Accountant
List of Officers and Education and BOD Chairman
Trainings Completed Training
Committee
Performance Audit Internal Auditor / BOD Chairman
Report Audit Committee
Social Audit Report Internal Auditor / BOD Chairman
Audit Committee
 MC NO. 2016-07

AMENDED GUIDELINES
GOVERNING THE ISSUANCE
OF CERTIFICATE OF
COMPLIANCE
REQUIREMENTS FOR ISSUANCE OF CERTIFICATE OF
COMPLIANCE UNDER MC NO. 2015-08
1. Letter request duly signed by the Chairperson or any authorized
representative of the requesting cooperative stating therein the
reasons/purpose of such request;
2. Proof of compliance that all required reports for the preceding fiscal
year had been submitted or complete copies of such reports (2
copies);\
3. Copy of the Minutes of Meeting of the GA with the following
information:
a. Result of election of the BOD and Committee members;
b. Approval of the Development Plan and/or Annual Plan and Budget;
c. Presentation and acceptance of CAPR including the AFS, PAR, SAR and LOTC by
the GA;
d. Appointment of the CDA Accredited External Auditor;
e. Acceptance of the management and committee report by the GA; and
f. Payment of Certification Fee
 NEW REQUIREMENTS FOR ISSUANCE OF COC
MICRO-COOPERATIVES SMALL, MEDIUM AND LARGE COOPERATIVES
A. CAPR with the following attachments: A. Copy of the ELECTRONICALLY ENCODED
1. Financial Statements audited by ANY of the
CAPR with the following attachments:
following: 1. Social Audit Report including its program
a. External auditor accredited by the Board of
of activities pursuant to its socio-civic
Accountancy (BOA);
goals;
b. Audit Committee of the cooperative; OR
2. Performance Audit Report, including
c. Audit Committee of the federation or union
where the cooperative is affiliated. copies of the semi-annual report on
mediation and conciliation as received by
2. List of Officers and Mandatory Trainings the Authority;
Undertaken/Completed. 3. Financial Statements audited by an
External Auditor accredited by the CDA;
B. Certification Fee of P100.00 and
4. List of Officers and Mandatory Trainings
MICRO-COOPERATIVES ARE HOWEVER Undertaken/Completed.
REQUIRED TO ENCODE THEIR CAPR THROUGH
THE WEB BASED SYSTEM WITHIN 6 MONTHS
FROM THE ISSUANCE OF THE COC.
B. Certification fee of P100.00.
 FOR NEWLY REGISTERED COOPERATIVES
Upon REGISTRATION, the COC shall be issued after payment of a
Certification Fee of P100.00. Said COC shall be valid until April 30 of the
immediately preceding year.

Cooperatives with LESS THAN ONE (1) YEAR of business operation from
the date of registration shall be required to submit ONLY the following:
1. Copy of the ELECTRONICALLY ENCODED CAPR
2. Financial Status Reports signed by the AUDIT COMMITTEE and the
CHAIRMAN OF THE COOPERATIVE (Statement of Financial
Condition and Statement of Operation)
3. Certification fee of P100.00.
 MC NO. 2015-08
1. Non submission of required
Grounds for non-issuance of COC
reports;
2. Failure to encode CAPR
through web-based CAPRIS
and to submit the printed
form generated by the
system;
3. Willful failure to comply with
the mandatory trainings for
officers;
4. Non-settlement of fines
and/or penalty/ies for late or
non-submission of
mandatory reports; and
5. The cooperative has been
declared dissolved.
MC NO. 2016-07
1. Non submission of required reports as
mentioned in Sec. 7;
2. Failure to encode CAPR through web-based
CAPRIS and to submit the printed form
generated by the system, EXCEPT FOR
MICRO COOPERATIVES. However, for MCs
that failed to electronically submit the
immediately preceding year’s CAPR will not
be issued a COC for the succeeding year;
3. Willful failure to comply with the mandatory
trainings for officers;
4. Non-settlement of fines and/or penalty/ies
for late or non-submission of mandatory
reports EXCEPT FOR MICRO
COOPERATIVES; and
5. The cooperative is undergoing Dissolution
proceedings.
 MC NO. 2015-08 MC NO. 2016-07
Any existing dispute 1. The cooperative has two or more sets of BODs
Grounds for suspension or non-

on the legitimacy of claiming to be the legitimate officers of the

leadership as cooperative and the dispute becomes the
evidenced by a subject of a verified complaint filed with the
complaint filed with Authority;
release of COC

the Authority shall be 2. The cooperative is complained of illegal

a ground for activities and is subjected to an examination
suspension or non- and/or investigation;
release of a COC. 3. The cooperative is issued with cease and
desist order to refrain from business operation
and/or undertaking business activities;
4. The cooperative is found to have violated any
of the provisions of MC No. 2015-11 and MC
No. 2016-05 relating to the operation of
Cooperative Branch and Satellite respectively.
 MC NO. 2015-08 MC NO. 2016-07
On or before April 30 of the
current year.
Period for Filing a Request

Any request made after shall be The Authority shall forthwith

considered as “LATE FILING”.
Issuance of COC shall be made
not later than DECEMBER 31.
Any request made after shall not
be granted and no COC shall be
issued to the cooperative
covering the immediately
preceding year, although the
cooperative is still required to
submit reports and to pay the
corresponding penalties.
issue the COC within THIRTY
(30) DAYS from receipt of the
required reports. The Authority
shall issue a claim stub to the
applicant cooperative
indicating the date of release of
the COC applied for.
 MC NO. 2015-08 MC NO. 2016-07
REQUEST FOR COC:
P100 CERTIFICATION FEE

PENALTIES:
FEES AND PENALTIES

LATE FILING – P300.00

PLUS: P300 FOR EVERY YEAR
OF FAILURE TO SECURE COC.

CERTIFIED TRUE COPIES OF

DELETED
COC – BASED ON SCHEDULE
OF FEES
 MC NO. 2012-05

RULES IMLEMENTING THE

TRUTH IN LENDING ACT
 MC NO. 2012-09
Scope All CREDIT and MULTI-PURPOSE
COOPERATIVES with savings and loan services
Purposes 1. Enhance loan protection transparency;
2. Ensure a level playing field among credit
providers;
3. Protect member-borrower from the effect of
misrepresentation and concealment;
4. Permit the member-borrower fully appreciate
and evaluate cost of their borrowings; and
5. Avoid circumvention of usury laws.
 METHODS OF COMPUTING INTEREST
ON LOANS RECEIVABLES
1. The amount of interest shall be charged only based on
the OUTSTANDING BALANCE OF A LOAN at the
beginning of an interest period.
2. For a loan where principal is payable in instalments,
interest per instalment period shall be calculated based
on the outstanding balance of the loan at the beginning
of each instalment period.
3. All loan related documents shall show repayment
schedules in a manner consistent with this provision.
 INFORMATION TO BE DISCLOSED
GENERAL RULE: LOAN TERMS shall be DISCLOSED to all
types of borrowers.

FOR MICRO AND SMALL COOPERATIVES with lending

operations, the following are the minimum information to
be disclosed:
1. Total Amount of Loans;
2. Finance Charges;
3. Net proceeds of the loans; and
4. Percentage that the finance charge bears to the total
amount of the loans.
 TERMS TO REMEMBER
FINANCE Includes INTEREST, FEES, SERVICE
CHARGES FEES, DISCOUNTS, and such other
charges incidental to the extension of
credits.
LOANS AND Refer to financial assets with fixed or
RECEIVABLES determinable payments that are not
quoted in an active market other than
Available for Sale, Held to Maturity and
Investment at Fair Value through Profit
and Loss.
 RULE 3:

MULTIPURPOSE
COOPERATIVE
(IN RELATION TO MC
NO. 2015-07)
 REVISED IRR AND MC NO.
2015-07 (GUIDELINES
OLD IRR
GOVERNING THE
REGISTRASTION OF MPCS)
C
o This Rule shall cover (a) all types of Except for agriculture
v newly organized primary cooperative cooperatives and agrarian
e with combined two (2) or more reform cooperatives, no
r business activities of different types of cooperative shall be
cooperatives as provided for in Art. 23 registered as a multipurpose
a
of the Code, (b) a single-purpose cooperative unless it has been
g
cooperative desiring to transform itself in operation for at least two (2)
e
into a multi-purpose cooperative after years.
at least two (2) years of operation.
Minimum Only those cooperative with a
Capitalization minimum paid-up capital of
Requirements One Hundred Thousand Pesos
(P100,000.00) or as required in
the feasibility study whichever
is higher shall qualify to
register as a multi-purpose
cooperative or can transform
into a multi-purpose
cooperative.
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
(Php100,000.00) or as required
in the feasibility study,
whichever is higher, may be
allowed to transform into a
multipurpose cooperative.

Requirements REQTS FOR NEW

for REGISTRATION OR REQTS FOR AMENDMENT
Registration AMENDMENT
AGRICULTURAL COOPERATIVES (MC NO. 2015-05 – GUIDELINES IN
THE REGISTRATION OF AGRICULTURAL COOPERATIVES)
• REFERS TO A PRIMARY COOPERATIVE WHICH OR WHOSE MEMBERS
ARE INVOLVED/ENGAGED IN RAISING/CULTURE OF PLANTS, ANIMALS,
FUNGI, AND OTHER LIVING ORGANISM FOR PRODUCTIVE AND
ECONOMIC PURPOSE AND IN RELATED ACTIVITES THAT LEAD TO THE
REDUCTION OF COST AND/OR VALUE OF ADDITION OF OUTPUTS.

COOPERATIVE BUSINESS ACTIVITIES – the coop. may engage in all or

any of the following activities:
• Raising, culture of plants, animals.
• Facilitating the procurement of farm inputs/implements for the
members.
• Processing and marketing of the members products/produce.
• Any other activities that lead to the reduction of cost and/or value
addition of outputs.
 REQUIRED AMENDMENT OF ARTICLES OF
COOPERATION AND BY-LAWS EXISTING
COOPERATIVES OPERATING AS MULTIPURPOSE
COOPERATIVES UNDER MC NO. 2015-07
• Multipurpose cooperatives found to be operating a single-business activity shall
be required to REGISTER/AMEND as single purpose cooperative.
• Any MPC 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.
• Single purpose coop found to be operating with more than one
business/economic activity provided said cooperative has a paid-up capital of
P100k and above. If the minimum paid-up capital is not met, the said coop shall
cease its operation with regard to the other business activity.
 NEW
MEMORANDUM
CIRCULARS
 2016 MEMORANDUM CIRCULARS
MC NO. 2016-01 – AMENDED TO MC NO. 2010-03 ON THE GUIDELINES OF THE
PAYMENT OF REGISTRATION FEE
MC NO. 2016-02 – AMENDMENT TO MC NO. 2015-01 ON THE REVISED GUIDELINES
GOVERNING THE REGISTRATION OF COOPERATIVES
MC NO. 2016-03 – GUIDELINES IN THE IMPLEMENTATION OF CAPITAL BUILD-UP
AND SAVINGS MOBILIZATION FOR LABOR SERVICE COOPERATIVES
MC NO. 2016-04 – SUPPLEMENTING MC NO. 2012-03 RELATIVE TO THE
PROCEDURAL RULES GOVERNING THE CONDUCT OF VOLUNTARY ARBITRATION
BEFORE THE CDA
MC NO. 2016-05 – AMENDED GUIDELINES ON THE ESTABLISHMENT OF
COOPERATIVE SATELLITE OFFICES
MC NO. 2016-06 – REVISED STANDARD CHART OF ACCOUNTS FOR COOPERATIVES
MC NO. 2016-07 – AMENDED GUIDELINES GOVERNING THE ISSUANCE OF
CERTIFICATE OF COMPLIANCE
MC NO. 2016-08 – AMENDED SCHEDULE OF REGISTRATION FEES
 MC NO. 2016-01

GUIDELINES OF THE PAYMENT

OF REGISTRATION FEE

(Partially Amending MC NO. 2010-03)

 MC NO. 2010-03 MC NO. 2016-01
Registration Fee – refers to the Registration Fee – refers to
fee as prescribed by the the assessed amount
Authority. required to be paid on the
registration of the
amendment of Articles of
Cooperation and By-Laws of
cooperatives as prescribed
by the Authority.
 MC NO. 2010-03 MC NO. 2016-01
Amount and Schedule of Payment:

Assessed Amount Terms of Payment Assessed Amount Terms of Payment

100K and below Full Payment upon 100K and below Full Payment upon
registration registration
Above 100,000.01 Payable within 3 mos. Above 100,000.01 Payable within 3 mos.
– 200K – 200K
Above 200,000.01 Payable within 6 mos. Above 200,000.01 Payable within 6 mos.
– 300K – 300K
Above 300,000.01 Payable within 9 mos. Above 300,000.01 Payable within 9 mos.
to 499,999.00 to 400,000.00
500,000.01 and Payable within 12 mos. Above 400,000.01 Payable within 12 mos.
above to 1M
Above 1M Payable within 24 mos.
 MC NO. 2016-05

AMENDED GUIDELINES ON
THE ESTABLISHMENT OF
COOPERATIVE SATELLITE
OFFICES
 MC NO. 2012-17
Satellite Refers to an extension
Office office established by the
definition cooperative within its area
of operation to provide
limited services to its
members where
maintenance of the books
of accounts is to be done
by the head/main office
and other administrative
regulations as required by
the Authority.
MC NO. 2016-05
Refers to an office established
by a cooperative outside of its
principal/main office but within
its area of operation to provide
limited services to its members
but which does not however
maintain books of accounts as it
is done only by the
principal/main office.
For purposes of this Guidelines,
the term satellite shall include
an extension office, a sub-office
or other terms of similar import.
 MC NO. 2012-17 MC NO. 2016-05

Jurisdiction: THE OFFICE HAVING CO registered: CENTRAL

APPLICATION, JURISDICTION OVER THE OFFICE
APPROVAL PRINCIPAL OFFICE OF
AND THE COOPERATIVE. If within the are a where the
ISSUANCE OF principal office is located:
LETTER OF If satellite office is REGISTERING EO
AUTHORITY OUTSIDE JURISDICTION,
(LOA) issuing office shall send IF OUTSIDE EO JURISDICTION:
an official notice together Application: REGISTERING EO
with a copy of a letter of Approval and Issuance of LOA:
authority to the EO where EO WITH JURISDICTION
the satellite office is to be OVER THE AREA WHERE
established. SATELLITE OFFICE WILL BE
ESTABLISHED
 MC NO. 2012-17
1. FS for the past 2 years;
Documentary Requirements:
2. CGS for the preceding year;
3. Oath of undertaking signed by
Chairperson of the coop for the
specific services/activities to
be undertaken by the
proposed satellite office;
4. Certification as to available
space and manpower to
manage the office;
5. Official receipt showing
payment of processing fee.
MC NO. 2016-05
1. COC for the preceding
year;
2. Oath of undertaking;
3. Certification as to available
space and manpower to
manage the office; and
4. Official receipt of the
processing fee.
 MC NO. 2012-17 MC NO. 2016-05
Services / (found in the NOT LIMITED TO:
Activities definition of 1. Recruitment of members;
Allowed in a Branch Office) 2. Acceptance of applications for
Cooperative NOT LIMITED membership;
Satellite TO: 3. Acceptance of loan applications;
Office - Acceptance 4. Collection and acceptance of
and processing payments for share capital
of membership contributions, loans and/or utility
- Conduct of bills in the case of electric and water
PMES and service coops.
other trainings 5. Release of loans, patronage refund,
and interest on capital.
- SHALL BE ENDORSED TO PRINCIPAL
OFFICE FOR APPROPRIATE ACTION.
 MC NO. 2012-17 MC NO. 2016-05
Conditions Posting of Flow of Transactions
for Satellite in the Satellite Office –
Office DELETED
Operations:
Conditions Payment of Payment of processing fee
on relocation processing fee. amounting to P500 for the
/ transfer of Primary – P500 issuance of new LOA upon
SO Secondary – P1,000 surrender and cancellation of
Tertiary – P2,000 the old LOA.
 MC NO. 2012-17
-Specified signatory of
document stating intention
to close.
-Sending notice…
Voluntary Closure
-Upon submission of the
report on the completion
of Par. 1 and 2, the
Authority shall
automatically issue an
Order of Closure to the
concerned cooperative
satellite office w/c in effect
cancels the LOA issued.
MC NO. 2016-05
-Letter of intention to close satellite office
at least 3 months prior to the closure.
-Sending notice…
-After compliance of with the foregoing, the
Authority shall issue an Order of Closure of
the cooperative. Cancellation of the LOA
shall follow as a matter of course.
FAILURE TO COMPLY WITH THE
PROCEDURE SHALL BAR THE
COOPERATIVE FROM ESTABLISHING
ANOTHER SATELLITE OFFICE
ANYWHERE WITHIN ITS AREA OF
OPERATION.
TRANSITORY: 1 YEAR TO COMPLY
 MC NO. 2015-11

AMENDED POLICY
GUIDELINES ON THE
ESTABLISHMENT OF
COOPERATIVE BRANCH
 PRE-QUALIFICATION REQUIREMENTS
MC NO. 2011-17
(Policy and Guidelines in the MC NO. 2015-11
Establishment of a Cooperative Branch)
Must have minimum paid-up capital as The principal office must have a minimum
follows: paid-up capital, as provided for in the Articles
1. Primary – Php 2 Million of Cooperation, to wit:
2. Seconday – Php 5 Million 1. Primary – Php 10 Million
3. Tertiary – Php 10 Million 2. Secondary – Php 15 Million
3. Tertiary – Php 20 Million
Must have an available start up
operating capital for each branch of at Each branch must have an available operating
least: capital as provided for in the Business Plan, to
1. Primary – Php 1 Million wit:
2. Secondary – Php 3 Million 1. Primary – Php 5 Million
3. Tertiary – Php 5 Million 2. Secondary – Php 10 Million
3. Tertiary – Php 15 Million
 PRE-QUALIFICATION REQUIREMENTS
MC NO. 2011-17
(Policy and Guidelines in the
MC NO. 2015-11
Establishment of a Cooperative
Branch)
Must have a track record of - That the proposed establishment of a branch in another
actual operational growth and place but within the area of operation of the applicant
viability and have not cooperative is necessitated by the existence of members in
incurred net loss for the last the said place desiring to avail of the services of the
cooperative within their reach. Provided, that the number of
three consecutive years. The
members to be served by the branch office will be enough
cooperative net worth is for its viable operation as shown in the business plan.
progressive for the last three
years from the date of - The cooperative did not incur net loss for the last three
application. consecutive years and its net worth is progressive for the
last three years from the date of application.
 DOCUMENTARY REQUIREMENTS
MC NO. 2011-17
- Business Plan
- General Assembly Resolution
authorizing establishment of branch and
commitment of investment or allocation
of resources for its proposed site
- Organizational set up of the proposed
branch showing the proposed staffing
pattern
- Certification signed by Chairman/GM
as to the following:
1. Presence of Manual of Operations for
Branch; and
2. Exact location of the proposed branch.
MC NO. 2015-11
- Business plan;
- General assembly resolution authorizing
the establishment of the branch and
commitment of investment or allocation
of resources in its operation;
- Certification signed by the
Chairman/General Manager of the
following:
1. Presence of Manual of Operations for
Branch; and
2. Address of the proposed branch
- Audited Financial Statement for the last
3 years.
 ADMINISTRATIVE REGULATIONS (SEC. 13)

• All cooperatives intending to put up a branch and cooperatives with

existing branch office should be established within the area of operation of
the cooperative. For cooperatives intending to branch outside the area of
operation, approval of the articles of cooperation expanding the area
operation shall be secured;
• No branch should be established within a 500-meter radius of the nearest
cooperative engaged in the same line of business as the proposed branch;
• The branch office shall have a separate Book of Accounts;
• Minimum of three (3) personnel to man the office such as but not limited to
manager, bookkeeper, and cashier.
• Adherence to the manual of operation at all times;
 ADMINISTRATIVE REGULATIONS (SEC. 13)

• Issuance of official receipt in the financial transactions of the branch;

• Imprest system of handling cash shall be complied with at all times;
• All branch offices should secure a Barangay and Mayor’s Permit;
• Compliance to other regulations as may be determined by other
government agencies including the Authority.
• Submission of operational reports to the principal/head office such as
financial statements, cash flows, and other relevant reports required by
the main office and the Authority.
• Same report as mentioned in 13.10 be submitted to the CDA Extension
Office where the branch is located.
 MC NO. 2016-08

AMENDED SCHEDULE OF
REGISTRATION FEES
 PROCESS REQUIRED FEES PROCESS REQUIRED FEES
(Php) (Php)
A. NAME C. AMENDMENT
RESERVATION 100.00 1. On specific
(pre- 200.00 provision/s 300.00
registration)
PLUS 1% OF
300.00
THE FEE
2. By
IMPOSED 300.00
1. 30 days BUT NOT LESS THAN TEN (10)1/10 of 1% of the
substitution
2. 60 days PESOS for ALL APPLICATIONS
3. On increase increased PAID-UP
3. 90 days of capital CAPITAL
FOR REGISTRATION AND
B. INITIAL AMENDMENT,
1/10 of 1% of the PETITIONS
D. MERGER AND400.00 plus C.3 if
REGISTRATION PAID-UP CAPITAL or coupled with
COMPLAINTS AS LEGAL AND
increased paid-up
1. Primary RESEARCH
500.00 FEE (LRF) capital
2. Secondary 2,000.00 E. Refer to “B”
3. Tertiary 3,000.00 CONSOLIDATION
4. Laboratory 50.00
 2017 MEMORANDUM CIRCULARS
MC NO. 2017-01 – CAPABILITY BUILDING PROGRAM FOR MICRO
COOPERATIVES
MC NO. 2017-02 – GUIDELINES ON THE CONDUCT OF PRE-
REGISTRATION SEMINAR (PRS) FOR PROSPECTIVE MEMBERS OF
WOULD-BE PRIMARY COOPERATIVES
MC NO. 2017-03 – AMENDMENT TO CDA MEMORANDUM CIRCULAR
NO. 2012-15 DATED JUNE 11, 2012 ON POLICY GUIDELINES
MANDATING COOPERATIVE TO PUT-UP SIGNAGE IN THEIR
RESPECTIVE OFFICES
MC NO. 2017-04 – TOOL FOR ASSESSING PROGRESS OF GENDER
EQUALITY IN PRIMARY COOPERATIVES AS SUPPLEMENTAL TO
MEMORANDUM CIRCULAR 2013-22
 MC NO. 2017-03

AMENDMENT TO CDA MEMORANDUM

CIRCULAR NO. 2012-15 DATED JUNE 11,
2012 ON POLICY GUIDELINES
MANDATING COOPERATIVE TO PUT-UP
SIGNAGE IN THEIR RESPECTIVE
OFFICES
 SIGNAGE
SPECIFICATIONS MC NO. 2012-15 MC NO. 2017-03

Where to put Principal Office, Branch Principal and all Branch and
up and Satellite Office Satellite offices

6 FEET WIDE X 3 FEET

NO SIZE SPECIFIED
Size and LONG
Appearance
VISIBLE AND LEGIBLE
WHITE BACKGROUND
 MC NO. 2012-15 MC NO. 2017-03
a. Name of the Cooperative;
b. Address (of office);
a. Name of Cooperative; c. Registration Number of the Cooperative;
b. Address of the Cooperative; d. Tax Identification Number (TIN) of the
c. Registration Number and Cooperative;
CIN of the Cooperative; e. The words “Principal, Satellite and/or
Contents

d. The phrase “Registered with Branch Office”, if applicable; and

the Cooperative Development- f. The phrase “Registered with the
Authority - ____ Extension Cooperative Development-Authority - ____
Office” under the cooperative Extension Office”. (where the principal
name; and office is registered)
e. Tax Identification Number
(TIN) of the Cooperative. Plus:
Branch – Certificate of Authority No.
Satellite – Letter of Authority No.
CDA ISSUANCES

OFFICE ORDERS
MEMORANDUM
- OFFICE ORDER NO. 2017-01 RE: GUIDELINES IN DETERMINING
THE STATUS OF COOPERATIVES
- MEMORANDUM RE: INTERPRETATION OF ARTICLE 86(2) OF RA
9520 IN THE REMITTANCE OF CETF TO A UNION OR FEDERATION
- MEMORANDUM RE: BLGF MC 11-001-2016 REITERATING BLGF MC
NO. 31-2009 RE: EXEMPTION OF COOPERATIVES FROM PAYMENT
OF LOCAL TAXES, FEES AND CHARGES
 OFFICE ORDER NO. 2015-09

GUIDELINES IN
DETERMINING THE STATUS
OF COOPERATIVES
COMPLIANT STATUS OF A COOPERATIVE
1. With required reports and issued Certificate of Compliance (COC).
2. With required reports but subjected to Show Cause Order (SCO) for
violation of cooperative laws, rules and regulations, articles of
cooperation and by-laws.

a. Issued with Notice for Non-Submission of Required Reports;

b. Issued with SCO for non-submission of required reports;
NON-COMPLIANT

c. Issued with SCO for non-submission of required reports and for

violation of cooperative laws, rules and regulations, articles of
cooperation and by-laws;
d. Under Dissolution
e. Dissolved
f. Under Liquidation
g. Cancelled
h. Delisted
 COC ISSUANCE STATISTICS IN TUBA,
BENGUET
AS OF DECEMBER 31, 2016 AS OF JUNE 15, 2017
NON-
COMPLIANT
, 2, 13%

NON-
COMPLIANT
, 8, 38%

COMPLIANT
, 13, 62%

COMPLIANT
, 13, 87%
 MEMORANDUM

RE: INTERPRETATION OF
ARTICLE 86(2) OF RA 9520 IN
THE REMITTANCE OF CETF
TO A UNION OR FEDERATION
 ARTICLE 86 (2) OF RA 9520
"ART. 86. Order of Distribution. – The net surplus of every cooperative shall be distributed as
follows:
XXX
"(2) An amount for the education and training fund, shall not be more than ten per
centum (10%) of the net surplus. The bylaws may provide that certain fees or a portion thereof
be credited to such fund. The fund shall provide for the training, development and similar
other cooperative activities geared towards the growth of the cooperative movement:
"(a) Half of the amounts transferred to the education and training fund annually under this
subsection shall be spent by the cooperative for education and training purposes; WHILE
THE OTHER HALF MAY BE REMITTED TO A UNION OR FEDERATION CHOSEN BY
THE COOPERATIVE OR OF WHICH IT IS A MEMBER. The said union or federation
shall submit to the Authority and to its contributing cooperatives the following schedules:
"(i) List of cooperatives which have remitted their respective Cooperative Education
and Training Funds (CETF);
"(ii) Business consultancy assistance to include the nature and cost; and
"(iii) Other training activities undertaken specifying therein the nature, participants
and cost of each activity.
In the provision of Article 86(2) of RA 9520, noticeable is the phrase “MAY
BE REMITTED” has two modifiers, “UNION OR FEDERATION” and “CHOSEN
BY THE COOPERATIVE OR OF WHICH IT IS A MEMBER”. With these
modifiers, there seem to be no question that “MAY” refers to the OPTION
AS TO WHETHER REMITTANCE IS TO BE MADE TO A UNION OR
FEDERATION and an OPTION AS TO WHETHER THAT UNION OR
FEDERATION IS AS CHOSEN BY THE COOPERATIVE OR A UNION OR
FEDERATION TO WHICH IT IS A MEMBER and NOT AS TO THE
OPTION WHETHER TO REMIT OR NOT TO REMIT.