Policy on Networth Requirement for the Organization of a Subsidiary Cooperative Pursuant to Section 2 (2), Rule II of Rules and Regulations Implementing Certain Provisions of R.A. 9520

February 7, 2013 CDA MEMORANDUM CIRCULAR NO. 009-13 TO : All Concerned SUBJECT : Policy on Networth Requirement for the Organization of a Subsidiary Cooperative Pursuant to Section 2 (2), Rule II of Rules and Regulations Implementing Certain Provisions of R.A. 9520 Section 2 (2) of Rule II, of Rules and Regulations Implementing Certain Provisions of R.A. 9520, requires that in order for a parent cooperative to organize a subsidiary cooperative, it must have a net worth of at least Ten Million (P10,000,000.00) Pesos as shown in its latest audited financial statements; ACDIcS In view of the foregoing premises, a parent cooperative may organize more than one (1) subsidiary cooperatives provided that for every subsidiary cooperative, the parent cooperative must have a net worth of Ten Million (P10,000,000.00) Pesos in its latest audited financial statements [ e.g. , one subsidiary cooperative = Ten Million (P10,000,000.00) Pesos, two subsidiary cooperatives = Twenty Million (P20,000,000.00) Pesos, etc.], in addition to the other requirements as provided under Section 2, Rule II of IRR of R.A. 9520. For information and guidance. APPROVED per CDA Board Resolution No. 050. s-2013 dated February 7, 2013 , Quezon City, Philippines. For the Board of Administrators By: (SGD.) EMMANUEL M. SANTIAGUEL, Ph.D. Chairman ATTACHMENT EXCERPTS FROM THE MINUTES OF SPECIAL MEETING OF THE CDA BOARD OF ADMINISTRATORS HELD ON FEBRUARY 7, 2013 Makati Palace Hotel, Makati City PRESENT: Hon. Emmanuel M. Santiaguel, Ph.D. - Chairman/Presiding Officer Hon. Nelon B. Alindogan - Administrator Hon. Mercedes D. Castillo - Administrator Hon. Eulogio T. Castillo, Ph.D. - Administrator ALSO PRESENT: Atty. Niel A. Santillan - Executive Director RESOLUTION NO. 050, s-2013 Upon motion of Adm. Mercedes D. Castillo duly seconded by Adm. Nelon B. Alindogan, be it RESOLVED as it is hereby RESOLVED to approve the Memo Circular on Policy on Networth for the Organization of a Subsidiary Cooperative pursuant to Section 2 (2), Rule II of Rules and Regulations Implementing Certain Provisions of R.A. 9520 . THIASE APPROVED. xxx xxx xxx This is to certify that the foregoing is true and correct from the minutes of the CDA Board of Administrators' Special Meeting. (SGD.) MARY GRACE I. CINCO Acting Board Secretary IV ATTESTED: (SGD.) EMMANUEL M. SANTIAGUEL, Ph.D. Chairman