Guidelines for the Registration of Amendment of Cooperative's Term of Existence

October 26, 2006

CDA MEMORANDUM CIRCULAR NO. 2006-09

GUIDELINES FOR THE REGISTRATION OF AMENDMENTS OF COOPERATIVE'S TERM OF EXISTENCE

Pursuant to Section 3 of Republic Act No. 6939, the Cooperative Development Authority hereby adopts and promulgates the following Guidelines for the Registration of Amendments of cooperative's term of existence.

SECTION 1. Definition of Terms. — As used in these Guidelines, the following terms are defined as follows:

a. Authority — refers to the Cooperative Development Authority.

b. Registration — is the operative act of the Authority granting juridical personality to a proposed cooperative and is evidenced by the certificate of registration.

c. Term of existence — refers to a fixed period given to cooperative to legally exist as indicated in the Article of Cooperation which shall not exceed fifty (50) years from the date of registration unless sooner dissolved or extended.

d. Amendments — an act of changing specific provision or by substitution, of the Article of Cooperation to cope with the prevailing situation of the cooperative as registered by the Authority.

e. Extension — an act of lengthening the term of existence of a cooperative provided the cooperative is operating/active.

f. Expiration — refers to the date where the existence of the cooperative ipso facto ceases.

g. Subsequent Extension — refers to the period reckoned from the latest registered term of existence of the cooperative.

SECTION 2. Scope. — These guidelines shall apply to all application for amendment regarding extension of cooperative's term of existence.

SECTION 3. Procedures on extension of cooperative term. — Cooperative term as originally stated in the article of cooperation, may be extended for period not exceeding fifty (50) years in any single instance by an amendment of the article of cooperation in accordance with the guidelines of registration of amendments. There are two (2) instances under which an extension of cooperative term may be allowed, as wit:

A. BEFORE EXPIRATION OF TERM

An application for extension of cooperative term of existence may be filed not earlier than five (5) years prior to the original or subsequent extension unless there are justifiable reasons for an earlier extension as determined by the Authority. The grant of extension of the cooperative term of existence shall be evidenced by the issuance of Certificate of Amendment issued by Authority

B. AFTER EXPIRATION OF TERM

Cooperative whose term of existence had already expired but failed to file the necessary amendment of the article of cooperation in letter A above may be allowed to file the necessary amendment up to December 15, 2007 only within which during the period, the CDA will send notice of reminder to these concerned cooperatives. EAaHTI

This is to give opportunity to those existing operating cooperative with expired term of existence. After this period, only instance A above shall apply. Cooperative with expired term shall be delisted from the registry of cooperatives.

SECTION 4. Documentary Requirements. — The documentary requirements prescribed under the Guidelines for the Registration of Amendments to the Articles of Cooperative and By-laws of Cooperatives dated May 21, 1992, and its subsequent amendment under Memorandum Circular No. 93-003, Series of 1993 dated March 24, 1993, shall apply.

SECTION 5. Place of Registration. — The Extension Offices of the Authority shall register the amendments of all types of cooperative except for tertiary cooperatives with national coverage, Electric Cooperatives, Insurance Cooperatives, and Cooperatives Banks which is under the jurisdiction of the Central Office.

SECTION 6. Effectivity. — These Guidelines shall take effect fifteen (15) days from the date of publication in the official gazette or a newspaper of general circulation.

 

(SGD.) LECIRA V. JUAREZChairperson