PROMOTION AND DEVELOPMENT OF APEX ORGANIZATIONS

The declaration of policy of the State to (a) foster the creation and growth of cooperatives as practical vehicles for promoting self-reliance and harnessing people power and (b) to insure their viability as instruments of equity, social justice and economic development necessitates the formation of higher level cooperative structures, among which are apex organizations. In the interest of the service, the Cooperative Development Authority (CDA) hereby issues the following interpretation of the promotion and development of apex organizations:

SECTION 1.       Definition of Terms — (a) Apex organization may be a federation or union whose members are registered secondary/tertiary or higher level cooperative organizations.  It may be composed initially of five (5) duly registered secondary/higher cooperatives the number of which is to be increased to fifteen (15) secondary and higher cooperatives within the period of three (3) years;

b.      Federation shall refer to a duly registered cooperative whose members are primary and higher categories with single line or multi-purpose business activities;

c.       Union shall refer to a duly registered cooperative whose members are primary, secondary or tertiary cooperatives, whether federations or unions and which performs non-business functions;

d.      Tertiary cooperative shall refer to a duly registered cooperative the members of which are secondaries.

SECTION 2.       Membership in an Apex Organization — Membership in an apex organization shall be composed of duly registered secondary/tertiary or higher cooperative organizations whether federations or unions.

SECTION 3.       Requirements for Registrations — An apex organization shall be registered with the CDA upon submission of the following requirements:

a.      Four (4) copies each of the following documents;

1. Articles of Cooperation;
2. By-laws;
3. Bonds of accountable officers
4. Treasurer’s sworn statement as to compliance with subscription and paid-up share capital requirements;
5. Economic survey to include three (3) years projected financial statements;
6. General Assembly Resolutions of all member-secondary/tertiary or higher cooperative organizations of their affiliation with the apex organization.

b.      Registration Fee in the amount equivalent to one tenth (1/10) of one per cent of the paid-up share capital but not less than P2,000.00

SECTION 4.       Contribution of Member-Secondary/Tertiary or Higher Cooperative Organizations — The amount of share capital of the member-secondary/tertiary or higher cooperative organizations shall be based on the business and service activities of the organization.

SECTION 5.       Effect of Registration — The apex organization, upon registration by the Authority as such, shall perform its functions as defined in its articles of cooperation and by- laws and comply with the Cooperative Code of the Philippines and policy issuances of the CDA.

Adopted: 18 Feb. 1993

(Sgd.) EDNA E. ABERILLA
Chairman
Board of Administrators