Power coops have 2 years to register with CDA

Electric cooperatives have been given two years to register with the Cooperative Development Authority else they face revocation.

Benjamin Yu, CDA7 regional manager said with the recently issued Memorandum Circular electric cooperatives are given two years to comply with all the requirements of registration with CDA.

After the lapse of the given period and they fail to comply, Yu said it will be ground for revocation of their registration as a cooperative.

Yu, upon conferring with CDA legal department, said that it will also affect their other registration, particularly with the National Electrification Administration.

"If they don't register with CDA, they will be revoked and they will instead form a corporation or an association," Yu said.

This would mean no longer be able to have the privilege of tax exemptions.

Electric cooperatives previously registered with the National Electrification Administration under Presidential Decree 269 will have to register with CDA pursuant to RA 6938 or the law that created the Cooperative Development Authority.

Those electric cooperatives that were able to obtain Certificate of Provisional Registration from CDA earlier have to submit copies of five important documents for their re-registration.

These include the copy of the Certificate of Provisional Registration issued by CDA; duly audited financial statements for the last two years; list of the incumbent names and addresses of the board of directors; sworn statement of the treasurer that within six months from registration the electric cooperatives should submit to CDA the statement on the authorized share capital, subscribed share capital and paid up capital of members and the bond of accountable officers of the electric cooperatives.

On the other hand, those that failed to obtain a Provisional Certificate of Registration from CDA can also be registered with CDA by submitting those documents mentioned filed with NEA.

In line with the principle of solidarity, CDA shall regulate electric cooperatives on matters such as rights and privileges of members, rules and procedures of meetings of General Assembly, Board of Directors and Committee members and allocation and distribution of surplus and tax treatment to electric coops. - Ferliza C. Contratista