Share Capital
Share Capital
The term “share” shall refer to a unit of capital the par value of which is One Hundred Pesos (P100.00).
Maximum Share Capital Subscription
As a matter of policy, no member shall own or hold more than ten (10) percent of the total share capital of the AUFCOOP, provided further, that the maximum share capital subscription per individual member shall in no way exceed two thousand (2,000) shares with a total value of Two Hundred Thousand Pesos (P200,000.00).
Transfer of Shares
Share capital cannot be withdrawn, but is transferable to the AUFCOOP or to any person eligible for membership by way of purchase. Transfer of shares must be in accordance with the provision of Section 8, Article IV of the By-Laws.
Continuous Capital Build-Up
To promote continuous capital build-up, every member is encouraged to invest in the AUFCOOP in the form of share capital as follows:
- Regular share capital of at least Two Hundred Fifty Pesos (P250.00) per month for the first six (6) months and Two Hundred Pesos (P200.00) per month for the next Seventeen (17) months for new members; at least One Hundred Pesos (P100.00) per month for old members;
- Retention of at least one half (1/2) of one (1) percent but not less than One Hundred Pesos (P100.00) from the total amount of regular loan and special loan granted; and
- Retention of at least ten (10) percent of the annual interest on share capital and patronage refund.
Capital Formation
The AUFCOOP shall mobilize the resources of its members for capital formation toward financing other services needed by them and the community.
Interest on Share Capital
Interest on share capital is based on the paid-up share capital at the rate prescribed by the Cooperative Development Authority (CDA). Such interest may be in cash, or credited towards payment of share capital subscriptions, outstanding accounts, or additional share capital, or to the revolving fund of the AUFCOOP, as provided in Section 7, Article IV of the By-Laws.
The rate of interest on share capital, which is subject for review and appraisal at the end of every accounting period and which is based on the results of operation, shall be determined by the Board of Directors.
The interest on share capital of a withdrawing member shall be determined only after the end of the calendar year and upon the declaration of interest by the Board of Directors. The said interest is computed from the first day of calendar year to the day when the application for withdrawal has been approved by the Board.
