Memorandum Order No. 187

Section 1. The NEA is hereby directed to facilitate the conversion of electric cooperatives to either stock cooperatives under the Cooperatives Development Act or stock corporations under the Corporation Code.

Section 2. In the conversion from electric cooperatives to stock cooperatives or stock corporations, the NEA is directed to ensure that electric cooperatives only need the simple majority of all members present constituting a quorum.

Section 3. Pursuant to Section 7 © (iii) of the Rules and Regulations Implementing the EPIRA, the conversion of electric cooperatives to stock cooperatives or stock corporations shall not in any way results in its dissolution, and electric cooperatives so converted shall retain their franchise rights.

Section 4. The NEA is hereby directed to issue the appropriate orders/guidelines to confirm to this Memorandum Order. DONE in the City of Manila this 2nd day of September, in the year of our Lord Two Thousand and Five. By Authority of the President: (Sgd.) EDUARDO R. ERMITA Executive Secretary