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Should you apply for Group Membership?

Group Membership is a compulsory requirement for registration of a corporate group under one membership (endorsed by the Board of Governors on 11 November, 2016). For more information on Group Membership, click here.

Group Membership

With effect from 6 March 2017, it is a compulsory requirement for a corporate group to register under one membership. If the parent company and/or its subsidiaries are involved in activities related to the palm oil supply chain, only the parent company may apply for membership with the RSPO and shall represent all companies within its group.

Subsidiary means an Entity where the Parent:

  • holds (whether as a legal owner or as beneficiary) more than half of the issued share capital of that Entity (excluding any part thereof which consists of preference shares); or
  • controls more than half of the voting power of that Entity;
  • controls the composition of the board of directors of that Entity.

 

The parent company is responsible for declaring all subsidiaries involved in the palm oil supply chain. This ensures that the accountability towards compliance of RSPO standards, processes or reporting are directed at the parent company. By declaring subsidiaries, it ensures effective compliance of RSPO requirement on all of the company’s holdings. It also ensures that all certifications and licenses are correctly issued to companies under the parent membership.

However, whilst group membership extends to a company's listed subsidiaries, certification and licenses may be applied for separately. The Group Membership rules were endorsed by the Board of Governors on 11 November 2016 and they are contained in the RSPO Membership Rules 2016. Non-compliance to these rules is a breach of the Code of Conduct and may lead to exclusion from the organisation.

Types of Group Membership

*Subject to verification by RSPO

 

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