Question & AnswerQ&A (IRR of Republic Act No. 11364)
The main purpose of RA No. 11364 is to reorganize and strengthen the Cooperative Development Authority (CDA) to promote the viability and growth of cooperatives as instruments of equity, social justice, and economic development in the Philippines.
The State recognizes cooperatives as autonomous associations organized for the economic and social betterment of their members, operating businesses based on mutual aid, and founded on internationally accepted cooperative principles and practices.
The CDA formulates and implements comprehensive plans for cooperative development, requires cooperatives to develop business continuity plans, grants recognition and incentives, administers cooperative grants, develops training programs, recognizes apex organizations, establishes consultative mechanisms, coordinates with local cooperative offices, and facilitates technical and marketing assistance among others.
The CDA has the power to register cooperatives and their amendments, authorize establishment of cooperative branches and satellite offices, supervise cooperatives, develop regulations and standards, require submission of reports, prescribe fees and fines, conduct inspections and investigations, and order suspension, cancellation, or dissolution of cooperatives as necessary.
The CDA can investigate, discipline, suspend or remove erring cooperative officers and members, hear and decide inter and intra-cooperative disputes, issue subpoenas, cite for contempt, and implement and enforce its decisions and orders with assistance from law enforcement or LGUs.
The Board consists of a Chairperson with the rank of Undersecretary and six members with the rank of Assistant Secretary appointed by the President. They must be natural-born Filipino citizens, hold a bachelor's degree, have 5 years of cooperative officer experience in their cluster, and reside in the Philippines for 5 years prior to appointment. Ex-officio members include secretaries of the DTI and DILG without voting rights.
The clusters are: (a) Credit and Financial Services, Banking, Insurance, and Credit Surety Fund; (b) Consumers, Marketing, Producers and Logistics; (c) Human Services: Health, Housing, Workers, and Labor Service; (d) Education and Advocacy; (e) Agriculture, Agrarian, Aquaculture, Farmers, Dairy, and Fisherfolk; and (f) Public Utilities: Electricity, Water, Communications, and Transport.
CDCs are multi-sectoral bodies established at national, regional, provincial, city, and municipal levels to provide a system for policy consultation and coordination of cooperative programs and projects, facilitating collaboration among cooperatives, LGUs, government agencies, NGOs, academe, and other stakeholders for cooperative development.
The CDA adopts and implements dispute resolution mechanisms consistent with RA No. 9520 and the Alternative Dispute Resolution Act of 2004. This includes voluntary arbitration, conciliation, or mediation for conflicts among members, officers, directors, and between cooperatives, except that election-related disputes can be elevated directly to the CDA for adjudication.
Except as provided under Article 130 of RA No. 9520, the unauthorized use of the words 'cooperative', 'coop', 'co-op', or 'koop' in a business name is prohibited and penalized under Article 140 of RA No. 9520. The CDA may initiate complaints motu proprio against violators.
Suspension or cancellation may be ordered if the cooperative obtained registration by fraud, exists for an illegal purpose, willfully violates laws or its bylaws despite notice, fails to operate on a cooperative basis, does not meet minimum membership requirements, or does not comply with lawful orders, rules, and regulations of the Authority.
The CDA, in partnership with training institutions and the cooperative sector, formulates training standards focusing on basic cooperative principles and values, good governance, entrepreneurial and business management, human resource management, risk and conflict management, and technical skills for effective cooperative operations.
The CDA and LGUs coordinate on formulating Local Cooperative Development Plans, providing technical and financial assistance, promoting cooperative organization, implementing cooperative programs, assisting in registration and reporting, providing trainings, facilitating tax exemptions, and converging approaches for cooperative development.
The NAC is the recognized alliance of the six Sectoral Apex Organizations representing all cooperative clusters at the national level. It functions as the overall consultative and coordinating body of the cooperative sector with the CDA, providing policy advocacy and coordinating cooperative programs nationwide.
The CDA Board conducts hearings and decisions on inter and intra-cooperative disputes, disciplinary actions against erring officers or members, issuance of subpoenas, citation for contempt, and enforcement of orders. Decisions by the Board are appealable to the Court of Appeals.