QuestionsQuestions (Republic Act No. 11364)
RA 11364 is the “Cooperative Development Authority Charter of 2019.” It reorganizes and strengthens the Cooperative Development Authority (CDA) and repeals RA 6939 for this purpose.
The State promotes the viability and growth of cooperatives as instruments of equity, social justice, and economic development; recognizes cooperatives as mutual aid associations; recognizes the CDA as primarily responsible for institutional development and regulation; affirms the right of cooperatives to promote and foster cooperative activities within their ranks with government assistance where necessary.
The CDA is an agency attached to the Department of Trade and Industry (DTI) for policy and program coordination for cooperatives. This clarifies administrative alignment while preserving CDA’s regulatory and development functions under the law.
The CDA registers all cooperatives and amendments to ACBL, division, merger, and consolidation; authorizes cooperative branches/satellite offices; exercises supervision and jurisdiction over all types/categories registered; requires annual reports and audited financial statements; and may suspend/cancel Certificates of Registration or revoke authority to operate branch/satellite offices after due notice and hearing for noncompliance.
It can discipline, suspend, and/or remove erring officers and members after due process and direct replacement by the general assembly (Sec. 4[p]); it can order suspension/cancellation or revocation of authority after due notice and hearing for noncompliance (Sec. 4[q]); it can order dissolution and liquidation and transfer of assets/liabilities (Sec. 4[r]); and it may compel a cooperative to call an assembly under supervision (Sec. 4[s]).
Section 4(t) allows the CDA to hear and decide inter-cooperative and intra-cooperative disputes without prejudice to filing civil/criminal cases in regular courts, and states that all CDA decisions are appealable directly to the Court of Appeals. Section 4(u) also addresses a dispute resolution mechanism consistent with Article 137 of RA 9520 and RA 9285, with a specific rule for election-related issues.
Under Section 4(w), the CDA can issue subpoena ad testificandum and subpoena duces tecum for parties to appear and produce documents; it can also order examination of documents and records of a cooperative/person under investigation for proper disposition of cases.
Section 4(x) allows the CDA to cite for contempt a person guilty of misconduct in the presence of the Authority that seriously interrupts a hearing/inquiry, imposing a fine of not more than PHP 5,000 or imprisonment of not more than ten (10) days, or both. Indirect contempt is punished under Rule 71 of the Rules of Court.
It has the Chairperson (Undersecretary rank) and six (6) Board Members (Assistant Secretary rank), all appointed by the President, chosen among nominees from the cooperative sector. There is one Board director representing each cluster of cooperatives listed in Section 5.
They include: (a) Credit/Financial Services/Banking/Insurance; (b) Consumers/Marketing/Producers/Logistics; (c) Human Services (Health/Housing/Workers/Labor Service); (d) Education and Advocacy; (e) Agriculture/Agrarian/Aquaculture/Farmers/Dairy/Fisherfolk; and (f) Public Utilities (Electricity/Water/Communications/Transport).
They must be natural-born Filipino citizens; have any bachelor’s degree; have five (5) years experience as an officer of a cooperative in the cluster they represent; and have been residents of the Philippines for at least five (5) years prior to appointment.
They serve six (6) years without reappointment. Reappointment is allowed only when the person served an unfinished term of the one they succeeded and served less than one-half (1/2) of the full term.
The Administrator (rank of Assistant Secretary) implements policies, decisions, orders, and resolutions approved by the Board and has executive direction/supervision. Five (5) Deputy Administrators assist, covering: (a) General Administration and Support Services; (b) Institutional Development; (c) Legal Affairs; (d) Registration, Supervision and Examination; and (e) Credit Surety Fund (CSF). The Administrator also prepares reports and budgets, appoints lower personnel, represents the Authority, and reports annually to the President and Congress.
Section 15 prohibits any person/organization from using “cooperative,” “coop,” “co-op,” and “koop” in business names unless duly registered with the CDA, except as provided under Article 130 of RA 9520; violations are penalized under Article 140 of RA 9520.
Within 120 days of effectivity, the Authority must be reorganized per RA 6656. Personnel continue unless removed for cause after due process; employees are absorbed into the new Authority per staffing pattern and civil service/DBM rules. Voluntary separation options have separation pay computed per DBM guidelines. The incumbent Chairperson and Administrators remain until the new Board is constituted. Existing accounts receivables and assets/liabilities of current CDA are transferred to the new Authority.