QuestionsQuestions (Republic Act No. 6939)
RA 6939 declares it State policy to promote the viability and growth of cooperatives as instruments of equity, social justice, and economic development; to recognize cooperatives as associations for members’ economic and social betterment based on mutual aid and internationally accepted cooperative principles; and to maintain—except as provided—the policy of noninterference in cooperative management and operations.
The CDA is created under the Office of the President.
The CDA (1) registers all cooperatives and their federations/unions including structural changes like division, merger, consolidation, dissolution/liquidation; (2) registers transfers of all or substantially all assets and liabilities; (3) requires submission of annual financial statements duly audited by CPA’s and general information sheets; and (4) may order cancellation of a cooperative’s certificate after due notice and hearing for noncompliance or in cases of voluntary dissolution.
Upon request of either or both parties, CDA mediates and conciliates disputes within a cooperative or between cooperatives. If no mediation/conciliation succeeds within three (3) months from request, CDA issues a certificate of non-resolution (referred to as issued by the commission prior to filing appropriate action in proper courts).
The CDA is governed by a Board of Administrators consisting of a Chairman and six (6) members appointed by the President, chosen from nominees of the cooperative sector with two (2) representatives each from Luzon, Visayas, and Mindanao.
All serve for six (6) years without reappointment, but among the first appointees: the Chairman serves six (6) years; three (3) members serve four (4) years; and three (3) members serve two (2) years to create staggered terms.
There are four (4) ex officio members: one each from the Department of Agriculture, Department of Transportation and Communications, National Electrification Administration, and Sugar Regulatory Administration. Their representation is nonvoting, terminates one (1) year from operation of the Authority, and they cannot hold any other board position in any government entity.
He/she must be (1) a natural-born Filipino citizen of legal age; (2) have a Bachelor’s degree in specified fields plus five (5) years experience in cooperative/gov’t/NGO cooperative development; or, without a Bachelor’s, at least ten (10) years experience in cooperatives; and (3) be a resident of the region represented for at least five (5) years. Additionally, the appointee must divest direct/indirect pecuniary interest or dealings with cooperatives upon appointment.
The Board meets at least once a month; special meetings may be called by the Chairman or majority to consider specific matters; and a majority vote by the entire Board is required for decisions.
The Board appoints an Executive Director as the chief operating officer of the CDA, with compensation fixed by the Board of Administrators.
The power to register cooperatives is vested solely in the CDA. Transferred registration functions include those of the Department of Agriculture, Bureau of Agricultural Cooperatives Development, Department of Transportation and Communications, Sugar Regulatory Administration, National Electrification Administration, and other pertinent agencies.
It is abolished, and its qualified employees are absorbed by the CDA in accordance with staffing pattern, subject to Civil Service rules and Office of Compensation and Position Classification rules.
Those offices are also abolished; their employees are given preference for employment with the CDA consistent with staffing pattern, subject to Civil Service rules. Those not absorbed receive separation pay computed at one and one-fourth (1 1/4) months salary per year of service (with at least six months treated as one year for severance computation).
The Cooperative Development Loan Fund (PD 175, as amended) is transferred to the CDA; the Fund for Management Training and Assistance Program is also transferred; it may be converted into a fund for cooperative development upon request of cooperatives concerned; and the Cooperative Marketing Project managed by the Department of Agriculture is transferred to the CDA.
Government assistance must be free from restrictions and conditionalities that infringe upon the objectives and character of cooperatives. The State generally maintains noninterference in cooperative management and operations, except as provided in the Act.
No organization may use the title “cooperative” unless it follows generally accepted cooperative principles, complies with applicable cooperative laws, and is duly registered under RA 6939. Organizations that previously used the word but do not qualify are given three (3) years to qualify and register; if they still fail, it becomes unlawful to continue using “cooperative” in their names.
Cooperatives registered under PD 175 and 775 and EO 898 are deemed registered with the CDA, but must submit their certificates of registration, articles of incorporation and bylaws, and latest duly audited financial statements within one (1) year or their registration is cancelled. Cooperatives created under PD 269 (as amended by PD 1645) are given three (3) years to qualify and register; after qualification/registration, Sections 3 and 5 of PD 1645 no longer apply to them.
The Act takes effect fifteen (15) days after publication in the Official Gazette or in a newspaper of general circulation.