Question & AnswerQ&A (Republic Act No. 6939)
The main purpose of Republic Act No. 6939 is to create the Cooperative Development Authority to promote the viability and growth of cooperatives as instruments of equity, social justice, and economic development, defining its powers, functions, and responsibilities, and rationalizing government policies and agencies with cooperative functions.
The State declares a policy to promote the viability and growth of cooperatives as instruments of equity, social justice, and economic development and recognizes cooperatives as associations organized for the economic and social betterment of their members, operating business enterprises based on mutual aid and founded upon internationally accepted cooperative principles and practices.
The Cooperative Development Authority (CDA) is created under the Office of the President to carry out the provisions of this Act and oversee cooperative development.
Key powers and functions include formulating cooperative development plans, conducting training programs, coordinating cooperative activities, registering cooperatives and their changes, requiring submission of financial statements, assisting cooperatives in obtaining financial aid, imposing fees, and promulgating rules and regulations.
The Board of Administrators consists of a Chairman and six members appointed by the President from nominees of the cooperative sector (two each from Luzon, Visayas, and Mindanao), and four ex officio members from the Department of Agriculture, Department of Transportation and Communications, National Electrification Administration, and Sugar Regulatory Administration (nonvoting, temporary).
A member must be a natural-born Filipino citizen of legal age; a Bachelor’s Degree holder in relevant fields with at least 5 years experience or, without a degree, 10 years experience in cooperatives or related agencies; and a resident of the region they represent for at least 5 years. They must also divest any pecuniary interest in cooperatives upon appointment.
Upon request of either or both parties, the Authority shall mediate and conciliate disputes within a cooperative or between cooperatives. If mediation or conciliation fails within three months, a certificate of non-resolution is issued before filing an action in court.
Functions relating to cooperative registration from the Department of Agriculture, Bureau of Agricultural Cooperatives Development, Department of Transportation and Communications, Sugar Regulatory Administration, National Electrification Administration, and any other pertinent government agency are transferred to the Authority.
Only organizations that follow generally accepted cooperative principles, applicable cooperative laws, and are duly registered under this Act may use the word "cooperative" in their name. Organizations which do not qualify have three years to comply, after which use of the term is prohibited.
The Authority may summarily punish for direct contempt any person guilty of misconduct in its presence seriously interrupting hearings with a fine not exceeding five hundred pesos (P500.00), or imprisonment not exceeding ten (10) days, or both. Indirect contempt is punished under Rule 71 of the Rules of Court.
Yes, cooperatives registered under Presidential Decrees Nos. 175 and 775, and Executive Order No. 898 are deemed registered with the Cooperative Development Authority but must submit necessary documents within one year or their registration will be cancelled.
The Cooperative Development Loan Fund and the Management Training and Assistance Program funds under the Department of Agriculture, as well as the Cooperative Marketing Project, are transferred to the Authority for cooperative development purposes.