QuestionsQuestions (EXECUTIVE ORDER NO. 623)
EO No. 623 affirms NEA’s authority under R.A. No. 9136 (EPIRA), and specifically under P.D. No. 269 (as amended by P.D. No. 1645), particularly Sections 3 and 5 thereof, over all ECs whether registered or not with the CDA or SEC.
It gives ECs the option to convert into either (1) a stock cooperative under the Cooperatives Development Act (CDA) or (2) a stock corporation under the Corporation Code.
Conversion requires approval by a simple majority of the required number of turnout of voters as provided in the Guidelines for the Conduct of Referendum.
The NEA, pursuant to Section 5 of P.D. No. 1645, must promulgate the guidelines in accordance with that provision.
Under the EPIRA IRR, it must be registered with the SEC in accordance with the Corporation Code.
Under the EPIRA IRR, it must be registered with the CDA.
It continues to be registered with the NEA and governed by P.D. No. 269.
Because the supersession is limited to the registration and conversion of ECs to stock cooperatives under R.A. No. 6938 within three years from the effectivity of the NEA/CDA rules—specifically as it pertains to conversion arrangements under EPIRA.
No. EO No. 623 clarifies that those articles refer only to ECs that opted to register with the CDA pursuant to R.A. No. 6938, and not to ECs that opted to register pursuant to Section 57 of R.A. No. 9136.
No. EO No. 623 expressly states that NEA shall continue to exercise regulatory and supervisory authority (institutional, financial, and technical) under R.A. No. 9136 and under Sections 3 and 5 of P.D. No. 1645 over all ECs, including those registered with CDA or SEC.
ECs may convert into (1) stock corporations registered under the Corporation Code or (2) stock cooperatives registered under the Cooperative Code of the Philippines, following NEA guidelines.
Section 3 repeals or modifies all orders, issuances, rules and regulations, or parts thereof, inconsistent with EO No. 623.
It takes effect immediately.
Look at the EC’s chosen option: if it stays a non-stock cooperative, it remains registered with NEA and governed by P.D. No. 269; if it converts to a stock cooperative, register with CDA; if it converts to a stock corporation, register with SEC.
It emphasizes that NEA’s regulatory and supervisory authority applies to all ECs regardless of whether they have already been registered with CDA or SEC, reinforcing NEA’s continuing institutional, financial, and technical oversight.
Institutional, financial, and technical supervision.