Question & AnswerQ&A (IRR of Republic Act No. 11364)
The primary mandate of the CDA is to promote the viability and growth of cooperatives as instruments of equity, social justice, and economic development, and to implement the provisions of Republic Act No. 11364, Republic Act No. 9520, and Republic Act No. 10744 along with their implementing rules and regulations.
A Cooperative is defined as an autonomous and duly registered association of persons, with a common bond of interest, who voluntarily join together to achieve their social, economic, and cultural needs and aspirations by making equitable contributions to the capital required, patronizing their products and services, and accepting a fair share of risks and benefits, in accordance with universally accepted cooperative principles.
The CDA exercises developmental, regulatory, and quasi-judicial powers. These include formulating cooperative development plans, registering cooperatives, supervising and examining cooperatives, resolving disputes, conducting investigations, disciplining officers/members, and overseeing cooperative activities.
The Board of Directors is composed of a Chairperson with the rank of Undersecretary, and six board members with the rank of Assistant Secretary, each representing one of the six cooperative clusters. The Secretaries of the Department of Trade and Industry and the Department of Interior and Local Government serve as ex-officio members without voting rights.
The CDA may suspend or cancel a cooperative’s Certificate of Registration if it was obtained by fraud, exists for an illegal purpose, commits willful violations despite notice, willfully fails to operate as a cooperative, fails to maintain the required minimum number of members, or does not comply with lawful orders and rules of the Authority including the cooperative’s own articles and bylaws.
ADR is mandated for settling conflicts among cooperative members, officers, directors, and between cooperatives. Disputes shall be referred to voluntary arbitration under institutional rules promulgated by the CDA after exhausting conciliation or mediation mechanisms in the bylaws. However, election-related issues may be elevated directly to the CDA for adjudication without ADR.
The CDA, in partnership with learning institutions and the cooperative sector, shall formulate and implement training standards focusing on cooperative principles, governance, business management, human resource management, risk management, conflict management, and technical skills required for efficient operation of cooperatives. Accredited organizations may provide these trainings.
Cooperativism shall be included in the curricula of senior students in all secondary educational institutions and incorporated into social and civic studies subjects in the K to 12 level. State universities and colleges may offer cooperative development as a field of study or include cooperative subjects in related academic programs through traditional or non-traditional approaches.
CDCs are multi-sectoral bodies at national, regional, provincial, city, and municipal levels created to provide policy consultation and coordinate cooperative programs and projects. Their members include cooperatives, LGUs, NGAs, NGOs, academe, and other stakeholders. Specific representatives vary by level, such as regional directors, chairpersons of cooperative councils, and elected local officials.
The use of these words in business names without being duly registered with the CDA is prohibited and penalized under Article 140 of Republic Act No. 9520. The CDA may initiate complaints motu proprio against violators, subjecting them to penalties provided under the law.