QuestionsQuestions (IRR of Republic Act No. 11364)
It is the “Implementing Rules and Regulations of the Cooperative Development Authority Charter of 2019,” promulgated by the CDA Board pursuant to Section 26 of RA 11364, and it implements the provisions of RA 11364.
The State promotes the viability and growth of cooperatives as instruments of equity, social justice, and economic development; recognizes cooperatives as autonomous associations based on mutual aid and cooperative principles; recognizes the CDA as primarily responsible for institutional development and regulation of cooperatives; and affirms non-interference in cooperative management and operations except as provided by law.
The “Authority” refers to the Cooperative Development Authority. A “Cooperative” is an autonomous and duly registered association with a common bond of interest formed to achieve members’ social, economic, and cultural needs and aspirations under cooperative principles. “Alternative Dispute Resolution” is any process other than court adjudication involving a neutral third party, as defined by RA 9285.
The CDA exercises developmental, regulatory (registration and supervision), and quasi-judicial powers and functions.
Examples include formulating and implementing cooperative development plans; requiring business continuity plans; granting awards and incentives; conducting management and training programs; recognizing apex organizations and the national alliance; establishing consultative mechanisms; and coordinating with agencies for technical and marketing assistance.
It registers cooperatives and amendments, authorizes branches and satellite offices, issues Certificates of Recognition to laboratory cooperatives, conducts inspection/examination, requires reports and audited statements, and may issue cease-and-desist orders, suspend/cancel certificates, and order dissolution and liquidation with asset/liability transfer.
When the cooperative fails to call within by-laws or within 90 days after fiscal year close; upon petition of 10% of voting members for good cause with proper notice; to report results of examination/investigation; or to replace suspended/removed officers directed by the CDA.
Federations/unions must participate as observers and provide assistance strictly to ensure procedural compliance in calling the meeting, witness the conduct, provide technical advisory assistance, and assist the election committee if elections are needed.
The CDA may investigate, file charges, discipline/suspend/remove officers or members after due process, hear inter- and intra-cooperative disputes, issue subpoenas, cite for contempt, and enforce decisions/orders with law enforcement assistance. CDA decisions are appealable directly to the Court of Appeals.
They must be natural-born Filipino citizens, holders of at least a bachelor’s degree, have at least five years’ experience as cooperative officers in the cluster they represent, and must have been residents of the Philippines for at least five years prior to appointment.
Their term is six (6) years without reappointment, except that a person who served the unfinished term of the predecessor and served less than half of the full term is eligible for reappointment.
Upon appointment, they must divest themselves of any direct or indirect pecuniary interest or dealings with any cooperative.
The CDA must adopt and implement a dispute resolution mechanism to settle conflicts between/among members, officers, directors, and between/among cooperatives in accordance with Article 137 of RA 9520 and related ADR law. However, if the issue involves elected-related matters, the aggrieved party may elevate directly to the CDA for adjudication without undergoing ADR.
Regular inspection ensures compliance; regular examination may follow inspection or evaluation of mandatory reports. Special examination may be conducted motu proprio, upon request by government agencies, or upon written complaint. Investigation is conducted upon verified complaints or referrals from government agencies, with assistance from other agencies/LGUs as needed.
It aims to institutionalize well-coordinated, rationalized, and standardized education and training for cooperatives and their officers/members. Training providers may include cooperative federations, unions, NGOs and academe, NGAs, LGU cooperative development offices, and advocacy cooperatives.
The applicant must have juridical personality; if training institutions/NGOs/academe, it must exist for at least two years; must have cooperative development programs; and must have a pool of at least five competent cooperative trainers with minimum qualifications as prescribed by the CDA.
It requires cooperatives’ history, philosophy, concepts, values, and practices to be part of curriculum in formal and non-formal education; cooperativism must be included for senior students and K–12 social/civic studies; and cooperative development/administration may be offered as field of study in SUCs with specific unit/subject inclusion rules if SUCs do not offer a separate program.