Cooperative Development Authority Charter IRR

Declaration of policy and mandate

The State policy is to promote the viability and growth of cooperatives as instruments of equity, social justice, and economic development and to fulfill the mandate in Section 15, Article XII of the 1987 Constitution.
Cooperatives are recognized as associations organized for the economic and social betterment of their members, operating business enterprises based on mutual aid, and founded upon universally accepted cooperative principles and practices.
The Cooperative Development Authority (Authority/CDA) is recognized as primarily responsible for the institutional development and regulation of cooperatives through partnership with the cooperative sector and the academe.
Cooperatives have the right to initiate and foster within their ranks cooperative promotion, organization, training, information gathering, audit and support services, with government assistance where necessary.
NEDA and DTI must include cooperative growth and expansion as major and indispensable components in national development plans.
DOF and DBM must provide the mechanism to ensure availability of resources to implement the plans.
The government and its instrumentalities must continue to provide technical guidance, financial assistance, and other services to enable cooperatives to develop into viable and responsive economic enterprises toward a strong cooperative movement free from conditions that infringe cooperative objectives and character, except as provided in Republic Act No. 11364.
The State maintains a policy of non-interference in cooperative management and operations except as provided in the Act.

Definitions and key terms

The IRR defines “Authority” as the Cooperative Development Authority, created under Republic Act No. 6939 and amended by Republic Act No. 11364.
The IRR defines “Alternative Dispute Resolution” consistent with Republic Act No. 9285, including processes where a neutral third party assists resolution (e.g., arbitration, mediation, conciliation, early neutral evaluation, mini-trial, or combinations).
The IRR defines “Arbitration” as a voluntary dispute resolution process where one or more arbitrators resolve a dispute by rendering an award.
The IRR defines “Business Enterprises” as cooperative activities in providing goods and services to members involving financial, commercial, and industrial aspects, including where non-member services are allowed by law and the Articles of Cooperation and By-Laws (ACPL).
The IRR defines “Certificate of Authority” as the official document authorizing the establishment and operation of a cooperative branch office.
The IRR defines “Letter of Authority” as the official document authorizing the establishment and operation of a cooperative satellite office.
The IRR defines “Supervision” as assessing a cooperative’s overall condition to ensure safe and sound operation in compliance with laws, rules, and standards.
The IRR defines “Quasi-Judicial Power” as the action/discretion of public administrative offices required to investigate facts, hold hearings, draw conclusions, and exercise discretion of a judicial nature.
The IRR defines “Subpoena ad testificandum” and “Subpoena duces tecum” consistent with attendance and production of documents, respectively.

CDA mandate, powers, and responsibilities

The CDA shall promote cooperatives’ viability and growth and implement the provisions of Republic Act No. 11364, including responsibilities connected to Republic Act No. 9520 (as amended) and Republic Act No. 10744.
The CDA shall exercise developmental, regulatory, and quasi-judicial powers.
The CDA shall formulate integrated and comprehensive cooperative development plans and establish an integrated framework for all government agencies.
The CDA shall require registered cooperatives to develop business continuity plans to address all kinds of risks.
The CDA shall grant awards, recognition, and incentives to cooperatives, cooperative leaders, and partners.
The CDA shall administer grants and donations intended for cooperatives coursed through the Authority for cooperative development without prejudice to cooperatives directly receiving and administering grants and donations upon agreement with grantors and donors.
The CDA shall develop and conduct management and training programs for cooperative members to build entrepreneurial capabilities, managerial expertise, and technical skills and to inculcate the spirit of cooperativism, including technical and professional assistance for viability and growth with special concern for agrarian reform, agriculture, fishery, and economically depressed sectors.
The CDA shall recognize sectoral apex organizations and a national alliance representing all types and categories of cooperatives as the overall consultative and coordinating body with the Authority.
The CDA shall establish consultative mechanisms consistent with the Act to ensure cooperative sector participation on matters concerning government plans, programs, and policies affecting cooperatives.
The CDA shall coordinate with provincial/city/municipal cooperative offices and establish cooperative development councils at national, regional, provincial, city, and municipal levels for policy consultation and program coordination.
The CDA shall establish linkages with the academe and other institutions for education, training, and research for cooperatives and design educational and technological exchange programs.
The CDA shall formulate and implement a training standard for cooperative officers or members covering basic cooperative principles and values, good governance, business and entrepreneurial management, human resource management, risk management, conflict management, and technical skills.

Registration, supervision, and regulatory actions

The CDA shall register all cooperatives, including amendments to ACPL, divisions, mergers, and consolidations.
The CDA shall authorize establishment of cooperative branches and satellite offices.
The CDA shall issue Certificates of Recognition to organized laboratory cooperatives.
The CDA shall exercise supervision and jurisdiction over all types and categories of cooperatives registered with the Authority.
The CDA shall develop and formulate, in consultation with the cooperative sector and other concerned institutions, regulations, standards, rules, orders, and/or circulars to implement the cooperative laws and ensure effective and sound operation.
The CDA shall require submission of annual reports and audited financial statements and other required reports in prescribed forms.
The CDA shall promulgate and issue guidelines on the specific use and utilization of statutory funds and obligations for the intended benefits to cooperatives and the communities they serve.
The CDA shall prescribe and collect reasonable fees, fines, or charges for registration and regulatory functions.
The CDA shall compel a cooperative to call a general or representative assembly under CDA supervision with participation of the cooperative federation or union, subject to implementation criteria and conditions.
The CDA shall conduct regular inspection or examination of cooperatives and, when necessary, conduct examination and investigation to protect members’ and the general public’s interest and welfare.
The CDA may request assistance from cooperative federations and unions, LGUs, cooperative development offices (CDOs), and the cooperative alliance representing cooperative types and categories for inspection and examination.
The CDA shall create an information system from reports and other documents submitted by cooperatives.
The CDA shall adopt and implement a dispute resolution mechanism consistent with Article 137 of Republic Act No. 9520, as well as Republic Act No. 9285, while allowing adjudication to the Authority without undergoing alternative dispute resolution for elected related issues raised by an aggrieved party.
The CDA shall issue cease and desist orders to cooperatives and responsible parties specified under Article 137 of Republic Act No. 9520, and issue orders to preserve assets and documents subject of dispute or litigation.
The CDA shall order suspension or cancellation of a cooperative’s Certificate of Registration and/or revocation of the Letter of Authority and/or Certificate of Authority for satellite or branch offices after due notice and hearing for non-compliance with lawful CDA orders, rules, regulations, and ACPL subject to implementing rules conditions.
The CDA may order dissolution and liquidation of cooperatives and the transfer of all or substantially all assets and liabilities.

Quasi-judicial authority and enforcement

The CDA shall conduct investigations, file necessary charges, and discipline, suspend, or remove erring cooperative officers and members for violations of cooperative laws, CDA rules/regulations/issuances, and ACPL, after due process, and shall direct the general assembly to replace suspended/removed officers.
The CDA shall hear and decide inter-cooperative and intra-cooperative disputes, controversies, and/or conflicts, without prejudice to filing civil and/or criminal cases in regular courts.
The CDA’s decisions are appealable directly to the Court of Appeals.
The CDA shall issue subpoena ad testificandum and subpoena duces tecum for appearances and document production in proceedings and may order examination of cooperative or person records for proper case disposition.
The CDA shall cite for contempt any person guilty of misconduct seriously interrupting any hearing or inquiry and impose a fine of not more than PHP 5,000 or imprisonment of not more than 10 days, or both.
Acts constituting indirect contempt are punished under Rule 71 of the Rules of Court.
The CDA shall implement and enforce decisions and orders with assistance of deputized law enforcement agencies or the concerned LGU.

Governance structure and appointments

The CDA shall have a Board of Directors as the collegial policy-making body.
The Board shall be composed of the Chairperson (rank and privilege of an Undersecretary) and six (6) members (rank and privilege of an Assistant Secretary), all appointed by the President and chosen among nominees from the cooperative sector.
There shall be one Board director from each cooperative cluster:
- Credit and Financial Services, Banking, Insurance, and Credit Surety Fund;
- Consumers, Marketing, Producers and Logistics;
- Human Services: Health, Housing, Workers, and Labor Service;
- Education and Advocacy;
- Agriculture, Agrarian, Aquaculture, Farmers, Dairy, and Fisherfolk;
- Public Utilities: Electricity, Water, Communications, and Transport.
The Secretary of DTI and the Secretary of DILG shall serve as ex-officio Board members and may designate an alternate with rank of at least Assistant Secretary; alternates’ acts are treated as those of the principal.
Ex-officio Board members may participate in deliberations but have no voting rights and are entitled to reasonable per diem determined by DBM subject to existing rules.
The Board shall observe at least one lawyer member where practicable and gender balance in membership.
The Administrator shall be appointed by the President as recommended by the Board and shall have rank of an Assistant Secretary.
The Administrator executes and administers Board-approved policies, decisions, orders, and resolutions and provides general executive direction and supervision of operations.
The Administrator shall: prepare and consolidate periodic reports, implement a human resource management system in line with Civil Service laws, prepare proposed annual and supplemental budgets for Board consideration, submit annual performance reports to the President and Congress, appoint personnel lower than Deputy Administrators, represent the Authority when required, and perform other legally required functions.
There shall be five (5) Deputy Administrators appointed by the Board to assist the Administrator for General Administration and Support Services; Institutional Development; Legal Affairs; Registration, Supervision and Examination; and Credit Surety Fund (CSF).

Operational offices and staffing

The CDA shall establish and maintain extension offices in each administrative region, named CDA CAR Office, CDA NCR Office, and CDA Region I through CDA Region XIII.
The CDA NCR Office shall have four (4) field district offices: CDA-NCR Capital District Office, CDA-NCR Norther District Office, CDA-NCR Eastern District Office, and CDA-NCR Southern District Office.
CDA field offices shall be established in each province, highly urbanized and independent component city, and in other places necessary for the conduct of its business, and shall be identified by province or city name.
The Board approves the organizational structure and staffing pattern for operationalization consistent with DBM, CSC, and other relevant regulations.

Partnership, complementation, and councils

The partnership policy requires the Authority and cooperative sector and academe to establish strong collaboration for the Authority’s development functions under the Act’s partnership framework.
The Authority must synchronize efforts of relevant government institutions toward empowering cooperatives as instruments of equity, social justice, and economic development.
A National Coordinating Committee chaired by the Authority shall coordinate government programs and projects concerning cooperatives; it shall be composed of representatives from the relevant government units whose ranks are not lower than Director level.
The Authority shall formulate policies and implement programs affecting cooperatives in consultation with the cooperative sector, while observing cooperative autonomy principles in the development framework.
The Authority shall establish linkages with the academe and may enter into written agreements governing partnership on cooperative education, training, and research.
The Authority shall maximize opportunities for cooperatives through collaboration and partnership with government agencies, branches, and instrumentalities for specific cooperative development plans and programs.
The Authority shall coordinate with LGUs to:
- formulate Local Cooperative Development Plans consistent with national plans;
- provide technical guidance, financial assistance, and services;
- promote organization and support development of cooperatives;
- share cooperative information and implement cooperative development plans and programs;
- assist in registration documents and mandatory reports;
- provide trainings and mandatory trainings under Authority guidelines;
- initiate localized promotion and mandatory training programs;
- exchange information for research projects;
- facilitate availment of local tax exemption privileges; and
- conduct activities to capacitate LGU partners/CDOs and establish convergence in assistance approaches.
LGUs shall create an office or deputize an existing office headed by an appointed or designated local cooperative officer to implement plans and programs for cooperative development.
The Authority may establish partnerships with the international cooperative sector.
The Authority shall strengthen partnership with the private sector by soliciting active involvement in initiatives involving cooperatives, subject to Authority-issued guidelines.

Cooperative trainings and accreditation

The Authority shall develop and conduct training programs focusing on entrepreneurial capabilities, managerial expertise, and technical skills for efficient cooperative operation.
The Authority shall formulate training standards for cooperative officers and members in partnership with learning and training institutions and the cooperative sector, to ensure compliance.
Training curricula shall focus on basic cooperative principles and values, good governance, business and entrepreneurial management, human resource management, risk management, conflict management, and technical skills for efficient cooperative operations.
The Authority monitors compliance with training standards by cooperatives and other accredited organizations engaged in cooperative promotion, organization, research, and education under Authority guidelines.
Trainings may be conducted by cooperatives, private training institutions, government agencies, local cooperative development offices, and other training organizations in accordance with Authority guidelines.
An Accreditation Program shall institutionalize coordinated, rationalized, and standardized education and training for cooperatives and their officers and members.
Cooperative training providers include cooperative federations, cooperative unions, training institutions (including NGOs and academe), national government agencies, local cooperative development offices, and advocacy cooperatives.
A training provider applicant must have juridical personality, have been in existence for at least two (2) years if a training institution/NGO/academe, have cooperative development programs, and have a pool of at least five (5) competent cooperative trainers with minimum qualifications prescribed by the Authority.
The Authority shall monitor accredited training providers’ compliance with accreditation terms and conditions.

Cooperatives in the education system

Cooperatives’ history, philosophy, concepts, values, principles, and practices must be part of the curriculum in both formal and non-formal education.
Cooperativism as a tool for self-empowerment and nation building must be included in the curricula of senior students in all secondary educational institutions.
Cooperativism must be included in the syllabus of any social and civic studies subject in the K to 12 level.
Cooperatives development and administration may be offered as a field of study in baccalaureate, post-baccalaureate, and masteral programs in SUCs.
SUCs may offer cooperative development and administration through a non-traditional approach under their equivalency program accrediting equivalent training undertaken by the officer to the relevant subject offering.
If SUCs do not offer a separate academic program in cooperative development and administration, SUCs must include a three (3)-unit subject in the curricula of specified disciplines and related curricula that can be instrumental in cooperative development.
The Authority and stakeholders must advocate and conduct activities promoting cooperatives in educational institutions.
The Authority must enter into agreements with CHED, DepEd, and TESDA to implement the education-system provisions.
Private educational institutions are encouraged to promote and integrate cooperative laws in their curricula.

Inspection, examination, and investigation

The Authority shall conduct regular inspection to ensure compliance with rules, regulations, CDA issuances, and ACPL, using guidelines prescribed by the Authority.
Regular examination is conducted as a result of inspection or after evaluation of mandatory reports submitted by cooperatives.
The Authority shall conduct special examination motu proprio, upon request of government agencies, or upon written complaint of interested parties, in accordance with Authority guidelines.
The Authority may enlist the assistance of co-regulatory agencies, law enforcement agencies, or the concerned LGU in special examinations.
The Authority shall conduct investigations upon verified complaint from any member or officer of a cooperative, or upon request or referral from any government agency, consistent with Authority guidelines.
The Authority may enlist assistance from other concerned agencies or law enforcement agencies in investigations.
Cooperative federations and unions, LGUs, CDOs, and the NAC shall assist the Authority upon written request by providing relevant information such as research, reports, and financial records necessary for inspection or examination.
Federations, unions, LGUs, CDOs, and NAC shall assist cooperatives to comply with findings arising from inspection or examination whenever deemed necessary.

Compelled general assembly procedures

The Authority may compel a cooperative to call a general assembly (GA) or representative assembly (RA) under Authority supervision with participation of its cooperative federation or union, subject to criteria defined through the IRR implementation framework.
The Authority compels a cooperative to call a regular or special GA/RA meeting in these instances:
- failure to call a regular meeting within the by-law fixed date or, if none, within 90 days after close of each fiscal year;
- upon petition of 10% of all members entitled to vote, for good cause shown, with proper notice as required by Republic Act No. 9520 or the by-laws;
- to report results of any examination or other investigation of cooperative affairs consistent with Republic Act No. 9520;
- to replace suspended or removed erring officers as directed through the Authority’s quasi-judicial power.
When a cooperative is compelled to call a GA/RA and is a member of a federation or union, that federation or union must participate by rendering assistance and acting as observer.
If a cooperative has multiple federation/union memberships, each federation or union must send an authorized representative.
Federation or union representatives’ roles are limited to assisting procedural observance in calling the GA/RA meeting, witnessing the meeting, providing technical advisory and clarificatory assistance, and assisting the election committee if the GA/RA requires elections.
Federation or union representatives who willfully and knowingly act beyond their roles are subject to disciplinary actions by the Authority.
The concerned CDA Regional Office supervises the meeting conduct for the compelled assembly process.
The Authority shall formulate procedural guidelines implementing the compelled GA/RA rule.

Recognition of apex bodies and NAC

The Authority shall recognize Regional Clustered Organizations (RCOs), Sectoral Apex Organizations (SAOs), and the National Alliance of Cooperatives (NAC) as consultative and coordinating bodies.
Each cluster is composed of representatives from all categories of cooperatives engaged in business activities/objectives authorized by their articles and falling under the cluster.
Multipurpose cooperatives may be members of more than one cluster depending on their business activities.
There shall be SAOs per cluster covering: Credit and Financial Services, Banking, Insurance, and CSF; Consumers, Marketing, Producers, and Logistics; Human Services; Education and Advocacy; Agriculture/Agrarian/Aquaculture/Farmers/Dairy/Fisherfolk; and Public Utilities.
Each SAO is composed of representatives from the RCOs determined per guidelines formulated under the Act’s partnership and consultation structure.
Each cluster’s SAO represents that cluster in the NAC in the NAC’s role as overall consultative and coordinating body with the Authority.
The NAC is composed of representatives from the six (6) recognized SAOs and has not more than three (3) representatives from each SAO.
The RCOs are formed by the cooperative sector under close supervision of the concerned CDA Regional Office, and RCO representatives organize SAOs under close supervision of the CDA head office.
RCOs, SAOs, and NAC solely function as overall consultative and coordinating bodies within their respective spheres with the Authority.
Recognition requires submission in four (4) copies of specified items:
- NAC: request letter, resolutions from SAOs signifying recognition and commitment to support, and minutes of organizational meeting.
- SAOs: request letter, resolutions from each RCO signifying recognition and commitment to support the respective SAO, and minutes of organizational meeting.
- RCOs: request letter and minutes of organizational meeting.
The CDA Head Office issues Certificates of Recognition to the NAC and SAOs, while the concerned CDA Regional Offices issue Certificates of Recognition to RCOs.

Cooperative development councils (CDCs)

The Authority shall establish cooperative development councils (CDCs) at national, regional, provincial, city, and municipal levels under the Authority’s supervision to provide policy consultation and program coordination.
CDCs serve as mechanisms for collaboration, consultation, and coordination in implementing cooperative programs and projects by government and in policy initiatives for cooperative development.
The Authority initiates the organization of CDCs, and membership includes cooperatives, LGUs, NGAs, NGOs, academe, and other stakeholders at the applicable levels.
CDC organization, operation, officer election, and related concerns are governed by guidelines promulgated by the Authority.
CDCs shall coordinate and harmonize implementation of government cooperative plans, programs, and projects.
CDCs shall assist the Authority in broad-based monitoring and coordination of the Philippine Cooperative Development Plan (PCDP) through collective efforts and develop mechanisms aligned with the PCDP.
CDCs shall propose policies affecting cooperatives for local and national implementation.
CDCs are composed by level, including a National Cooperative Development Council (NCDC) with specified members such as chairpersons of regional councils and representatives from committees and the Authority.