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-