IRR of RA 11364 Cooperative Dev Authority

Declaration of policy and state role

The State shall promote the viability and growth of cooperatives as instruments of equity, social justice, and economic development, fulfilling the mandate in Section 15, Article XII of the 1987 Constitution.
The State recognizes cooperatives as autonomous and duly registered associations organized for members’ economic and social betterment, based on mutual aid and founded upon universally accepted cooperative principles and practices.
The State recognizes the Cooperative Development Authority as primarily responsible for 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 shall include cooperative growth and expansion as major and indispensable components of national development plans.
DOF and DBM shall provide the mechanism to ensure the availability of resources to implement those plans.
The government and its branches, subdivisions, instrumentalities, and agencies shall 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.
The State shall maintain the policy of non-interference in the management and operations of cooperatives, except as provided in Republic Act No. 11364.

Key definitions used in the IRR

“Authority” refers to the Cooperative Development Authority, created under Republic Act No. 6939 and amended by Republic Act No. 11364.
“Cooperative” refers to an autonomous and duly registered association of persons with a common bond of interest, voluntarily joined to achieve social, economic, and cultural needs and aspirations by making equitable capital contributions, patronizing products and services, and accepting a fair share of risks and benefits in accordance with cooperative principles.
“Business Enterprises” refers to cooperative activities in providing goods and services to members, with financial, commercial, and industrial aspects, targeting members’ social, economic, and cultural needs and aspirations and equitable contributions, and non-member provision if allowed by law and the Articles of Cooperation and Bylaws.
“Alternative Dispute Resolution” and “Arbitration” are defined by their participation of neutral third parties and the rendering of awards, consistent with Republic Act No. 9285.
“Certificate of Authority” authorizes the establishment and operation of a cooperative branch office; “Letter of Authority” authorizes a cooperative satellite office.
“Intra-Cooperative Disputes” cover conflicts arising from intra-cooperative relations, including member relations with members or with the cooperative.
“Inter-Cooperative Disputes” cover conflicts arising from inter-cooperative relations, including cooperative-to-cooperative relationships and cooperative relationships.
“Quasi-Judicial Power” means public administrative action involving investigation, hearings, conclusions, and discretion of a judicial nature.
“Supervision” means assessing a cooperative’s overall condition in compliance with laws, rules, and standards to ensure safe and sound operation.
“Subpoena ad testificandum” compels attendance and testimony; “Subpoena duces tecum” compels production of books, documents, or things under a person’s control.
“Training Standards” are set rules or measures for training conduct, including curriculum design, delivery, trainee entry requirements, tools and equipment, and trainer qualifications.

CDA mandate, powers, and responsibilities

The CDA is the lead agency in cooperative development and regulation, promoting cooperatives as instruments of equity, social justice, and economic development.
The CDA primarily implements Republic Act No. 11364 and Republic Act No. 10744, along with their implementing rules and regulations.
The CDA exercises developmental, regulatory, and quasi-judicial powers, functions, and responsibilities.

Developmental powers and responsibilities

The CDA shall formulate, adopt, and implement integrated and comprehensive cooperative development plans and programs, 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 exclusively intended for cooperatives coursed through the Authority for cooperative development, without prejudice to cooperatives directly receiving and administering such grants and donations upon agreement with grantors and donors.
The CDA shall develop and conduct management and training programs to develop entrepreneurial capability, managerial expertise, and technical skills, inculcate the spirit of cooperativism, and provide technical and professional assistance where necessary, with special concern for agrarian reform, agriculture, fishery, and economically depressed sectors.
The CDA shall recognize sectoral apex organizations and a national alliance as the overall consultative and coordinating body with the Authority, amending pertinent provisions of Republic Act No. 9520 accordingly.
The CDA shall establish a consultative mechanism consistent with Section 18 of the Act for participation of the cooperative sector on matters concerning government plans, programs, and policies affecting cooperatives.
The CDA shall coordinate with provincial, city, and municipal cooperative offices for adoption and implementation of national plans, programs, and policies, and shall establish partnerships for cooperative promotion, organization, and development within LGU jurisdictions.
The CDA shall establish cooperative development councils at the national, regional, provincial, city, and municipal levels for policy consultation and program coordination in accordance with Authority guidelines.
The CDA shall collaborate with concerned agencies for technical, professional, and marketing assistance, including transfer of technology trainings, emphasizing viability, growth, competitiveness, and innovativeness with special concern for agrarian reform, agriculture, fishery, and economically depressed sectors.
The CDA shall assist cooperative product development and facilitate domestic and international marketing in coordination with concerned agencies.
The CDA shall designate a representative in the Regional Development Council and its sectoral committees as a regular voting member.
The CDA shall establish linkages with the academe and other institutions for education, training, and research for cooperatives, and shall formulate and implement educational and technological exchange programs domestically or internationally.
The CDA shall formulate and implement a standard of training for cooperative officers or members consistent with Section 17 of the Act focusing on cooperative principles and values, good governance, business and entrepreneurial management, human resource management, risk management, conflict management, and technical skills.

Registration and regulation

The CDA shall register all cooperatives, including amendments to the Articles of Cooperation and Bylaws, 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, guidelines, and/or circulars to implement the Act, Republic Act No. 9520, and Republic Act No. 10744 to ensure effective and sound operation of cooperatives.
The CDA shall require submission of annual reports, audited financial statements, and other reports in forms prescribed by the Authority in compliance with Republic Act No. 9520 and Republic Act No. 10744.
The CDA shall promulgate guidelines on the specific use and utilization of statutory funds and obligations to achieve their intent and spirit for cooperatives and communities served.
The CDA may prescribe and collect reasonable fees, fines, or charges in performing registration and regulatory functions.
The CDA may compel a cooperative to call a general or representative assembly under the CDA’s supervision with participation of the cooperative federation or union, subject to criteria and conditions under the IRR issued for the purpose.
The CDA shall conduct regular inspection and examination of cooperatives consistent with Authority rules; it shall conduct examination and investigation when necessary to protect members’ interests and welfare and the general public.
The CDA may request cooperative federations, unions, LGUs, cooperative development offices, and the alliance of cooperatives as the Authority’s consultative and coordinating body to assist in 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 settling conflicts among and between members, officers, and directors, and among cooperatives, consistent with Article 137 of Republic Act No. 9520 and Republic Act No. 9285.
For elected-related issues, an aggrieved party may elevate the case for adjudication to the Authority without undergoing alternative dispute resolution.
The CDA shall issue cease and desist orders to cooperatives and responsible parties specified under Article 137 of Republic Act No. 9520, and shall issue other orders and notices to preserve assets and documents subject to dispute or litigation.
The CDA may order suspension or cancellation of a cooperative’s Certificate of Registration and may revoke 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 the cooperative’s Articles of Cooperation and Bylaws as defined by the implementing rules.
The CDA may order dissolution and liquidation of cooperatives and transfer of all or substantially all assets and liabilities.

Quasi-judicial authority

The CDA shall conduct investigations, file necessary charges, discipline, and suspend and/or remove erring officers and members for violations of cooperative laws, rules, regulations, and Authority issuances, including the cooperative’s Articles of Cooperation and Bylaws, after due process, and direct the general assembly to replace suspended or removed officers in accordance with Authority rules and regulations.
The CDA shall hear and decide inter-cooperative and intra-cooperative disputes, controversies, and conflicts, without prejudice to filing civil and/or criminal cases in regular courts; CDA decisions shall be appealable directly to the Court of Appeals.
The CDA shall issue subpoena ad testificandum and subpoena duces tecum requiring parties to appear and produce documents, and may order examination of documents, papers, files, and records necessary for proper case disposition.
The CDA may cite for contempt persons guilty of misconduct that seriously interrupts any hearing or inquiry in the presence of the Authority and impose a fine of not more than PHP 5,000 or imprisonment of not more than 10 days, or both; indirect contempt is punished consistent with 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 as needed.
The CDA shall exercise other powers and functions necessary to implement Republic Act No. 11364, Republic Act No. 9520, Republic Act No. 10744, and related laws.

Institutional strengthening

The CDA shall exercise inherent powers enabling implementation of its functions, including establishing and maintaining a continuing educational and capability-building program.

Governance and administration structure

The CDA shall have a Board of Directors as the collegial policy-making body.
The Board consists of a Chairperson and six (6) Board members, all appointed by the President of the Philippines and chosen among nominees from the cooperative sector.
The Chairperson has the rank and privilege of an Undersecretary; Board members have the rank and privilege of an Assistant Secretary.
There shall be one Board director from each cluster of cooperatives:
- 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 the Department of Trade and Industry (DTI) and the Secretary of the Department of the Interior and Local Government (DILG) shall serve as ex-officio members and may designate a permanent alternate with the rank of at least an Assistant Secretary whose acts are considered those of the principal.
Ex-officio members may participate in deliberations but shall have no voting rights, and shall be entitled to reasonable per diem determined by DBM under existing rules and regulations.
The Board shall include at least one lawyer member as far as practicable, and shall observe gender balance in membership.

Board functions

The Board shall formulate policies, rules, and regulations consistent with Republic Act No. 11364, Republic Act No. 9520, and Republic Act No. 10744.
The Board shall adopt implementing rules for internal operations, organize the operating structure and functions, and approve the work and financial plan.
The Board shall approve annual, medium-term, and long-term cooperative development plans consistent with the national government’s socio-economic development policy.
The Board shall provide overall direction and define roles of NGAs, LGUs, people’s organizations, private sector, and NGOs in promoting and developing the cooperative sector.
The Board shall conduct regular policy consultations with the cooperative sector, NGAs, LGUs, people’s organizations, private sector, NGOs, and stakeholders regarding the Authority’s policies, programs, and initiatives.
The Board shall decide cases involving cooperatives submitted for Board resolution.
The Board shall authorize the Chairperson or Administrator to enter into contracts or agreements on behalf of the Authority.
The Board shall approve and submit the annual proposed budget to the President of the Philippines through the DBM.
The Board shall appoint Deputy Administrators and shall formulate rules and regulations and exercise other powers required to implement the objectives of Republic Act No. 11364.
Each Board member shall steer the cluster they represent by proposing policy initiatives, spearheading consultations, encouraging peace and unity within the cluster, conducting research, reporting accomplishments, and representing the Authority in Congress and other institutions on cluster issues.

Chairperson and members: qualifications and restrictions

The Chairperson and Board members must be natural-born Filipino citizens.
They must hold any bachelor’s degree.
They must have five (5) years of experience as an officer of a cooperative in the cluster they represent.
They must be residents of the Philippines for at least five (5) years prior to appointment.
Upon appointment, the Chairperson and each Board member must divest any direct or indirect pecuniary interest or dealing with any cooperative.

Term and removal

The Chairperson and Board members serve for a term of six (6) years without reappointment.
A Chairperson or member who served an unfinished term of the person they succeeded and served less than one-half (1/2) of the full term is eligible for reappointment.
The Chairperson and Board members may be removed from office for cause.

Administrator and deputies

The Administrator is appointed by the President as recommended by the Board and has the rank of an Assistant Secretary.
The Administrator must be a natural-born Filipino citizen, hold any bachelor’s degree, possess the necessary Civil Service Eligibility, and have five (5) years experience as a cooperative officer or as an official/employee in a government office or NGO dealing with cooperatives.
Upon appointment, the Administrator must divest any direct or indirect pecuniary interest or dealing with any cooperative.
The Administrator shall execute and administer Board policies, decisions, orders, and resolutions, and shall provide general executive direction and supervision of Authority work and operations.
The Administrator shall prepare periodic reports for Board consideration; implement a human resource management system consistent with Civil Service laws to promote professionalism and excellence; prepare proposed annual and supplemental budgets for Board approval; and submit annual performance and accomplishment reports to the President and Congress.
The Administrator shall appoint personnel below Deputy Administrator positions, represent the Authority where required, and perform other functions required by law.
The Board shall appoint five (5) Deputy Administrators to assist the Administrator, covering: General Administration and Support Services; Institutional Development; Legal Affairs; Registration, Supervision and Examination; and Credit Surety Fund (CSF).

Regional offices and staffing

The Authority shall establish and maintain extension offices in each administrative region, identified as the specific CDA regional offices (including CDA CAR Office, CDA NCR Office, and offices for Region I through Region XIII).
The 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.
For other regions, the Authority shall establish offices in each province, highly urbanized and independent component city, and other places required for proper conduct of business; these are CDA Field Offices identified by the province or city name.
The Board shall approve the organizational structure and staffing pattern needed for operationalization, consistent with DBM regulations, Civil Service Commission rules, and other relevant agencies.

Partnerships and coordination framework

Cooperative development requires partnership between the Authority, the cooperative sector, and the academe to ensure cooperative sector participation in matters affecting cooperatives in government plans, projects, and policies.
The Authority, the cooperative sector, and the academe shall formulate guidelines for implementing partnership arrangements that may lead to recognition of apex organizations and a national alliance acting as the overall consultative and coordinating body with the Authority.
The Authority shall recognize cooperative unions and federations under Articles 24 and 25 of Republic Act No. 9520 and shall issue guidelines to promote and develop those secondary cooperatives.
The Authority shall synchronize efforts of other government institutions to empower cooperatives as instruments of equity, social justice, and economic development.

National coordinating committee

Government branches, instrumentalities, subdivisions, and agencies with programs and projects concerning cooperatives shall coordinate those programs and projects with the Authority through a National Coordinating Committee chaired by the Authority.
Committee representatives must be from those government bodies and must have ranks not lower than Director level in charge with cooperative programs.

Partnership with the cooperative sector

The Authority, in consultation with the cooperative sector, shall formulate policies and implement programs affecting cooperatives, establishing a strong partnership in accordance with Section 18 of Republic Act No. 11364.

Partnership with the academe

The Authority shall establish linkages with the academe for cooperative education, training, and research, and shall provide technical assistance and guidance to cooperatives where they are located.
The Authority may enter into a written agreement with the academe governing the partnership.

Partnership with government agencies

The Authority shall maximize cooperative opportunities through collaboration and partnership with government agencies, branches, and instrumentalities for specific cooperative development plans and programs.

Partnership with LGUs

The Authority shall ensure constant and close coordination with LGUs for effective implementation of undertakings, including:
- Formulating Local Cooperative Development Plans consistent with the Philippine Development Plan and the Philippine Cooperative Development Plan, to be incorporated in LGU Comprehensive Development Plan and Annual Investment Plan;
- Ensuring technical guidance, financial assistance, and other services to develop cooperatives into viable and responsive enterprises;
- Promoting organization of cooperatives and supporting development within LGU jurisdiction;
- Sharing cooperative information and coordinating implementation of cooperative information and cooperative development plans and programs on promotion, development, and regulation;
- Assisting cooperatives in preparation of registration documents and mandatory reports;
- Providing trainings for cooperative development and mandatory trainings consistent with Authority guidelines;
- Initiating and implementing localized promotion and mandatory trainings consistent with Authority guidelines;
- Providing information required by either party for research projects;
- Facilitating cooperatives’ availment of local tax exemption privileges; and
- Conducting trainings and seminars to capacitate LGU partners/Local Cooperative Development Offices and establish convergence in their approach to assisting cooperatives.
LGUs shall create an office or deputize an existing office headed by an appointed or designated local cooperative officer to implement cooperative development plans and programs.

Other partnerships

The Authority may establish partnership with the international cooperative sector for promotion and development of local cooperatives and the cooperative movement generally.
The Authority shall strengthen partnership with the private sector by soliciting active involvement and participation in initiatives involving cooperatives, with the scope and extent subject to Authority guidelines.

Cooperative training standards and accreditation

The CDA shall develop and conduct training programs for officers and members focusing on entrepreneurial capabilities, managerial expertise, and technical skills for efficient cooperative operations.
The CDA shall formulate standards of training requirements for cooperative officers and members in partnership with learning and training institutions and the cooperative sector.
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 operations.
Accredited organizations may be organizations other than cooperatives that are duly registered under Philippine law and engaged in cooperative promotion, organization, research, and education.
The CDA shall monitor compliance with the training standards by cooperatives and accredited organizations, subject to 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.
The CDA shall establish an Accreditation Program to institutionalize coordinated, rationalized, and standardized cooperative education and training consistent with Republic Act No. 9520.
Cooperative training providers include: cooperative federations; cooperative unions; training institutions including NGOs and academe; national government agencies; Local Cooperative Development Offices; and advocacy cooperatives.
Training provider applicants must have juridical personality.
Training institutions, NGOs, and academe must have existed for at least two (2) years.
Applicants must have cooperative development programs and a pool of at least five (5) competent cooperative trainers with qualifications prescribed by the Authority.
The CDA shall monitor compliance with accreditation terms and conditions by accredited training providers.

Cooperatives within education system

Cooperativism history, philosophy, concepts, values, principles, and practices shall form part of the curriculum of both formal and non-formal education.
Cooperativism as a tool for self-empowerment and nation building shall be included in senior students’ curricula in all secondary educational institutions.
Cooperativism shall 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 courses under a non-traditional approach under their equivalency programs accrediting equivalent training undertaken by an officer to the relevant subject.
If SUCs do not offer a separate academic program in cooperative development and administration, SUCs shall include a three (3)-unit subject in curricula of specified areas, including accountancy, agribusiness, agriculture, agricultural economics, business, community development, economics, education, environmental sciences, social sciences, political economy, and other curricula instrumental in cooperative development.
The CDA and concerned stakeholders shall advocate and conduct activities that promote cooperatives in educational institutions.
The CDA shall enter into agreements with CHED, DepEd, and TESDA to implement cooperatives education mandates.
Private educational institutions are encouraged to promote and integrate cooperative laws in their curricula.

Inspection, examination, and investigation powers

The CDA shall conduct regular inspection or examination of cooperatives under Authority rules and regulations, and may conduct examinations and investigations to protect members’ interests and welfare and the general public.
The CDA may request cooperative federations and unions, LGUs, cooperative development offices, and the NAC to assist in inspection and examination, including by providing relevant information such as research, reports, and financial records.

Regular inspection and regular examination

The CDA shall conduct regular inspection to ensure compliance with rules, regulations, Authority issuances, and the cooperative’s Articles of Cooperation and Bylaws, consistent with guidelines set by the CDA.
Regular examination shall be conducted as a result of inspection or after evaluation of mandatory reports submitted by cooperatives.

Special examination

The CDA shall conduct special examinations motu proprio or upon request by government agencies, or upon written complaint of interested parties, consistent with Authority guidelines.
In special examinations, the CDA may enlist assistance of co-regulatory agencies, law enforcement agencies, or the concerned LGU as needed.

Investigations

The CDA shall conduct investigations upon verified complaints from any cooperative member or officer, or upon request or referral from any government agency, consistent with Authority guidelines.
In investigations, the CDA may enlist assistance of other concerned agencies or law enforcement agencies as needed.

Assistance to the CDA and post-inspection assistance

Upon written request of the CDA, federations, unions, LGUs, CDOs, and the NAC shall assist the CDA in inspection and/or examination by providing information, including research, reports, and financial records necessary for the process.
Federations, unions, LGUs, CDOs, and the NAC shall assist cooperatives in complying with findings arising from inspection or examination when the CDA deems necessary.

Calling of GA/RA meetings by CDA

The CDA may compel a cooperative to call a general assembly (GA) or representative assembly (RA) under CDA supervision with participation of the cooperative’s cooperative federation or union, subject to CDA criteria and conditions in implementing rules.
The CDA shall compel a cooperative to call either a regular or special GA/RA in the following instances:
- If the cooperative fails to call a regular meeting within the date fixed in the by-laws, or if not so fixed, within 90 days after the close of each fiscal year;
- Upon petition of 10% of all members entitled to vote, for good cause shown, with proper notice required under Republic Act No. 9520 or the by-laws;
- To report to members results of any examination or other investigation consistent with Republic Act No. 9520; and
- To replace suspended or removed erring officers as directed by the CDA in its quasi-judicial power.

Federation and union roles

Where the cooperative is a federation or union member, the federation or union shall participate to assist and act as observer during the GA/RA meeting.
If a cooperative has multiple federation/union memberships, each shall send an authorized representative to attend.
Federation/union representatives shall only:
- Assist to ensure observance of procedural process in calling the GA/RA meeting;
- Witness the conduct of the meeting;
- Provide technical advisory and clarificatory assistance; and
- Assist the election committee if the GA/RA requires election.

Discipline and supervision

Federation/union representatives who willfully and knowingly act beyond the allowed