FOURTEENTH CONGRESS OF THE REPUBLIC 
] 
OF THE PHILIPPINES 
1 
3 JUL -3 A857 
First Regular Session 
1
-
 
S E N A T E  
Senate Bill No. 6 1 b 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
The Constitution recognizes the vital importance of cooperatives as 
instruments for social justice and economic development and, for this reason has 
mandated Congress to create an agency to promote the viability and growth of 
cooperatives. Section 15, Article XI1 of the fundamental law provides: 
"SEC. 15. The Congress shall create an agency to promote the viability 
and growth of cooperatives as instrument for social justice and 
economic development. 
Pursuant to the aforequoted Constitutional mandate, Congress enacted 
Republic Act 6939, creating the Cooperative Development Authority [CDA], which 
was signed by President Corazon C. Aquino on March 10,1990. 
Despite the dedication and valiant efforts of its officials and personnel, 
particularly those assigned to man its various Extension Offices, the Authority has 
encountered tremendous difficulties and obstacle in the pursuit of its mission to 
promote the viability and growth of cooperatives. To solve these identified problems, 
this bill is submitted for consideration. 
The bill seeks to strengthen the development and regulatory powers of the 
CDA in order to ensure that the Authority will be more responsive to the challenges 
of the future by creating the Cooperative Development Council and Cooperative 
Adjudication Board in the CDA. 
The Cooperative Development Council shall establish a more concrete 
relationship between the sector and the government. Various plans and programs of 
the sector and the government geared towards the promotion, organization and 
development of cooperatives shall be synchronized for optimum result. 
The Cooperative Adjudication Board in the CDA is a specialized quasi-judicial 
body which guarantees prompt resolution of disputes and grievances between and 
among members of the cooperatives, as well as between cooperatives. 
The passage of this bill enhances the capability of the CDA in promoting the 
viability and growth of cooperative for national development, thus, its passage is 
imperative. 


FOURTEENTH CONGRESS OF THE REPUBLIC 
] 
OF THE PHILIPPINES 
First Regular Session 
Senate Bill No. 61 0 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
"AN ACT 
AMENDING 
REPUBLIC 
ACT 
NUMBERED 
6939, 
CREATING 
THE 
COOPERATIVE DEVELOPMENT AUTHORITY" 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. 
Title. - This Act shall be known as the "The Revised 
Charter of the Cooperative Development Authority. 
SECTION [I] 2. Declaration of Policy.- It is hereby declared the policy of 
the State to promote the viability and growth of cooperatives as instrument of 
equity, social justice and economic development and to create an agency, in 
fulfillment of the mandate in Section 15, Article XI1 of the Constitution. Toward 
this end, the economic and social betterment of their members, operating 
business enterprises based on mutual aid and founded upon, internationally 
accepted cooperative principle and practices. 
In furtherance of this policy, the appropriate national economic planning 
agency shall include the promotion of growth and expansion of cooperatives as a 
major and indispensable component of national development plans. All 
departments, branches, subdivisions and instrumentalities of the Government 
shall promote the formation of cooperatives under their respective programs by 
providing them with appropriate and suitable incentives. 
The State recognizes the cooperative sector as primarily responsible for 
the institutional development of cooperatives. Accordingly, the State recognizes 
the rights of the cooperative sector to initiate and foster within its own ranks 
cooperative promotion, organization, training, information gathering, audit and 
support services, with government assistance where necessary. 
Government assistance to cooperatives shall be free from any restriction 
and conditionally that may in any manner infringe upon the objective and 
character of the cooperatives as provided in this Act. The State shall, except as 
provided in this Act, maintain the policy of non-interference in the management 
and operations of cooperatives. 
SECTION [2] 3. Creation of the Cooperative Development Authority. - 
The Cooperative Development Authority is hereby created under the Office of the 
President to carry out the provisions of this Act. 


SECTION [3] 4. Powers, Functions, and Responsibilities. - The 
Authority 
IN THE 
EXERCISE OF 
ITS 
JURISDICTION OVER ALL 
COOPERATIVES shall have the following powers, functions, and responsibilities: 
(a) Formulate, adopt and implement integrated and comprehensive plans and 
programs on cooperative development consistent with the national policy 
on cooperatives and the overall socio-economic development plans of the 
Government. SUCH PLANS AND PROGRAMS SHALL FOCUS ON 
RURAL AND MARGINALIZED COOPERATIVES, OVERSEAS FILIPINO 
WORKERS AND WOMEN COOPERATIVES ENGAGED IN LIVELIHOOD 
ACTIVITIES FOR FOOD SECURITY AND THE PROMOTION OF 
COOPERATIVE ENTREPRENEURSHIP. 
(b) Develop and conduct management and training programs upon request 
of cooperatives that will provide members of the cooperatives with the 
entrepreneurial capabilities, managerial expertise, and technical skills 
required for the efficient operation of their cooperatives and inculcate in 
them the true spirit of cooperativism and provide, when necessary, 
technical and professional assistance to ensure the viability and growth of 
cooperatives with special concern for agrarian reform, fishery and 
economically depressed sectors; 
(c) Support the voluntary organization and consensual development of 
activities that promote cooperative movements and provide assistance 
towards upgrading managerial and technical expertise upon request of the 
cooperative concerned; 
(d) Coordinate AND SUPPORT THE DEVELOPMENTAL [the] efforts of the 
[local government units] GOVERNMENT AGENCIES and the private 
sector in the promotion, organization, and development cooperatives; 
(e) HOLD THE SOLE POWER TO register all cooperatives and their 
federation and unions, including their division, merger, consolidation, 
dissolution or liquidation. It shall also register the transfer of all or 
substantially all of their assets and liabilities and such other matters as 
may be required by the Authority; 
(9 Require all cooperatives, their federations and unions to submit their 
annual financial statements, duly audited by a certified public accountant, 
and general information sheets; 
(9) Order the cancellation after due notice and hearing of the cooperative’s 
certificate of 
registration for 
non-compliance with 
administrative 
requirements and in cases of voluntary dissolution; 
(h) Assist cooperatives in arranging for financial and other forms of 
assistance under such terms and conditions as are calculated to 
strengthen their viability and autonomy; 
(i) Impose and collect reasonable fees and charges in connection with the 
registration of cooperatives. 
(j) Administer all grants and donations coursed through the Government for 
cooperative development, without prejudice to the right of cooperative to 
directly receive and administer such grants and donation upon agreement 
with the grantors and donors thereof; 
(k) Formulate and adopt continuing policy initiatives consultation with the 
cooperative sector through public hearing; 
EMPOWERING PROGRAMS TO DEVELOP THE CAPABILITIES OF 
GOVERNMENTS 
ORGANIZATIONS 
[NGOsl, 
NATIONAL 
GOVERNMENT AGENCIES [NGAs], AND LOCAL GOVERNMENT 
UNITS [LGUs] ON COOPERATIVE PROMOTION, ORGANIZATION AND 
DEVELOPMENT. 
(I) EVOLVE 
AND 
IMPLEMENT 
CAPABILITY-BUILDING 
AND 
OFFICIALS 
AND 
EMPLOYEES 
OF 
COOPERATIVES 
NON- 


(m) CONDUCT RESEARCHES AND STUDIES ON COOPERATIVE 
TRAINING 
CURRICULAR 
FOR 
SPECIFIC CLENTELE AND/OR 
SPECIFIC GOALS; 
(n) DEVELOP 
APPROPRIATE 
TRAINING 
TECHNIQUES, 
METHODOLOGIES, MATERIALS AND AIDS AND DISSEMINATE THE 
SAME; 
(0) UNDERTAKE CONTINUING MONITORING AND EVALUATION OF THE 
DIFFERENT COOPERATIVE EDUCATION AND TRAINING PROGRAMS 
UNDERTAKEN BY ALL INSTITUTIONS SUCH AS THE ACADEME, THE 
AGENCIES, LOCAL GOVERNMENT UNITS AND COOPERATIVES TO 
DETERMINE THEIR RELEVANCE, EFFECTIVENESS AND DIRECT 
MODIFICATIONS WHENEVER NECESSARY; 
(p) INSPECT, INVESTIGATE, INQUIRE INTO OR AUDIT OR CAUSE TO BE 
AUDITED COOPERATIVES FALLING UNDER ITS JURISDICTION. 
NON-GOVERNMENT ORGANIZATIONS, NATIONAL GOVERNMENT 
DISSOLVE AND RECONSTITUTE THE BOARD OF DIRECTORS 
AND/OR COMMITTEE CONCERNED, IF, AFTER DUE NOTICE AND 
HEARING, THE AUTHORITY IS CONVINCED THAT SUCH BOARD OF 
DIRECTORS 
OR 
COMMITTEE 
IS 
NOT 
FUNCTIONING 
IN 
COOPERATIVE; PROVIDED, HOWEVER, THAT THE DISSOLUTION 
AND RECONSTITUTION SHALL BE UNDERTAKEN THROUGH A 
GENERAL ASSEMBLY CALLED FOR THE PURPOSE. IF THE 
GENERAL ASSEMBLY CANNOT BE CONVENED FOR LACK OF 
QUORUM, THE AUTHORITY SHALL DECLARE SUCH POSITION[S] 
VACANT AND THE AUTHORITY SHALL APPOINT A SUITABLE 
PERSON OR PERSONS TO DIRECT, SUPERVISE AND MANAGE THE 
AFFAIRS 
OF 
THE COOPERATIVE ON 
SUCH TERMS AND 
CONDITIONS AS MAY BE PRESCRIBED FOR A SPECIFIED PERIOD 
NOT EXCEEDING TWO [2] YEARS UNTIL A NEW BOARD OF 
DIRECTORS AND/OR 
COMMITTEE 
IS 
ELECTED; PROVIDED 
FURTHER, THAT THE AUTHORITY MAY ORDER THAT ANY OR ALL 
OF THE DIRECTORS OR THE COMMITTEE MEMBERS SHALL BE 
DISQUALIFIED AS CANDIDATES OR FROM BEING APPOINTED AS 
MEMBERS TO THE BOARD OF DIRECTORS OR TO ANY OF THE 
COMMITTEES OF THE COOPERATIVE FOR A PERIOD TO BE 
SPECIFIED IN THE ORDER BUT NO EXCEEDING THREE [3] YEARS; 
PROVDED FINALLY, THAT THE AUTHORITY MAY FROM TIME TO 
TIME EXTEND THE PERIOD SPECIFIED IN SUCH ORDER BY NOT TO 
EXCEED TWO YEARS FOR SUCH EXTENSION; 
ENLIST THE SUPPORT OF ANY AGENCY OF THE GOVERNMENT IN 
THE EXERCISE OF ITS POWER AND FUNCTIONS; 
IN THE PERFORMANCE OF ITS ADJUDICATIVE FUNCTIONS AND 
SUBJECT TO THE PROCEDURE OF SECTION 9 OF THE PROVISIONS 
HEREOF, DECIDE ALL 
DISPUTES BETWEEN AND 
AMONG 
MEMBERS, 
OFFICERS. 
COMMITTEES 
OR 
DIRECTORS 
OF 
COOPERATIVES AND BETWEEN AND AMONG COOPERATIVES; 
Adopt rules and renulatjons for the conduct of its internal operation; 
ACCORDANCE 
WITH 
LAW 
OR 
THE 
BY-LAWS OF THE 
(u) Submit an annual-report to the President and Congress’on the state of 
cooperative movement; and 
(v) Exercise such other function as may be necessary to implement the 
provisions of cooperative laws, and, in the performance thereof, the 
Authority may summarily punish for direct contempt any person guilty of 
misconduct in the presence of the Authority who seriously interrupts any 
hearing 
[PSOO.OO] 
TWO 
THOUSAND 
PESOS 
[P2,000.00] 
or 
imprisonment of not more than ten [IO] days, or both. Acts constituting 


indirect contempt as defined under Rule 71 of the 1997 RULES OF CIVIL 
PROCEDURE shall be punished in accordance with the said Rule. 
SECTION [4] 5. Governing Body. - The authority shall be governed by a 
Board of Administrators consisting of Chairman and [six [6]] SEVEN [7] members 
to be appointed by the President, all of whom shall be chosen from among the 
nominees and the cooperative sector with two [2] representatives each from 
Luzon, Visayas, and Mindanao. THE OTHER MEMBER SHALL REPRESENT 
THE AUTONOMOUS REGION OF MUSLIM MINDANAO, WHO SHALL BE 
RECOMMENDED BY THE REGIONAL GOVERNOR. They shall serve for a 
term of six (6) years without reappointment. [Provided, that among those first 
appointed, the chairman shall serve for a term of [six (6)] years without re- 
appointment, three (3) members to serve for a four (4) year, and three (3) 
members to serve for a term of two (2) years]; PROVIDED, THAT THE 
REPRESENTATIVE FROM THE AUTONOMOUS REGION OF MUSLIM 
ADMINISTRATORS SHALL CONTINUE TO SERVE UNTIL THE END OF 
THEIR RESPECTIVE TERMS OF OFFICE. The Chairman and members SHALL 
HAVE THE RANK AND PRIVILEGES OF DEPARTMENT SECRETARY AND 
UNDERSECRETARIES RESPECTIVELY, AND shall serve on a full-time basis. 
Any vacancy in the Board shall be filled by appointment by the President in 
accordance with the membership allocation set forth in the section: Provided 
FlNALLY that a member so appointed shall serve only for the unexpired term. 
MINDANAO SHALL BE A NON-VOTING MEMBER OF THE BOARD OF 
SECTION [5] 6. Qualifications of Members of the Governing Board. - 
No person shall be appointed Chairman or member of the Board of 
administrators unless he [possess] POSSESS the following qualifications: 
(a) A natural born Filipino citizen of legal age; 
(b) A bachelor’s degree on cooperative, economic, finance, agriculture, 
fisheries, 
veterinary 
medicine, 
business, 
social 
science, 
law, 
management, or in similar fields of study and FIVE [5] years of experience 
as an official or officer of a cooperative, government agency, or non- 
government organization engaged in cooperative development or in the 
absence of a bachelor’s degree, at least ten [IO] years of experience in 
cooperatives or a government agency or non-government organization 
engaged in cooperative development; and 
(c) Must be a resident of the region he represents for at least TWO 121 [five 
[5]] years. 
Any person appointed as Chairman or regular member if the Board if 
Administrators shall divest himself of any direct or indirect pecuniary interest or 
dealing with cooperatives upon his appointment. 
SECTION [6] 7. Board of Administrators Meeting. - The Board of 
Administrators shall meet at least once a month for the transaction of its regular 
business, Special meetings may be called by the Chairman of majority of the 
members to consider specific matters. A majority vote of the entire Board shall be 
required for a decision. Meetings of the Board [shall] MAY be held at the head 
office in Metro Manila or at any other place as may be determined by the Board. 
The Board Administrators shall appoint an Executive Director who shall be 
the chief operating officer of the Authority whose compensation shall be fixed by 
the Board of Administrators. 
SECTION [7] 8. Organization of the Authority. - [The Authority shall be 
organized within One Hundred Twenty [I201 days from the effectivity of this Act.] 


THE AUTHORITY 
SHALL 
BE 
COMPOSED OF 
THE 
BOARD 
OF 
ADMINISTRATORS, OFFICE OF THE EXECUTIVE DIRECTOR AND HIS lW0 
[2] DEPUTIES, THE SERVICE OFFICES, THE TECHNICAL DEPARTMENTS, 
THE NATIONAL COOPERATIVE ADJUDICATION BOARD, AND REGIONAL 
AND FIELD OFFICES 
A. THE SERVICE OFFICES, WHICH SHALL BE HEADED BY DIRECTORS, 
SHALL BE THE FOLLOWING: 
(1) 
PLANNING 
SERVICE 
CONSISTING 
OF 
THE 
MANAGEMENT INFORMATION SYSTEM DIVISION AND 
THE SPECIAL PROJECTS DIVISION 
(2) 
THE 
ADMINISTRATIVE SERVICE 
CONSISTING OF 
PERSONNEL DIVISION, 
ADMINISTRATIVE DIVISION, 
GENERAL SERVICES DIVISION, RECORDS DIVISION 
AND THE LIBRARY DIVISION; AND 
(3) 
THE 
FINANCIAL 
AND 
MANAGEMENT 
SERVICE 
CONSISTING OF BUDGET DIVISION AND LIBRARY 
DIVISION. 
B.THE TECHNICAL DEPARTMENTS, WHICH SHALL BE HEADED BY 
DIRECTORS SHALL BE THE FOLLOWING: 
(1) THE 
COOPERATIVE 
DEVELOPMENT 
DEPARTMENT 
CONSISTING 
OF 
THE 
COOPERATIVE STANDARDS 
DIVISION, THE COOPERATIVE PROJECT DEVELOPMENT 
ASSISTANCE 
DIVISION, 
AND 
THE 
COOPERATIVE 
MONITORING AND EVALUATION DIVISION; 
(2) THE 
COOPERATIVE 
EDUCATION 
AND 
TRAINING 
DEPARTMENT CONSISTING OF THE COOPERATIVE 
RESEARCH 
AND 
INFORMATION 
DIVISION, 
THE 
CURRICULUM 
AND 
STANDARDS 
DIVISION, 
THE 
MATERIALS DEVELOPMENT DIVISION, THE MATERIAL 
DEVELOPMENT DIVISION, AND THE COOPERATIVE 
TRAl Nl NG INSTITUTE; 
(3) THE 
LEGAL 
AND 
REGISTRATION 
DEPARTMENT 
CONSISTING OF THE LEGAL DIVISION, AND THE 
REGISTRATION AND REGULATORY. 
C. THE NATIONAL COOPERATIVE ADJUDICATION BOARD CONSISTING 
IF THE LEGAL RESEARCH DIVISION AND THE SUPPORT DIVISION. 
D. THE REGIONAL OFFICES HEADED BY REGIONAL DIRECTORS 
SHALL EACH CONSIST OF THE COOPERATIVE REGULATORY 
DIVISION, COOPERATIVE EDUCATION AND TRAINING DIVISION, 
COOPERATIVE DEVELOPMENT DIVISION, COOPERATIVE SERVICE 
DIVISION AND THE REGIONAL COOPERATIVE ADJUDICATION 
BOARD. THESE REGIONAL OFFICERS SHALL BE RESPONSIBLE 
FOR COORDINATING AND 
IMPLEMENTING THE FUNCTIONS, 
POWERS AND RESPONSIBILITIES OF THE AUTHORITY. ALL 
EXISTING EXTENSION OFFICES, AS OF THE EFFECTIVITY OF THIS 
ACT, ARE HEREBY CONVERTED INTO REGIONAL OFFICES. 
THE 
BOARD 
OF 
ADMINISTRATORS 
SHALL 
DELINEATE THE 
MENTIONED OFFICES, DEPARTMENTS AND DIVISIONS EXCEPT THE 
COOPERATIVE ADJUDICATION BOARDS WITH RESPECT TO THOSE 
FUNCTIONS, POWERS AND 
RESPONSIBILITIES OF 
THE ABOVE- 


FUNCTIONS, 
POWERS AND 
RESPONSIBILITIES ALREADY 
HEREIN 
PROVIDED. 
SECTION 8. Mediation and Conciliation. - Upon request of their of both 
parties, the Authority shall mediate and conciliate disputes within a cooperatives 
or between cooperatives’ Provided, That if no mediation or conciliation succeeds 
within three [3] months from request thereof, certificate of non-resolution shall be 
issued by the commission prior to the filing of appropriate action before the 
proper courts. 
[SECTION 9. Power to Register Cooperatives. - The power to register 
cooperatives shall be vested solely on the Authority. The functions of the 
following departments and agencies relating to the registration of cooperatives as 
such are hereby transferred to the Authority; 
(a) [the] Department of Agriculture; 
(b) [the] Bureau of Agricultural Cooperatives Development; 
(c) [the] Department of Transportation and Communication; 
(d) [the] Sugar Regulatory administration; 
(e) [the] National Electrification Administration; and 
(9 any other pertinent government agency. 
The Bureau of Agricultural Cooperatives Development created under 
Executive Order No. 116, series of I987 is hereby abolished and its qualified 
employees are hereby absorbed by the Cooperative Development Authority in 
accordance with its staffing pattern, subject to Civil Service rules and 
regulations and rules of the Office of the Compensation and Position 
Classification; Provided, That the Regional Cooperative Development 
Assistance Office of Region IX and XII, created under Executive Order No. 
634, are also hereby abolished and their employees shall be given preference 
for employment with the Cooperative Development Authority in accordance 
with its staffing pattern, subject to Civil Service Rules and regulations; 
Provided finally, That those who are not absorbed shall be given separation 
pay computed at one-fourth [ I  1/41 month salary for every year of service. 
Service of six [6] months or more shall be considered as one [I] year in 
computing the years of service for severance pay and whenever applicable, 
other retirement benefits under existing laws.] 
SECTION 9. COOPERA JlVE ADJUDlCAJlON BOARDS. - NATIONAL 
AND REGIONAL COOPERATIVE ADJUDICATION BOARDS ARE HEREBY 
CREATED UNDER THE ADMINISTRATIVE SUPERVISION OF THE BOARD 
OF ADMINISTRATORS. 
THE NATIONAL COOPERATIVE ADJUDICATION BOARD SHALL BE 
COMPOSED OF A CHAIRMAN AND TWO [2] MEMBERS ALL OF WHOM ARE 
MEMBERS OF THE PHILIPPINE BAR WITH AT LEAST TWO YEARS 
PRACTICE OF LAW. 
THE NATIONAL COOPERATIVE ADJUDICATION OVER ALL CASES 
WHERE THE DISPUTES IS WITHIN A COOPERATIVE OPERATING 
NATIONWIDE WHETHER A PRIMARY, SECONDARY, OR TERTIARY 
COOPERATIVES. 
COOPERATIVE AND INTER-REGIONAL DISPUTES BETWEEN OR AMONG 
THE 
REGIONAL COOPERATIVE ADJUDICATION 
BOARD 
SHALL 
LIKEWISE HAVE THE EXCLUSIVE APPELLATE JURISDICTION OVER 


DECISIONS, ORDERS AND RESOLUTIONS RENDERED/ISSUED BY THE 
REGIONAL COOPERATIVE ADJUDICATIVE BOARDS. 
THE REGIONAL COOPERATIVE ADJUDICATION BOARD IN EVERY 
REGIONAL OFFICE OF THE AUTHORITY SHALL BE COMPOSED OF THREE 
[3] MEMBERS, THE CHAIRMAN OF SAID BOARD SHALL BE A MEMBER OF 
THE PHILIPPINE BAR WITH AT LEAST ONE [I] 
YEAR PRACTICE OF LAW. 
THE REGIONAL COOPERATIVE ADJUDICATION BOARDS SHALL 
ACQUIRE JURISDICTION OVER ALL COOPERATIVE CASES FALLING 
UNDER THEIR RESPECTIVE TERRITORIAL JURISDICTIONS ONLY UPON A 
MEDIATION AND CONCILIATION COMMITTEE OF THE COOPERATIVE 
THE FEDERATION AND/OR UNION TO WHICH THE COOPERATIVE 
BELONGS. 
RECEIPT OF A CERTIFICATE OF NON-RESOLUTION ISSUED BY THE 
CONCERNED AND/OR CERTIFICATE OF NON-RESOLUTION ISSUED BY 
COOPERATIVE ADJUDICATION BOARDS SHALL ALSO HAVE ORIGINAL 
AND EXCLUSIVE JURISDICTION OVER ISSUES INVOLVING PRIMARY, 
SECONDARY OR TERTIARY COOPERATIVES IN THEIR RESPECTIVE 
JURISDICTION, SUCH AS BUT NOT LIMITED TO: 
(1) PETITIONS 
OF 
COOPERATIVE 
FOR 
BANKRUPTCY 
AND 
IN SOLVENCY; 
(2) COMPLAINTS FOR VIOLATIONS OF THE PROVISIONS OF REPUBLIC 
ACT NO. 6938 AND REPUBLIC ACT NO. 6939, AS AMENDED, EXCEPT 
THOSE PENAL IN NATURE; 
(3) PETITIONS 
INQUIRING 
INTO 
THE 
LEGAL 
RIGHTS 
OF 
COOPERATIVES, DIRECTORS OR OFFICERS FOR HOLDING AND/OR 
EXERCISING SUCH RIGHTS AND/OR OFFICES. 
IN AID OF THEIR ADJUDICATIVE FUNCTIONS, THE COOPERATIVE 
ADJUDICATION BOARDS MAY EXERCISE ANY OR ALL OF THE 
FOLLOWING: 
(1) AWARD DAMAGES, INCLUDING ATTORNEYS FEES; 
(2)CAUSE THE CONDUCT OF AN AUDIT, WHETHER FINANCIAL, 
MANAGEMENT 
OR 
OTHERWISE, 
ON 
THE AFFAIRS 
OF A 
COOPERATIVE INVOLVED IN A PENDING CASE; 
(3) REQUIRES THE ATTENDANCE OF WITNESSES AND/OR THE 
PRODUCTION OF BOOKS, RECORDS AND/OR DOCUMENTS, 
THROUGH THE ISSUANCE OF SUBPOENAS AS TESTIFICANDUM OR 
SUBPOENAS DUCES TECUM; 
(4) ISSUE ADMINISTRATIVE ORDERS, SUCH AS CEASE AND DESIST 
ORDERS, PERTAINING TO CONTROVERSIES BROUGHT BEFORE 
THEM; 
(5) ENLIST THE AID AND SUPPORT OF AND/OR DEPUTIZED ANY LAW 
ENFORCEMENT 
OFFICER 
IN 
THE 
IMPLEMENTATION 
AND 
ENFORCEMENT OF THEIR DECISION, ORDERS OR RESOLUTIONS; 
AND 
(6) PUNISH ANY PERSON, OFFICERS AND/OR MEMBERS OF A 
COOPERATIVE FOR ACTS CONSTITUTING DIRECT OR INDIRECT 
CONTEMPT. 
DECISIONS, 
ORDERS 
OR 
RESOLUTIONS 
OF 
THE 
REGIONAL 
COOPERATIVE ADJUDICATION BOARDS SHALL BE APPEALABLE TO THE 
NATIONAL COOPERATIVE ADJUDICATION BOARD WITHIN FIFTEEN [I 
51 


DAYS FROM RECEIPT THEREOF, OTHERWISE, THEY SHALL BECOME 
FINAL AND EXECUTORY. THE DECISIONS, ORDERS OR RESOLUTION OF 
THE NATIONAL COOPERATIVE ADJUDICATION BOARD SHALL BE 
APPEALABLE WITHIN FIFTEEN [I51 DAYS FROM RECEIPT THEREOF OF 
THE COURT OF APPEALS IN ACCORDANCE WITH RULE 43 OF THE 1997 
RULES OF CIVIL PROCEDURE. 
THE NATIONAL COOPERATIVE ADJUDICATION BOARD MAY ISSUE, IN 
THE EXERCISE OF 
ITS APPELLATE JURISDICTION, RESTRAINING 
ORDERS, 
OR 
WRITS 
OF 
PRELIMINARY 
INJUNCTION 
AGAINST 
PROCEEDINGS AND/OR 
DECISIONS, ORDERS 
OR 
RESOLUTIONS 
RENDEREDASSUED BY THE REGIONAL COOPERATIVE ADJUDICATION 
BOARDS. 
SECTION 10. 
THE COOPERATIVE DEVELOPMENT COUNCIL. - 
THERE 
IS 
HEREBY 
CREATED 
A 
NATIONAL 
COOPERATIVE 
DEVELOPMENT COUNCIL WHICH SHALL ACT AS THE ADVISORY BODY 
OF THE AUTHORITY ON MATTERS OF POLICIES, PLANS AND 
PROGRAMS ON COOPERATIVES, THE COMPOSITION OF WHICH 
SHALL BE AS FOLLOWS: 
(1) 
THE CHAIRMAN OF THE AUTHORITY AS THE EX OFFlClO 
CHAIRMAN; 
ONE [I] 
REPRESENTATIVE FROM EACH OF THE NATIONAL 
FEDERATIONS AND UNIONS OF COOPERATIVES; 
(2) 
GOVERNMENT 
ORGANIZATIONS 
WITH 
COOPERATIVE 
PROGRAMS APPOINTED BY THE CHAIRMAN FROM AMONG 
ONE [I] REPRESENTATIVE EACH FROM LUZON, THE VISAYAS 
AND 
MINDANAO 
FROM THE 
INSTITUTIONS GRANTING 
DEGREES IN COOPERATIVES ALL OF WHOM SHALL BE 
APPOINTED BY THE CHAIRMAN; AND 
ONE [I] REPRESENTATIVE 
EACH 
FROM 
NATIONAL 
GOVERNMENT AGENCIES WITH COOPERATIVE PROGRAMS, 
GOVERNMENT 
FINANCIAL 
INSTITUTIONS 
AND 
THE 
GOVERNORS LEAGUE OF THE PHILIPPINES. 
(3) 
THREE 
[3] 
REPRESENTATIVES 
OF 
NATIONAL 
NON- 
THE NOMINEES OF THE NON-GOVERNMENT ORGANIZATION; 
(4) 
(5) 
THE REGIONAL, PROVINCIAL, CITY AND MUNICIPAL COOPERATIVE 
DEVELOPMENT COUNCILS SHALL LIKEWISE BE CREATED WITH SIMILAR 
FUNCTIONS AND COMPOSITIONS AS THAT OF THE 
NATIONAL 
COOPERATIVE DEVELOPMENT COUNCIL AS FAR AS PRACTICABLE. 
THE COUNCIL SHALL MEET AT LEAST AS FOLLOWS: THE NATIONAL 
COOPERATIVE DEVELOPMENT COUNCIL, ANNUALLY; THE REGIONAL 
PROVINCIAL, CITY AND MUNICIPAL COOPERATIVE DEVELOPMENT 
COUNCIL. QUARTERLY. 
COOPERATIVE 
DEVELOPMENT 
COUNCIL, 
SEMI-ANNUALLY; 
THE 
SECTION [I 
01 11. Transfer of funds and Programs. - [The Cooperative 
Development Loan Fund created under Presidential Decree No. 175, as 
amended, is hereby transferred from the Department of Agriculture to the 
Authority] 
[The function of the Fund for Management Training and Assistance 
Program granted to the Department of Agriculture by Presidential Decree No. 
175, as amended, is hereby converted into a fund for the development of 


cooperatives and may be used for such purpose upon the request of the 
cooperatives concerned; Provided, That duly registered cooperatives shall have 
the right to establish their own private training centers of federations for purpose 
of cooperative development.] 
[In addition, the Cooperative Marketing Project as created under loan 
agreement which are now managed by the Department of Agriculture is likewise 
hereby transferred to the Authority.] ALL LOANS FUNDS EXCEPT THE FUND 
FOR COOPERATIVE MARKETING PROJECT [CMP] THAT ARE IN THE 
POSSESSION OF THE COOPERATIVE DEVELOPMENT AUTHORITY SHALL 
BE TRANSFERRED TO COOPERATIVE BANKS AS DETERMINED BY THE 
COOPERATIVE DEVELOPMENT AUTHORITY AND THE BANGKO SENTRAL 
NG PILIPINAS. 
SECTION [ I l l  12. Cooperative in the Education System. - The history, 
philosophy, principles and practices of cooperatives and their role as a factor in 
the national economy shall be disseminated both in formal and non-formal 
education. 
The role of non- government organization, not registered as cooperatives 
but duly registered under Philippine laws and engaged in cooperative promotion, 
organization, research and education, shall be recognized. The Authority may 
accredit such non-government organizations as non-academic training 
organizations. The training courses offered by them may be eligible as credits for 
the purposes of academic, professional and career advancement of their 
trainees. Existing training centers for cooperatives may qualify as non- 
government organizations under this Act. 
State college and universities shall provide technical assistance and 
guidance to cooperatives on the communities wherein they operate [upon 
request]. 
SECTION [I21 13. Cooperatives in the Banking System. - The 
promotion and development of cooperative bank as part of the Philippine banking 
system shall be a major concern of the Authority which shall undertake the 
necessary program towards this end in collaboration with the [Central Bank of the 
Philippines] BANGKO SENTRAL NG PILIPINAS and the cooperative sector 
concerned. 
SECTION [I 
31 14. R ule-Making Authority. - The Authority is hereby 
authorized to promulgate [after due public hearing and upon approval of the 
President] such rules and regulations as may be necessary to implement the 
provisions of this ACT. Such implementing rules and regulations shall take effect 
within fifteen [15] days after publication thereof in the Official gazette or in two [2] 
newspaper of NATIONAL general circulation. [All subsequent amendments to the 
implementing rules and regulation shall undergo the same process]. 
SECTION [I41 15. Prohibition. - No organization shall be allowed to use 
the title “cooperative” in its name unless it follows all generally accepted 
cooperative principles, applicable cooperative laws, and is duly registered under 
this ACT. [Provided, That organizations which have used the word “cooperative” 
as part of their nomenclature but which do not qualify as cooperatives under the 
provisions of this Act shall have three [3] years within which to qualify and to 
register with Authority. If at the end of the three-year period, herein, the said 
organizations still do not qualify, it shall be unlawful for the organization to 
continue using the word “cooperative” in their names.] 


SECTION 15. Information Campaign. - The Cooperative Development 
Authority is mandated to conduct a six [6] month information campaign on the 
provision of this ACT, beginning three [3] months from the effectivity of this ACT. 
SECTION 16. Appropriations. - [The funds needed to carry out the 
provisions of this Act shall be charged to the appropriations of the Bureau of 
Agricultural 
Cooperatives 
Development and the 
Regional Cooperative 
Development Assistance Offices to Regions IX and XI1 under the current General 
Appropriations 
Act 
in 
addition 
to 
the 
appropriations 
of 
other 
departmentlagencieslfunds whose functionlprograms are transferred to the 
Authority. Provided, That in its initial year of operations, and additional amount of 
not exceeding Sixty Million Pesos [P60,000,000.00] may be requested and drawn 
by the Authority from the Contingent Fund of the President. Thereafter, such 
sums as may necessary shall be included in the annual General Appropriations 
Act.] 
THE ADDITIONAL AMOUNT NEEDED TO CARRY OUT THE 
PROVISIONS OF THIS ACT MAY BE REQUESTED AND DRAWN BY THE 
AUTHORITY 
FROM THE 
PHILIPPINE AMUSEMENT 
AND 
GAMING 
CORPORATION. THEREAFTER, SUCH SUM AS MAYBE NECESSARY FOR 
ITS CONTINUED IMPLEMENTATION SHALL BE INCLUDED IN THE ANNUAL 
GENERAL APPROPRIATIONS ACT. 
[SECTION 17. Transitory Provision. - All cooperatives registered under 
Presidential Decree Nos. 175 and 775 and Executive Order No. 398 shall be 
deemed registered with the Cooperative Development Authority; Provided 
however, That they shall submit to the nearest Cooperative Development 
Authority office their certificates or registration, copies of their articles of 
incorporation and by-laws, and their latest duly audited financial statements 
within one [I] year for the effectivity of this Act, otherwise their registration shall 
be cancelled; Provided further, the cooperatives created under Presidential 
Decree No. 1645, shall be given three [3] years within which to qualify and 
register with the Authority; Provided Finally, That after these cooperatives shall 
have qualified and registered, the provisions of Section 3 and 5 of Presidential 
Decree no 1645 shall no longer be applicable to the said cooperatives.] 
[SECTION [I61 17. Repeals. - All acts, PRESIDENTIAL DECREES, 
general orders, letters of implementations letters of instruction, regulations or 
circulars, or parts thereof, inconsistent with any of the provisions of this ACT are 
hereby repealed or modified accordingly. In case of doubt, the same shall be 
resolved in favor of the cooperatives. 
SECTION 1171 18. Separability Clause. - If for any cause, any part of this 
ACT is deemed unconstitutional OR OTHERWISE UNLAWFUL, the rest of the 
provisions shall remain in force and effect. 
SECTION [18]. 19. Effectivity. - This ACT shall take effect fifteen [I51 
days after its publication in the Official Gazette or in two [2] newspaper of 
NATIONAL general circulation. 
Approved,