THIRTEENTH CONGRESS OF THE 
1 
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REPUBLIC OF THE PHILIPPINES 
1 
First Regular Session 
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SENATE 
Introduced by Senator 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 XJI of the fundamental law provides: 
"Sect. 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 I O ,  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. 
JI 
I 
( J Senator 


A 
- .. 
THIRTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
1 
First Regular Session 
, 
1 
I 
Introduced b i  Senator Jinggoy Ejercito Estrada 
I , 
"AN ACT 
AMENDING REPUBLIC ACT t$lUMBERED 6939, CREATING THE COOPERATIVE 
DEVELOPMENT AUTHORITY" 
Be it enacted by the Senate and the House of Representatives in Congress assembled: 
SECTION 1. Tifle. - This Act shall be known as the "THE REVISED CHARTER 
, 
OF THE COOPERATIVE DEVELOPMENT AUTHORITY" 
SECTION (1) 2. Declaraffon 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 upoi, 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 Responsibi/ifies. - The Authority IN 
THE EXERCISE OF ITS JURISDICTION OVER ALL COOPERATIVES shall have the 
following powers, functions, and responsibilities: 
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. 
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; 
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; 


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; 
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; 
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; 
(I) EVOLVE AND IMPLEMENT CAPABILITY-BUILDING AND EMPOWERING 
PROGRAMS TO DEVELOP THE CAPABILITIES OF OFFICIALS AND 
EMPLOY E ES 
OF 
COOPERATIVES 
NON-GOVERNMENTS 
ORGANIZATIONS 
(NGOs), NATIONAL 
GOVERNMENT AGENCIES 
(NGAs), AND LOCAL GOVERNMENT UNITS (LGUs) ON COOPERATIVE 
PROMOTION, ORGANIZATION AND DEVELOPMENT. 
(m) CONDUCT RESEARCHES AND STUDIES ON COOPERATIVE TRAINING 
CURRICULAR FOR SPECIFIC CLENTELE AND/OR SPECIFIC GOALS; 
(n) DEVELOP APPROPRIATE TRAINING TECHNIQUES, METHODOLOGIES, 
(0) UNDERTAKE CONTINUING MONITORING AND EVALUATION OF THE 
DIFFERENT COOPERATIVE EDUCATION AND TRAINING PROGRAMS 
UNDERTAKEN BY ALL INSTITUTIONS SUCH AS THE ACADEME, THE 
MATERIALS AND AIDS AND DISSEMINATE THE SAME; 


NON-GOVERNMENT ORGANIZATIONS, 
NATIONAL 
GOVERNMENT 
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 
(9) 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 ACCORDANCE WITH LAW OR 
AUDITED COOPERATIVES FALLING UNDER ITS JURISDICTION. 
THE BY-LAWS OF THE COOPERATIVE; PROVID€D, HOW€V€R, 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; 
PROVIDED FINALLY, THAT THE AUTHORITY MAY FROM TIME TO TIME 
EXTEND THE PERIOD SPECIFIED IN SUCH ORDER BY NOT TO 
EXCEED 7vvO YEARS FOR SUCH EXTENSION; 
(r) ENLIST THE SUPPORT OF ANY AGENCY OF THE GOVERNMENT IN 
THE EXERCISE OF ITS POWER AND FUNCTIONS; 
(s) IN THE PERFORMANCE OF ITS ADJUDICATIVE FUNCTIONS AND 
SUBJECT TO THE PROCEDURE OF SECTION 9 OF THE PROVISIONS 
HEREOF, DECIDE ALL DISPUTES BETWEENIAMONG MEMBERS, 
OFFICERS. COMMITTEES OR DIRECTORS OF COOPERATIVES AND 
BETWEENIAMONG COOPERATIVES; 
(t) Adopt rules and regulations for the conduct of its internal operation; 


(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 (P500.00) 
TWO THOUSAND PESOS (P2,OOO.OO) 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); PROV/D€D, THAT 
THE REPRESENTATIVE FROM THE AUTONOMOUS REGION OF MUSLIM 
MINDANAO SHALL BE A NON-VOTING MEMBER OF THE BOARD OF 
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 setforth in the section: Provided FINALLY, that a member so 
appointed shall serve only for the unexpired term. 
SECTION (5) 6. Qualifications of Members of fhe 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 


i 
non-government 
and 
(c) Must be a resident 
(5)) years. 
organization engaged in cooperative development; 
of the region he represent for at least TWO (2) (five 
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 Aufhorify. - (The Authority shall be 
organized within One Hundred Twenty (120) days from the effectivity of this Act.) THE 
AUTHORITY SHALL BE COMPOSED OF THE BOARD OF ADMINISTRATORS, 
OFFICE OF THE EXECUTIVE DIRECTOR AND HIS TWO (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 D lVlS ION 
(2) THE 
ADMINISTRATIVE 
SERVICE 
CONSISTING 
OF 
PERSONNEL 
DlVlS ION, 
ADMlN ISTRATIVE 
DlVlS ION, 


GENERAL SERVICES DIVISION, RECORDS DIVISION AND 
THE LIBRARY DIVISION; AND 
(3) THE 
FINANCIAL 
AND 
MANAGEMENT 
SERVICE 
CONSISTING OF 
BUDGET 
DIVISION AND 
LIBRARY 
D lVlS ION. 
B. THE TECHNICAL DEPARTMENTS, WHICH SHALL BE HEADED BY 
DIRECTORS SHALL BE THE FOLLOWING: 
(I) 
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 
TRAINING 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 
SUP PORT 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 
REG I ONAL 0 F F IC ES. 
THE BOARD OF ADMINISTRATORS SHALL DELINEATE THE FUNCTIONS, 
POWERS AND RESPONSIBILITIES OF THE ABOVE-MENTIONED OFFICES, 


DEPARTMENTS AND DIVISIONS EXCEPT THE COOPERATIVE ADJUDICATION 
BOARDS 
WITH 
RESPECT 
TO 
THOSE 
FUNCTIONS, 
POWERS 
AND 
RES PON S I B I L IT1 ES ALREADY HERE IN P ROVl DED. 
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 
(f) any other pertinent government agency. 
The Bureau of Agricultural Cooperatives Development created under Executive 
Order No. 116, series of 1987 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 (1 1/4) 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. COO&?ATIV€ 
ADJUDICATION BOARDS. - NATIONAL 
AND REGIONAL COOPERATIVE ADJUDICATION BOARDS ARE HEREBY 


CREATED UNDER THE ADMINISTRATIVE SUPERVISION OF THE BOARD 
0 F ADM I N I STRATO RS. 
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 
COOPERATIVE AND INTER-REGIONAL DISPUTES BETWEEN OR AMONG 
COOPERATIVES. 
THE REGIONAL COOPERATIVE ADJUDICATION BOARD SHALL 
LIKEWISE HAVE THE EXCLUSIVE APPELLATE JURISDICTION OVER 
DECISIONS, ORDERS AND RESOLUTIONS RENDEREDnSSUED 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 COOPEFWTIVE ADJUDICATION BOARDS SHALL 
ACQUIRE JURISDICTION OVER ALL COOPERATIVE CASES FALLING 
UNDER THEIR RESPECTIVE TERRITORIAL JURISDICTIONS ONLY UPON A 
RECEIPT OF A CERTIFICATE OF NON-RESOLUTION ISSUED BY THE 
MEDIATION AND CONCILIATION COMMITTEE OF THE COOPERATIVE 
CONCERNED AND/OR CERTIFICATE OF NON-RESOLUTION ISSUED BY 
THE FEDERATION AND/OR UNION TO WHICH THE COOPERATIVE 
BELONGS. 
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: 
(I) 
PETITIONS OF 
COOPERATIVE FOR BANKRUPTCY AND 
INSOLVENCY; 
(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 TESTlFlCANDUM OR 
SUBPOENAS DUCES TECUM; 
(4) ISSUE ADMINISTRATIVE ORDERS, SUCH AS CEASE AND DESIST 
ORDERS, PERTAINING TO CONTROVERSIES BROUGHT BEFORE 
THEM; 
(5)ENLlST 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)PUNlSH 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 
5)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 
DAY 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 RENDEREDIISSUED BY THE REGIONAL 
COOPERATIVE AD J UDICATION BOARDS. 


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SECTION I O .  THE 
COUNCIL. - THERE IS 
HEREBY CREATED A 
COUNCIL 
WHICH SHALL ACT AS 
OF POLICIES, PLANS 
OF WHICH SHALL BE AS FOLLOWS: 
(1) THE CHAIRMAN OF THE AUTHORITY S THE u( OFFICIO CHAIRMAN; 
(2)ONE (I) 
REPRESENTATIVE FRO 
EACH OF THE NATIONAL 
FEDERATIONS AND UNIONS OF COO ERATIVES; 
(3) THREE (3) REPRESENTATIVES OF NATIONAL NON-GOVERNMENT 
ORGANIZATIONS WITH COOPERATI E PROGRAMS APPOINTED BY 
THE CHAIRMAN FROM AMONG T E NOMINEES OF THE NON- 
MINDANAO FROM THE INSTITUTI NS GRANTING DEGRESS IN 
COOPERATIVES ALL OF WHOM S ALL BE APPOINTED BY THE 
GOVERNMENT ORGANIZATION; 
(4) ONE (I) 
REPRESENTATIVE EACH F OM LUZON, THE VJSAYAS AND 
CHAIRMAN; AND 
AGENCIES 
WITH 
COOPERATIVE 
PROGRAMS, 
GOVERNMENT 
FINANCIAL INSTITUTIONS AND THE 
OVERNORS' LEAGUE OF THE 
(5) ONE (1) REPRESENTATIVE EACH F OM NATIONAL GOVERNMENT 
PHILIPPINES. 
~ 
THE REGIONAL, PROVINCIAL, CITY 
ND MUNICIPAL COOPERATIVE 
DEVELOPMENT COUNCILS SHALL LIKEWISE BE CREATED WITH SIMILAR 
FUNCTIONS AND COMPOSITIONS AS THAT OF THE NATIONAL COOPERATIVE 
DEVELOPMENT COUNCIL AS FAR AS PRACTICA LE. a 
THE COUNCIL SHALL MEET AT LEAST AS FOLLOW: THE NATIONAL 
COOPERATIVE 
DEVELOPMENT 
COUNCIL, 
ANNUALLY; 
THE 
REGIONAL 
COOPERATIVE DEVELOPMENT COUNCIL, SEMI-ANNUALLY ; THE PROVINCIAL, 
CITY AND MUNICIPAL COOPERATIVE DEVELOPMENT COUNCIL, QUARTERLY. 
SECTION (IO) 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 
1) 12. Cooperative in the €ducafion,Sysfern. - 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 (12) 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 (13) 14. Rule-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 (14) 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. lnformafion 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 department/agencies/funds whose functiondprograms 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 (1) 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.) 


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(SECTION (16) 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 (17) 18. SepamMify. - 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. Hfecfivify. - This ACT shall take effect fifteen (15) days 
after its publication in the Official Gazette or in two (2) newspaper of NATIONAL general 
circulation. 
Approved,