FOURTEENTH CONGRESS OF THE REPUBLIC } 
First Regular Session 
OF THE PHILIPPINES 
. 
Senate Bill No. 
Introduced by: Senator Lacson *w" 
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: 
"Section 15. The Congress shall create an agency to 
promote the viability and growth of cooperatives as 
instruments 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 then 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 obstacles in the pursuit of its 
mission of promoting the viability and growth of cooperatives. 
The reason lies in the failure of Republic Act 6939 to provide the 
Authority with adequate development and regulatory powers, not to mention 
adequate financial resources. 
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. Thus, the bill introduced the concept of Cooperative 
Development Council and the Cooperative Adjudication Board in the CDA. 
The first will warrant the establishment of a more concrete relationship 
between the sector and the government. With the presence of the advisory 


body, various plans and programs of the sector and the government that are 
geared towards the promotion, organization and development of cooperatives 
will be synchronized for optimum result. 
The second will guarantee that there will be a specialized body 
exercising complete adjudicative powers that will readily handle and resolve 
complaints and grievances by and between members of cooperatives and 
between cooperatives themselves. 
Overall, it is the objective of this bill to enhance the capability of the 
CDA in promoting the viability and growth of cooperatives for national 
development. 
It is for these reasons that the passage of this bill is earnestly sought. 
PAN ww 
I 
M.LACSON 
V Senator 


FOURTEENTH CONGRESS OF THE REPUBLIC } 
OF THE PHILIPPINES 
1 
First Regular Session 
1 
..fl.,- 
. 
, ,  . 
S I ,  
, 
.,.. 
SENATE 
, . 
Senate Bill No. -47 
..a L 
Introduced by: Senator Lacson 
AN ACT 
REVISING REPUBLIC ACT NUMBERED 6939, CREATING THE 
COOPERATIVE DEVELOPMENT AUTHORITY 
[AN ACT CREATING THE COOPERATIVE DEVELOPMENT 
AUTHORITY TO PROMOTE THE VIABILITY AND GROWTH OF 
COOPERATIVES AS INSTRUMENTS OF EQUITY, SOCIAL JUSTICE 
AND 
ECONOMIC 
DEVELOPMENT, 
DEFINING 
ITS 
POWERS, 
FUNCTIONS 
AND 
RESPONSIBILITIES, 
RATIONALIZING 
GOVERNMENT POLICIES AND AGENCIES WITH COOPERAIVE 
FUNCTIONS, 
SUPPORTING 
COOPERATIVE 
DEVELOPMENT, 
TRANSFERRING 
THE 
REGISTRATION 
AND 
REGULATION 
FUNCTIONS 
OF 
EXISTING 
GOVERNMENT 
AGENCIES 
ON 
COOPERATIVES AS SUCH AND CONSOLIDATING THE SAME WITH 
THE AUTHORITY APPROPRIATING FUNDS THEREFORE, AND FOR 
OTHER PURPOSES] 
Be it enacted by the Senate and the House of Representatives of the 
Philippines in Congress Assembled: 
SECTION 1. TITLE. - THIS ACT SHALL BE KNOWN AS "THE 
REVISED 
CHARTER 
OF 
THE 
COOPERATIVE 
DEVELOPMENT 
AUTHORITY ." 
Sec. 2 [l.] Declaralion of Policy. - It is hereby declared the policy of the 
State to promote the viability and growth of cooperatives as instruments of 


equity, social justice and economic development and to create an agency, in 
fulfillment of the mandate of Section 15, Article XI1 of the Constitution. 
Toward this end, the State shall recognize cooperatives as associations 
organized for the economic and social betterments of their members, operating 
business enterprises based on mutual aid and founded upon internationally 
accepted cooperative principles 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 conditionality that may in any manner infringe upon the objectives 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. 
Sec. 3. 12.1 Creation of the Cooperative Development Authority. - The 
Cooperative Development Authority (hereinafter referred to as the "Authority") 
is hereby created under the office of the President to carry out the provisions 
of this Act. 


Sec. 4. [3.] Powers, Functions, and Responsibilities. - The Authority IN 
THE EXERCISE OF ITS JURISDICTION AND SUPERVISION 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 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 
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; 
(b) 
(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 
cooperatives concerned; 
Coordinate and SUPPORT THE DEVELOPMENTAL [the] 
efforts 
of 
[local 
government units] 
GOVERNMENT 
AGENCIES and the private sector in the promotion, 
organization, and development of cooperatives; 
HOLD THE SOLE POWER TO register all cooperatives and 
their federations 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; 
Request all cooperatives, their federations and unions to 
submit their annual financial statements, duly audited by a 
certified public accountant, and general information sheets; 
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; 
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; 
( 4  
(e) 
( f )  
(g> 
(h) 
(i) 
ALL EXTENSION OFFICES SITUATED IN DAGUPAN, 
TUGUEGARAO, 
CORDILLERA 
ADMINISTRATIVE 
REGION, PAMPANGA, MANILA, CALAMBA, NAGA, 
ILOILO, CEBU, TACLOBAN, ZAMBOANGA, CAGAYAN 
DE ORO, DAVAO, KIDAPAWAN AND CARAGA ARE 
HEREBY 
CONVERTED 
INTO REGIONAL OFFICES. 
[Establish extension offices as may be necessary and 


financially viable to implement this Act. Initially, there 
shall be offices in the cities of Dagupan, Manila, Naga, 
Iloilo, Cebu, Cagayan de Oro and Davao]; 
(j 1 
Impose 
and collect reasonable fees and charges in 
connection with the registration of cooperatives; 
Administer all grants and donations coursed through the 
Government for cooperative development, without prejudice 
to the right of cooperatives to directly receive and 
administer such grants and donations upon agreement with 
the grantors and donors thereof; 
(k) 
(1) 
Formulate 
and 
adopt 
continuing 
policy 
initiatives 
consultation with the cooperative sector through public 
hearing; 
(m> 
EVOLVE AND IMPLEMENT CAPABILITY BUILDING 
AND EMPOWERING PROGRAMS TO DEVELOP THE 
CAPABILITIES OF OFFICIALS AND EMPLOYEES OF 
COOPERATIVES, 
NON-GOVERNMENT 
ORGANIZATIONS (NGOs), NATIONAL GIVERNMENT 
AGENCIES (NGAs) AND LOCAL GOVERNMENT UNITS 
(LGUs) 
ON 
COOPERATIVE 
PROMOTION, 
ORGANIZATION AND DEVELOPMENT; 
(4 
CONDUCT 
RESEARCHES 
AND 
STUDIES 
ON 
COOPERATIVE TRAINING CURRICULA FOR SPECIFIC 
CLIENTELE AND/OR SPECIFIC GOALS; 
( 0 )  
DEVELOP APPROPRIATE 
TRAINING TECHNIQUES, 
METHODOLOGIES, 
MATERIALS 
AND 
AIDS 
AND 
DISSEMINATE THE SAME; 
(P) 
UNDERTAKE 
CONTINUING 
MONITORING 
AND 
EVALUATION OF THE DIFFERENT COOPERATIVE 


EDUCATION AND TRAINING PROGRAM UNDERTAKEN 
BY ALL INSTITUTIONS SUCH AS THE ACADEME, THE 
NON-GOVERNMENT 
ORGANIZATIONS, 
NATIONAL 
GOVERNMENT 
AGENCIES, 
LOCAL 
GOVERNMENT 
UNITS AND COOPERATIVES TO DETERMINE THEIR 
RELEVANCE, 
EFFECTIVENESS 
AND 
DIRECT 
MODIFICATIONS WHENEVER NECESSARY; 
(9) 
INSPECT, INVESTIGATE, INQUIRE INTO, AUDIT OR 
CAUSE TO BE AUDITED COOPERATIVES FALLING 
UNDER ITS JURISDICTION; 
CALL A GENERAL ASSEMBLY MEETING TO DISSOLVE 
AND RECONSTITUTE THE BOARD OF DIRECTORS 
AND/OR THE COMMITTEE CONCERNED IF, AFTER 
DUE HEARING, THE AUTHORITY IS CONVINCED 
THAT SUCH BOARD OF DIRECTORS OR COMMITTEE 
IS NOT FUNCTIONING IN ACCORDANCE WITH LAW 
OR THE BY-LAWS OF THE COOPERATIVE: PROVIDED, 
HOWEVER, 
THAT 
IF 
THE 
GENERAL ASSEMBLY 
CANNOT BE CONVENED FOR LACK OF QUORUM, THE 
AUTHORITY SHALL DECLARE SUCH POSITION(S) 
VACANT AND THE AUTHORITY SHALL DECLARE 
APPOINT A SUITABLE PERSON OR PERSONS TO 
DIRECT, SUPERVISE AND MANAGE THE AFFAIRS OF 
THE 
COOPERATIVE 
ON 
SUCH 
TERMS 
AND 
CONDITIONS 
A 
MAYBE 
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 
(r) 


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 NOT EXCEEDING THREE (3) YARS: 
PROVIDED, FINALLY, THAT THE AUTHORITY MAY 
FROM TIME TO TIME EXTEND THE PERIOD SPECIFIED 
IN SUCH ORDER BUT NOT TO EXCEED TWO (2)YEARS 
OR SUCH EXTENSION; 
(s) 
ENLIST THE SUPPORT OF ANY AGENCY OF THE 
GOVERNMENT IN THE EXERCISE OF ITS POWERS 
AND FUNCTIONS; 
(t) 
IN 
THE 
PERFORMANCE 
OF 
ITS 
ADJUDICATIVE 
FUNCTIONS AND SUBJECT TO THE PROCEDURE OF 
SECTION 9 HEREOF, DECIDE ALL DISPUTES BETWEEN 
OR AMONG THE MEMBERS, OFFICERS, COMMITTEES 
OR DIRECTORS OF COOPERATIVES AND BETWEEN OR 
AMONG COOPERATIVES; 
(u) 
INITIATE 
COMPLAINTS 
FOR 
VIOLATIONS 
OF 
COOPERATIVE LAWS AND BY-PAWS BEFORE THE 
REGULAR COURTS; 
Adopt rules and regulations for the conduct of its internal 
operations; 
Submit an annual report to the President and Congress on 
the state of cooperative movement; and 
(v) 
(w) 
(XI 
Exercise such other functions 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 with a fine of not more than TWO THOUSAND 
PESOS (P2,000.00) OR IMPRISONMENT OF NOT MORE 
THAN TEN (10) DAYS, OR BOTH [five hundred pesos 
(P500.00)l . Acts constituting indirect contempt as defined 
under Rule 71 of the Revised Rules of Court shall be 
punished in accordance with the said Rule. 
Sec. 5. 14.1 Governing Body. - The Authority shall be governed by a 
Board of Administrators consisting of a Chairman and SEVEN (7) [a six (611 
members to be appointed by the President, all of whom shall be chosen from 
among the nominees of 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 THE 
INCUMBENT 
CHAIRMAN 
AND 
MEMBERS 
OF 
THE 
BOARD 
OF 
ADMINISTRATORS SHALL CONTINUE TO SERVE UNTIL THE END OF 
THEIR RESPECTIVE TERMS OF OFFICE [Provided, that among those first 
appointed, the chairman shall serve for a term of six ( 6 )  years without 
reappointment, three (3) members to serve for a term of four (4) years, and 
three (3) members to serve for a term of two (2) years.] . The Chairman and 
members SHALL HAVE THE RANK AND PRIVILEGES OF A DEPARTMENT 
SECRETARY AND UNDERSECRETARIES, REPECTIVELY, 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 this 
section: Provided, That a member so appointed shall serve only for the 
unexpired term. 


Sec. 6 .  IS.] Qualifications of Members of the Governing Board. - No 
person shall be appointed Chairman or member of the Board of Administrators 
unless he POSSESSES [possess] the following qualifications: 
(a) 
(b) 
A 
bachelor's 
degree on cooperatives, economics, 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 ( I O )  years of experience in cooperatives either as an 
officer of a cooperative or a government agency or non- 
government organization engaged in cooperative development; and 
Must be a resident of the region he represents for at least TWO 
(2) [five (5)] years. 
A natural born citizen of the Philippines; 
(c) 
Any person appointed as Chairman or regular member of the Board of 
Administrators shall divest himself of any direct or indirect pecuniary interest 
or dealings with cooperatives upon his appointment. 
See. 7. 16.1 Board of Administrator's 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 or majority 
of the members to consider specific matters. A majority vote by the entire 
Board shall be required for a decision. Meetings of the Board MAY [shall] be 
held at the head office in Metro Manila or any other place as may be 
determined by the Board. 


The Board of 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. 
Sec. 8. 17.1 Organization o f t k e  Authority. - 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 THE REGIONAL AND 
FIELD OFFICES. [The Authority shall be organized within One Hundred 
Twenty (120) days from the effectivity of this Act.] 
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 
THE FINANCIAL AND MANAGEMENT SERVICE CONSISTING 
OF 
BUDGET 
DIVISION,, ACCOUNTING 
DIVISION 
AND 
MANAGEMENT DIVISION. 
(3) 
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 
DrvIsroN, 
THE 
MATERIALS 
DEVELOPMENT 
DIVISION, 
AND 
THE 
COOPERATIVE TRAINING INSTITUTE; 
(3) 
THE 
LEGAL 
AND 
REGISTRATION 
DEPARTMENT 
CONSISTING 
OF 
THE 
LEGAL 
DIVISION, 
AND 
THE 
REGISTRATION 
AND 
REGULATORY 
DIVISION. 
C. 
THE NATIONAL COOPERATIVE ADJUDICATION BOARD 
CONSISTING OF 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 
OFFICES 
SHALL BE 
RESPONSIBLE 
FOR 
COORDINATING 
AND 
IMPLEMENTING 
THE 
FUNCTIONS, POWERS AND RESPONSIBILITIES OF THE AUTHORITY. 
THE BOARD OF ADMINSTRATORS 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 RESPONSIBILITIES ALREADY PROVIDED 
HEREIN. 


SEC. 8. Mediation and Conciliation. - Upon request of either of both 
parties, the Authority shall mediate and conciliate disputes within a 
cooperative or between cooperatives; Provided, That if no mediation or 
conciliation succeeds within three (3) months from request thereof, a 
certificate of no-resolution shall be issued by the commission prior to the 
filing of appropriate action before the proper courts. 
SEC. 9. [SI COOPERATIVE ADJUDICATION BOARD. - 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 WHO HAVE BEEN 
ENGAGED IN THE PRACTICE OF LAW FOR AT LEAST TWO (2) YEARS. 
THE NATIONAL COOPERATIVE ADJUDICATION BOARD SHALL 
HAVE EXCLUSIVE ORIGINAL JURISDICTION OVER ALL CASES WHERE 
THE DISPUTE IS WITHIN A COOPERATIVE OPERATING NATIONWIDE 
WHETHER PRIMARY, SECONDARY OR TERTIARY COOPERATIVE AND 
INTER-REGIONAL DISPUTES BETWEEN OR AMONG COOPERATIVES. 
THE NATIONAL COOPERATIVE ADJUDICATION BOARD SHALL 
LIKEWISE HAVE THE EXCLUSIVE APPELATE JURISDICTION OVER 
DECISIONS, ORDERS AND RESOLUTIONS RENDERED/ISSUED BY THE 
REGIONAL COOPERATIVE ADJUDICATION BOARDS. 
THE REGIONAL COOPERATIVE ADJUDICATION BOARD IN EVERY 
REGIONAL OFFICE OF THE AUTHORITY SHALL BE COMPOSED OF 
THREE (3) MEMBERS. THE CHAIRMAN OF THE SAID BOARD SHALL BE 


A MEMBER OF THE PHILIPPINE BAR WHO HAS BEEN ENGAGED IN THE 
PRACTICE OF LAW FOR AT LEAST ONE (1) YEAR. 
THE REGIONAL COOPERATIVE ADJUDICATION BOARDS SHALL 
HAVE ORIGINAL EXCLUSIVE JURISDICTION OVER ALL INTER AND 
INTRA-COOPERATIVE DISPUTES BETWEEN COOPERATIVES WITHIN 
THEIR TERRITORIAL JURISDICTIONS, EXCEPT FOR THOSE CASES 
FALLING 
UNDER 
THE 
JURISDICTION 
OF 
THE 
NATIONAL 
COOPERATIVE ADJUDICATION BOARD. 
THE REGIONAL COOPERATIVE ADJUDICATION BOARDS SHALL 
ACQUIRE JURISDICTION OVER ALL COOPERATIVE CASES FALLING 
UNDER THEIR RESPECTIVE TERRITORIAL JURISDICTIONS ONLY UPON 
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 COOPIZRATIVE 
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: 
(1) 
PETITIONS OF COOPERATIVES FOR BANKRUPTCY AND 
INSOLVENCY; 
(2) 
COMPLAINTS F0.R 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) 
(2) 
CAUSE 
THE 
CONDUCT 
OF 
AN 
AUDIT, 
WHETHER 
FINANCIAL, 
MANAGEMENT OR OTHERWISE, 
ON THE 
AFFAIRS OF A COOPERATIVE INVOLVED IN APENDING 
CASE; 
REQUIRE THE ATTENDANCE OF WITNESSES AND/OR THE 
PRODUCTION OF BOOKS, RECORDS AND/OR DOCUMENTS, 
THROUGH 
THE 
ISSUANCE 
OF 
SUBPOENAS 
AD 
TESTIFICANDUM OR SUBPOENAS DUCES TECUM; 
AWARD DAMAGES, INCLUDING ATTORNEY'S FEES; 
(3) 
(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 DEPUTIZE 
ANY 
LAW 
ENFORCEMENT 
OFFICER 
IN 
THE 
IMPLEMENTATION 
AND 
ENFORCEMENT 
OF 
THEIR 
DECISIONS, ORDERS, OR RESOLUTIONS; AND 
PUNISH ANY PERSON, OFFICERS AND/OR MEMBERS OF A 
COOPERATIVE FOR ACTS CONSTITUTING DIRECT OR 
INDIRECT CONTEMPT 
( 6 )  
DECISIONS, ORDERS OR RESOLUTIONS OF THE REGIONAL 
COOPERATIVE ADJUDICATION BOARDS SHALL BE APPEALABLE TO 
THE NATIONAL 
COOPERATIVE 
ADJUDICATION 
BOARD 
WITHIN 
FIFTEEN (15) DAYS FROM RECEIPT THEREOF, OTHERWISE, THEY 
SHALL BECOME FINAL AND EXECUTORY. THE DECISIONS, ORDERS 
OR RESOLUTIONS OF THE NATIONAL COOPERATIVE ADJUDICATION 


BOARD SHALL BE APPEALABLE TO THE COURT OF APPEALS WITHIN 
FIFTEEN (1 5 )  DAYS FROM RECEIPT THEREOF. 
ONLY THE COURT OF APPEALS AND THE SUPREME COURT HAVE 
THE 
POWER TO 
ISSUE RESTRAINING ORDERS 
OR 
WRITS 
OF 
PRELIMINARY INJUNCTION AGAINST ANY PROCEEDINGS AND/OR 
DECISIONS, 
ORDERS OR 
RESOLUTIONS OF 
THE COOPERATIVE 
ADJUDICATION BOARDS WITHOUT PREJUDICE TO THE POWER OF THE 
NATIONAL COOPERATIVE ADJUDICATION BOARD TO ISSUE, IN THE 
EXERCISE OF ITS APPELATE JURISDICTION, RESTRAINING ORDERS, 
OR WRITS OF PRELIMINARY INJUNCTION AGAINST PROCEEDINGS 
AND/OR DECISIONS, ORDERS OR RESOLUTIONS RENDEREDIISSUED 
BY THE REGIONAL COOPERATIVE ADJUDICATION BOARDS. 
[Sec. 9. Power to Register Cooperatives. - The power to register 
cooperatives shall be vested solely on the Authority. The functions of the 
following department and agencies relating to the registration of cooperatives 
as such are hereby transferred to the Authority: 
(a) 
the Department of Agriculture; 
(b) 
(c) 
(d) 
the Sugar Regulatory Administration; 
the Bureau of Agricultural Cooperatives Development; 
the Department of Transportation and Communication; 
(e) 
(f) 
the National Electrification Administration; and 
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 
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 Offices 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 and one-fourth (1 I / )  months salary for every year of service. 
Service of six ( 6 )  months or more shall be considered as one (1) year in 
computing the years of service for severance pay and whenever applicable, 
other pertinent benefits under existing laws.] 
SECTION 10. [9] THE COOPERATIVE DEVELOPMENT COUNCILS. - 
THERE IS HEREBY CREATED A NATIONAL 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-OFFICIO 
CHAIRMAN; 
ONE (1) REPRESENTATIVE FROM EACH OF THE NATIONAL 
FEDERATIONS AND UNIONS OF COOPERATIVES; 
(2) 
(3) 
THREE 
(3) 
REPRESENTATIVES 
OF NON-GOVERNMENT 
ORGANIZATIONS 
WITH 
COOPERATIVE 
PROGRAMS 
APPOINTED BY THE CHAIRMAN 
FROM AMONG 
THE 
NOMINEES OF THE NON-GOVERNMENT ORGANIZATIONS; 
(4) 
ONE (1) 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 


( 5 )  
ONE 
(1) 
REPRESENTATIVE 
EACH 
FROM 
NATIONAL 
GOVERNMENT AGENCIES WITH COOPERATIVE PROGRAMS, 
GOVERNMENT 
FINANCIAL 
INSTITUTIONS 
AND 
THE 
GOVERNOR'S LEAGUE OF THE PHILIPPINES. 
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 
COOPERATIVE 
DEVELOPMENT 
COUNCIL, 
SEMI- 
ANNUALLY; THE PROVINCIAL, CITY AND MUNICIPAL COOPERATIVE 
DEVELOPMENT COUNCIL, QUARTERLY-. 
ACTUAL AND NECESSARY EXPENSES FOR THE MEETING OF THE 
COUNCILS MAY BE CHARGED TO THE FUNDS OF THE AUTHORITY 
SUBJECT TO USUAL ACCOUNTING AND AUDITING RULES AND 
REGULATIONS 
Section 11. [lo.] Transfer of Funds and Programs. - ALL LOAN FUNDS 
EXCEPT THE FUND FOR COOPERATIVE MARKETING PROJECT (CMP) 
THAT ARE IN THE POSSESSION OF THE AUTHORITY SHALL BE 
TRANSFERRED TO COOPERATIVE BANKS AS DETERMINED BY IT AND 
THE BANGKO SENTRAL NG PILIPINAS. 
[The Cooperative Development Loan Fund created under Presidential 
Decree No. 175, as amended, is likewise hereby transferred 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 likewise hereby transferred to the Authority. 
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 or federations for purposes of cooperative 
development 
In addition, the Cooperative Marketing Project as created under loan 
agreements which are now managed by the Department of Agriculture is 
likewise hereby transferred to the Authority.] 
Sec. 12. [ll.] Cooperatives 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 organizations, 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 of€ered by them may be eligible as 
credits for purposes of academic, professional and career advancements of their 
trainees. Existing training centers for cooperatives may qualify as non- 
government organizations under this Act. 
State colleges and universities shall provide technical assistance and 
guidance to cooperatives in the communities wherein they operate, [upon 
request]. 


Sec. 13. [12.] Cooperatives in the Banking System. - The promotion and 
development of cooperative banks as part of the Philippine banking system 
shall be a major concern of the Authority which shall undertake the necessary 
programs towards this end in collaboration with the BANGKO SENTRAL NG 
PILIPINAS [Central Bank of the Philippines] and the cooperative sector 
concerned. 
See. 14.[13.]. Rule-Making Authority. - The Authority is hereby 
authorized to promulgate, [after due public hearing and 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 (1 5) days after publication thereof in the Official Gazette 
or in two (2) newspapers of general circulation. [All subsequent amendments to 
the implementing rules and regulations shall undergo the same process. J 
[Section 14. 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 the Authority. If at the end of the three 
(3) year period herein, the said organization still do not qualify, it shall be 
unlawful for the organization to continue using the word "cooperative" in their 
names.] 
Sec. 15. 114.1 Information Campaign. - The Cooperative Development 
Authority is mandated to conduct a six (6) months information campaign on the 


provisions of this ACT, beginning three (3) months from the effectivity of this 
ACT. 
Sec. 16. [15.] Appropriations. - 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 SUMS AS MAYBE 
NECESSARY FOR ITS CONTINUED IMPLEMENTATION SHALL BE 
INCLUDED IN THE ANNUAL GENERAL APPROPRIATIONS ACT. [The 
funds needed to carry out the provisions of this Act shall be charged to the 
appropriations of the Bureau of Agriculture Cooperatives Development and the 
Regional Cooperative Development Assistance Offices to Region IX and XI1 
under the current General Appropriations Act an addition to the appropriations 
of other departmentlagenciesifunds whose functions/programs are transferred 
to the Authority: Provided, That in its initial year of operations, an additional 
amount 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 be necessary shall be included in the annual 
General Appropriations Act.] 
[Sec. 17. Transitory Provisions. - All cooperatives registered under 
Presidential Decree No. 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 of registration, copies of their articles of 
incorporation and by-laws, and their latest duly audited financial statements 
within one (1) year from the effectivity of the Act, otherwise, their registration 
shall be cancelled: Provided further, That cooperatives created under 
Presidential Decree No. 269, as amended by 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.] 
Sec. 17. 116.1 Repealing Clause. - All acts, PRESIDENTIAL DECREES, 
general orders, executive orders, letters of implementation, letters of 
instruction, regulations or circulars, or parts thereof, inconsistent with any 
provisions of this ACT are hereby repealed or modified accordingly. In case of 
doubt, the same shall be resolved in favor of the cooperatives. 
Sec. 18. [17.] Separability. - If for any cause any part of this ACT is 
declared unconstitutional, the rest of the provisions shall remain in force and 
effect. 
Sec. 19. [18.]. Effectivity. - This ACT shall take effect fifteen (15) days 
after its publication in the Official Gazette or in TWO (2) newspapers of 
general circulation. 
Approved.