REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
1 
SENATE 
S.B. No. 
. $  
Introduced by SENATOR LUISA "LOP P. 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 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 
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. 
This 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 handIe 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. 
. 
LUISA "LQI" 
EJERCITQ ESTRADA 
Senator 


THIRTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
1 
First Regular Session 
SENATE 
S.B. No. 
Introduced by SENATOR LUISA “LOI” P. EJERCITO ESTRADA 
~~~ 
~ 
[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 
RESPONSLBILITIES, 
RATIONALIZING 
GOVERNMENT 
POLICIES 
AND 
AGENCIES WITH COOPERATIVE 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 THEREFOR, AND FOR OTHER PURPOSES] 
AN ACT 
REVISING REPUBLIC ACT NUMBERED 6939, CREATING THE COOPERATIVE 
DEVELOPMENT AUTHORITY 
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.” 
Section [1.]2. - Declaration 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 
in 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 
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. [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 AND SUPERVISION 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 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 
cooperatives 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 of cooperatives; 
(e) 
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; 
(f) 
Require all cooperatives, their federations and unions to submit their 
annual financial statements, duly audited by a certified public accountant, 
and general information sheets; 
(g) 
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) 
[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.] ALL 
EXISTING EXTENSION OFFICES SITUATED IN DAGUPAN, 
TUGUEGARAO, 
CORDILLERA 
ADMINISTRATIVE 
REGION, 
PAMPANGA, MANILA, CALAMBA, NAGA, ILOILO, CEBU, 
TACLOBAN, ZAMBOANGA, CAGAYAN DE ORO, DAVAO, 
ICIDAPAWAN AND CARAGA ARE HEREBY CONVERTED INTO 
REGIONAL OFFICES; 


('j) 
Impose and collect reasonable fees and charges in connection with the 
registration of cooperatives; 
(k) 
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; 
(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 
GOVERNMENT AGENCIES (NGAs), AND LOCAL GOVERNMENT 
UNITS (LGUs) ON COOPERATIVE PROMOTION9 ORGANIZATION 
AND DEVELOPMENT; 
(N) 
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 PROGRAMS UNDERTAKEN BY ALL INSTITUTIONS 
SUCH 
AS 
THE 
ACADEME, 
THE 
NON-GOVERNMENT 
ORGANIZATIONS, 
NATIONAL 
GOVERNMENT 
AGENCIES. 
LOCAL 
GOVERNMENT 
UNITS AND COOPERATIVES 
TO 
DETERMINE THEIR RELEVANCE9 EFFECTIVENESS AND DIRECT 
MODIFICATIONS WHENEVER NECESSARY; 


(Q) 
INSPECT, INVESTIGATE, INQUIRE INTO OR AUDIT OR CAUSE 
TO BE AUDITED 
COOPERATIVES FALLING UNDER ITS 
JURISDICTIONS; 
(R) 
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 APPOINT A SUITABLE PERSON 
OR PERSONS TO DIRECT, SUPERVISE AND MANAGE THE 
AFFAIRS OF THE COOPERATIVE ON SUCH TERMS AND 
CONDITIONS AS 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 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) YEARS; PROVIDED FINALLY, 
THAT THE AUTHORITY MAY FROM TIME TO TIME EXTEND 
THE PERIOD SPECIFIED IN SUCH ORDER BUT NOT TO EXCEED 
TWO YEARS FOR 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 OF THE 
PROVISIONS 
HEREOF, DECIDE 
ALL 
DISPUTES 
BETWEEN/AMONG MEMBERS, OFFICERS, COMMITTEES OR 


DIRECTORS 
OF 
COOPERATIVES AND 
BETWEEN/AMONG 
COOPERATIVES; 
(U) 
INITIATE COMPLAINTS FOR VIOLATIONS OF COOPERATIVE; 
LAWS AND BY-LAWS BEFORE THE REGULAR COURTS; 
[(m)](V)Adopt rules and regulations for the conduct of its internal operations; 
[(n)](W)Submit an annual report to the President and Congress on the state of the 
cooperative movement; and 
([o])(X)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 or inquiry with a fine of not more than [five hundred pesos 
(PSOO.OO)] TWO THOUSAND PESOS (P2,OOO.OO) or imprisonment of 
not more than ten (10) days, or both. Acts constituting indirect contempt 
as defined under Rule 71 of the Rules of Court 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 a Chairman and [a six (6)] SEVEN (7) members to be 
appointed by the President, all of whom shall be chosen fi-om among the nominees of the 
cooperative sector with two (2) representatives each fi-om 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 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:] 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. The Chairman and members SHALL HAVE THE 
RANK 
AND 
PRIVILEGES 
OF 
DEPARTMENT 
OF 
SECRETARY AND 
UNDERSECRETARIES, RESPECTIVELY, ANI) 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. 
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] POSSESSES the following qualifications: 
(a) 
(b) 
A natural bom Filipino citizen of legal age; 
A bachelor's decree 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 (10) years of experience in cooperatives 
either as an officer of a cooperative or a govemment 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. 
(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. 
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 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 [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 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. 
SECTION [7.]8. - Organization of the Authority. - [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 DEPARTMENTS9 THE NATIONAL 
COOPERATIVE ADJUDICATION BOARD, AND THE REGIONAL AND FIELD 
OFFICES. 
(A) 
THE SERVICE OFFICES, WHICH SHALL BE HEADED BY 
DIRECTORS, SHALL BE THE FOLLOWING: 
PLANNING SERVICE CONSISTING OF THE MANAGEMENT 
INFORMATION SYSTEM DIVISION AND THE SPECIAL 
PROJECTS DIVISION; 
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. 
(B) 
THE TECHNICAL DEPARTMENTS9 WHICH SHALL BE HEADED 
BY DIRECTORS, SHALL BE THE FOLLOWING: 
THE 
COOPERATIVE 
DEVELOPMENT 
DEPARTMENT 
CONSISTING 
OF 
THE 
COOPERATIVE 
STANDARDS 
DIVISION, 
THE 
COOPERATIVE 
PROJECT 
DEVELOPMENT 
ASSISTANCE DIVISION, AND THE 
COOPERATIVE 
MONITORING 
AND 
EVALUATION 
DIVISION; 
THE 
COOPERATIVE 
EDUCATION 
AND 
TRAINING 
DEPARTMENT CONSISTING OF THE 
COOPERATIVE 
RESEARCH 
AND 
INFORMATION 
DIVISION, 
THE 
CURRICULUM 
AND 
STANDARDS 
DIVISION, 
THE 
MATERIALS 
DEVELOPMENT 
DIVISION, 
AND 
THE 
COOPERATIVE TRAINING INSTITUTE; 
THE 
LEGAL 
AND 
REGISTRATION 
DEPARTMENT 
CONSISTING OF THE LEGAL DIVISION, AND THE 
REGISTRATION AND REGULATORY DIVISION. 


THE 
NATIONAL 
COOPERATIVE 
ADJUDICATION 
BOARD 
CONSISTING OF THE LEGAL RESEARCH DIVISION AND THE 
SUPPORT DIVISION; 
THE REGIONAL OFFICES HEADED BY REGIONAL DIRECTORS 
SHALL EACH CONSIST OF THE COOPERATIVE REGULATORY 
DIVISION, COOPERATIVE EDUCATION AND THE TRAINING 
DIVISION9 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 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 
RESPONSIBILITIES ALREADY HEREIN PROVIDED. 
[Section 8. - Mediation and Conciliation. - Upon request of either or 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 non-resolution shall be issued by the 
commission prior to the filing of appropriate action before the proper courts.] 
SECTION [8.] 9. COOPERATIVE ADJUDICATION 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 BOARD SHALL HAVE 
EXCLUSIVE ORIGINAL JURISDICTION OVER ALL CASES WHERE THE 


DISPUTE IS WITHIN A COOPERATIVE OPERATING NATIONWIDE WHETHER 
A PRIMARY, SECONDARY OR TERTIARY COOPERATIVE AND INTER- 
REGIONAL DISPUTES BETWEEN OR AMONG COOPERATIVES. 
THE NATIONAL COOPERATIVE ADJUDICATION BOARD SHALL 
LIKEWISE HAVE THE EXCLUSIVE APPELLATE JURISDICTION OVER 
DECISIONS, ORDERS AND RESOLUTIONS WNDEREDDSSUED 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 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 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 
THELR 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 
THE 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: 
(1) 
PETITIONS OF COOPERATIVES FOR BANKRUPTCY AND 
INSOLVENCY; 


COMPLAINTS FOR VIOLATIONS OF THE PROVISIONS OF 
REPUBLIC ACT NO. 6938 AND REPUBLIC ACT NO. 6939, AS 
AMENDED, EXCEPT THOSE PENAL IN NATURE; 
PETITIONS 
INQUIRING 
INTO 
THE 
LEGAL 
RIGHTS 
OF 
COOPERATIVES, DIRECTORS OR OFFICERS FOR HOLDING 
AND/OR EXERGISING SUCH RIGHTS AND/OR OFFICES. IN AID 
OF THEIR ADJUDICATIVE FUNCTIONS, THE COOPERATIVE 
ADJUDICATION BOARDS MAY EXERCISE ANY OR ALL OF THE 
FOLLOWING: 
AWARD DAMAGES, INCLUDING ATTORNEY'S FEES; 
CAUSE THE CONDUCT OF AN AUDIT, WHETHER FINANCIAL, 
MANAGEMENT OR OTHERWISE, ON THE AFFAIRS OF A 
COOPERATIVE INVOLVED IN A PENDING 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; 
ISSUE ADMINISTRATIVE ORDERS, SUCH AS CEASE AND DESIST 
ORDERS, PERTAINING TO CONTROVERSIES BROUGHT BEFORE 
THEM; 
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. 
DECISIONS, 
ORDERS 
OR 
RESOLUTIONS 
OF 
THE 
REGIONAL 
COOPERATIVE ADJUDICATION BOARDS SHALL BE APPEALABLE TO THE 
NATIONAL COOPERATWE ADJUDICATION BOARD WITHIN FIFTEEN (1 5 )  


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 
WITHIN FIFTEEN (15) DAYS FROM RECEIPT THEREOF TO THE COURT OF 
APPEALS ONLY ON QUESTIONS OF LAW. 
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 ECERCISE OF ITS APPELLATE 
JURISDICTION, RESTRAINING ORDERS, OR WRITS OF PRELIMINARY 
INJUNCTION AGAINST PROCEEDINGS AND/OR DECISIONS, ORDERS OR 
RESOLUTIONS RENDERED/ISSUED BY THE REGIONAL COOPERATIVE 
ADJUDICATION BOARDS. 
[Section 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; 
(e) 
(f) 
the Bureau of Agricultural Cooperatives Development; 
the Department of Transportation and Communications; 
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 1/4) 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 
retirement benefits under existing laws.] 
SECTION [9] 10. - THE COOPERATIVE DEVELOPMENT COUNCILS. - 
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: 
THE CHAIRMAN OF THE AUTHORITY AS THE EX OFFICIO 
CHAIRMAN; 
ONE (1) REPRESENTATIVE FROM EACH OF THE NATIONAL 
FEDERATIONS AND UNIONS OF COOPERATIVES; 
THREE 
(3) 
REPRESENTATIVES 
OF 
NATIONAL 
NON- 
GOVERNMENT 
ORGANIZATIONS 
WITH 
COOPERATIVE 
PROGRAMS APPOINTED BY THE CHAIRMAN FROM AMONG 
THE NOMINEES OF THE NON-GOVERNMENT ORGANIZATIONS; 
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 
ONE 
(1) 
REPRESENTATIVE 
EACH 
FROM 
NATIONAL 
GOVERNMENT AGENCIES WITH COOPERATIVE PROGRAMS, 
GOVERNMENT 
FINANCIAL 
INSTITUTIONS 
AND 
THE 
GOVERNORS' 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 FOLLOW§: 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 [lo] 11. - Transfer of Funds and Programs. - [The Cooperative 
Development Loan Fund created under Presidential Decree No. 175, as amended, is 
likewise hereby transferred to the Authority. 
The Fund for Management Training and Assistance Program under 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.] ALL LOAN 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 [ll.] 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 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 
offered by them may be eligible as credits for the 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]. 


Section [12.] 13. 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 program towards this 
end in collaboration with the [Central Bank of the Philippines] BANGKO SENTRAL NG 
PILIPINAS and the cooperative sector concerned. 
Section [ 13.1 14. Rule-Malting 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) newspapers of general circulation. 
[All subsequent amendments of the implementing rules and regulations shall undergo the 
same process.] 
[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 the three 
(3) years within which to qualify and to register with the 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 [ 14.1 1 5. 
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. 
Section [15.] 16. Appropriations. - [The funds needed to carry out the provisions 
of this Act shall be chprged to the appropriations of the Bureau of Agriculture 
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 departments/agencies/funds whose functions/programs are 
transferred to the Authority: Provided, That in its initial year of operations, an 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 be 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 
SUMS 
AS 
MAYBE 
NECESSARY 
FOR 
ITS 
CONTINUED 
IMPLEMENTATION SHALL BE INCLUDED IN THE ANNUAL GENERAL 
APPROPRIATIONS ACT. 
[Section 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-laws9 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 said 
cooperatives.] 
Section [ 16.1 17. Repeals. - All acts, PRESIDENTIAL DECREES, general orders, 
executive orders, letters of implementation, 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 (I 17.1 18. Separability. - If for any cause any part of this ACT is declared 
unconstitutional, the rest of the provisions shall remain in force and effect. 
Section [18.] 19. 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, 
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