THIRTEENTH CONGRESS OF THE REPUBLIC 1 
OF THE PHILIPPINES 
1 
First Regular Session 
1 
SENATE 
Senate Bill No. 
4 
Introduced by Senator Lacson 
EXPLANATORYNOTE 
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. 
P 
M. LACSON 
(J Senator 


TNIRTFiENTH CONGRESS OF THE REPUBLIC 1 
OF THE PHILlPPINES 
1 
First Regular Session 
1 
SENATE 
Senate Bill No. 
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. 
See. 2 [l.] 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 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. j2.1 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; 
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; 


(4 
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 
(e) 
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; 
(f) 
(8) 
(h) 
(0 
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]; 
Ci) 
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; 
(1) 
Formulate and 
adopt continuing policy initiatives 
consultation with the cooperative sector through public 
hearing; 
EVOLVE AND IMPLEMENT CAPABILITY BUILDING 
AND EMPOWERING PROGRAMS TO DEVELOP THE 
CAPABILITIES OF OFFICIALS AND EMPLOYEES OF 
(k) 
(m) 
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; 


(4 
DEVELOP APPROPRIATE TRAINING TECHNIQUES, 
METHODOLOGIES, MATERIALS AND AIDS AND 
DISSEMINATE THE SAME; 
(PI 
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; 
INSPECT, INVESTIGATE, INQUIRE INTO, AUDIT OR 
CAUSE TO BE AUDITED COOPERATIVES FALLING 
UNDER ITS JURISDICTION; 
(9) 
(0 
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 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 
AUTHOR~TY MAY FROM TIME TO TIME EXTEND 
THE PERIOD SPECIFIED IN SUCH ORDER BUT NOT 
TO EXCEED TWO (2)YEARS OR SUCH EXTENSION; 
ENLIST THE SUPPORT OF ANY AGENCY OF THE 
OVERNMENT 
IN 
THE 
EXERCISE 
OF 
ITS 
POWERSAND 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, 
C MMITTEES OR DIRECTORS OF COOPERATIVES 
AND BETWEEN OR AMONG COOPERATIVES; 
P 


See. 5. [4.] Governing Body. - The Authority shall be governed by a 
Board of Administrators consisting of a Chairman and SEVEN (7) [a six 
(6)J 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 
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 
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 
that 
TWO 
THOUSAND 
PESOS 
(P2,OOO.OO) 
OR 
IMPRISONMENT OF NOT MORE THAN TEN (10) 
DAYS, OR BOTH [five hundred pesos (PSOO.OO)] . Acts 
constituting indirect contempt as defined under Rule 71 
of the Revised Rules of Court shall be punished in 
accordance with the said Rule. 


AND MEMBERS OF THE BOARD OF ADMINISTRATORS SHALL 
CONTfNUE 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. [5.] 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 (10) 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 
A natural born citizen of the Philippines; 


(e) 
Must be a resident of the region he represents for at least 
TWO (2) [five (5)] years. 
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. 
Sec. 7, I6.J 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. [7.] Organization of the Azrthority. - 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: 
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. 
THE TECHNICAL DEPARTMENTS, 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 
ANI) 
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. 


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 
I 
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 ADJUDICATIONBOARD. - 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 JUkISDICTION 
OVER DECISIONS, ORDERS AND RESOLUTIONS RENDERED/ISSUED 
BY THE REGIONAL COOPERATIVE ADJUDICATION BOARDS. 
%HE 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 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 
PETITIONS OF COOPERATIVES FOR BANKRUPTCY AND 
INSOLVENCY; 
COMPLAINTS FOR VIOLATIONS OF THE PROVISIONS OF 
REPUBLIC ACT NO. 6938 AND REPUBLfC 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 EXERCISING SUCH RIGHTS AND/OR 
OFFICES. 
AID 
OF 
THEIR 
ADJUDICATIVE 
FUNCTIONS, 
THE 
COOPERATIVE ADJUDICATION BOARDS MAY EXERCISE ANY OR 
ALL OF THE FOLLOWING: 
(1) 
AWARD DAMAGES, INCLUDING ATTORNEY'S FEES; 
(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; 
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 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 (15) 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 
RENDEREDDSSUED 
BY 
THE 
REGIONAL 
COOPERATIVE 
ADJUDICATION BOARDS. 
[See. 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 Communication; 
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 ?4) months 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 pertinent benefits under existing laws.] 
SECTION 
10. 
f9] 
THE 
COOPERATIVE 
DEVELOPMENT 
COUNCILS. 
- 
THERE 
IS 
HEREBY 
CREATED 
A 
NATIONAL 
DEVELOPMENT COUNCIL WHICH SHAGL 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 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 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 offered 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. I12.J 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. 
Sec. 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 (15) 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.] 
[Section 14. Prohibiti,on. - 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. 
[14.] 
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 department/agencies/funds 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. [16.] 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. 
See. 19. [lS.]. Effectivity. - This ACT shall take effect fifteen (15) 
days after its publication in the Official Gazette or in TWO (2) newspapers 
of genetal circulation. 
Approved.