Republic of the Philippines

House of Representatives
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

2650
HOUSE BILL NO.

Introduced by Hon. Sabiniano S. Canama
COOP-NATCCO PARTYLIST

EXPLANATORY NOTE

It is widely acknowledged that cooperatives play a crucial role in agrarian reform and
rural development. The Land Bank of the Philippines (LBP), which was originally created to
Support the agrarian reform program, has recognized this and has given prime importance to
cooperatives in its effort to support agrarian reform and rural development.

However, while the New Cooperative Code of the Philippines (RA 9520) has a chapter
containing special provisions relating to agrarian reform cooperatives (Chapter XI), Republic Act
No. 3844, otherwise known as the “Code of Agrarian Reform in the Philippines” as amended by
R.A. No. 7907, does not ensure the representation of cooperatives in the Board of the LBP.
Instead, Section 86 of the said law only provides that the President of the Philippines shall
appoint two (2) representatives of the private sector of the Board of the Land Bank.

This deprives the cooperative sector of the chance to ensure that their voice will be heard
in the highest policy-making body of the Land Bank and also prevents the LBP from fully
tapping the rich experience of the cooperative movement.

This bill seeks to remedy this situation by providing for the representation of
cooperatives in the Board of the LBP.

In view of the foregoing, the approval of this bill is earnestly sought

HON. SABINIANO 8S. CANAMA.
COOP NATCCO PARTY-LIST.


Republic of the Philippines

House of Representatives
Quezon City

EIGTHTEENT CONGRESS,
First Regular Session

2650
HOUSE BILLNO._

Introduced by Hon. Sabiniano S. Canama
COOP-NATCCO PARTYLIST

AN ACT MANDATING THE REPRESENTATION OF COOPERATIVES IN THE
BOARD OF DIRECTORS OF THE LAND BANK OF THE PHILIPPINES, AMENDING
THEREFORE REPUBLIC ACT NUMBER 3844, AS AMENDED

Be it enacted by the Senate and the House of Representatives of the Philippines in Congress
assembled.

SECTION 1. Section 86 Republic Act No. 3844, otherwise known as the “Code of Agrarian
Reform in the Philippines”, as amended by R.A. No. 7907 is further amended to read as follows:

SEC. 86. The Board of Directors; Membership; Per Diem. The affairs of and
business of the Bank shall be directed and its properly managed and preserved by a Board of
Directors consisting of [nine (9)] ELEVEN (11) members to be composed of the Secretary of
Finance, as [Chairman] CHAIRPERSON, the President of the Bank as [Vice-Chairman] VICE-
CHAIRPERSON, the Secretary of Agrarian Reform, the Secretary of Labor, and the Secretary
of Agriculture as ex-officio members. The President of the Philippines shall appoint two (2)
members of the Board who shall represent the agrarian reform beneficiaries: PROVIDED,
THAT AT LEAST ONE (1) OF THE SAID REPRESENTATIVES SHALL COME FROM
AN ORGANIZED AGRARIAN REFORM BENEFICIARIES FARMERS
COOPERATIVE, IF ANY, [and], ONE (1) MEMBER WHO SHALL REPRESENT THE.
COOPERATIVE SECTROR. PROVIDED, THAT THE REPRESENTATIVE SHALL
COME FROM THE NOMINEES OF THE NATIONAL COOPERATIVE FEDERATIONS
AND/OR UNIONS DULY REGISTERED WITH THE COOPERATIVES
DEVELOPMENT AUTHORITY, AND ONE (1) MEMBER WHO SHALL REPRESENT
[shall be elected from] the [shareholders] STAKEHOLDERS [coming from the public sector to
the extent that they may be entitled to two (2) seats in proportion to the outstanding capital stock]
FROM THE RURAL FINANCIAL SECTOR

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“No person shall be elected or appointed director of the Bank unless [he] THAT
PERSON is a natural bom citizen of the Philippines, not less that thirty-five (35) years of
age, of good moral character, and has attained proficiency, expertise and recognize
competence in one or more of the following: banking, finance, economics, agriculture,
agrarian reform, COOPERATIVES AND business management: Provided further, That
no director, shareholder or employee of any bank shall be eligible for election or
appointment as member of the Board of Directors of the Bank
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SECTION 2. All members of the Board of Directors at the time of the approval and effectivity of
this Act shall continue in office until the end of their term of office as defined in Section 86 of
R.A. 3844 as amended. At the end of their term, the President shall appoint the members of the
Board in accordance with this Act.

SECTION 3. Repealing Clause ~All laws, presidential decrees, executive orders in whole or in
Part, including the rules and regulations promulgated thereunder inconsistent with the provisions

of this Act, are hereby amended, repealed or modified accordingly.

SECTION 4. EFFECTIVITY - This Act shall take effect fifteen (15) days following its
Publication in the Official Gazette or in at least two (2) newspapers of general circulation,

Approved,

HON. SABINIANO S. CANAMA.

COOP NATCCOPARTY-LIST