San Jose Community College

San Jose Malilipot Albay

College of Arts and Sciences

“Money at the service of life can be managed in the right way by cooperatives, on condition that
it is a real cooperative where capital does not have command over men but men over capital”.

-Pope Francis-

LORIELYN APON BOTABARA,LPT

INSTRUCTOR

Republic of the Philippines

 Congress of the Philippines
Metro Manila

Seventeenth Congress

Third Regular Session

Begun and held in Metro Manila,on Monday,the twenty-third day of July,two

thousand eighteen.

REPUBLIC ACT NO.11364

An act reorganizing and strengthening the cooperative development

authority,repealing for the purpose Republic Act No.6939,creating the cooperative
development authority.

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

congress assembled:

SECTION 1: Short Title-This Act shall be known as the “Cooperative Development

Authority Charter of 2019”.

SECTION 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 fulfilment of the
mandate in section 15,Article XII of the 1987 Constitution.
SECTION 3.Cooperative Development authority(CDA)-The CDA created
under Republic Act No.6939 hereinaffter referred to as the authority,is hereby
strengthened and reorganized to carry out the provisions of this act and those of
Republic Act No. 6938,as amended by Republic Act No.9520,otherwise known as
the”Philippine Cooperative Code of 2008”.
SECTION 4-Powers,Functions, and Responsibilities-The Authority shall have
the following powers and functions.
(a)Develop and formulate
(b)Formulate,adopt and implement integrated
(c) Register all cooperatives including amendments to the Articles of Cooperation
and Bylaws (ACBL),divisions,merger,and consolidation:
(d)Authorize the establishment of branches and satellite offices of cooperatives
(e) Issue Certificate of Recognition to organized Laboratory Cooperatives.
(f) Exercise Supervision and jurisdiction over all types and categories of cooperatives
registered with the Authority.
(g) Require submission of annual reports
(h)Create an information system from the reports and other documents submitted by
cooperatives.
(i)Promulgate and issue guidelines
(j) Prescribe and collect reasonable fees,fines or charges
(k)Require registered cooperatives
(l)Grant awards,recognition and incentives to cooperatives
(n)Conduct regular inspection or examination
(o) Develop and conduct management and training programs
(p)Conduct investigations,file necessary charges,
(q)Order the suspension or cancellation of the Certificate of Registration
(r) Order the dissolution and liquidation of cooperatives
(s) Compel the cooperative to call a general or representative assembly
(t)Hear and decide inter cooperatives and intra cooperative disputes
(u)Adopt and implement a dispute resolution mechanism
(v)Issue cease and desist orders to cooperative
(w)Issue subpoena ad testificandum and subpoena duces tecum
(x) Cite for contempt
(y)Implement and enforce its decision
(z)Recognize sectoral apex organizations and national alliance

SECTION 5- The Board of Directors-The authority shall have a Board of

Directors ,which shall be the collegial policy-making body of the authority.

(a) Credit and Financial Services,Banking and Insurance;

(b) Consumers,Marketing,Producers and Logistics;
(c) Human Services: Health,Housing ,Workers and Labor Service;
(d) Education and Advocacy;
(e) Agriculture,Agrarian,Aquaculture,Farmers,Dairy and Fisherfolks and;
(f) Public Utilities: Electricity,Water,Coomunications,and Transport

The Secretaries of the DTI and the Department of the Inferior and local Government
(DILG) shall serve as ex officio

SECTION 6-Powers and Functions of the Board-The board as a collegial body

shall be responsible for policy formulation,strategic planning and direction setting of
the agency and shall exercise the following powers and function:

(a) Formulate policies,rules and regulation consistent with the provisions of

Republic Act No.9520 and this Act;
(b) Adopt IRR for the conduct of the internal operations of the Authority;
(c) Organize the operating structure and functions of the authority;
(d) Approve the work and financial plan of the authority
(e) Approve annual,medium term and long term cooperative development
plans
(f) Provide overall direction to the Authority
(g) Conduct regular policy consultations
(h) Decide cases involving cooperative
(i) Authorize the Chairperson or the administrator to enter into a contracts or
agreements in behalf of the Authority;
(j) Approve and submit the annual proposed budget of the authority to the
President of the Philippines through the DBM and
(k) Formulate rules and regulations and exercise such other powers as may be
required to implement the objectives of this Act
SECTION 7-Qualifications of the Chairperson and the Members of the
Board-the chairperson and the members of the Board must possess the following
qualifications:

(a) Natural born Filipino citizen;

(b) Holder of any bachelor’s degree;
(c) with five (5) years experience as an officer of a cooperative in the cluster
one represents ;and
(d)Must be a resident of the Philippines for at least five (5) years prior to
appointment.

SECTION 8- Term of Office- The Chairperson and members of the Board shall
serve for a term of six (6) years ,without reappointment: Provided ,that the
Chairperson or a Member of the Board who has served the unfinished term of the
one he/she succeeded and has served for less thah one half (1/2) of the full term shall
be eligible for reappointment.

SECTION 9- Removal From Office –The Chairperson and the Members of the
Board may be removed from office for cause.
The person appointed for the unexpired term shall be eligible for reappointment
:Provided ,that the unexpired term is less than one –half of the prescribed term.

SECTION 10-Meetings of the Board-The board shall meet at least once a month for
the transaction of its regular business.

SECTION 11- Office of the Administrator and the Deputy Administrators-

The administrator of the Authority shall be appointed by the President of the
Philippines ,as recommended by the Board of Directors ,

There are five (5) Deputy Administrators appointed by the Board of Directors who
shall assist the Administrator,and who will be charged with the following specific
concerns:
(a) General Administration and Support Services
(b) Institutional Development
(c) Legal Affairs ;
(d) Registration,Supervison and Examination and
(e) Credit Surety Fund (CSF)

SECTION 12-Qualifications of the Administrator-The Administrator

must possess the following qualifications:

(a)Natural born Filipino citizen;

(b) Holder of any Bachelor,s degree;
(c) Must possess the necessary civil service eligibility ;and
(d)With five (5) years experience as an officer of a cooperative or official or
employee in a government office or NGO dealing with cooperatives.

SECTION 13-Powers and Functions of the Administrator-The

administrator of the Authority shall have the following powers and functions:
 (a) Prepare,consolidate and submit periodic reports for the consideration of
the Board:
(b) Implement a human resource management system in accordance with
existing civil service laws,rules and regulations that will promote
professionalism and excellence in accordance with sound principles of
management;
(c) Prepare the proposed annual and supplemental budget of the authority for
the consideration and approval of the Board;
(d) Submit report to the President of the Philippines and Congress on the
performance and accomplishment of the Authority on an annual basis;
(e) Appoint personnel lower than the position of Deputy Administrators;
(f) Represent the Authority in all undertakings and where its presence is
required:and
(g) Perform such other functions as may be required by law.

SECTION 14-Registration for Tax Exemption-The Authority shall furnish

the Bureau of Internal Revenue (BIR),LGUs which include provinces,highly-
urbanized and independent cities,and other concerned agencies a certified list of duly
registered cooperatives for purposes of processing tax exemptions.

SECTION 15-Prohibition-Except as provided for under Article 130 of Republic Act

No.9520,the use by any person or organization of the word “cooperative” “coop”,
“co-op” and “koop” in their business name, unless duly registered with the Authority
,shall be prohibited and shall be penalized under Article 140 of Republic Act
No.9520.

SECTION 16-Settlement of Disputes –As far as practicable,disputes between and

among members,officers,and directors of cooperatives,and between and among
cooperatives shall be settled in accordance with Article 137 of Republic Act
No.9520,and Republic Act No.9285,and Section 4(u) of this Act.

SECTION 17-Training Standards for Cooperative Officers and Members-

The Authority, in partnership with learning and training institutions with the
cooperative sector,shall formulate standards of training requirements for cooperative
officers and members to ensure compliance thereof.

SECTION 18-Partnership with the Cooperative Sector-A strong partnership

between the Authority and the cooperative sector and the academe shall be
established in implementing the developmental functions of the Authority.

SECTION 19-Cooperatives in the Education System-The

history,philosophy,concepts,values,principles and practices of cooperatives and their
role in nation building,shall be part of the curriculum of both in formal and
nonformal education.

SECTION 20-Cooperatives in the Agriculture Sector and Fishery Sector-

The promotion and development of agricultural,agrarian and aqua
cooperatives:farmers ,dairy and fisherfolks and, in coordination with the Department
of Agriculture (DA) and its attached agencies and government-owwned and
controlled corporations (GOCCs),Department of Agrarian Reform (DAR),National
Commission on Indigenous Peoples (NCIP) and other government agencies shall be a
priority program of the Authority to ensure food security and reduce rural poverty.

SECTION 21-Cooperatives in the Banking System-The promotion and

development of cooperative bank,as part of the banking system and of financial
service cooperatives as defined in Republic Act No.9520,shall be a special concern of
the Authoritywhich shall undertake the necessary program in collaboration with the
Bangko Sentral ng Pilipinas (BSP) and the cooperative sector concerned.

SECTION 22- Cooperatives Engaged in Service Covered by Other laws-

Registered cooperatives shall secure the necessary licenses,franchises,certificates of
authority and permits from other appropriate agencies with jurisdiction over their
activities,if required by other existing laws,rules and regulations.

SECTION 23-Reorganization of the Authority-The Authority shall be

reorganized within one hundred twenty (120) days from the effectivity of this Act in
accordance with Republic Act No.6656,otherwise known as the “Act to Protect the
Security of Tenure of Civil Service officers and Employees in the Implementation of
Government Reorganization”.

SECTION 24-Transitory Provisions- Upon the effectivity of this Act, the

personnel of the Authority shall,unless removed for cause and after due process,
continue to perform their duties and responsibilities without diminution of their
rank, salaries and other emoluments.

SECTION 25-Appropriations-The amount necessary to implement this Act shall

be charged against the current year’s budget of the CDA, Thereafter, the amount
necessary for its continued implementation shall be included in the annual General
Appropriations Act.

SECTION 26-Implementing Rules and Regulations-The Board shall, in

consultation with the cooperative sector and other concerned government
agencies,formulate the IRR within (90) days upon the effectivity of this Act .The IRR
shall take effect within (15) days after publication in the Official Gazette or in two (2)
newspapers of general circulation.All subsequent amendments to the IRR shall also
be published before taking effect.

SECTOR 27-Information Campaign-The Authority is mandated to conduct a

massive information campaign on thr provisions of this Act upon its effectivity.

SECTOR 28-The Joint Congressional Oversight Committee on

Cooperatives (JCOCC)-The joint Congressional oversight committee created under
Article 138 of Republic Act No.9520 shall review and monitor the implementation of
this Act.

SECTION 29-Repealing Clause-Republic Act No.6939,creating the “Cooperative

Development Authority”, is hereby nepealed.All other laws,decrees,executive
orders,rules and regulations or parts thereof inconsistent with the provisions of this
Act are hereby amended or modified accordingly.
SECTION 30-Separability Clause-In for any clause,any part of this Act is declared
unconstitutional ,the rest of the provisions shall remain in full force and effect.

SECTION 31-Effectivity-This Act shall take effect fifteen (15)days after its
publication in the Official Gazette or in at least two (2) newspapers of general
circulation.

PROPOSED DRAFT OF THE IMPLEMENTING RULES

 AND REGULATIONS OF R.A. NO. 11364 OR
OTHERWISE KNOWN AS THE "COOPERATIVE
DEVELOPMENT AUTHORITY CHARTER OF 2019"
As part of the compliance of Section 26 of R.A. No. 11364 or otherwise
known as the Cooperative Development Authority Charter of 2019, which
provides that, “the Board shall, in consultation with the cooperative
sector and other concerned government agencies, formulate the IRR,
within ninety (90) days upon the effectivity of the Act. XXX.”, the
PROPOSED DRAFT OF THE IMPLEMENTING RULES AND REGULATIONS
OF R.A. NO. 11364 is now presented for the submission of comments, inputs,
suggestions and position paper from the cooperative sector. The said
comments, inputs, suggestions and position paper, indicating thereon the
name and address of the cooperative should be forwarded to
legal@cda.gov.ph, on or before November 6, 2019.

IMPLEMENTING RULES AND REGULATIONS OF REPUBLIC ACT NO.

11364, OTHERWISE KNOWN AS “COOPERATIVE DEVELOPMENT

AUTHORITY CHARTER OF 2019”

Pursuant to the authority vested upon the Board of Directors of the CDA
under Section 26 of the Act, otherwise known as the “Cooperative
Development Authority Charter of 2019”, the following Implementing Rules
and Regulations (IRR) are hereby promulgated:

RULE I

GENERAL PROVISIONS

Section 1. Title. – These rules and regulations shall be known as the

“Implementing Rules and Regulations of Republic Act No. 11364”.
Section 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
fulfilment of the mandate in Section 15, Article XII of the 1987 Constitution.
The State recognizes cooperatives as associations organized for the
economic and social betterment of their members, operating business
enterprises based on mutual aid, and founded upon internationally accepted
cooperative principles and practices. The State also recognizes the
Cooperative Development Authority as primarily responsible for the
institutional development and regulation of cooperatives through partnership
with the cooperative sectors and the academe. Accordingly, the State

recognizes the right of the cooperatives to initiate and foster within their own
ranks cooperative promotion, organization, training, information gathering,
audit and support services, with government assistance where necessary.
In furtherance of this policy, the National Economic and Development
Authority (NEDA) and the Department of Trade and Industry (DTI) shall
include the promotion of growth and expansion of cooperatives as major and
indispensable components of national development plans. The Department of
Finance (DOF) and the Department of Budget and Management (DBM) shall
 provide the mechanism to ensure availability of resources to implement such
plans.
The government and all its branches, subdivisions, instrumentalities
and agencies shall continue to provide technical guidance, financial
assistance and other services to enable the cooperatives to develop into viable
and responsive economic enterprises towards a strong cooperative movement,
free from condition that infringes upon the objectives and character of
cooperatives. The State shall, except as provided in this Act, maintain the
policy of non-interference in the management and operations of cooperatives.

RULE II

DEFINITION OF TERMS

Section 1. Definition of Terms. – For purposes of this Implementing Rules

and Regulations, the following terms are defined:
R.A. No. 9520 – refers to an Act amending the Cooperative Code of the
Philippines to be known as the "Philippine Cooperative Code of 2008".
Adjudication – refers to the authority to hear and decide cases and to
enforce decisions in accordance with law.
Alternative Dispute Resolution – refers to any process or procedure used
to resolve a dispute or controversy other than by adjudication of a
presiding judge of a court or an officer of a government agency, as defined
by R.A. No. 9285 or the “Alternative Dispute Resolution Act of 2004”, in
which a neutral third party participates and assist in the resolution of
issues, which includes arbitration, mediation, conciliation, early neutral
evaluation, mini-trial, or any combination thereof.
Arbitration – refers to a voluntary dispute resolution process in which one
or more arbitrators resolve a dispute by rendering an award.
Authority – refers to the Cooperative Development Authority, a
government agency created by virtue of Republic Act No. 6939, as amended
by Republic Act No. 11364, in compliance with the provisions of Section
15, Article XII of the Philippines Constitution of 1987 which mandates
Congress to create an agency to promote the viability and growth of

cooperatives as instruments of equity, social justice and economic

development.
Certificate of Authority – refers to the official document issued by the
Authority authorizing the establishment and operation of a cooperative
branch office.
Consultation – refers to a structured public engagement which involves
seeking, receiving, analyzing and responding to feedback from
stakeholders.
Cooperative – refers to an autonomous and duly registered association of
persons, with a common bond of interest, who have voluntarily joined
together to achieve their social, economic, and cultural needs and
aspirations by making equitable contributions to the capital required,
patronizing their products and services and accepting a fair share of the
risks and benefits of the undertaking in accordance with universally
accepted cooperative principles.
Cooperative Development Council (CDC) – refers to a multi-sectoral
 body created to provide a system with regard to policy consultation and
coordination of cooperative programs and projects to be established at the
national, regional, provincial, city, and municipal levels under the
supervision of the CDA.
Cooperative Development Office (CDO) – refers to a local government
office primarily responsible for the formulation and implementation of the
LGU’s cooperative development programs.
Federation – refers to a cooperative the members of which are primary
and/or secondary cooperatives engaged in a single line or multiple
business and registered with the Authority.
Inter-Cooperative Disputes – refers to disputes between one cooperative
and another cooperative.
Intra-Cooperative Disputes – refers to disputes between and among the
officers and members of the cooperative
Letter of Authority – refers to the official document issued by the
Authority authorizing the establishment and operation of a cooperative
satellite office.
Local Government Units (LGUs) – refer to the units of the local
government which are divided into three levels
– provinces and independent cities; component cities and municipalities;
and barangays. In one area, above provinces and independent cities, is
an autonomous region.

Recognition – refers to the act of acknowledging the existence or the

validity of a certain entity or organization without however, bestowing
juridical personality upon the latter.

Regional Development Council (RDC) – refers to the highest policy-

making body in the regional development and serves as the counterpart of

the NEDA-Board at the subnational level. The RDC is the primary

institution that coordinates and sets the direction of all economic and
social development efforts in the region. It also serves as a forum where
local efforts can be related and integrated with national development
initiatives.
Regulation – refers to the function of the Authority to issue and implement
laws, formal or informal order and subordinate rules.
Subpoena ad testificandum – refers to a process directed to a person
requiring him to attend and to testify at the hearing or the trial of an action,
or at any investigation conducted by competent authority, or for the taking
of his deposition.
Subpoena duces tecum – refers to a process directed to a person requiring
him to bring with him any books, documents, or other things under his
control necessary in the hearing or trial of an action, or at any investigation
conducted by competent authority.
Supervision – refers to the action or process of assessing the cooperative’s
overall condition in compliance with laws, rules and standards that will
ensure its safe and sound operation.
Training Standards – refer to set of rules of measures in the conduct of
training which may include curriculum design, training delivery, trainee
entry requirements, training tools and equipment and trainer
 qualifications.
Union – refers to a category of cooperative organized and joined by
cooperatives of all types and federations that will represent their interest
and welfare of at the provincial, city, regional, and national levels.

RULE III

MANDATE, POWERS, FUNCTIONS AND RESPONSIBILITIES

Section 1. Mandate - The CDA, as the lead agency in the development and
regulation of cooperatives, shall promote their viability and growth as
instruments of equity, social justice and economic development. It shall
primarily be responsible for the implementation of the provisions of Republic
Act (R.A.) No. 11364, otherwise known as “An Act Reorganizing or
Strengthening the Cooperative Development Authority, repealing for the purpose
RA No. 6939, creating the Cooperative Development Authority”; R.A. No. 9520,
otherwise known as the “Philippine Cooperative Code of 2008” and R.A. No.
10744, or otherwise known as the “Credit Surety Fund Cooperative Act of
2015” and their implementing rules and regulations.
Section 2. Powers, Functions and Responsibilities – In pursuance to the
foregoing mandate, the Authority shall have developmental, regulatory and
adjudicatory powers, functions and responsibilities as follows:

A. DEVELOPMENTAL

1. Formulate, adopt and implement integrated and comprehensive

plans and programs on cooperative development consistent with the
national policy on cooperatives and establish an integrated
framework on cooperative development for all government agencies;
2. Require registered cooperatives to develop business continuity plans
to address all kinds of risks;
3. Grant awards, recognition and incentives to cooperatives, cooperative
leaders and partners;
4. Administer all grants and donations exclusively intended for
cooperatives coursed through the Authority 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;
5. Develop and conduct management and training programs that will
provide members of cooperatives with the entrepreneurial
capabilities, managerial expertise, and technical skills required for
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, agriculture,
fishery and the economically depressed sectors;
6. Recognize sectoral apex organizations and a national alliance
representing all types and categories of cooperatives which shall
function as the overall consultative and coordinating body with the
Authority, for this purpose, the pertinent provisions of R.A. No. 9520
are hereby amended accordingly;
7. Establish a consultative mechanism consistent with Sec. 18 of the
 Act in order to provide the cooperative sector a system to ensure
participation on matters concerning government plans, programs,
and policies affecting cooperatives;
8. Coordinate with the provincial, city, or municipal cooperative offices
the adoption and implementation of national plans, programs and

policies of cooperative development, and to establish partnership in

the promotion organization, and development of cooperatives within
the jurisdiction of the local government units;
9. Establish the formation and organization of cooperative development
councils in the national, regional, provincial, city and municipal
levels in order to provide the cooperative movement a system for
policy consultation and program coordination in accordance with the
guidelines to be prescribed by the Authority;
10. Collaborate with concerned agencies that can provide technical,
professional, marketing assistance including trainings on transfer of
technology to ensure the viability, growth, competitiveness and
innovativeness of cooperatives giving special concern to agrarian
reform, agriculture, fishery and the economically depressed sectors;
11. Provide assistance on cooperative product development and
facilitate their marketing both in the domestic and international
market in coordination with the concerned agencies;
12. Designate a representative in the Regional Development Council
(RDC) and in its sectoral committees, as a regular voting member
thereof;
13. Establish linkages with the academe and other institutions, both
local and international, for education, training and research for
cooperatives;
14. Formulate, adopt and implement an educational and
technological exchange program both in domestic or international
levels; and
15. Formulate, adopt and implement, in a manner consistent with
Sec. 17 of the Act, a standard of training for cooperative officers or
members which shall focus on basic cooperative principles and
values, good governance, business and entrepreneurial management,
human resource management, risk management, conflict
management, and technical skills required for the efficient and
effective operations of the cooperatives.
B. REGISTRATION AND REGULATION
1. REGISTRATION
a. Register all cooperatives including amendments to the Articles of
Cooperation and By-Laws (ACBL), division, merger, and
consolidation;

b. Authorize the establishment of branch and satellite offices of

cooperatives; and
c. Issue Certificate of Recognition to organized Laboratory
Cooperatives.
2. SUPERVISION AND EXAMINATION
a. Exercise supervision and jurisdiction over all types and categories
of cooperatives registered with the Authority;
 b. Develop and formulate, in consultation with the cooperative sector
and other concerned institutions, appropriate regulations,
standards, rules, orders, guidelines and/or circulars to implement
the Act and R.A. No. 9520 to ensure the effective and sound
operation of cooperatives;
c. Require the submission of annual reports, audited financial
statements and such reports in compliance with the R.A. No.
9520, in such forms as may be prescribed by the Authority;
d. Promulgate and issue guidelines on the specific use and utilization
of statutory funds and obligations that will achieve the real intent
and spirit of establishing such funds and obligations for the
benefit of the cooperatives and communities they serve;
e. Prescribe and collect reasonable fees, fines or charges in the
performance of its registration and regulatory functions;
f. Compel the cooperative to call a general or representative
assembly, as deemed necessary, under the supervision of the
Authority with the participation of their respective cooperative
federations or unions, subject to the criteria or conditions to be
defined in the implementing rules and regulations issued for this
purpose;
g. Conduct regular inspection or examination of a cooperative in
accordance with the rules and regulations promulgated by the
Authority and, when deemed necessary, conduct examination and
investigation to protect the interest and welfare of the members of
cooperatives and the general public.
For this purpose, cooperative federations, unions, local
government units (LGUs), cooperative development offices (CDOs),
cooperative federations and unions, and the alliance of
cooperatives representing all types and categories of cooperatives
as the consultative and coordinating body of the Authority, may
be requested by the Authority to assist in the inspection and
examination of cooperative; and

j. Create an information system from the reports and other

documents submitted by cooperatives;

C. ADJUDICATION
1. Conduct investigations, file necessary charges, discipline, suspend
and/or remove erring officers and members of the cooperative for
violation of cooperative laws, rules, regulations, issuances of the
Authority, the articles of cooperation and by-laws, after due process,
and direct the general assembly to replace the suspended/removed
officers, in accordance with the rules and regulations as may be
promulgated by the Authority;
2. Hear and decide inter-cooperative and intra-cooperative disputes,
controversies and/or conflicts, without prejudice to filing of civil
and/or criminal cases by the parties concerned before the regular
courts: Provided, that all decisions of the Authority are appealable
directly to the Court of Appeals;
3. Adopt and implement a dispute resolution mechanism that will settle
conflicts between and among members, officers, and directors of
 cooperatives, and between and among cooperatives in accordance
with Article 137 of R.A. No. 9520, which amended R.A. No. 6938, and
R.A. No. 9285, otherwise known as the "Alternative Dispute
Resolution Act of 2004". However, in case of election related issues,
the aggrieved party may elevate the case for adjudication to the
Authority without undergoing through the alternative dispute
resolution;
4. Issue cease and desist orders to cooperatives and responsible parties
specified under Article 137 of R.A. No. 9520, and such other orders
and notices to preserve the assets and documents of the cooperatives
subject of the dispute or litigation;
5. Issue subpoena ad testificandum and subpoena duces tecum for the
parties to appear and produce documents in any proceedings of the
Authority and in appropriate cases, order the examination of all
documents, papers, files and records of any cooperative or person
under investigation as may be necessary for the proper disposition of
cases before it;
6. Cite for contempt any person guilty of misconduct in the presence of
the Authority which seriously interrupts any hearing or inquiry and
impose a fine of not more than Five thousand pesos (Php5,000.00) 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;

7. Implement and enforce its decision and orders with the assistance of
deputized law enforcement agencies or the local government unit
concerned as may be necessary;
8. Order the suspension or cancellation of the Certificate of Registration
of cooperatives and/or the revocation of the Letter of Authority
and/or Certificate of Authority to establish and operate satellite or

branch offices, respectively, after due notice and hearing for non-
compliance with lawful orders, rules and regulations of the Authority,

including the articles of cooperation and by-laws of the cooperative

subject to the conditions as defined in the implementing rules and
regulations of this Act; and
9. Order the dissolution and liquidation of cooperatives as well as the
transfer of all or substantially all of their assets and liabilities.
The Authority shall exercise such other powers and functions as may
be necessary to implement the provisions of R.A. No. 11364, R.A. No. 9520,
R.A. No. 10744 and other related laws.
Section 3. Institutional Strengthening. To enable the Authority to
implement its powers, functions and responsibilities, it shall exercise other
inherent powers such as but not limited to the establishment and
maintenance of a continuing educational and capability-building program for
the Authority.

RULE IV

GOVERNANCE AND ADMINISTRATION

 Section 1. Board of Directors. The Authority shall have a Board of Directors,
which shall be the collegial policy-making body of the Authority. It shall be
composed of the Chairperson, with the rank and privilege of an
Undersecretary, and six (6) members of the Board, with the rank and privilege
of an Assistant Secretary, all of whom shall be appointed by the President of
the Philippines and chosen among the nominees from the cooperative sector.
There shall be one board director from each of the following cluster of
cooperatives:
a. Credit and Financial Services, Banking, and Insurance;
b. Consumers, Marketing, Producers, and Logistics;
c. Human Services: Health, Housing, Workers, and Labor Service;
d. Education and Advocacy;
e. Agriculture, Agrarian, Aquaculture, Farmers, Dairy, and Fisherfolk;
and
f. Public Utilities: Electricity, Water, Communications, and Transport;
As far as practicable, there shall be at least one lawyer member of the
board, and gender balance shall be observed in the membership of the board.

The Secretaries of the Department of Trade and Industry (DTI) and the
Department of Interior and Local Government (DILG) shall serve as ex-officio
members of the board and may designate an alternate in a permanent
capacity with a rank of at least an Assistant Secretary and whose acts shall
be considered as that of the principal.
The said ex-officio members can participate in the deliberation during
Board meetings, but shall have no voting rights. They shall be entitled to
reasonable per diem to be determined by DBM subject to existing rules and
regulations.
Section 2. Powers and Functions of the Board. - The Board as a collegial
body shall be responsible for policy formulation, strategic planning and
direction setting of the agency and shall exercise the following powers and
functions:
a. Formulate policies, rules and regulations consistent with the
provisions of R.A. No. 11364, R.A. No. 9520 and R.A. No. 10744;
b. Adopt implementing rules and regulations for the conduct of the
internal operations of the Authority;
c. Organize the operating structure and functions of the Authority;
d. Approve the work and financial plan of the Authority;
e. Approve annual, medium-term and long-term cooperative
development plans of the Authority consistent with the over-all
socio-economic development policy of the national government;
f. Provide overall direction to the Authority, defining the respective
roles of the national government agencies (NGAS), LGUs, people's
organizations, private sector and non-government organizations
(NGOs) in the promotion and development of the cooperative sector;
g. Conduct regular policy consultations with the cooperative sector,
government agencies, LGUs, people's organizations, private sector,
NGOs, and other stakeholders on the Authority's policies, programs
and initiatives;
h. Decide cases involving cooperatives that are submitted to the Board
for resolution;
 i. Authorize the Chairperson or the Administrator to enter into
contracts or agreements in behalf of the Authority;

j. Approve and submit the annual proposed budget of the Authority to

the President of the Philippines through the DBM;
k. Appoint Deputy Administrators; and
l. Formulate rules and regulations and exercise such other powers as
may be required to implement the objectives of this Act.
In aid of policy formulation, each member of the Board of Directors
shall steer the cluster of which he/she represents and shall:
a. Propose to the Board policy initiatives in accordance to the national
development agenda, and/or agenda for the development of the
cluster he/she represents;
b. Spearhead and facilitate the conduct of regular consultations;
c. Be primarily responsible in encouraging peace, unity and solidarity
within the cluster he/she represents;
d. Conduct research for the development of the cluster;
e. Report to the Board his/her accomplishments; and
f. Represent the Authority in hearings or meetings in Congress and
other government institutions on issues affecting their respective
clusters.

Section 3. Appointment and Qualification of Administrator. The

Administrator of the Authority shall be appointed by the President of the
Philippines, as recommended by the Board of Directors and who shall have
the rank of an Assistant Secretary, who must possess the following
qualifications:
a. Natural-born Filipino citizen;
b. Holder of any bachelor's degree;
c. Must possess the necessary Civil Service Eligibility; and
d. With five (5) years of experience as an officer of a cooperative or official
or employee in a government office or NGO dealing with cooperatives.
Any person appointed as Administrator shall, upon appointment,
divest oneself of any direct or indirect pecuniary interest or dealings
with any cooperative.
Section 4. Powers and Functions of the Administrator. The Administrator
shall execute and administer the policies, decisions, orders and resolutions
approved by the Board and shall have the general executive direction and

supervision of the work and operation of the Authority. Specifically, the

Administrator shall have the following powers and functions:
a. Prepare, consolidate and submit periodic reports for the
consideration of the Board;
b. Implement a human resource management system in accordance
with existing Civil Service laws, rules and regulations that will
promote professionalism and excellence in accordance with sound
principles of management;
c. Prepare the proposed annual and supplemental budget of the
Authority for the consideration and approval of the Board;
d. Submit report to the President of the Philippines and Congress on the
 performance and accomplishment of the Authority on an annual
basis;
e. Appoint personnel lower than the position of Deputy Administrators;
f. Represent the Authority in all undertakings and where its presence
is required; and
g. Perform such other functions as may be required by law.
Section 5. Deputy Administrators. There shall be five (5) Deputy
Administrators appointed by the Board of Directors who shall assist the
Administrator, and who will be charged with the following specific concerns:

a. General Administration and Support Services;

b. Institutional Development;
c. Legal Affairs;
d. Registration, Supervision and Examination; and
e. Credit Surety Fund (CSF)

Section 6. CDA Regional Offices. The Authority shall establish and maintain
extension offices in each of the following administrative regions and shall be
known as: CDA CAR Regional Office, CDA NCR Office, CDA Regional Office I,
CDA Regional Office II, CDA Regional Office III, CDA Regional Office IV-A, CDA
MIMAROPA Regional Office, CDA Regional Office V, CDA Regional Office VI,
CDA Regional Office VII, CDA Regional Office VIII, CDA Regional Office IX,
CDA Regional Office X, CDA Regional Office XI, CDA Regional Office XII, and
CDA Regional Office XIII.
In the case of the NCR, it shall have four (4) field district offices which
shall be referred to as: CDA-NCR Capital District Office, CDA-NCR Northern
District Office, CDA-NCR Eastern District Office and CDA-NCR Southern
District Office. For other regions, the Authority shall likewise establish offices
in each province, highly urbanized and independent component cities in

accordance with applicable laws and in such other places as the proper
conduct of its business shall require. These offices shall be referred to as CDA
Field Offices and will be properly identified by the name of province or city.
Section 7. Staffing Pattern. The Board of Directors shall approve the
organizational structure and staffing pattern complement necessary for the
operationalization of the CDA in accordance with the existing regulations of
the Department of Budget and Management (DBM), the Civil Service
Commission (CSC) and other relevant agencies.

RULE V

PARTNERSHIP AND COMPLEMENTATION

Section 1. Legal Bases. The legal bases of this Rule are Section 18, Section
4 (a) (b) (aa) (bb) (cc) (dd) (ee) (ii) and Sec. 6 (f) of the Act quoted as follows:
Section 18. Partnership with the Cooperative Sector. A strong
partņership between the Authority and the cooperative sector and
the academe shall be established in implementing the
developmental functions of the Authority as stated herein Section
4, paragraphs (a), (b), (aa), (bb), (cc), (dd), (ee), (ii) and (jj), and Sec
17 of this Act to ensure the maximum participation of the
cooperative sector on matters of government plans, projects and
policies affecting cooperatives.
The Authority, the cooperative sector, and the academe shall
formulate guidelines for the implementation of the partnership that
may give rise to the recognition of apex organizations and a
national alliance representing all types and categories of
cooperatives, as provided for under Sec. 4 (z) of this Act, that shall
function as the overall consultative and coordinating body with the
Authority.
The Authority shall recognize cooperative unions and federations
under Articles 24 and 25 of RA No. 9520, and issue guidelines to
promote and develop these secondary cooperatives.
Section 4 (a) Develop and formulate, in consultation with the
cooperative sector and other concerned institutions, appropriate
regulations, standards, rules, orders, guidelines and/or circulars
to implement this Act and RA No. 9520 to ensure the effective and
sound operation of cooperatives.
Section 4 (b) Formulate, adopt and implement integrated and
comprehensive plans and programs on cooperative development
consistent with the national policy on cooperatives and establish
an integrated framework on cooperative development for all
government agencies.

Section 4 (aa) Establish a consultative mechanism consistent

with Sec. 18 of this Act in order to provide the cooperative sector a
system to ensure participation on matters concerning government
plans, programs, and policies affecting cooperatives.
Section 4 (bb) Coordinate with the provincial, city, or municipal
cooperative offices the adoption and implementation of national
plans, programs and policies on cooperative development, and to
establish partnership in the promotion organization, and
development of cooperatives within the jurisdiction of the local
government units.
Section 4 (cc) Establish the formation and organization of
cooperative development councils in the national, regional,
provincial, city and municipal levels in order to provide the
cooperative movement a system for policy consultation and
program coordination in accordance with the guidelines to be
prescribed by the Authority.
Section 4 (dd) Collaborate with concerned agencies that can
provide technical, professional, marketing assistance including
trainings on transfer of technology to ensure the viability, growth,
competitiveness and innovativeness of cooperatives giving special
concern to agrarian reform, agriculture, fishery and the
economically depressed sectors.
Section 4 (ee) Provide assistance on cooperative product
development and facilitate their marketing both in the domestic
and international market in coordination with the concerned
agencies.
 Section 4 (ii) Formulate, adopt and implement, in a manner
consistent with Sec. 17 of this Act, a standard of training for
cooperative officers or members which shall focus on basic
cooperative principles and values, good governance, business and
entrepreneurial management, human resource management, risk
management, conflict management, and technical skills required
for the efficient and effective operations of the cooperatives.
Section 6 (f) powers and function of the Board. Provide overall
direction to the Authority, defining the respective roles of the
national government agencies (NGAS), LGUs, people's
organizations, private sector and non-government organizations
(NGOs) in the promotion and development of the cooperative sector.
Section 2. CDA as the lead agency in cooperative development. The CDA,
as the lead agency of the government in the promotion and development of
cooperatives shall synchronize the efforts of other relevant government

institutions towards the common goal of empowering the cooperatives in

achieving their growth as instrument of equity, social justice and economic
development.
Section 3. National Coordinating Committee. All government branches,
instrumentalities, subdivisions and agencies with programs and projects
concerning cooperatives shall coordinate such programs and projects with the
Authority with a view to providing a comprehensive technical and financial
program for cooperatives, through the creation of a National Coordinating
Committee chaired by the Authority. The Committee shall be composed of
representatives from said government branches, instrumentalities,
subdivisions and agencies whose rank should not be lower than Director level
in charge with cooperative programs.
Section 4. Partnership with government agencies, branches, and
instrumentalities. The Authority shall maximize opportunities for
cooperatives through collaboration and partnership with government
agencies, branches, and instrumentalities in the implementation of specific
plans and programs.
Section 5. Partnership with local government units (LGUs). The Authority
recognizes the vital role of the LGU in the promotion, organization, and
development of cooperatives in their respective areas. Towards this end, the
Authority and the LGU shall ensure constant and close coordination for the
effective implementation of the following undertakings:
a. Formulate Local Cooperative Development Plan consistent with the
Philippine Development Plan and the Philippine Cooperative
Development Plan, to be incorporated in the Comprehensive
Development Plan (CDP) and Annual Investment Plan (AIP) of the
Local Government Units (LGUs);
b. Ensure the provision of technical guidance, financial assistance and
other services to develop cooperatives into viable and responsive
economic enterprises;
c. Promote the organization of cooperatives and support their
development within their areas of jurisdiction;
d. Establish partnership and collaboration in the sharing of cooperative
information and implementation of cooperative development plans
and programs on cooperative promotion, development and
 regulation;
e. Assist the cooperatives in the preparation of registration documents
and mandatory reports;
f. Provide training for the development of cooperatives and mandatory
training in accordance with guidelines as prescribed by the CDA;

g. Initiate and implement a localized program for cooperatives

promotion and development in line with the national policy on
cooperatives within their jurisdiction; and
h. Provide information as may be required by either party in relation to
their respective research projects.
In furtherance of the foregoing, the LGUs are enjoined to designate or
appoint a local cooperative officer to take charge of the office for the
development of cooperatives.
Section 6. Partnership with Academe. The Authority, in the formulation
and implementation of cooperative programs on education, training, and
research, shall establish linkages with the academe. The Authority in
partnership with the academe shall provide technical assistance and
guidance in the cooperatives where they are located.
For this purpose, the Authority, may enter into a written agreement
with the academe governing said partnership.
Section 7. Partnership with Private Sector. The Authority, in the
promotion, organization and development of cooperatives and to ensure their
viability and growth as business enterprises, shall strengthen its partnership
with the private sector by soliciting the latter’s active involvement and
participation in all initiatives involving cooperatives.
Section 8. Partnership with the cooperative sector. Notwithstanding the
principles of subsidiarity, autonomy, and independence, the Authority, in
consultation with the cooperative sector, shall formulate policies and
implement programs affecting the latter.
The scope and extent of the partnership shall be subject to the
guidelines to be issued by the Authority.

RULE VI

COOPERATIVE TRAININGS

Section 1. Legal Bases. The legal bases of this Rule are Sec. 4 (o), Sec. 4 (ii)
and Sec. 17 of the Act quoted as follows:
Sec. 4 (o) Develop and conduct management and training
programs that will provide members of cooperatives with the
entrepreneurial capabilities, managerial expertise, and technical
skills required for 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, agriculture, fishery and the economically

depressed sectors.
Sec. 4 (ii) Formulate, adopt and implement, in a manner consistent
with Sec. 17 of this Act, a standard of training for cooperative
 officers or members which shall focus on basic cooperative
principles and values, good governance, business and
entrepreneurial management, human resource management, risk
management, conflict management, and technical skills required
for the efficient and effective operations of the cooperatives.
Sec. 17. Training Standards for Cooperative Officers and
Members. - The Authority, in partnership with learning and training
institutions with the cooperative sector, shall formulate standards
of training requirements for cooperative officers and members to
ensure compliance thereof.
The Authority may accredit organizations other than cooperatives
but duly registered under Philippine laws and engaged in
cooperative promotion, organization, research and education, as
non-academic training institutions.
Section 2. Development and conduct of training programs. The Authority
shall develop and conduct training programs for officers and members of
cooperatives which shall focus on entrepreneurial capabilities, managerial
expertise and technical skills required for efficient operation of their
cooperatives.
Section 3. Development of training standards. The Authority, in partnership
with learning and training institutions and the cooperative sector, shall
formulate standards of training requirements for cooperative officers and
members.
The training curriculum which shall focus on basic cooperative
principles and values, good governance, business and entrepreneurial
management, human resource management, risk management, conflict
management, and technical skills required for efficient operation of their
cooperatives, may also be developed by the Authority, together with
cooperatives and other training organizations.
Section 4. Monitoring of compliance with the training standards. The
Authority shall monitor compliance with the formulated training standards
by cooperatives and other accredited organizations that are duly registered
under Philippine laws and engaged in cooperative promotion, organization,
research and education, subject to the guidelines to be prescribed by the
Authority.
Section 5. Conduct of trainings by other entities. Trainings may be
conducted by the cooperatives, private training institutions, government

agencies, local government units, and other accredited training organizations

in accordance with the guidelines to be prescribed by the Authority.
Section 6. Accreditation of training providers. The Authority shall issue
guidelines on accreditation of training providers in the conduct of trainings
consistent with Section 3 of this Rule.

RULE VII

COOPERATIVES IN THE EDUCATION SYSTEM

Section 1. Legal Basis. The legal basis of this Rule is Sec. 19 of the Act quoted
as follows:
Sec. 19. Cooperatives in the Education System. - The history,
 philosophy concepts, values, principles and practices of
cooperatives and their role in nation building, shall be part of the
curriculum of both in formal and non-formal education.
Notwithstanding existing laws, memorandum orders and
directives, cooperativism as a tool for self-empowerment and nation
building shall be included in the curricula of senior students in all
the secondary educational institutions and in the syllabus of any
social and civic studies subject in the K-12 level.
Cooperatives development and administration may be offered as a
field of study in the baccalaureate, post baccalaureate and
masteral programs in SUCs: Provided, that SUCs may also offer the
courses on a non-traditional approach under the equivalency
program of such SUCs accrediting the equivalent training that an
officer has undertaken to the relevant subject offering in the
curriculum: Provided, further that in cases where the SUCs do not
offer a separate academic program in cooperative development and
administration, the SUCS shall include a three-unit subject in the
curricula of accountancy, agribusiness, agriculture, agricultural
economics, business, community development, economics,
education, environmental sciences, social sciences, political
economy and other curricula that can be instrumental in the
development of cooperatives.
Section 2. Promotion and integration of cooperatives in the education
system. The Authority and the concerned stakeholders shall advocate and
conduct activities that will promote cooperatives in educational institutions.
Further, the Authority shall enter into an agreement with the Commission on
Higher Education (CHED), the Department of Education (DepEd) and the
Technical Education and Skill Development Authority (TESDA) for the
purpose of implementing the provisions of Sec.19 of R.A. No.11364.

RULE VIII

INSPECTION AND EXAMINATION

Section 1. Legal Basis. The legal basis of this Rule is Sec. 4 (n) of the Act
quoted as follows:
Sec 4. (n) Conduct regular inspection or examination of a
cooperative in accordance with the rules and regulations
promulgated by the Authority and, when deemed necessary,
conduct examination and investigation to protect the interest and
welfare of the members of cooperatives and the general public.
For this purpose, cooperative federations, unions, local government
units (LGUS), cooperative development offices (CDOs), and the
alliance of cooperatives representing all types and categories of
cooperatives as the consultative and coordinating body of the
Authority, may be requested by the Authority to assist in the
inspection and examination of cooperative;
Section 2. Regular Inspection or Examination. The Authority shall conduct
a regular inspection of the cooperatives to ensure their compliance to rules,
regulations, issuances and articles of cooperation and bylaws in accordance
with the guidelines to be prescribed by the Authority. Regular examination
 shall be conducted as a result of inspection or after evaluation of the
mandatory reports submitted by the cooperatives.
Section 3. Special Examination or Investigation. The Authority shall
conduct examination motu proprio or upon request by government agencies,
or upon written complaint of interested parties in accordance with the
guidelines to be prescribed by the Authority. In the conduct of examination,
the Authority may enlist the assistance of co-regulators, law enforcement
agencies or LGU concerned, as may be deemed necessary.
The Authority shall conduct an investigation upon verified complaint
from any member or officer of a cooperative or upon request or referral from
any government agency in accordance with the guidelines to be prescribed by
the Authority. In the conduct of investigation, the Authority may enlist the
assistance of co-regulators or law enforcement agencies concerned, as may be
deemed necessary.
Section 4. Assistance to the Authority. Upon request of the Authority in
writing, the cooperative federations, unions, the local government units,
cooperative development offices, and the alliance of cooperatives may assist
the Authority in the performance of its powers of inspection and/or
examination pursuant to R.A. No. 11364 and its Implementing Rules and
Regulations. Such assistance shall be by way of providing the relevant
information such as but not limited to research, reports, and financial records
necessary to the inspection and/or examination.

Section 5. Post-inspection/post-examination assistance. Whenever

deemed necessary, the federations, unions, the local government units,
cooperative development offices, and alliance of cooperatives shall assist the
cooperatives to comply with the findings arising from the inspection or
examination conducted.

RULE IX

CALLING OF GENERAL ASSEMBLY/REPRESENTATIVE ASSEMBLY

BY THE AUTHORITY

Section 1. Legal Bases. The legal bases of this Rule are Sec. 4 (s) and Sec. 4
(p) of the Act quoted as follows:
Sec 4. (s) Compel the cooperative to call a general or representative
assembly, as deemed necessary, under the supervision of the
Authority with the participation of their respective cooperative
federations or unions, subject to the criteria or conditions to be
defined in the implementing rules and regulations issued for this
purpose.
Sec. 4 (p) Conduct investigations, file necessary charges,
discipline, suspend and/or remove erring officers and members of
the cooperative for violation of cooperative laws, rules, regulations,
issuances of the Authority, the articles of cooperation and by-laws,
after due process, and direct the general assembly to replace the
suspended/removed officers, in accordance with the rules and
regulations as may be promulgated by the Authority.
Section 2. Instances when the Authority can compel the cooperative to
 call for a GA/RA meeting. The Authority shall compel the cooperative to
either call a regular or special GA/RA meeting in any of the following
instances:
a. If the cooperative fails to call a regular meeting within the date fixed
in the by-laws, or if not so fixed, within ninety (90) days after the
close of each fiscal year;
b. Upon petition of ten per centum (10%) of all members of the
cooperative who are entitled to vote, and for good cause shown by
giving proper notice as required in R.A. No. 9520 or in the bylaws;
c. To report to the members, the result of any examination, or other
investigation of the cooperative affairs as the Authority decides as
required under Article 34 of R.A. No. 9520; and
d. To replace suspended or removed erring officers as directed by the
Authority in the exercise of its adjudicatory power.

Section 3. Roles of Federations or Unions. In cases where a cooperative,

who is a member of a federation or union, is compelled to call a GA/RA
meeting, said federation or union shall be required to participate in the
conduct of the GA/RA meeting. In cases of multiple membership in a
federation or union, each of the federations or unions to which the cooperative
is a member shall send an authorized representative to attend said GA/RA
meeting.
The roles of the federation or union representatives are as follows:
a. Assist the cooperative in ensuring that the procedural process in
calling the GA/RA meeting is observed;
b. Witness the conduct of the meeting;
c. Provide technical advisory and clarificatory assistance;
d. Assist the election committee in performing its function in case the
GA/RA meeting requires the conduct of election; and
e. Other functions as the CDA authorizes.
Section 4. Supervision by the Authority. The concerned regional office shall
supervise the conduct of the meeting in relation to Section 2 of this Rule.
Section 5. Procedural Guidelines. The Authority shall formulate procedural
guidelines in the implementation of this Rule.

RULE X

RECOGNITION OF SECTORAL APEX ORGANIZATIONS

AND NATIONAL ALLIANCE

Section 1. Legal Basis. The legal basis of this rule is Sec. 4 (z) of the Act
quoted as follows:
Sec. 4 (z) Recognize sectoral apex organizations and a national
alliance representing all types and categories of cooperatives
which shall function as the overall consultative and coordinating
body with the Authority, for this purpose, the pertinent provisions
of RA No. 9520 are hereby amended accordingly, and the Authority
shall issue the necessary implementing rules and regulations (IRR)
for this provision.
Section 2. Organization and composition of sectoral apex organization.
 There shall be one apex organization for each clustered sectors, as follows:
a. Credit and Financial Services, Banking, and Insurance;
b. Consumers, Marketing, Producers, and Logistics;

c. Human Services: Health, Housing, Workers, and Labor Service;

d. Education and Advocacy;
e. Agriculture, Agrarian, Aquaculture, Farmers, Dairy, and Fisherfolk;
and
f. Public Utilities: Electricity, Water, Communications, and Transport.
Section 3. Composition of the regional clustered sector organizations.
Each sector shall be composed of representatives from all categories of
cooperatives engaged in business activities or objectives, as authorized in
their articles of cooperation, falling under each particular sector.
Multipurpose cooperatives may be a member of more than one (1) sector
depending on the business activities they are engaged in.
Section 4. Composition of the sectoral APEX organizations. The sectoral
APEX organizations shall be composed of the representatives from regional
clustered sectoral organizations.
Section 5. National Alliance of cooperatives. The alliance shall be
composed of representatives from the recognized clustered sectoral apex
organizations at the national level which shall function as the overall
consultative and coordinating body of the cooperative sector with the
Authority.
Section 6. Organization. The regional sectoral organizations shall be formed
by the cooperative sector under the close supervision of the concerned CDA
Regional Office.
The representatives from the regional sectoral organizations shall
organize the sectoral apex organization at the national level under the close
supervision of the CDA head office.
The operation of the organizations and the selection and election of
officers shall be in accordance with the internal rules to be promulgated by
the organizations.
The purpose and objective of these organizations is solely as overall
consultative and coordinating body of the cooperative sector with the
Authority.
Section 7. Recognition by the Authority. All regional clustered sectoral
organizations, sectoral apex organizations and the national alliance formed
and organized shall be duly recognized in accordance with the guidelines to
be issued by the Authority.

RULE XI

CONSULTATIVE MECHANISM

Section 1. Legal Bases. The legal bases of this Rule under the Act are Section
4 (a), Sec. 4 (aa), Sec. 4 (cc), Sec. 4 (dd), Sec. 4 (z), Sec. 6 (g), and Sec. 18 (2nd
paragraph) quoted as follows:
Sec. 4 (a) Develop and formulate, in consultation with the
cooperative sector and other concerned institutions, appropriate
regulations, standards, rules, orders, guidelines and/or circulars
to implement this Act and RA No. 9520 to ensure the effective and
 sound operation of cooperatives.
Sec. 4 (aa) Establish a consultative mechanism consistent with
Sec. 18 of this Act in order to provide the cooperative sector a
system to ensure participation on matters concerning government
plans, programs, and policies affecting cooperatives.
Sec. 4 (cc) Establish the formation and organization of cooperative
development councils in the national, regional, provincial, city and
municipal levels in order to provide the cooperative movement a
system for policy consultation and program coordination in
accordance with the guidelines to be prescribed by the Authority;
Sec. 4 (dd) Collaborate with concerned agencies that can provide
technical, professional, marketing assistance including trainings
on transfer of technology to ensure the viability, growth,
competitiveness and innovativeness of cooperatives giving special
concern to agrarian reform, agriculture, fishery and the
economically depressed sectors.
Sec. 4(z) Recognize sectoral apex organizations and a national
alliance representing all types and categories of cooperatives
which shall function as the overall consultative and coordinating
body with the Authority, for this purpose, the pertinent provisions
of RA No. 9520 are hereby amended accordingly, and the Authority
shall issue the necessary implementing rules and regulations (IRR)
for this provision.
Sec. 6 (g) Conduct regular policy consultations with the cooperative
sector, government agencies, LGUs, people's organizations, private
sector, NGOs, and other stakeholders on the Authority's policies,
programs and initiatives.
Sec. 18. (par. 2) The Authority, the cooperative sector, and the
academe shall formulate guidelines for the implementation of the
partnership that may give rise to the recognition of apex
organizations and a national alliance representing all types and
categories of cooperatives, as provided for under Sec. 4 (z) of this
Act, that shall function as the overall consultative and coordinating
body with the Authority.

Section 2. Consultation with the stakeholders. The Authority shall ensure

the widest participation of stakeholders in the formulation of policies, rules,
regulations, plans and programs to ensure safe and sound operation of the
cooperative and to address the issues and concerns affecting cooperatives.
These stakeholders may include but not limited to Cooperative Development
Council (CDC), Government Agencies (GAs), Local Government Units (LGUs),
Federations, Unions, and Academe.
The composition and the roles and function of these stakeholders shall
be in accordance with the guidelines to be issued by the Authority.
Section 3. Modes and conduct of consultations. Consultations shall be
either at the initiative of the CDA or of the stakeholders. In the case of the
latter, the program and results of said consultations should be submitted to
the Authority for consideration and integration in the policies, programs,
standards, rules and regulation adopted and implemented by the Authority.
Regional consultation shall be conducted for each clustered sectoral
organization. National consultation shall be conducted among the
representative of regional sectoral organization. At the initial implementation
of this Rules, regional consultation shall be facilitated by CDA Regional Office,
while national consultation shall be facilitated by the CDA Central Office.
Succeeding consultations shall be conducted by the recognized regional
clustered sectoral organizations, clustered sectoral apex organizations and the
national alliance of cooperatives.
Consultations may either be in the form of summits, forums,
congresses, and/or solicitation of comments, position papers, resolutions, call
for actions and suggestions. The social media and internet may be used to
optimize the opportunities to gather the result of consultations.

RULE XII
ADJUDICATION

Section 1. Legal Bases. The legal bases of this Rule under the Act are Section
4 (p), Sec. 4(t), Sec. 4 (u), Sec. 4 (v), Sec. 4 (w), Sec. 4 (x), Sec. 4 (y), and Sec.
6 (h) quoted as follows:
Sec 4. (p) Conduct investigations, file necessary charges,
discipline, suspend and/or remove erring officers and members of
the cooperative for violation of cooperative laws, rules, regulations,
issuances of the Authority, the articles of cooperation and by-laws,
after due process, and direct the general assembly to replace the
suspended/removed officers, in accordance with the rules and
regulations as may be promulgated by the Authority.
Sec 4. (t) Hear and decide inter-cooperative and intra-cooperative
disputes, controversies and/or conflicts, without prejudice to filing

of civil and/or criminal cases by the parties concerned before the

regular courts: Provided, that all decisions of the Authority are
appealable directly to the Court of Appeals.
Sec 4. (u) Adopt and implement a dispute resolution mechanism
that will settle conflicts between and among members, officers, and
directors of cooperatives, and between and among cooperatives in
accordance with Article 137 of RA No. 9520, which amended RA
No. 6938, and RA No. 9285, otherwise known as the "Alternative
Dispute Resolution Act of 2004". However, in case of election
related issues, the aggrieved party may elevate the case for
adjudication to the Authority without undergoing through the
alternative dispute resolution.
Sec 4. (v) Issue cease and desist orders to cooperatives and
responsible parties specified under Article 137 of RA No. 9520, and
such other orders and notices to preserve the assets and
documents of the cooperatives subject of the dispute or litigation.
Sec 4. (w) Issue subpoena ad testificandum and subpoena duces
tecum for the parties to appear and produce documents in any
proceedings of the Authority and in appropriate cases, order the
examination of all documents, papers, files and records of any
cooperative or person under investigation as may be necessary for
the proper disposition of cases before it.
Sec 4. (x) Cite for contempt any person guilty of misconduct in the
presence of the Authority which seriously interrupts any hearing or
 inquiry and impose a fine of not more than Five thousand pesos
(Php5,000.00) 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.
Sec 4. (y) Implement and enforce its decision and orders with the
assistance of deputized law enforcement agencies or the local
government unit concerned as may be necessary.
Sec 6. (h) Decide cases involving cooperatives that are submitted
to the Board for resolution.
Section 2. Exclusive Jurisdiction. The Authority shall have exclusive
jurisdiction over the following cases:
a. Complaints against the cooperatives, their officers and or members
of cooperatives for violation of cooperative laws, rules and
regulations, issuances of the Authority, and its articles of cooperation
and bylaws;

b. Election-related complaints;
c. Adverse inspection, examination and/or investigation findings
against the cooperatives, their officers and/or members for violation
of cooperative laws, rules and regulations, issuances of the Authority,
and its articles of cooperation and bylaws; and
d. Other cases falling within the jurisdiction of the Authority and/or
analogous to the foregoing.

Section 3. Procedural guidelines. The CDA Regional Offices and the Central
Office shall exercise primary jurisdiction over cases falling within their
respective area of jurisdiction. Provided, that, decisions of the Regional Offices
shall be appealable to the Central Office which decisions are appealable
directly to the Court of Appeals. Provided finally, that the Authority shall
formulate its rules of procedure for the exercise of its adjudicatory power.

RULE XIII

SUSPENSION CANCELLATION AND REVOCATION

Section 1. Legal Bases. The legal bases of this Rule are Sec. 4 (q) and Sec. 4
(r) of the Act quoted as follows:
Sec 4. (q) Order the suspension or cancellation of the Certificate of
Registration of cooperatives and/or the revocation of the Letter of
Authority and/or Certificate of Authority to establish and operate
satellite or branch offices, respectively, after due notice and
hearing for non-compliance with lawful orders, rules and
regulations of the Authority, including the articles of cooperation
and by-laws of the cooperative subject to the conditions as defined
in the implementing rules and regulations of this Act.
Sec 4. (r) Order the dissolution and liquidation of cooperatives as
well as the transfer of all or substantially all of their assets and
liabilities.
Section 2. Suspension or cancellation of Certificate of Registration. The
Authority may suspend, or revoke/cancel, after due notice and hearing, the
 certificate of registration of a cooperative on any of the following grounds:
a. Having obtained its registration by fraud;
b. Existing for an illegal purpose;
c. Willful violation, despite notice by the Authority, of the provisions of
R.A. No. 9520 or its bylaws;
d. Willful failure to operate on a cooperative basis;

e. Failure to meet the required minimum number of members in the

cooperative; and
f. Non-compliance with lawful orders, rules and regulations of the
Authority, including the articles of cooperation and by-laws of the
cooperative

Section 3. Revocation of Letter or Certificate of Authority. The Authority

shall order the revocation of the Letter of Authority and/or Certificate of
Authority to establish and operate satellite or branch offices, respectively,
after due notice and hearing for non-compliance with lawful orders, rules and
regulations of the Authority, including the articles of cooperation and by-laws
of the cooperative.
Section 4. Internal Rules. The Authority shall formulate its internal rules of
procedure for the implementation of this Rule.
RULE XIV

SETTLEMENT OF DISPUTES

Section 1. Legal Basis. The legal basis of this Rule is Sec. 4 (u) of the Act
quoted as follows:
Sec 4. (u) Adopt and implement a dispute resolution mechanism
that will settle conflicts between and among members, officers, and
directors of cooperatives, and between and among cooperatives in
accordance with Article 137 of RA No. 9520, which amended RA
No. 6938, and RA No. 9285, otherwise known as the "Alternative
Dispute Resolution Act of 2004". However, in case of election
related issues, the aggrieved party may elevate the case for
adjudication to the Authority without undergoing through the
alternative dispute resolution.
Section 2. Alternative Dispute Resolution. Any dispute, controversy or
claim arising out of or relating to the By-laws of the cooperative, the
cooperative law and related rules, administrative guidelines of the Authority,
including disputes involving members, officers, directors, and committee
members, intra-cooperative disputes and related issues shall be exclusively
referred to and finally resolved by voluntary arbitration under the institutional
rules promulgated by the Authority, after compliance with the conciliation or
mediation mechanisms embodied in the bylaws of the Cooperative.

RULE XV

REGISTRATION FOR TAX EXEMPTION

Section 1. Legal Basis. The legal basis for this Rule is Section 14 of the Act
quoted as follows:
 Sec. 14. Registration for Tax Exemption. – The Authority shall
furnish the Bureau of Internal Revenue (BIR), LGUs which include
provinces, highly urbanized and independent cities, and other
concerned agencies a certified list of duly registered cooperatives
for purposes of processing tax exemptions.
Any public official or employee who violates or in any manner
circumvents this provision shall be dealt with in accordance with
Article 140 of RA No. 9520.
Section 2. Submission of list of the duly registered cooperatives with the
Bureau of Internal Revenue (BIR). The Authority shall submit to the BIR,
the Registered Cooperative Master List which shall contain the list of all
registered cooperatives within thirty (30) days after the approval of the Rules.
The Registered Cooperative Master List shall be updated within thirty (30)
days after the close of every calendar year.
Section 3. Submission of list of the duly registered cooperatives with the
LGUs. The Authority shall provide the Local Government Unit (LGU) with an
updated list of registered cooperatives within their jurisdiction within 60 days
from the close of every calendar year.

RULE XVI

PRIORITY PROGRAM IN THE AGRICULTURE AND FISHERY SECTOR

Section 1. Priority program to ensure food security and reduction of
rural poverty. The promotion and development of agricultural, agrarian and
aqua cooperatives: farmers, dairy and fisher folk shall be a priority program
of the Authority to ensure food security and reduce rural poverty.
Section 2. Coordination with other agencies. The promotion and
development of agricultural, agrarian and aqua cooperatives: farmers, dairy
and fisherfolk to ensure food security and reduce rural poverty shall be
coordinated by the Authority with the following government agencies:
a. Department of Agriculture (DA) and its attached agencies and
government owned and controlled corporations (GOCCs);
b. Department of Agrarian Reform (DAR);
c. National Commission on Indigenous Peoples (NICP); and
d. Other government agencies.

RULE XVII

SPECIAL CONCERN ON COOPERATIVE BANKS

AND FINANCIAL SERVICE COOPERATIVES

Section 1. Promotion and development of cooperative banks and

financial service cooperatives. The promotion and development of
cooperative banks, as part of the banking system and financial service
cooperatives as defined in R.A. No. 9520, shall be the special concern of the
Authority.
Section 2. Undertaking of necessary programs. The Authority shall
undertake the necessary program in collaboration with the Bangko Sentral
ng Pilipinas (BSP) and the cooperative sector concerned, in the promotion and
development of cooperative banks, as part of the banking system and financial
service cooperatives as defined in R.A. No. 9520.

RULE XVIII

COOPERATIVES ENGAGED IN SERVICES COVERED BY OTHER LAWS

Section 1. Requirement of other laws, rules and regulations. Registered

cooperatives shall secure the necessary licenses, franchises, certificates of
authority and permits from other appropriate agencies with jurisdiction over
their activities, if required by other existing laws, rules and regulations.
Section 2. Other appropriate agencies. The following appropriate agencies
shall be co-regulator of the Authority in the issuance of licenses, franchises,
certificates of authority and permits:
a. Department of Human Settlements and Urban Development
(DHSUD) and its attached agencies and corporations such as the
National Housing Authority (NHA), National Home Mortgage Finance
Corporation (NHMFC), Home Development Mutual Fund (HDMF,
popularly known as Pag-IBIG Fund, Social Housing Finance
Corporation (SHFC) on housing project undertakings;
b. Department of Agrarian Reform (DAR) on Agrarian Reform
Cooperatives;
c. Insurance Commission (IC) on Insurance Cooperatives;
d. National Water Resources Board (NWRB) on Water Service
Cooperatives;
e. Department of Transportation (DOTr), Land Transportation Office
(LTO), Land Transportation Franchising and Regulatory Board
(LTFRB), Maritime Industry Authority (MARINA), Office of
Transportation Cooperative (OTC) on Transport Service Cooperatives;
f. Congress, National Electrification Administration (NEA), Department
of Energy (DOE) on Electric Cooperatives;

g. National Dairy Authority (NDA), Department of Health (DOH)-Food

and Drug Administration(FDA) on Dairy Cooperatives;
h. Department of Labor and Employment (DOLE) on Labor Service
Cooperatives and Workers Cooperatives;
i. Bangko Sentral ng Pilipinas (BSP) on Cooperative Banks and
Financial Service Cooperatives;
j. Department of Health (DOH) on Health Service Cooperatives;
k. Department of Trade and Industry (DTI), Social Security System (SSS)
Employees’ Compensation Commission (ECC), Securities and
Exchange Commission (SEC), PhilHealth, Local Government Units
(LGUs), Bureau of Internal Revenue (BIR); and
l. All other appropriate government agencies.

RULE XIX
PROHIBITION

Section 1. Use of the word “cooperative”, “coop”, “co-op” and “koop”.

The use by any person or organization of the word “cooperative”, “coop”, “co-
op” and “koop” in their business name, unless duly registered with Authority

shall be prohibited.
Section 2. Exception to the use of the word cooperative. Electric
cooperatives registered with the National Electrification Administration (NEA)
under Presidential Decree No. 269, as amended which opt not to register with
the Authority are allowed to retain the word “cooperative” in their registered
name.
Section 3. Penalty. In case of violation, the individual or individuals
concerned, or in the case of an organization, its officers and directors shall,
upon conviction, each suffer the penalty of imprisonment of not less than two
(2) years nor more than five (5) years and a fine not exceeding Twenty
thousand pesos (P20,000.00) or both at the discretion of the court. The
Authority may motu proprio, initiate complaints for violations of this Rule.

RULE XX

EXISTING ACCOUNTS RECEIVABLES

Section 1. Legal Basis. The legal basis of this Rule is fourth paragraph of
Sec. 24 of the Act quoted as follows:

“The Authority shall collect existing accounts receivables from

the transfer of funds from the DA under PD 175, as amended, and
such other funds coursed through the Authority, or enter into
compromise agreements or the condonation of said accounts,
subject to rules and regulations as may be prescribed by the
Authority and the Commission on Audit (COA).”
Section 2. Funds from DA under Presidential Decree No. 175, as
amended. The Authority shall collect existing accounts receivables from the
transfer of funds from the DA under PD 175, as amended.
Section 3. Other funds coursed through the Authority. The Authority shall
collect existing accounts receivables on such other funds coursed through the
Authority.
Section 4. Compromise and condonation of accounts. The Authority may
enter into compromise agreements or the condonation of existing accounts
receivables from the transfer of funds from the DA under PD 175, as amended,
subject to rules and regulations as may be prescribed by the Authority and
the Commission on Audit (COA).

RULE XXI

FUNDS FOR REORGANIZATION

Section 1. Funds for reorganization. The amount necessary to implement

this Act shall be charged against the current year's budget of CDA. Thereafter,
the amount necessary for its continued implementation shall be included in
 the annual General Appropriations Act.

RULE XXII

TRANSITORY PROVISIONS

Section 1. Reorganization. Upon the effectivity of R.A. No. 11364, the

personnel of the Authority shall, unless removed for cause and after due
process, continue to perform their duties and responsibilities without
diminution of their rank, salaries and other emoluments. The Authority shall
be reorganized in accordance with Republic Act No. 6656, otherwise known as
the "Act to Protect the Security of Tenure of Civil Service Officers and Employees
in the Implementation of Government Reorganization". The employees are hereby
absorbed in the Authority created under the Act, in accordance with its staffing
pattern, subject to Civil Service laws, rules and regulations and Department of
Budget and Management (DBM) rules and regulations: Provided, finally, that
those who opt to retire or separate from office voluntarily shall be given
separation pay computed based on DBM guidelines and regulations.
The incumbent Chairperson and Administrators of CDA shall continue
to serve and act as Chairperson and Members of the Board until the new
composition of the Board shall have been constituted.

RULE XXIII

AMENDMENTS TO THE IMPLEMENTING RULES AND REGULATIONS

Section 1. The Implementing Rules and Regulations (IRR) shall have its first
automatic review after five (5) years from the effectivity thereof and every three
(3) years thereafter.
Section 2. The Authority, through the Board, may amend or modify the IRR
in accordance with the laws, after consultation with the cooperative sector
and other concerned government agencies as may be necessary.
Section 3. Amendments to this IRR shall be effective 15 days after its
publication in the Official Gazette or in two (2) newspapers of general
circulation.

RULE XXIV
FINAL PROVISIONS

Section 1. Separability Clause. – If any provision of this Implementing Rules

and Regulations is declared unconstitutional or otherwise invalid, the validity
of the other provisions shall not be affected thereby.
Section 2. Repealing Clause. – Republic Act No. 6939, creating the
Cooperative Development Authority, and all orders, rules and regulations,
and other issuances implementing Republic Act No. 6939 are hereby repealed
or modified accordingly.
Section 3. Effectivity. – This Rules shall be effective fifteen (15) days after
its publication in the Official Gazette or in at least two (2) newspapers of
general circulation.

Approved.
Quezon City, Philippines, ______________ 2019.