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This page features the full text of
Republic Act No. 6939
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 COOPERATIVE
FUNCTIONS,
SUPPORTING COOPERATIVE DEVELOPMENT, TRANSFERRING THE REGISTRATION AND
REGULATION
FUNCTIONS OF EXISTING GOVERNMENT AGENCIES ON COOPERATIVES AS SUCH AND
CONSOLIDATING
THE SAME WITH THE AUTHORITY, APPROPRIATING FUNDS THEREFOR, AND FOR
OTHER
PURPOSES.
REPUBLIC
ACT NO. 6939
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 COOPERATIVE
FUNCTIONS,
SUPPORTING COOPERATIVE DEVELOPMENT, TRANSFERRING THE REGISTRATION AND
REGULATION
FUNCTIONS OF EXISTING GOVERNMENT AGENCIES ON COOPERATIVES AS SUCH AND
CONSOLIDATING
THE SAME WITH THE AUTHORITY, APPROPRIATING FUNDS THEREFOR, AND FOR
OTHER
PURPOSES.
Section
1. Declaration of Policy. — It
is hereby declared the policy of the State to promote the viability and
growth of cooperatives as instruments of equity, social justice and
economic
development and to create an agency, in fulfillment of the mandate in
Section
15, Article XII of the Constitution. Toward this end, the State shall
recognize
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. chanrobles virtuallaw libraryred
In
furtherance of this policy, the appropriate national economic planning
agency and 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.chanrobles virtuallaw libraryred
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.cralaw:red
Government
assistance to cooperatives shall be free from any restriction and
conditionality
that may in any manner infringe upon the objectives and character of
cooperatives
as provided in this Act. The State shall, except as provided in this
Act,
maintain the policy of noninterference in the management and operation
of cooperatives.cralaw:red
Sec.
2. Creation of the Cooperative
Development Authority. — The Cooperative Development Authority is
hereby
created under the Office of the President to carry out the provision of
this Act.cralaw:red
Sec.
3. Powers, Functions and Responsibilities.
— The Authority shall have the following powers, functions and
responsibilities:
(a) Formulate,
adopt and implement integrated and comprehensive plans and programs on
cooperative development consistent with the national policy on
cooperatives
and the overall socioeconomic development plans of the Government; (b) Develop
and conduct management and training programs upon request of
cooperatives
that will provide members of cooperatives with the entrepreneurial
capabilities,
managerial expertise, and technical skills required for the efficient
operation
of their cooperatives and inculcate in them the true spirit of
cooperativism
and provide, when necessary, technical and professional assistance to
ensure
the viability and growth of cooperatives with special concern for
agrarian
reform, fishery and economically depressed sectors; chanrobles virtuallaw libraryred
(c) Support
the voluntary organization and consensual development of activities
that
promote cooperative movements and provide assistance towards upgrading
managerial and technical expertise upon request of the cooperatives
concerned;
(d) Coordinate
the efforts of the local government units and the private sector in
promotion,
organization, and development of cooperatives;
(e) Register
all cooperatives and their federations and unions, including their
division,
merger, consolidation, dissolution or liquidation. It shall also
register
the transfer of all or substantially all of their assets and
liabilities
and such other matters as may be required by the Authority;
(f) Require
all cooperatives, their federations and unions to submit their annual
financial
statements, duly audited by certified public accountants, and general
information
sheets; chanrobles virtuallaw libraryred
(g) Order
the cancellation after due notice and hearing of the cooperative's
certificate
of registration for non-compliance with administrative requirements and
in cases of voluntary dissolution;
(h) Assist
cooperatives in arranging for financial and other forms of assistance
under
such terms and conditions as are calculated to strengthen their
viability
and autonomy;
(i) Establish
extension offices as may be necessary and financially viable to
implement
this Act. Initially, there shall be extension offices in the Cities of
Dagupan, Manila, Naga, Iloilo, Cebu, Cagayan de Oro and Davao; chanrobles virtuallaw libraryred
(j) Impose
and collect reasonable fees and charges in connection with the
registration
of cooperatives;
(k) Administer
all grants and donations coursed through the Government for cooperative
development, without prejudice to the right of cooperatives to directly
receive and administer such grants and donations upon agreement with
the
grantors and donors thereof;
(l) Formulate
and adopt continuing policy initiatives consultation with the
cooperative
sector through public hearing; (m) Adopt
rules and regulations for the conduct of its internal operations;
(n) Submit
an annual report to the President and Congress on the state of the
cooperative
movement; and
(o) 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 which seriously interrupts any hearing or inquiry with
a fine of not more than Five hundred pesos (P500.00) 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. chanrobles virtuallaw libraryred
Sec.
4. Governing Body. — The Authority
shall be governed by a Board of Administrators consisting of a Chairman
and six (6) 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. They shall serve
for a term of six (6) years without reappointment: Provided, That among
those first appointed, the Chairman shall serve for a term of (6)
years,
three (3) members to serve for a term of four (4) years, and three (3)
members to serve for a term of two (2) years: Provided, further, That
there
shall be four (4) ex officio members, one (1) each from the: (a)
Department
of Agriculture, (b) Department of Transportation and Communications,
(c)
National Electrification Administration, and (d) Sugar Regulatory
Administration.
Said representation status for the agencies is on a nonvoting basis and
terminates one (1) year from the operation of the Authority, but said
ex
officio members shall not be holding any other board position in any
government
entity. The Chairman and members 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.chanrobles virtual law library
Sec.
5. Qualifications of Members
of the Governing Board. — No person shall be appointed Chairman or
member
of the Board of Administrators unless he possesses the following
qualifications:
(a) A
natural-born Filipino citizen of legal age; chanrobles virtuallaw libraryred(b) A
Bachelor's Degree in 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 nongovernment organization
engaged
in cooperative development or, in the absence of a Bachelor Degree, at
least ten (10) years of experience in cooperatives either as an officer
of a cooperative or a government agency or nongovernment organization
engaged
in cooperative development; and
(c) Must
be a resident of the region he represents for at least 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 in or
dealings with cooperatives upon his appointment.chanrobles virtual law library
Sec.
6. Board of Administrators Meeting.
— The Board of Administrators shall meet at least once a month for the
transaction of its regular business. Special meetings may be called by
the Chairman or majority of the members to consider specific matters. A
majority vote by the entire Board shall be required for a decision. All
meetings of the Board shall be held at the head office in Metro Manila
or at any other place as may be determined by the Board.
The
Board of Administrators shall appoint an Executive Director who shall
be
the chief operating officer of the Authority whose compensation shall
be
fixed by the Board of Administrators. chanrobles virtuallaw libraryred
Sec.
7. Organization of the Authority.
— The Authority shall be organized within one hundred twenty (120) days
from the effectivity of this Act.cralaw:red
Sec.
8. Mediation and Conciliation.
— Upon request of either or both parties, the Authority shall mediate
and
conciliate disputes within a cooperative or between cooperatives:
Provided,
That if no mediation or conciliation succeeds within three (3) months
from
request thereof, a certificate of non-resolution shall be issued by the
commission prior to the filing of appropriate action before the proper
courts.cralaw:red
Sec.
9. Power to Register Cooperatives.
— The power to register cooperatives shall be vested solely on the
Authority.
The functions of the following departments and agencies relating to the
registration of cooperatives as such are hereby transferred to the
Authority:
(a) The
Department of Agriculture; chanrobles virtuallaw libraryred(b) The
Bureau of Agricultural Cooperatives Development;
(c) The
Department of Transportation and Communications; chanrobles virtuallaw libraryred
(d) The
Sugar Regulatory Administration;
(e) The
National Electrification Administration; and
(f) 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 qualified
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 Compensation and Position Classification:
Provided,
That the Regional Cooperative Development Assistance Offices of Regions
IX and XII, created under Executive Order No. 634, are also hereby
abolished
and their employees shall be given preference for employment with the
Cooperative
Development Authority in accordance with its staffing pattern, subject
to Civil Service rules and regulations: Provided, finally, That those
who
are not absorbed shall be given separation pay computed at one and
one-fourth
(1 1/4) months salary for every year of service. Service of six (6)
months
or more shall be considered as one (1) year in computing the years of
service
for severance pay and, whenever applicable, other retirement benefits
under
existing laws.chanrobles virtual law library
Sec.
10. Transfer of Funds and Programs.
— The Cooperative Development Loan Fund created under Presidential
Decree
No. 175, as amended, is hereby transferred from the Department of
Agriculture
to the Authority. chanrobles virtuallaw libraryred
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.cralaw:red
The
fund provided for the Management Training and Assistance Program under
Presidential Decree No. 175, as amended, is hereby converted into a
fund
for the development of cooperatives and may be used for such purpose
upon
the request of the cooperatives concerned: Provided, That duly
registered
cooperatives shall have the right to establish their own private
training
centers or federations for purposes of cooperative development.cralaw:red
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.cralaw:red
Sec.
11. 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. chanrobles virtuallaw libraryred
The
role of nongovernment 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 nongovernment organizations as non-academic training
organizations. The training courses offered by them may be eligible as
credits for the purposes of academic, professional and career
advancements
of their trainees. Existing training centers for cooperatives may
qualify
as nongovernment organizations under this Act.
State
colleges and universities shall provide technical assistance and
guidance
to cooperatives in the communities wherein they operate, upon
request.cralaw:red
Sec.
12. Cooperatives in the Banking
System. — The promotion and development of cooperative banks as part of
the Philippine banking system shall be a major concern of the Authority
which shall undertake the necessary program towards this end in
collaboration
with the Central Bank of the Philippines and the cooperative sector
concerned.cralaw:red
Sec.
13. Rule-Making Authority. —
The Authority is hereby authorized to promulgate, after due public
hearing
and upon approval of the President, such rules and regulations as may
be
necessary to implement the provisions of this Act. Such implementing
rules
and regulations shall take effect within fifteen (15) days after
publication
thereof in the Official Gazette or in two (2) newspapers of general
circulation.
All subsequent amendments to the implementing rules and regulations
shall
undergo the same process. chanrobles virtuallaw libraryred
Sec.
14. Prohibition. — No organization
shall be allowed to use the title "cooperative" in its name unless it
follows
all generally accepted cooperative principles, applicable cooperative
laws,
and is duly registered under this Act: Provided, That organizations
which
have used the word "cooperative" as part of their nomenclature but
which
do not qualify as cooperatives under the provisions of this Act shall
have
three (3) years within which to qualify and to register with the
Authority.
If at the end of the three-year period provided herein, the said
organizations
still do not qualify, it shall be unlawful for the organizations to
continue
using the word "cooperative" in their names.cralaw:red
Sec.
15. 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.cralaw:red
Sec.
16. Appropriations. — The funds
needed to carry out the provisions of this Act shall be charged to the
appropriations of the Bureau of Agricultural Cooperatives Development
and
the Regional Cooperative Development Assistance Offices of Regions IX
and
XII under the current General Appropriations Act in addition to the
appropriations
of other departments/agencies/funds whose functions/programs are
transferred
to the Authority: Provided, That in its initial year of operations, an
additional amount of not exceeding Sixty million pesos (P60,000,000.00)
may be requested and drawn by the Authority from the Contingent Fund of
the President. Thereafter, such sums as may be necessary for its
continued
implementation shall be included in the annual General Appropriations
Act. chanrobles virtuallaw libraryred
Sec.
17. Transitory Provisions. —
All cooperatives registered under Presidential Decree Nos. 175 and 775,
and Executive Order No. 898 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 bylaws, and
their latest duly audited financial statements within one (1) year from
effectivity of this 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 Sections 3 and 5 of Presidential Decree No. 1645
shall
no longer be applicable to the said cooperatives.cralaw:red
Sec.
18. Repeals. — All acts, general
orders, executive orders, letters of implementation, letters of
instruction,
regulations or circulars, or parts thereof, inconsistent with any of
the
provisions of this Act are hereby repealed or modified accordingly. In
case of doubt, the same shall be resolved in favor of the cooperatives.chanrobles virtuallaw libraryred
Sec.
19. Separability. — If for any
cause any part of this Act is declared unconstitutional, the rest of
the
provisions shall remain in force and effect.cralaw:red
Sec.
20. Effectivity. — This Act shall
take effect fifteen (15) days after its publication in the Official
Gazette
or in a newspaper of general circulation. chanrobles virtuallaw libraryred
Approved:
March
10, 1990
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