Sponsored by: The ChanRobles Group A collection of Philippine laws, statutes and codes not included or cited in the main indices of the Chan Robles Virtual Law Library. 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
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. chan
robles virtual law library 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.chan
robles virtual law library
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 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 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 Sec. 3. Powers, Functions and Responsibilities. — The Authority shall have the following powers, functions and responsibilities:
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:
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. chan robles virtual law library Sec. 7. Organization of the Authority. — The Authority shall be organized within one hundred twenty (120) days from the effectivity of this Act.cralaw 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 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:
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. chan
robles virtual law library
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 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 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 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. chan robles virtual law library 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 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 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. chan robles virtual law library 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 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 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. chan robles virtual law library 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 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.chan robles virtual law library 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 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. chan
robles virtual law library
Approved:
March
10, 1990
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