Training Workshop : Empowering Cooperatives thru IT

The Provincial Cooperative Union of Davao del Sur had iniatiated the conduct of the above captioned training. Seventeen participants from the different cooperatives in the province had gathered @ Glorenz Internet Cafe, Digos City to join the intensive training -course. "As cooperatives join the path of modern technology, we need to equip our leaders with the necessary skills on IT" says Mr. Cesar G. Tabasa the PCU Executive Officer.

Joining the training also are representatives from the Provincial Cooperative Office headed by Sir Danny Cadungog ang Sir Boy Camporedondo; Cooperative External auditor in the person of Maam Vicky Gatmaitan,CPA and Party. The IT Training was facilitated by Mr. Randy A. Albores, CDS II and IT Manager, of CDA Davao Extension Office. The first day session was devoted to giving theories and hands -on exercises on Powerpoint 2003. The participants were glad upon discovering that they can be more effective as cooperative lecturers if they will create their own slide presentation. In fact, all of them were able to present their outputs. The second day was an enjoyable encounter with the Online Community in the sense that they were introduced into Basic Internet Operation. New topics were introduced such creating and using e-mail; chatting; and basic blog development.

"Patience...Patience...Patience" This is the official tag of the training. Learning is always fun and dynamic. The participants had made it by way of hands-on method. It is hoped that thru IT literacy the cooperative will be able to break barriers and beyond.

Cooperative Hymn Choral Competition

Republic of the Philippines
DEPARTMENT OF FINANCE
COOPERATIVE DEVELOPMENT AUTHORITY
#827 Aurora Boulevard, Brgy Immaculate Conception
Cubao , Quezon City

Dear Fellow Cooperators


We are pleased to announce the holding of the 1st Philippine Cooperative TEAM Shop (PCTS) on October 24-25, 2008 at General Santos Gymnasium under the joint sponsorship of the National Cooperative Development Council (NCDC) and General Santos City Local Government Unit in close coordination with the CDA Regions XI and XII.

This is in celebration of the 2008 Cooperative Month nationwide, which we intent to make this remarkable in the history of cooperative celebration by conducting the Cooperative hymn Choral Competition during the Fellowship Night on October 24, 2008 prior to the NCDC Raffle Draw. This contest is open to all registered cooperatives and Cooperative Development Councils (CDCs). Hence, we are inviting you to participate in this significant undertaking as we live the spirit of cooperativism, inspired by our hymn.

Interested participants must register with the nearest CDA Office, either the CDA Davao or Kidapawan Extension Office. Deadline of submission of entries must be on or before October 20, 2008. first twelve (12) registered entries only will be considered to the competition. CDs are availabe for sale at RCDC XI and XII offices.

For more information , inquiries, assistance,confirmation of attendance and registration of participants and entries, please contact your respective Cooperative Development Specialis II or call the CDA Davao EO at Telefax (082) 222-7710; tel 225-8064 and Look for Ms. Babes Agum or CDA Kidapawan Eo at Telefax (064) 288-1731; Tel. 278-4255 and look for Ms. Doreen Ancheta.

Looking forward to your active participation to this activity. Mabuhay ang Kooperatiba!

Very truly yours;

(sgd) ROSALINDA E. VILLASECA CESO V
Administrator and Concurrent Regional
Director of CDA XI and XII
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Cooperative Hymn music video can be viewed and downloaded @ http://www.youtube.com/watch?v=546IKWOdONM
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In loving memory of the late Nilo Quilab

We unite ourselves in prayer for the salvation of the soul of CDA Davao driver, the late Nilo Quilab. He returned to our Creator last September 4, 2008 after four days of treatment at Davao Medical Center, Bajada Davao City. Doctors said that aneurism was the cause of Nilo's death. An aneurism is a weak spot in the wall of an artery or a vein that dilates or balloons out, forming a blood-filled sack or pouch. Aneurisms can occur almost anywhere in the body and are found in all age groups, although they occur primarily in the elderly. The foremost cause of aneurisms is atherosclerosis, or fatty deposits in the arteries. If an aneurism bursts, a massive amount of blood is released, which results in an almost instantaneous drop in blood pressure and can cause death. Surgery can be a successful treatment for unruptured aneurisms.

May the souls of the faithful departed rest in peace .

DECLARING THE MONTH OF OCTOBER 2004 AND EVERY YEAR THEREAFTER AS COOPERATIVE MONTH

MALACAÑANG
Manila
BY THE PRESIDENT OF THE PHILIPPINES
PROCLAMATION NO. 493

DECLARING THE MONTH OF OCTOBER 2004 AND EVERY YEAR THEREAFTER AS COOPERATIVE MONTH

WHEREAS, it is the policy of the Ste to foster the creation and growth of cooperatives as a vehicle for promoting self-reliance and harnessing people power towards the attainment of economic development and social justice as declared in Article 2 of the Cooperative Code of the Philippines (Republic Act No. 69380);

WHEREAS, cooperatives have long played a crucial role in saving mobilization, in providing accessible and affordable credit, and in marshalling the resources and energies of less economically fortunate towards economic development, political empowerment and socio-cultural reform.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Philippines, by virtue of the powers vested in me by law, do hereby declare the month of October of 2004 and every year thereafter as Cooperative Month to encourage wider participation of all sectors of society in nation-building through cooperativism.

The Cooperative Development Authority shall, in coordination with other agencies of government, primary cooperatives, local, regional and national federations and union of cooperatives and the cooperative development councils, initiate activities and programs within the month to raise the consciousness of our people to join the cooperative movement and uphold the principles and values of cooperativism.

This supersedes Proclamation No. 2288 dated November 10, 1982.
IN WITNESS WHEREOF, I have hereunto set my hand and caused the seal of the Republic of the Philippines to be affixed.

DONE in the City of Manila, this 29th day of October, in the year of Our Lord Two Thousand and Three.

(Sgd) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd) ALBERTO G. ROMULO
Executive Secretary

General Steps in forming a Cooperative

Step 1 : Get Organized.

In organizing a cooperative, there must be at least 15 members. Determine the common problem that the members want to solve through cooperative.

The objective/nature of business of the proposed cooperative should be substantially related to the common problem of the members. The common problem may be in the area of : production of goods and services, marketing of your produce, financing assistance, insurance, banking, power distribution, water services, etc.

Step 2 : Prepare an Economic Survey *

The preparation of an Economic Survey will help the organizing members determine the sustainability and viability of operating a cooperative.

Step 3 : Draft the Cooperative's By-Laws *

The by-laws will provide the basis for orderly governing the affairs of the cooperative

Step 4 : Draft the Articles of Cooperation *

The articles of cooperation will provide for the name of the proposed cooperative, its term of existence, its members, its capital structure, and other relevant information.

Step 5 : Secure bond of accountable officers from Insurance Company.

Normally, the treasurer and the manager are bonded. The amount of bond is to be decided by the board of directors based on the initial networth of the cooperative including paid-up capital, membership fees and other assets of the cooperative at the time of registration.

Step 6 : Register with the Cooperative Development Authority

The proposed cooperative must submit 4 copies each of the Economic Survey, By-laws and the Articles of Cooperation and bond of accountable officers.

*The CDA has prepared a pro-forma Economic Survey, By-laws and Articles of Cooperation to guide the proposed cooperative in the preparation of the said documents.

Frequently Asked Questions

What is a Cooperative?

A cooperative is a duly registered association of persons, with a common bond of interest who have voluntarily joined together to achieve a lawful common social or economic end, and making equitable contributions to the capital required and accepting a fair share of the risks and benefits of the undertaking in accordance with universally accepted cooperative principles.

By forming a cooperative, you pool money, human resources and talent to build capital, and work together to produce more goods and raise incomes. Through cooperatives, you can look for other sources of loans at low interest rates instead of borrowing from informal lenders or usurers. The cooperative can also be a mechanism for marketing your produce.
Objectives of Cooperatives

The primary objective of every Cooperative is to provide goods and services to its members and thus enable them to attain increased income and savings, investments, productivity and purchasing power and promote among them equitable distribution of net surplus through maximum utilization of economies of scale, cost-sharing and risk-sharing without however, conducting the affairs of the cooperative for eleemosynary or charitable purposes.

What are the purposes in Organizing a Cooperative?

1. To encourage thrift and savings mobilization among the members;
2. To generate funds and extend credit to the members for productive and provident purposes;
3. To encourage among members systematic production and marketing;
4. To provide goods and services and other requirements to the members;
5. To develop expertise and skills among its members;
6. To acquire lands and provide housing benefits for the members;
7. To insure against losses of the members;
8. To promote and advance the economic, social and educational state of the members;
9.To establish, own, lease or operate cooperative banks, cooperative wholesale and retail complexes, insurance and agricultural/industrial processing enterprises, and public markets;
10.To coordinate and facilitate the activities of cooperatives; and
11.To undertake any and all other activities for the effective and efficient implementation of the provision of R.A.6939.


Cooperative Principles

Every Cooperative shall conduct its affairs in accordance with Filipino culture and experience and the universally accepted principles of cooperation such as:

Open and Voluntary membership- membership in a cooperative shall be voluntary and available to all individuals regardless of their political, racial or religious background or beliefs.

Democratic Control- cooperatives are democratic organizations. Its affairs shall be administered by persons elected or appointed in a manner agreed upon by members. Members of primary cooperatives shall have equal voting rights on an one-member-one vote principle, while a secondary or tertiary cooperative shall have voting rights as delegate of members-cooperatives, but such cooperatives shall have only five (5) votes. The votes cast by the delegates shall be deemed as votes cast the members thereof.

Member Economic Participation- members contribute equitably to and control the capital of their cooperative. At least part of that capital is usually the common property of the cooperative. Members usually receive limited compensation, if any, on capital subscribed as a condition of membership. Members allocate surpluses for any or all the following purposes: developing their cooperative, possibly by setting up reserves, part of which at least would be indivisible; benefiting members in proportion to their transactions with the cooperative; and supporting other activities as a approved by the membership.

Autonomy and Independence- cooperatives are autonomous, self-help organizations controlled by their members. If they enter into agreements with other organizations (including governments) or raise capital from external sources, they do so on terms that ensure democratic control by the members and maintain their cooperative independence.

Education, Training and Information- cooperatives provide education and training for their members, elected representatives, managers, and employees so they can contribute effectively to the development of their cooperatives. They inform the general public-particularly young people and opinion leaders about the nature and benefits of cooperation.

Cooperation among Cooperative - cooperatives serve their members more effectively and strengthen the cooperative movement by working together through local, national, regional, and international structures.

Concern for the Community- cooperatives work for the sustainable development of their communities through policies approved by their members.


Cooperative Practices

Cooperatives follow certain operational guidelines. These are practical response to local needs. Some are adopted from standard international practices, others are local innovations. But all these are aimed at perfecting cooperative operations. They are:

Capital Formation - Starting a new cooperative can create a need for substantial capital. A problem develops when trying to operate with limited membership equity capital. The task of financing a new cooperative with member equity alone is usually impossible. Therefore, the best source of additional funds needed is from members in the form of: a) membership fee or purchase of stock; b) agreement to withhold portion of net earnings profits); c) by assessment based on units of products sold or purchased.

Cash Trading - This is business done on a cash and carry basis. The customer enjoys at least the use of the goods and services for the cash payment he/she gives. Cash trading promotes equality since anybody with cash can enjoy the service patronage. This practice can train members to observe the habit of balanced spending. Furthermore, the cooperative would be able to avoid bad debts and stabilize business operations. Finally, it is a way of increasing growth.

Selling at market price - Cooperatives offer goods and services at prevailing market prices. This promotes stability. It can cope with operational expenses and cover up the negative effects of shrinkage, depreciation and losses. It helps maintain the prices of goods;

Cooperatives can avoid destructive competition - Fostering constructive competition among cooperatives will safeguard the interests of consumers. Cooperatives are encouraged to cooperate in unison and bring their joint power in the market up to the level achieved by enterprises that are operated for the benefit of other stakeholders. They cooperate in order to get a fair deal from the large scale buyers of their products. Consumers cooperate to get a better deal from manufacturers and suppliers. Credit unions are formed to counter the power of large scale financial institutions. Price fixing agreements and cartel methods are prevented.

Constant expansion - As organizations, cooperatives have to grow for community services. Expansion is a must. It is done intensively and extensively. New members should be recruited to accumulate more capital and savings to support operation of the expanded business and services which in the long run will provide more benefits for them. However, members in this regard should undergo continuous education and training to learn various management practices/techniques and effective financial supervision.

Quality standardized goods - Cooperatives are intended to develop communities through the production of high quality goods and provision of better services. Cooperatives could help by patronizing only standardized products and services of high quality. Hence, different types of cooperatives will strive to improve their goods and services to stand competition with business establishments. This in turn will be instrumental in improving life in the country.

Cooperative wholesale business or interlending (cooperative bank). Cooperatives can be organized with enough people and capital. They respond to the needs of the community. Needs arise when there are people. The expansion of membership may result in wholesale business. In fact, to be effective, wholesale business, interlending (cooperative bank), could be done by primary societies. Defects from retail business could be avoided.

The benefits from the wholesale are considerable. Members can market and acquire the goods and services at the right price and quality. They can even lower and raise savings. They can also influence the production of badly needed goods and services;

Minimize expenditures - A significant factor favoring the growth of cooperative is its being a community project. Its’ officers do not receive remuneration. If they get compensation, it is only in the form of allowances, per diems, or honoraria. When audit shows that the cooperative is not capable or can afford the minimum wage, only employees get paid regularly. The government can give exemption. Furthermore, laws may allow exemption from income and sales taxes. Minimizing expenses should not be taken as a remedy to cover up the weaknesses of the system. It is not to be conceived as a form of dole-outs, but rather , it should be considered as motivation to make the movement stand on its own and soon attain its objectives. Once its objectives are achieved, the movement can take its rightful place in the development of the country.

What are the Types of Cooperative?

Credit Cooperative:promotes thrift and savings among its members and creates funds in order to grant loans for productive and provident purposes.

Consumer Cooperative:The primary purpose is to procure and distribute commodities to members and non-members.

Producers Cooperative:undertakes joint production whether agricultural or industrial.

Marketing Cooperative:engages in the supply of production inputs to members, and markets their products.

Service Cooperative:engages in medical and dental care, hospitalization, transportation, insurance, housing.

Multi- Purpose Cooperative:combines two (2) or more of the business activities of these different types of cooperatives.

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What are the Categories of Cooperatives?

Cooperative shall be categorized according to membership and territorial consideration. In terms of membership, cooperatives shall be categorized into:

Primary - The members of which are natural persons of legal age.

Secondary - The members of which are primaries.

Tertiary - the members of which are secondaries upward to one (1) or more apex organizations.

Thus, those with cooperative memberships are considered federations or unions as the case may be. In terms of territory, cooperatives shall be categorized according to areas of operation which may or may not coincide with the political subdivisions of the country but, those organized by minors shall be considered a laboratory cooperative and must be affiliated with a registered cooperative. It is governed by special guidelines promulgated by the CDA.


What are the kinds of membership in a Cooperative?

A cooperative has two kinds of members: regular members and associate members.

A regular member is entitled to all the rights and privileges of membership as stated in the Cooperative Code and the coops’ by laws.

An associate member has no right to vote and be voted upon and is entitled only to such rights and privileges provided by the cooperative’s by laws.


What are the Privileges of a Cooperative

Cooperative registered under R.A. 6938 shall, notwithstanding the provisions of any law to the contrary, be also accorded the following privileges:

* Cooperatives shall enjoy the privilege of depositing their sealed cash boxes or containers, documents or any valuable papers in the safes of the municipal or city treasurers and other government offices free of charge, and the custodian of such articles shall issue a receipt acknowledging the articles received duly witnessed by another person;
* Cooperatives organized among government employees, notwithstanding any law or regulation to the contrary, shall enjoy the free use of any available space in their agency, whether owned or rented by the Government;
* Cooperatives rendering special types of services and facilities such as cold storage, ice plant, electricity, transportation, and similar services and facilities shall secure a franchise therefor, and such cooperatives shall open their membership to all persons qualified in their areas of operation;
* In areas where appropriate cooperatives exist the preferential right to supply government institutions and agencies rice, corn and other grains, fish and other marine products meat, eggs, milk, vegetables, tobacco and other agricultural commodities produced by their members shall be granted to the cooperatives concerned;
* Preferential treatment in the allocation of fertilizers and in rice distribution shall be granted to cooperatives by the appropriate government agencies;
* Preferential and equitable treatment in the allocation or control of bottomries of commercial shipping vessels in connection with the shipment of goods and products of cooperatives;
* Cooperatives and their federations, such as market vendor cooperatives, shall have preferential rights in management of public markets and/or lease of public market facilities, stall or spaces;
* Credit cooperatives and/or federations shall be entitled to loans, credit lines, rediscounting of their loan notes, and other eligible papers with the Development Bank of the Philippines, the Philippine National Bank, the Land Bank of the Philippines and other financial institutions except the Central Bank of the Philippines;
* Cooperatives transacting business with the Government of the Philippines or any of its political subdivisions or any of its agencies or instrumentalities, including government-owned and controlled corporations shall be exempt from pre-qualification bidding requirements; and
* Cooperatives shall enjoy the privilege of being represented by the provincial or city fiscal or the Office of the Solicitor General, free of charge, except when the adverse party is the Republic of the Philippines.
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REVISED PROCEDURES FOR MEDIATION AND CONCILIATION OF COOPERATIVE DISPUTES

Rules and Regulations Implementing Certain Provisions of the Cooperative Code

REVISED PROCEDURES FOR MEDIATION AND CONCILIATION OF COOPERATIVE DISPUTES

Pursuant to the provision of Section 8, Republic Act No. 6939, authorizing the Cooperative Development Authority to mediate and conciliate disputes within a cooperative or between cooperatives, the Authority hereby promulgates the following procedures in the conduct of mediation and conciliation, under the said section, to wit:

“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 the appropriate action before the proper courts.”

SECTION 1. Title. - These procedures shall be known as the Revised Procedures for Mediation and Conciliation of Cooperative Disputes in the Cooperative Development Authority.

SECTION 2. DEFINITION OF TERMS. - As used in these procedures, the term:

1. Authority - shall refer to the Cooperative Development Authority and its Extension Offices.
2. Board of Administrators - shall refer to the governing board of the Authority consisting of a chairman and six (6) members.
3. Mediation - shall refer to a process whereby a mediator designated by the Authority takes a more active part in helping the conflicting parties develop or come out with an acceptable solution to their dispute or assist the parties reach an amicable solution to the dispute/s.
4. Conciliation - shall refer to a process whereby a conciliator designated by the Authority calls together the parties involved in a dispute, encourages them to discuss their differences, and assists them in developing their own proposed solutions to their disputes.
5. Mediator/conciliator - shall refer to an employee of the Authority designated to act as such in relation to such requests for mediation and conciliation. As a rule, the Legal Officer of Extension Offices shall act as mediator/conciliator. The Extension Director shall have the authority to appoint other CDA Regional employees qualified to act as mediator/conciliator in the absence of such Legal Officer.
6. Order - shall refer to any directive of the Authority or the Board of Administrators, or such other body, committee, board or officer duly created or designated by the Authority.
7. Certificate - shall refer to the Certificate of Non-Resolution issued by the Authority or by the duly designated officer.
8. Settlement or Agreement - shall refer to the compromise, which the parties in the mediation/conciliation conference have agreed upon.

SECTION 3. Commencement of Action - Any action for mediation or conciliation may be commenced upon receipt of written request or complaint from either or both parties.

SECTION 4. Complaint - A written request/complaint may be filed with the Extension Office or Central Office having jurisdiction over the cooperative. It shall contain the following:
1. The name/s and address/es of the complainant/s;
2. The name/s and address/es of the persons being complained of;
3. The issue and subject matter of the controversy;
4. A certification by any member of the grievance committee of the cooperative that the complaint has undergone the cooperative grievance mechanism or a certification by either the secretary of the board or by the complainant that the cooperative has no grievance machinery or no functional grievance machinery or that a certification is no longer practicable.

In the absence of any one of the aforementioned requirements, the complaint shall be dismissed without prejudice to the re-filing of the same.

SECTION 5. Grounds for complaint for Mediation and/or Conciliation. - The issues considered to be the subject for mediation/conciliation:

1. Matters involving the internal affairs of the cooperative, such as but not limited to: (1) the rights and privileges of members; (2) the rules and procedures for meetings of the General Assembly, Board of Directors, or the different cooperative committees; (3) the rules and procedures for the election and qualifications for officers, directors or committee members; (4) the allocation and distribution of surpluses and reserves; and (5) all other matters involving the internal affairs of the cooperative that the Authority may deem vital to the operations of the cooperative.
2. For disputes between cooperatives, such other matters that may involve the area of operations of the cooperatives and disputes between cooperatives.

SECTION 6. Matters Not Cognizable Under These Procedures. - The following are not cognizable for mediation and conciliation conferences and hence cannot be the subject of any amicable settlement.

1.Violation of Article 48, R.A. 6938 (Dealings of Directors, Officers or Committee);
2.Violation of Article 49, R.A. 6938 (Disloyalty of a Director);
3.Violation of Article 50, R.A. 6938 (Illegal Use of Confidential Information);
4.Violation of Article 84, R.A. 6938 (Right to Examine);
5.Matters involving the grant and exercise of a franchise, license or certificate of public convenience or necessity as stated in Article 98, paragraph (2) of R.A. 6938;
6.Violation of Article 114, R.A. 6938 (Prohibition);
7.Non-compliance with other laws as stated in Article 119, R.A. 6938;
8.Violation of Article 124, R.A. 6938 (Penal Provisions);
9.Issues which are criminal in nature cognizable by the regular and/or special courts; and
10.Other matters which fall under the administrative and regulatory functions or matters that pertain to compliance with mandatory requirements of the law and related issuances.

SECTION 7. Comments. - Upon receipt of such complaint, an order shall be issued by the Extension Office/Central Office as the case may be, requiring the person/s being complained of to file their comments/answers thereto within fifteen (15) days from the receipt of the order.

SECTION 8. Prohibited Motions. - The following motions shall not be allowed under these mediation/conciliation procedures.

1. Motion to Dismiss;
2. Motion for a Bill of Particulars;
3. Motion for Extension of Time;
4. Motion to Declare Petitioner Non-Suited or Respondent in Default; and
5.Motion for Intervention.

SECTION 9. Conference. - Upon receipt of the comments/answers from the person being complained of, the Extension Office/Central Office as the case may be, shall issue a notice of conference to all parties concerned stating the date, time and venue of the conference.

SECTION 10. General Preparations. - (a) The mediator/conciliator shall have the following documents at his disposal during the said conference.

1.A copy of the 1987 Constitution;
2.A copy of R.A. No. 6938, R.A. 6939, and the Implementing Rules;
3.A copy of these Procedures and other pertinent issuances of the Authority;
4.A copy of the cooperative´s articles of cooperation and by-laws;
5.A copy of the Complaint and the Comments thereto; and
6.Other documents that may be deemed necessary for the conference.

(b) As far as practicable, the mediator/conciliator shall be dressed in semi-formal office attire if the conference shall be held within the Extension Office. If the conference is held in the field, he may opt to wear casual attire.

(c) The venue where the conference is to be held must be comfortable to all so that the atmosphere shall be conducive to the settlement of disputes.

SECTION 11. Purpose of Conference. - In the conference, the mediator/conciliator shall make it clear that the purpose of the conference is to see whether any settlement or agreement may be reached between the parties after a thorough discussion of the issues. However, before any discussion, the mediator/conciliator shall clearly define the issues.

SECTION 12. Conduct of Conference. - The following rules shall be observed:

1. Parties are required to appear personally during the conference without the assistance of counsel.
2. A mediation/conciliation conference is not judicial proceeding per se. Hence, the technical rules and procedures shall not be applicable in such cases.
3. The conduct of the conference shall be non-adversarial in nature and shall proceed with the end in view of settling any cooperative dispute.
4. All parties involved or interested in the dispute shall be afforded the opportunity to ventilate their views concerning the dispute.

SECTION 13. Minutes. - Minutes of the proceedings of the conference shall be made by the designated secretary and shall form part of the records of the case.

SECTION 14. Recess and Suspension. - The conference may be recessed from time to time in order for the parties to consult with one another. It may also be suspended from day to day until the positions of both parties on all issues are properly ventilated and exhausted.

SECTION 15. Settlement or Agreement. - Once all the issues have been ventilated and addressed and the parties have reached an agreement:

1. The agreement shall be reduced in writing and attested to by the mediator/conciliator.
2. The agreement shall be clear and concise and must contain all points of the parties� understanding. Extra care must be taken in drafting the Agreement in order to minimize doubtful or vague interpretations that might result to further disagreement or worsening of the dispute.
3. Copies of the Agreement shall be furnished to the parties at the soonest possible time for their own records.

SECTION 16. Certificate of Non-Resolution. - A Certificate of Non-Resolution shall be issued on the following grounds:

1.In the event that after the holding of the conferences, and the disputes have not been resolved;
2.If no mediation or conciliation conference succeeds within three (3) months from the filing of the written request/complaint;
3.If no conference succeeds due to the non-attendance of the respondent;
4.Breach of terms and conditions in the amicable settlement upon receipt of notice from either or both parties.

SECTION 17. Effect of Issuance of Certificate of Non-Resolution. - The issuance of Certificate of Non-Resolution shall be the basis for the filing of any action before the proper courts.

SECTION 18. Non-Appearance of the Complainant. - If for no justifiable cause, the complainant fails to appear, after two (2) consecutive summons/notices the dispute shall be disposed of through an appropriate resolution. Issuance of such resolution shall bar the complainant from re-filing the same dispute.

SECTION 19. Construction. - These rules shall be liberally construed in order to promote the growth and viability of cooperatives, preserve harmony and instill the cooperative way of life within and among cooperatives and to achieve a just and expeditious resolution of every dispute brought before the Authority.

SECTION 20. Repealing Clause. - All rules, regulations, issuances and the likes which are contrary to or inconsistent with any of the provisions of these procedures are hereby repealed.

SECTION 21. Effectivity. - These revised procedures shall take effect upon the approval by the Cooperative Development Authority Board of Administrators.

Approved, Board of Administrators Resolution No. 214, S-2004 dated 10 June 2004.

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Rules and Regulations Implementing Certain Provisions of the Cooperative Code

THE NEW RULES OF PROCEDURES IN THE COOPERATIVE DEVELOPMENT AUTHORITY (CDA)

To carry out and otherwise implement the provisions of the R.A. 6938 and 6939, the Authority pursuant to the powers vested in it under the existing laws hereby promulgates the following rules of procedure in actions or proceedings before it.

Rule 1 – Title and Definition of Terms

Section 1. Title. – These rules shall be known as the New Rules of Procedures in the Cooperative Development Authority.

Section 2. Definition of Terms. – For the purpose of these Rules, and as far as practicable, the following words shall mean:

1.Authority – shall refer to the Cooperative Development Authority and its Extension Offices.
2.Board of Administrators – shall refer to the Chairman and any of the Administrators.
3.Code – shall refer to Republic Act. No. 6938 otherwise known as the Cooperative Code of the Philippines.
4.Cooperative Laws – shall refer to the Code, Republic Act No. 6939, the Rules and Regulations Implementing the Cooperative Code, and other issuances of the Authority.
5.Cooperatives – shall refer to the duly registered primary, secondary, and tertiary cooperative.
6.Hearing Officers – shall refer to the Legal Officer/s and/or other qualified employees of the Authority as are authorized to conduct hearings and investigations of cases brought before the Authority.
7.Order – shall refer to any directive of the Authority or the Board of Administrators or such other body, committee, board or officer duly created or designated by the Authority.
8.Documents – shall refer to records, accounts, correspondence, memoranda, tapes, discs, papers, books and other documents or transcribed information of any type, whether expressed in ordinary or machine readable form.
9.Board of Administrators – shall refer to the governing board of the Authority consisting of a chairman and six (6) members.
10.Mediation – shall refer to a process whereby a mediator designated by the Authority takes a more active part in helping the conflicting parties develop or come out with an acceptable solution to their dispute or assist the parties reach an amicable solution to the dispute/s.
11.Conciliation – shall refer to a process whereby a conciliator designated by the Authority calls together the parties involved in a dispute, encourages them to discuss their differences, and assists them in developing their own proposed solutions to their disputes.
12.Mediator/conciliator – shall refer to an employee of the Authority designated to act as such in relation to such requests for mediation and conciliation. As a rule, the Legal Officer of Extension Offices shall act as mediator/conciliator. The Extension Director shall have the authority to appoint other CDA Regional employees qualified to act as mediator/conciliator in the absence of such Legal Officer.
13.Order – shall refer to any directive of the Authority or the Board of Administrators, or such other body, committee, board or officer duly created or designated by the Authority.
14.Certificate – shall refer to the Certificate of Non-Resolution issued by the Authority or by the duly designated officer.
15.Settlement or Agreement – shall refer to the compromise, which the parties in the mediation/conciliation conference have agreed upon.

Rule 2– General Provisions

Section 1. Coverage. – These Rules shall govern the procedure to be observed by the Authority in connection with the enforcement of the Code, Cooperative Laws and other existing laws, rules and regulations being implemented by the Authority.

Section 2. Construction. – These procedures shall be liberally construed in order to provide a just, speedy and inexpensive determination of actions/proceedings brought before the Authority.

Section 3. Venue. – All proceedings covered herein shall be commenced and terminated/resolved before the Central Office or Extension Office having jurisdiction over the cooperative dispute except on appealed cases which shall be terminated/resolved before the Central Office.

Section 4. Service of Pleadings – (a) All pleadings and documents required by these procedures shall be filed, served and released through the Record Section of the Central Office/Extension Office, as the case may be, of the Authority.

(b) All pleadings and documents required by these procedures shall be filed in the Central Office or Extension Office concerned, either personally or by registered mail. When so authorized by the Authority, facsimile transmission (fax) or electronic mail (e-mail) may be filed. In such cases, the date of transmission shall be deemed to be prima facie the date of service.

Section 5. Service of Orders/Resolutions. – All orders/resolutions of the Authority shall be served personally to the parties, if practicable, or by registered mail.

Section 6. Number of copies. – The number of copies of any pleading or document required by these Rules shall be:

1. Two ( 2) copies for the Authority;
2.“X” number of copies, as there are respondents.

Section 7. Suppletory Application of the Rules of Court. – The Rules of Court, in so far as they may be relevant, shall suppletorily apply in the absence of governing procedures.

Rule 3 – Powers and Jurisdiction of the Authority

SECTION 1. Express Powers. – The Authority may exercise such powers as are provided for under Republic Act No. 6939 and such other powers as expressly stated in the Code.

SECTION 2. Inherent Powers. – When performing its statutory functions, the Authority and its Hearing Officers shall have the inherent power to:

1. Preserve and enforce order during the hearing of a case;
2. Enforce order in all proceedings brought before it or any of its officers or hearing officers under its Authority;
3. Compel compliance with its orders and processes;
4. Compel the attendance of persons to testify in any petition or complaint pending before it and compel the production of documents relevant to such cases; and
5. Administer oath to a person testifying before it.

SECTION 3. Exclusive Jurisdiction. – The Authority shall have the exclusive jurisdiction over the following petitions and cases brought before it:

1. Petition for the approval of amendments to the Articles of Cooperation and/or By-laws of a cooperative (Article 18, R.A. 6938);
2. Petition for the division, merger or consolidation of cooperatives (Articles 20 and 21, R.A. 6938);
3. Petition to call a regular or special general assembly meeting (Article 35, R.A. 6938);
4. Petition to revoke the cooperative´s authority to operate as such and/or to cancel the cooperative�s Certificate of Registration for failure to file its Annual Report and/or Audited Financial Statement within sixty (60) days from the end of every fiscal year as provided under Article 54 of the Code;
5. Petition for the voluntary dissolution of a cooperative (Article 65, R.A. 6938);
6. Petition for the voluntary dissolution of a cooperative where creditors are affected as provided (Article 66, R.A. 6938);
7. Petition for the suspension, revocation or cancellation of a certificate of registration of a cooperative (Articles 68 and 69, R.A. 6938);
8. Petition for the liquidation of a cooperative (Article 70, R.A. 6938).

Section 4. The Manual on Dissolution, Liquidation and Cancellation of Cooperatives shall govern petitions under Subsections (5), (6), (7) and (8).

Rule 4 – Disqualification of Administrators, Directors and Hearing Officers

SECTION 1. Disqualification of Administrators, Director and Hearing Officers. – (a) No Administrator, Director or Hearing Officer shall take part in any proceeding wherein he, his spouse or child is related to any party, or counsel, if any, within the fourth civil degree of consanguinity or affinity, or in which he has publicly expressed prejudgment of the case as may be shown by clear and convincing proof.

(b) No Administrator, Director or Hearing Officer shall take part in any proceeding in the case if he/she is/was formerly a member of the cooperative involved in such case, or its federation or union.

(c) An Administrator, Director or Hearing Officer may, in the exercise of his own discretion, inhibit himself from taking part in any proceeding in the case for just or valid reasons other than those mentioned above.

SECTION 2. Lack of Hearing Officer. – In case a hearing officer be disqualified from the proceedings or inhibits himself from acting on a case, the Authority shall appoint another to act as Hearing Officer for the case.

Rule 5 – Parties

SECTION 1. Who may be parties. – Any member of a duly registered cooperatives, their federations or unions may be a party to the action/proceeding.

SECTION 2. Parties in Interest. – All actions filed with the Authority must be initiated and defended in the names of the real parties in interest.

SECTION 3. Designation of Parties. – A party requesting relief shall be referred to as the Petitioner or Complainant. Any party being complained of or against whom a claim or interest is directed shall be referred to as the Respondent.

Rule 6 – Commencement of Action: Pleadings

SECTION 1. Commencement of Action by Party. – Any action may be commenced by any natural person or cooperative by filing a verified complaint/petition with the Authority and upon payment of filing fees therefor.

SECTION 2. Commencement of Action by the Authority. – In cases where the Authority is authorized to initiate proceedings, the Authority shall issue an order for a hearing reciting therein the purpose for which the hearing is called for and a concise statement of the facts giving rise thereto. Copies of such order shall be served upon persons or cooperatives having interest in the matter or who may be affected thereby.

SECTION 3. Pleadings Defined. – Pleadings are the written allegation of the parties of their respective claims and defenses submitted to the Authority for resolution.

SECTION 4. Pleadings Allowed. – The pleadings allowed by these Rules are the complaint/petition, the answer, the intervention, the reply, third-party complaint and other similar complaints/petitions and answers to such pleadings.

SECTION 5. Form of Pleadings. – (a) All pleadings filed with the Authority shall be printed, mimeographed or typewritten on legal size bond papers and shall be in English or Pilipino.

(b) The title of the action indicates the name of the parties. They shall all be named in the original complaint/petition; but in the subsequent pleadings, it shall be sufficient if the name of the first party on each side be stated with an appropriate indication when there are other parties.

(c) Every pleading must be signed by the party or counsel stating in either case his address or address of the cooperative. An unsigned pleading produces no legal effect. It shall be deemed not filed unless it is promptly signed by the pleader or movant, after he is notified of the omission.

(d) A pleading shall be verified only by an affidavit stating that the persons verifying the same has read the pleading and that the allegation thereof are true of his own knowledge or based on authentic records. Verifications based on “information and belief” or upon “knowledge”, or lacks a proper verification shall be treated as an unsigned pleading.

(e) Certification against forum shopping. – The complainant/petitioner or principal party shall certify under oath in the complaint or other initiatory pleading asserting a claim for relief, or in a sworn certification annexed thereto and simultaneously filed therewith: (i) that he has not thereto commenced any action or filed any claim involving the same issues in any court tribunal or agency and, to the best of his knowledge, no such other action or claim is pending therein; (ii) if there is such other pending action or claim, a complete statement of the present status thereof; and (iii) if he should thereafter learn that the same or similar action or claim has been filed or is pending, he shall report the fact within five (5) days therefrom to the Authority.

SECTION 6. The Authority shall accept no pleading unless it conforms to the formal requirements provided by these Rules.

SECTION 7. Filing Fee. – The fee for filing a complaint/petition, third-party complaint and a complaint or petition in intervention shall be in accordance with the Revised Schedule of Fees.

SECTION 8. Docket Assignment of Numbers and Case Name. – (a) Upon the filing of a petition/complaint the Legal Officer or the Legal Division/Section shall docket the same and assign a number. The numbering must be consecutive according to the date it was filed, must bear the year, and prefixed as follows:

1. CO – Legal Division, Central Office
2. DAG – Dagupan Extension Office
3. TUG – Tuguegarao Extension Office
4. CEO – Cordillera Extension Office
5. PEO – Pampanga Extension Office
6. MEO – Manila Extension Office
7. CAL – Calamba Extension Office
8. NAG – Naga Extension Office
9. ILO – Iloilo Extension Office
10. CBU – Cebu Extension Office
11. TAC – Tacloban Extension Office
12. CDO – Cagayan de Oro Extension Office
13. ZAM – Zamboanga Extension Office
14. DVO – Davao Extension Office
15. KID – Kidapawan Extension Office
16. CAR – CARAGA Extension Office

(b) Should the case be on appeal to the Board of Administrators, the letter “A” shall be appended to the docket number of the Central Office.

Rule 7 – Intervention

SECTION 1. a) Who May Intervene. – Any person or cooperative allowed to initiate a proceeding may, before the rendition of the resolution, be permitted by the Authority, in its discretion, to intervene in such proceeding, if he has a legal interest in the matter under litigation, or in the success of either of the parties, or an interest against both or when he is so situated as to be adversely affected by such proceeding.

(b) When Proper to Intervene. – The motion to intervene may be filed at any time before rendition of judgment by the trial court. A copy of the pleading-in-intervention shall be attached to the motion and served on the original parties.

SECTION 2. Motion for Intervention. – A person desiring to intervene shall file a motion for leave of the Authority with notice upon all the parties to the action.

SECTION 3. Discretion of the Authority. – In acting on a motion for intervention, the Authority, in the exercise of its discretion, shall consider whether or not the intervention will unduly delay or prejudice the adjudication of the rights of the original parties and whether or not the intervenor´ s rights may be fully protected in a separate action of proceeding.

Rule 8 – Amended or Supplemental Pleadings

SECTION 1. When Amendments Allowed as a Matter of Right. – A party may amend his pleading once as a matter of course at any time before a responsive pleading is served, or, if the pleading as one to which no responsive pleading is permitted and the action has not been placed on the calendar, he may so amend it at any time after it has been served.

SECTION 2. Amendments Only by Leave. – After the case is set for hearing, substantial amendments may be made only upon leave of the Authority. Such leave may be refused if it appears that the motion was meant to delay the action or that the cause of action is substantially altered. Orders of the Authority upon the matters provided in this Section shall be made upon motion duly filed and after the adverse party has been notified and afforded an opportunity to be heard.

SECTION 3. Matters of Supplemental Pleadings. – Upon motion of a party, the Authority may, upon notice and upon such terms as are just, permit him to serve a supplemental pleading setting forth transactions, occurrences or events which have happened since the date of the pleading sought to be supplemented.

Rule 9 – Periods for Pleading

SECTION 1. Time to Answer. – Unless otherwise provided in these Rules, the answer to a petition, complaint, amended complaint or counter-complaint must be filed with the Authority within fifteen (15) days from receipt of a copy of the summons.

SECTION 2. Period to File Pleading-in-Intervention. – When intervention is allowed, the same must be filed within ten (10) days from receipt of the order allowing the intervention, unless a different period has been fixed by the Authority.

SECTION 3. Reply. – Unless otherwise provided, a reply may be filed within ten (10) days from receipt of a copy of the answer.

Rule 10 – Motions

SECTION 1. Motions Defined. – Every application for an order not included in a resolution of the Authority may be called a motion.

SECTION 2. Motions in Writing. – All motions shall be made in writing, except motions for continuance made in the presence of the adverse party, or those made in the course of a hearing.

SECTION 3. Contents of a Motion. – A motion shall state the order sought to be obtained and the grounds upon which it is based.

SECTION 4. No Oral Arguments for Motions. – No oral argument shall be heard in support of motions, unless the Authority deems otherwise.

SECTION 5. Omnibus Motion. – A motion assailing a pleading or a proceeding shall include all objections then available, and all objections not so included shall be deemed waived.

Rule 11 – Prohibited Pleadings

SECTION 1. Pleadings Not Allowed. – The following pleadings shall not be allowed:

1. motion to dismiss;
2. motion for a bill of particulars;
3. motion for extension of time to file memorandum;
4. motion for re-opening or re-hearing of case; and
5. motion to declare a party in default.

SECTION 2. Motion to Dismiss, If Filed. – Should the respondent file a motion to dismiss, such shall constitute an answer and the proceeding may continue on the merits.

Rule 12 – Summons

SECTION 1. Summons. – Upon the filing of the complaint or petition, the corresponding summons shall forthwith be issued within five (5) days from date of filing of the complaint.

SECTION 2. Contents. – (a) Summons shall be directed to the respondent, signed by the Extension Director or the Executive Director, as the case may be, and shall contain: (1) the names of parties; and (2) a directive that the respondent/s shall answer the complaint/petition within the time fixed by these Rules otherwise it shall be deemed as waiver of the respondent´ s right thereto and the Hearing Officer shall, motu proprio, proceed to resolve the complaint/petition.

A copy of the complaint/petition and its annexes, if any, shall be attached to each copy of the summons.

(b) In petitions for the division, merger or consolidation of cooperatives, and for the suspension, revocation, cancellation or liquidation of cooperatives, notice of the pending case may be sent to government agencies and institutions which may be affected by the resolution of such issues.

SECTION 3. Alias Summons. – If summons is returned without being served on any or all the respondents, or if it has been lost, the Hearing Officer may issue alias summons as the case may require, in the same form as the original.

SECTION 4. By Whom Summons May Be Served. – The summons may be served by the process server of the Authority, or for special reasons by any person specially authorized by the Hearing Officer.

SECTION 5. Return of Summons. – When the service has been completed, the process server shall return the summons to the Authority together with the proof of service.

SECTION 6. Personal Service of Summons. – The summons shall be served by handing a copy thereof to the respondent in person or if he refuses to receive it, by tendering it to him.

SECTION 7. Substituted Service. – If, for justifiable causes, the respondent cannot be served personally with the summons as provided in the preceding section, service may be effected, (a) by leaving copies of the summons at the respondent´ s dwelling house or residence with some person of suitable age and discretion then residing therein, or (b) by leaving the copies at the respondent´ s principal office or regular place of business with some competent person in charge thereof.

SECTION 8. Proof of Service. – The proof of service of a summons should be made in writing by the server setting forth the manner, the place and the date of service; it shall specify any documents which have been served with the process and the name of the person who received the same; and shall be sworn to when made by a person other than the server of the Authority. The respondent´ s voluntary appearance before the Authority shall be equivalent to service for purposes of acquiring jurisdiction over his person, unless he makes an explicit reservation thereto.

Rule 13 – Subpoena

SECTION 1. Subpoena ad Testificandum or Subpoena Duces Tecum. – Subpoena ad testificandum or subpoena duces tecum may be issued by the Authority or any of its Regional Directors or Executive Director motu proprio, or upon request of the parties in any proceeding, as the case may be.

SECTION 2. Form and Contents. – It shall state the title of the action and shall be directed to the person whose attendance is required, and in the case of a subpoena duces tecum, it shall also contain a reasonable description of the books, documents or things demanded which may be prima facie relevant to the petition or the complaint.

Rule 14 – Preliminary Conference

Section 1. Preliminary Conference. – In any action, after the respondent has filed his answer, the Authority or Hearing Officer shall set the case for preliminary conference and the parties and their counsels shall be directed to appear before the Authority, upon notice thereof at least five (5) days before the date set, to consider:

1. The necessity or desirability or amendments to pleadings;
2. The possibility of obtaining stipulations or admission of facts and of documents to avoid unnecessary proof;
3. The limitation of the number of witnesses;
4. The simplification of the issues;
5. Such other matters as may aid in the just and speedy disposition of the case.

Section 2. Failure to appear at Preliminary Conference. – The failure of the complainant/petitioner to appear in the preliminary conference shall be cause for dismissal of the action with prejudice unless otherwise ordered by the Authority. A similar failure on the part of the respondent shall be cause to allow the petitioner to present his evidence ex parte and the Authority to render resolution on the basis thereof.

Rule 15 – Hearings

SECTION 1. Notice of Hearing. – Should the preliminary conference fail, the case shall be set for hearing. Formal notice of hearing shall be served personally or by registered mail to the parties or their counsels, giving sufficient time for the notices to be received by the parties or their counsels not less than two (2) days before the date of hearing.

SECTION 2. Order of Hearing. – Unless the Authority, for special reasons, declares otherwise, the order of the hearing shall be as follows:

1. The complainant/petitioner shall present his evidence;
2. The complainant-in-intervention, if any, shall present evidence;
3. The respondent shall then offer evidence in support of his defense, if any;
4. The parties shall then respectively offer rebutting evidence only, unless the Authority, for good reasons, permits them to offer evidence upon their original case;
5. When the hearing is concluded, unless the parties agree to submit the case without arguments, the parties or their counsel may be allowed to argue, subject to the limitation of time as the Authority may prescribe; and
6. In lieu of oral arguments, the parties may be allowed to submit their respective memoranda within a period of fifteen (15) days from the date of the last hearing.

Rule 16 – Resolutions

SECTION 1. Resolutions. – All resolutions reached shall be in writing stating the facts clearly and distinctly and the law upon which it is based. The CDA Board of Administrators or the Extension Office Director, as the case may be, shall duly sign the resolution. Such resolution shall be issued under the seal of the Authority.

SECTION 2. Minute Resolution. – No minute resolution resolving a complaint shall be rendered.

SECTION 3. Period to Decide a Complaint/Petition. – Any matter submitted to the Authority shall be decided within sixty (60) days from the date it is submitted for resolution.

SECTION 4. Service of Resolution. – The resolution shall be served upon all parties on record. However, concerned government agencies/institutions may be furnished copies of the resolution.

SECTION 5. Finality of Resolution. – (a) Any resolution shall become final and executory within fifteen (15) days from the receipt of the parties of a copy of the resolution and no appeal or motion for reconsideration has been filed within the said period.

(b) A resolution, which has become final and executory, may be enforced through a writ or order of execution issued by the Authority upon motion or motu proprio in cases of action initiated by the Authority.

Rule 17 – Contempt

SECTION 1. Direct Contempt. – A person guilty of misbehavior in the presence of or so near the Hearing Officer or Administrator as to obstruct or interrupt the proceedings before him, including disrespect towards the Hearing Officer, offensive personalities towards others, or refusal to be sworn to or answer as a witness, or to subscribe an affidavit or deposition when lawfully required to do so, may be summarily adjudged in contempt by the Hearing Officer and punished by a fine of not more than Five Hundred Pesos (P500.00).

SECTION 2. Indirect Contempt. – Any person who shall fail or refuse to comply with the promulgated decision, order or writ of the Hearing Officer without justifiable cause after being required to do so, shall be punished for contempt pursuant to the provisions of the Rules of Court.

Rule 18 – Appeals

SECTION 1. Appeal from Resolution of Extension Office Director. – (a) Any appeal from the resolution signed by the Extension Office Director may be filed with the Board of Administrators within fifteen (15) days from the receipt of a copy of such resolution.. The appeal is taken by filing a notice of appeal and an appeal brief and payment of the corresponding docket fee with the Extension Office issuing such resolution. Failure to comply with the above requirements within the reglementary period shall be construed as failure to perfect an appeal and shall cause its dismissal

(b) Within fifteen (15) from the perfection of the appeal, the Extension Office shall transmit the original & complete record of the case together with the proof of payment of the corresponding docket fee to CDA-Central Office, Legal Division.

(c) The CDA Board of Administrators shall decide such appeal within thirty (30) days from the day the appeal is deemed submitted for resolution, unless otherwise extended for by the Board of Administrators.

SECTION 2. Appeal from Decision of the Board of Administrators. – An appeal from the resolution of the Board of Administrators shall be made to the Office of the President within fifteen (15) days from the receipt of such resolution by the appealing party by filing a notice of appeal and an appeal brief with the Office of the President, copy furnished the Authority.

SECTION 3. Transmittal of Records. – Upon receipt of an ORDER from the Office of the President and proof of payment of the corresponding docket fee, the Authority shall forward the entire records of the proceeding or certified photocopies thereof.

Rule 19 – General Provisions

SECTION 1. Support Staff.– The Hearing Officers may require other employees of the Authority to assist them during their sessions or hearings or in the performance of his duties.

SECTION 2. Stenographers – (a) Stenographers may also be present at every session or hearing to take the stenographic notes of the proceedings.

(b) Any party or their counsel may request for a copy of the transcript of stenographic notes of the hearing. The costs for such transcript shall be borne by the party requesting the transcript.

(c) The fees for such transcript shall be at Six Pesos (P 6.00) per page of not less than two hundred and fifty (250) words before any appeal is filed, and Three Pesos and Sixty Centavos (P3.60) after the appeal is filed.

Rule 20 – Supplementary Rules

SECTION 1. Rules of Court. – In the absence of any applicable provision in these Rules, the pertinent provisions of the Rules of Court of the Philippines shall be applicable by analogy or in suppletory character and effect.

SECTION 2. Evidence. – The parties and the Authority shall be strictly bound by the technical rules on evidence and may resort to such evidence that a common prudent man may require.

Rule 21 – Final Provisions

SECTION 1. Repealing Clause. – All resolutions, rules and regulations of the Authority or parts thereof which are inconsistent with any provision of these Rules are hereby deemed repealed or modified accordingly.

SECTION 2. Separability Clause. – If any part of these Rules is declared unconstitutional, the remaining part not affected thereby shall remain valid and effective.

SECTION 3. Effectivity. – These Rules of Procedure shall take effect fifteen (15) days following the completion of the publication in the official gazette/after publication in newspaper of general circulation in the Philippines.

Approved: Board of Administrators Resolution No. 60-S-2006 dated February 15, 2006.

For the Board of Administrators:

Original Signed
LECIRA V. JUAREZ
Chairperson
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Rules and Regulations Implementing Certain Provisions of the Cooperative Code

MEMORANDUM CIRCULAR NO. 2006-07
Series of 2006

TO: ALL CONCERNED

SUBJECT: GUIDELINES IN THE COMMENCEMENT OF ACTION FOR VIOLATION OF ARTICLE 124 OF THE COOPERATIVE CODE OF THE PHILIPPINES

Pursuant to CDA Board of Administrators Resolution No. 129, Series of 2006, the Authority hereby promulgates the following internal guidelines in the Commencement of Action for Violation of Article 124 of the Cooperative Code:

SECTION 1. TITLE. - These guidelines shall be known as the Guidelines in the Commencement of Action for the Violation of Article 124 of the Cooperative Code of the Philippines.

SECTION 2. DEFINITION OF TERMS. - The following words or terms shall mean:

1. Authority - shall refer to the Cooperative Development Authority and its Extension Offices.
2. Code - shall refer to Republic Act No. 6938, otherwise known as the Cooperative Code of the Philippines.
3.Cooperative Laws - shall refer to the Code, Republic Act No. 6939, the Rules and Regulations implementing the Cooperative Code, and other issuances of the Authority.
4.Board of Administrators - shall refer to the Chairman and its six (6) members.
5.Investigating Officers - shall refer to the Legal Officers and other qualified employees of the Authority who are authorized to conduct preliminary investigation of the acts/omissions in violation of the Code.
6.Legal Division - shall refer to the Central Office.
7.Legal Unit - shall refer to the Extension Offices.
8.Complaint – is a sworn statement in writing charging a person or persons or organizations, whether foreign or domestic, with any of the offenses mentioned in Article 124 of the Code, subscribed by the aggrieved party or any interested person, as the case may be.

SECTION 3. ACTS OR OMISSIONS PUNISHABLE. - The following shall constitute acts or omissions punishable under Article 124 of the Code:

1.The use of the word “Cooperative” by any person or of person or organization, domestic or foreign, unless registered as a cooperative under the Code;
2. Direct or indirect interference or intervention in the internal affairs of a cooperative of a public official or employee of which he is not a member such as, but not limited to, the following:
Influencing the election or appointment of officers, directors, committee members and employees through public or private endorsement or campaign for or against any person or group of persons;

Requiring prior clearance for any policy or decision within the cooperative;

Requesting or demanding the creation of positions or organizational units, or recommending any person for appointment, transfer, or removal from his position; or

Any other acts inimical or adverse to the autonomy and independence of cooperatives.
4. Violations made by directors, officers or committee of a cooperative of the following provisions of the Code:

Article 46 (Liability of directors, officers and committee members)

Article 49 ( Disloyalty of a director)

Article 50 ( Illegal Use of Confidential Information)
5. Any violations of any provision of the Code for which no penalty is imposed.

SECTION 4. COMMENCEMENT OF ACTION.

An action for violation of any of the provisions of Article 124 shall commence upon the filing of a complaint in accordance with this guidelines or through the endorsement from other government agencies or instrumentalities or the respective departments of this Authority. Any information obtained other than through a complaint shall be given due course only after an initial evaluation has been conducted. In no case shall a complaint be given due course when the same is not in accordance with the form prescribed in Section 5 hereof except when the Authority itself initiates the action.

The Executive Director or Extension Office Director, as the case maybe, upon receipt of a formal complaint or complaints in accordance with these guidelines or any information, written or otherwise from any aggrieved party or from any interested party or through endorsement from other government agencies or instrumentalities or the respective departments of the Authority, shall refer the same to the Legal Division or Legal Units as the case may be, for determination of the need for preliminary investigation.

The Legal Division or Legal Units, as the case may be, shall determine whether there is sufficient evidence to proceed with the investigation.

1. If there is no basis for the complaint, information or endorsement referred to in the preceding paragraph, the same shall be dismissed by the Authority through an Order of Dismissal signed by the Executive Director or Extension Office Director concerned upon the proper recommendation of the Legal Division or the Legal Unit concerned.
2.If there appears to be a violation of the Code, upon recommendation of the Legal Division or the Legal Unit concerned, an Order authorizing the conduct of investigation shall be issued by the Authority through the Executive Director or the Extension Office Director concerned.

SECTION 5. FORM OF COMPLAINT. - All complaints must be in affidavit form together with the accompanying evidence, when available. When the Authority initiates the investigation, the complaint need not be in affidavit form.

The complaint should be written in a clear, simple and concise language containing the following:

1. Full name and address of the aggrieved party or any interested person;
2. Full name and address of the person or persons or organizations, whether foreign or domestic complained of;
3.A narration of the relevant and material facts which shows the acts or omissions allegedly violated by such person or persons or organizations, whether foreign or domestic complained of; and,
4.Subscribed by the aggrieved party or any interested person, as the case may be.

SECTION 6. CONDUCT OF FORMAL INVESTIGATION

In the conduct of investigation, the investigating officer shall draft an investigation plan to ascertain the following matters:

1. Nature of the violation;
2. Relevant laws, rules, regulations and orders;
3. Elements under which the existence of a violation is proven;
4. Procedure for conducting the investigation; and,
5.The time frame for the conduct of the investigation.

During an investigation, the investigating officer shall have the authority to request for information and documents and receive information through voluntary compliance. The investigating officer may also require or allow any person to file a statement in writing, under oath or otherwise as he may determine, with respect to the facts and circumstances relevant to the matter under investigation.

In furtherance of the investigation and in the interest of the service, he may also request the assistance of law enforcement agencies.

The fact that a person, organization, director, officer or committee member is under investigation shall remain strictly confidential, unless otherwise provided under these guidelines.

SECTION 7. INVESTIGATION REPORT. - After the completion of the formal investigation, the Investigating Officer shall submit an investigation report, which shall include all the supporting evidence gathered, to the Executive Director or the Extension Office Director as the case may be.

If based on the Investigation Report submitted there is a prima facie finding sufficient to warrant the filing of a criminal complaint, the procedure shall be:

1.For complaints handled by the Extension Office
2.The Investigation Report together with a draft complaint - affidavit with all the supporting affidavits and evidence shall be forwarded to the Legal Division-Central Office for evaluation.

The Legal Division shall complete its review within ten (10) days from receipt of the draft complaint-affidavit and investigation report. If the same is meritorious, the Legal Division shall either adopt the complaint-affidavit or draft a new complaint-affidavit and shall prepare the case folder which contains the case history and index of the documents.

If the Legal Division does not find the contents of the draft complaint-affidavit to be meritorious, if may refer the case back to the Extension Office for further case build-up or recommend the archiving of the draft complaint-affidavit including the Investigation Report to the Board of Administrators.
3. For complaints handled by the Central Office.

A review shall be conducted and the review shall be completed within ten (10) days from receipt of the investigation report and draft complaint-affidavit from the Investigating Officer. If the case is meritorious, the Investigating Officer upon approval of the Chief of the Legal Division shall prepare the case folder which contains the case history and index of the documents.

If the same is not meritorious, the case may be referred back to the investigating officer for further case build-up or recommend the archiving of the draft complaint-affidavit including the Investigation Report to the Board of Administrators.

SECTION 8. DROPPING OF THE COMPLAINT-AFFIDAVIT. - After or before the investigation but prior to the filing of the complaint with the appropriate officer/court, the complaint-affidavit may be dropped through the approval of the Board of Administrators upon recommendation of the Chief of the Legal Division with the concurrence of the Executive Director.

SECTION 9. FILING OF COMPLAINT. - Upon approval of the Board of Administrators of the complaint-affidavit, the Legal Division or the Extension Office legal officer assigned to the case, shall file the same in accordance with the 2000 Revised Rules on Criminal Procedure, Rules of Court of the Philippines.

SECTION 10. SEPARABILITY CLAUSE. - If any provision or article of these guidelines is held invalid the remaining provisions or articles shall not be affected thereby.

SECTION 11. EFFECTIVITY. - These Guidelines shall take effect fifteen (15) days following its filing in the Office of the National Administrative Register, University of the Philippines, Law Center.

June 30, 2006.

FOR THE BOARD OF ADMINISTRATORS:

ORIGINAL SIGNED
LECIRA V. JUAREZ
Chairperson

Events to Remember

March 10 = COOPERATIVE DAY = Enactment of R.A. 6938, otherwise known as the Cooperative Code of the Philippines ; Enactment of R.A. 6939, otherwise known as the charter of the Cooperative Development Authority

1st Week of May = Women in Cooperatives Regional Summit

June 8 = Issuance of Executive Order No. 95 designating CDA as the lead government agency on cooperative promotion, development, and regulations as basis for the creation of the Cooperative Development Council (CDCs) at the national, regional, provincial/city and municipal levels.
-Issuance of Executive Order No. 96- implementing Rules and Regulations on Cooperative promotions, organization, development and supervision by local government units.

October 1-31 = Annual celebration of the Cooperative Month Pursuant to Proclamation No. 493 dated October 2003

1st Friday of Decemeber = Tapok-tapol sa Koop ug Barkadahan sa Pasko

REQUIREMENTS FOR AMENDMENTS (By-Laws & Articiles of Cooperation)

1.Amended Articles of Cooperation – 4 copies
2.Amended By-Laws – 4 copies
3.Director’s Certificate – 4 copies
4.Excerpts of from Minutes of the Annual/Special General Assembly – 4 copies
5.Indorsement from the CDS II assigened in the area
6.Registration fee of P300.00 if no increase of the capitalization. If the proposed amendments include an increase capitalization, the registration fee is pegged at 1/10 of 1% of the increment in authorized capital plus the P300 basic fee.
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REQUIREMENTS FOR THE ISSUANCE OF CERTIFICATE OF GOOD STANDING (CGS)

1. Application letter duly signed by the Chairman or any authorized representative of the requesting cooperative stating therein the reasons;
2. Indorsement from Cooperative Development Specialist II (CDS II) assigned in the area;
3. Cooperative Annual Performance Report (CAPR) together with the Audited Financial Statements for the preceding fiscal period;
4. Copy of the updated bond of accountable officers/employees of the cooperative;
5. Minutes of the Annual General Assembly Meeting for the preceding fiscal period including the results of the election of the Board of Directors and the Committee members, in accord with the by-laws;
6. Certification by the Chairman or the Secretary of Actual specific Business Undertaken during the preceding fiscal period, and that the requesting cooperative is compliant with the Standard Chart of Accounts appropriate to its type;
7. Certification from the Legal Officer of the CDA Extension Office that the cooperative has no pending case; and
8. Certificate fee of P200
(plus penalty of P300 for late filing, if the coop applies for CGS after 120 days from the close of its fiscal period and P300 for every year of failure to secure CGS)
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Checklist for the Registration of a Primary Cooperative

1. Economic Survey – 4 copies
2. Articles of Cooperation - 4 copies
3. By-Laws - 4 copies
4. Undertaking to Change Name - 4 copies
5. Undertaking to submit Reportorial Requirements – 4 copies
6. One (1) copy of the Name Verification Slip
Note: Forms #1-6 would cost P250.00
7. Bond for Accountable Officers - 4 copies
8. Registration Fee – 1/10 of 1% of the Authorized Share Capital or P500.00 whichever is higher
9. Verification Fee – P50.00
10. Indorsement from Cooperative Development Specialist II assigned in the area
11. Indorsement from the Government Agency concerned (if needed)
12. Certificate of Pre-Education Membership Training Seminar of duly Accredited Institution or CDA Regional / Provincial Office
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The Cooperative Pledge

The Cooperative Pledge

As a Filipino,

I am and I believe in the cooperative,

Alone I am weak

But with others I am strong.

So I commit myself to work , to cooperate

For all to be prosperous.

Harmony, industry I will value.

Cooperative affairs I will attend.

Responsibilities I will assume.

The cooperative philosophy I will live.

One vision, one belief, one feeling

In cooperativism, my life I pledge

So help me God.