Statement by a Regulator

PHILIPPINES
Presented By:
EMMANUEL M. SANTIAGUEL, Ph.D.
Chairman, Cooperative Development Authority (CDA)
Philippines
The 1
st
ASIA-PACIFIC Cooperative
Registrars Conference
December 10-12, 2013
Kuala Lumpur, Malaysia
Art. 12, Sec. 15 of the 1987
Philippine Constitution - "The
Congress shall create an agency to
promote the viability and growth of
cooperatives as instruments for
social justice and economic
development."
Legal Environment
Sec 6 of Art. 12, 1987
Philippine Constitution provides -
The use of property bears a social function,
and all economic agents shall contribute to
the common good. Individuals and private
groups, including corporations,
cooperatives, and similar collective
organizations, shall have the right to own,
establish, and operate economic enterprises,
subject to the duty of the State to promote
distributive justice and to intervene when
the common good so demands
Legal Environment
RA 6938 - which became Republic
Act 9520 An Act Amending the
Cooperative Code of the Philippines to
be known as the Philippine
Cooperative Code of 2008", which was
enacted and made into law on
February 17, 2008.

RA 6939 the Act Creating the
Cooperative Development Authority
(CDA)
Legal Environment

Executive Order No. 95 Series of
1993 Designating CDA as the
lead government agency on coop
promotion, development, regulation
and calling on all government
agencies with coop programs to
coordinate these with CDA and for
other purposes.
Legal Environment
Executive Order No. 96
Implementing rules and regulations
on cooperative promotions,
organization, development and
supervision by Local Government
Units; and
Executive Order No. 332, Series of
2004 Transferring the CDA from
the Office of the President to the
Department of Finance.
Legal Environment
PARTICIPATION SUSTAINABILITY
CAPITAL
LEGAL
FRAMEWORK
IDENTITY
ICA BLUEPRINT STRATEGY
PARTICIPATION
Typical organizational structure of a
cooperative
General Assembly (GA)
AUDIT
COMMITTE
BOARD OF
DIRECTORS
ELECTION
COMMITTEE
Treasurer
Secretary

MANAGEMENT STAFF
MED-CON
COMMITTEE
ETHICS
COMMITTEE
OTHER
COMMITTEE
OTHER
COMMITTEE
General Membership holds the ultimate
power in the cooperative the highest
policy making body in cooperatives


Article 37 of RA 9520 - Unless otherwise
provided in the bylaws, the direction and
management of the affairs of a cooperative
shall be vested in a board which shall be
composed of xxx elected by the general
assembly
PARTICIPATION
Art. 43 (2), RA 9520 provides: The
bylaws shall provide for the creation of
an audit, election, mediation and
conciliation, ethics, and such other
committees as may be necessary for the
conduct of the affairs of the cooperative.
The members of both the audit and
election committees shall be elected by
the general assembly and the rest shall
be appointed by the board.
PARTICIPATION
Exclusive power of the General
Assembly that cannot be delegated:

a) To determine and approve
amendments to the Articles of
Cooperation and Bylaws;
b) To elect or appoint the members of
the Board of Directors, Election
Committee and Audit Committee,
and remove them for a cause;
c) To approve Developmental Plans.
PARTICIPATION
PARTICIPATION
CDA approved the Guidelines
on Mainstreaming of Gender
and Development (GAD) in
coops.
4.3 Million women are
members of coops or 37% of
the total membership.
100+ Laboratory
Coops/Student Cooperatives
with 335,000 members.
SUSTAINABILITY
Article 23 of RA 9520 20 types of
cooperatives usually organized by
sectoral;
Art. 8 of RA 9520 Cooperative Not
in Restraint of Trade
1. Credit
2. Consumer
3. Producers
4. Marketing
5. Service
6. MPC
7. Advocacy
8. Agrarian
Reform
9. Coop Bank
10. Dairy
11. Education
12. Electric
13. FSC
14. Fishermen
15. Health
Service
16. Housing
17. Insurance
18. Transport
19. Water
Service
20. Workers
21. Others
SUSTAINABILITY
Article 2 of RA 9520 Declaration of
Policy - It is the declared policy of the State
to foster the creation and growth of
cooperatives as a practical vehicle for
promoting self-reliance and harnessing people
power towards the attainment of economic
development and social justice. The State
shall encourage the private sector to
undertake the actual formation and
organization of cooperatives and shall create
an atmosphere that is conducive to the
growth and development of these
cooperatives.
SUSTAINABILITY
Article 2 (2) of RA 9520 Declaration of
Policy

"Toward this end, the Government and all its
branches, subdivisions, instrumentalities and
agencies shall ensure the provision of technical
guidance, financial assistance and other services
to enable said cooperatives to develop into viable
and responsive economic enterprises and
thereby bring about a strong cooperative
movement that is free from any conditions that
might infringe upon the autonomy or
organizational integrity of cooperatives.
IDENTITY
Article 2 (3) of RA 9520
Declaration of Policy - The State
recognizes the principle of subsidiarity
under which the cooperative sector
will initiate and regulate within its own
ranks the promotion and organization,
training and research, audit and
support services relative to
cooperatives with government
assistance where necessary
IDENTITY
Article 4 (4) of RA 9520
Autonomy and Independence -
Coops are autonomous self-help
organizations controlled by their
members. If they enter into
agreements, or raise capital from
other sources, they shall do so on
terms that ensure democratic
control of their members and
maintain their cooperative
autonomy.
Large (1.58%
Medium (6.67) %
Small (15.33%)
Micro (76.44%)
More than 100 Million
More than 15 Million
Up to 100 Million
More than 3 Million
to 15 Million
3 Million and Below
COOPERATIVE CAPITAL
COOPERATIVE CAPITAL
CDA MC 2012-18 Guidelines on
the Merger and Consolidation
Merger and Consolidation is in
place to address the issue of
having more micro and small
coops, but the program did not
bring the desired results in primary
coops because of the absence of
technical assistance, financial
incentives and legal provision.
Cooperative Capital
A successful Consolidation of three
(3) Coop Banks happened last year.

Ongoing Consolidation process of
six (6) Coop Banks led by NATCCO
with total capitalization of P 750M.

Ongoing merger talks between the
biggest cooperative insurance in
the country (CLIMBS and CISP).
Legal and Policy Environment
RA 6939 referred to as The
CDA charter is now being
calendared for amendment in the
16
th
Philippine Congress.
The Implementing Rules and
Regulations of RA 9520 was
reviewed by CDA and is subject
for public consultation and
approval of the Joint
Congressional Oversight
Committee on Coops.
Articles of Cooperation
Article 14 RA 9520

a) Name of the coop;
b) Purpose/s and scope of business;
c) Term of existence;
d) Area of operation and postal
address of the coop;
e) Names, nationality, and the postal
address of the cooperators;
f) Common Bond of membership;
g) Names of the Board of Directors;
h) Capitalization.
By-Laws
Article 15 RA 9520
a) Qualification for admission of
membership;
b) The rights and liabilities of
membership;
c) Circumstances under which
membership is acquired, maintained
and lost;
d) Termination of membership;
e) Transfer of shares;
f) Parliamentary procedures affecting
the affairs of the GA, BOD and the
Committee;
g) Conduct of affairs of the coop,
including the powers and duties of the
GA, BOD and the committees;
h) Capital build up and utilization;
i) Mode of custody and of investment of
net surplus;
j) Accounting and auditing system;
By-Laws
Article 15 RA 9520
k) Loaning and borrowing, including
limitations thereof;
l) Distribution of net surplus;
m) Manner of adopting, amending,
repealing, and abrogating bylaws;
n) Conciliation or mediation mechanism
for the amicable settlement of disputes,
and
o) Other matters incident to the
purposes and activities of the coop.
By-Laws
Article 15 RA 9520
Financial
Sustainability
. cannot be guaranteed by a model articles of
cooperation and bylaws alone but by the integration,
inculcation and existence of the following indicators

Thank you for
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ears !!!