Republic Act No. 6939: CDA Law Overview

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Questions and Answers

What is a significant challenge the CDA faces in overseeing cooperatives?

High compliance rates with reporting regulations

Low adherence to standardized accounting practices (correct)

Lack of sufficient funding for oversight activities

Over-regulation of cooperative activities

What is one positive consequence of RA 6939 for cooperatives?

Encouragement of internal controls and governance practices (correct)

Increased government control over cooperatives

Promotion of competition among cooperatives

Reduction in the number of cooperatives

Which statement highlights a negative consequence of the RA 6939?

Emergence of non-viable cooperatives due to low entry barriers (correct)

Improvement in the financial literacy of cooperative members

Strengthened partnership between cooperatives and the CDA

Peak performance evaluations of cooperatives

How does the performance rating system of the CDA, CCIS, primarily fall short?

It lacks depth and scope for financial assessment Signup and view all the answers

Which role does the CDA primarily serve in the cooperative sector?

Primary government agency with promotional and regulatory functions Signup and view all the answers

What conflict arises from the CDA's dual mandate?

Potential compromise of objectivity in promotion and regulation Signup and view all the answers

What is a commonality shared by the Philippines' CDA and other cooperative agencies?

Commitment to promoting the growth of cooperatives Signup and view all the answers

Which of the following best describes the CDA's function concerning cooperatives?

Formulates regulations and developmental assistance Signup and view all the answers

What is the primary purpose of the fund converted under Presidential Decree No. 175?

Aid in the development of cooperatives. Signup and view all the answers

What right do duly registered cooperatives have under the new provisions?

To establish private training centers for cooperative development. Signup and view all the answers

Which type of organizations may be accredited as non-academic training organizations?

Nongovernment organizations involved in research and education. Signup and view all the answers

Which is a key focus of the Authority concerning the banking system?

Promoting and developing cooperative banks. Signup and view all the answers

What are the implementing rules and regulations required to undergo before taking effect?

Public hearing and Presidential approval. Signup and view all the answers

What role will state colleges and universities have regarding cooperatives?

Provide technical assistance and guidance upon request. Signup and view all the answers

What aspect of cooperatives is emphasized in the education system?

Knowledge of the history, philosophy, and principles of cooperatives. Signup and view all the answers

What is one condition of the training courses offered by nongovernment organizations?

Their trainees may receive academic credits. Signup and view all the answers

What is the maximum fine imposed for direct contempt by the Authority?

P500.00 Signup and view all the answers

How many members are there in the Board of Administrators of the Authority?

Six members Signup and view all the answers

What term does the Chairman serve upon their first appointment?

Six years Signup and view all the answers

What is the role of the ex officio members of the Board of Administrators?

Nonvoting members representing government agencies Signup and view all the answers

From which regions do the nominees for the Board of Administrators come?

Luzon, Visayas, and Mindanao Signup and view all the answers

What is the responsibility of the Authority concerning registration fees?

Impose and collect reasonable fees for cooperative registration Signup and view all the answers

For how long shall the members of the Board of Administrators serve?

Six years without reappointment Signup and view all the answers

What is the Authority required to submit annually to the President and Congress?

An annual report on the state of the cooperative movement Signup and view all the answers

What is the primary role of the Cooperative Development Authority (CDA) established by Republic Act No. 6939?

To oversee the cooperative sector and ensure efficient governance Signup and view all the answers

Which of the following is NOT a responsibility of the Cooperative Development Authority?

Directly operating individual cooperatives Signup and view all the answers

What principle does Republic Act No. 6939 emphasize as vital for the cooperative movement?

Mutual aid and cooperative principles Signup and view all the answers

In what way does Republic Act No. 6939 promote policy non-interference?

By enabling members to manage cooperatives independently Signup and view all the answers

What socio-economic need prompted the creation of Republic Act No. 6939?

Significant economic challenges including poverty and unemployment Signup and view all the answers

How does Republic Act No. 6939 aim to empower marginalized sectors?

By promoting self-help and mutual aid through cooperatives Signup and view all the answers

Which objective was a key part of the policy framework established by Republic Act No. 6939?

Integrating cooperative development into national economic planning Signup and view all the answers

What was one of the historical factors that led to the creation of the Cooperative Development Authority?

The need for economic development in rural areas Signup and view all the answers

What is required for cooperatives registered under specific Presidential Decrees to maintain their registration with the Cooperative Development Authority?

Submit audited financial statements within one year Signup and view all the answers

What is the maximum time period given to cooperatives created under Presidential Decree No. 269 to qualify and register with the Cooperative Development Authority?

Three years Signup and view all the answers

What happens to existing regulations that conflict with the provisions of the Cooperative Development Authority law?

They are repealed or modified accordingly Signup and view all the answers

What is one of the main responsibilities of the Cooperative Development Authority as established by Republic Act No. 6939?

Promoting the growth and development of cooperatives Signup and view all the answers

What effect does the law have if any part of it is declared unconstitutional?

The remaining provisions continue in force Signup and view all the answers

What is a potential benefit of establishing cooperatives as per the Cooperative Development Authority law?

Economic self-reliance and enhanced community livelihood Signup and view all the answers

When does the Cooperative Development Authority law take effect?

Fifteen days after publication Signup and view all the answers

What is one responsibility of the Cooperative Development Authority besides registration?

Providing support services to cooperatives Signup and view all the answers

Study Notes

Republic Act No. 6939: The Cooperative Development Authority (CDA) Law

Established the Cooperative Development Authority (CDA) under the Office of the President to oversee the cooperative sector.
The CDA is responsible for:
- Developing cooperative policies.
- Implementing cooperative programs.
- Conducting training for cooperatives.
- Facilitating financial assistance for cooperatives.
Emphasizes promoting mutual aid and cooperative principles to foster community and solidarity among members.
Aims to create a framework where cooperatives can operate independently with government support.

Background Information

The law's creation was influenced by economic challenges in the Philippines, including poverty, unemployment, and inequality.
Cooperatives were seen as a means to address these challenges by promoting self-help and mutual aid among communities.
The government aimed to empower marginalized sectors, particularly in agriculture and rural areas, by harnessing the potential of cooperatives to improve economic conditions.
The CDA's establishment was part of a national economic planning framework aimed at integrating cooperative development.
The law emphasizes self-regulation within the cooperative sector, encouraging internal controls and sound governance practices within cooperatives.
The law's low barriers to entry and attractive incentives have contributed to the emergence of numerous non-viable cooperatives.
Negative consequences include the proliferation of non-viable cooperatives and conflict of interest within the CDA.

CDA Functions

Registers cooperatives.
Provides support services to cooperatives.
Ensures compliance with existing cooperative laws.
Has extension offices in Dagupan, Manila, Naga, Iloilo, Cebu, Cagayan de Oro, and Davao.
Imposes and collects fees and charges for cooperative registration.
Administers grants and donations for cooperative development.
Formulates and adopts policy initiatives in consultation with the cooperative sector.
Adopts internal operational rules and regulations.
Submits an annual report to the President and Congress on the state of the cooperative movement.
Imposes fines or imprisonment for contempt in hearings or inquiries.

CDA Governing Body

The CDA is governed by a Board of Administrators consisting of a Chairman and six (6) members appointed by the President.
Board members are nominated by the cooperative sector, with two representatives each from Luzon, Visayas, and Mindanao.
Board members serve a six-year term without reappointment.
There are four ex officio members from the Department of Agriculture, Department of Transportation and Communications, National Electrification Administration, and Sugar Regulatory Administration. They hold nonvoting positions and stop serving after one year.

Cooperative Development Across Countries

The Philippine CDA, Canadian Cooperative Association (CCA), and United States National Cooperative Business Association (NCBA) all share the objective of promoting cooperative growth and development.
They provide support services to cooperatives, including education, training, and technical assistance.
Key differences include:
- The CDA has both promotional and regulatory functions.
- The Canadian CCA has a promotional focus, while regulation is separate.
- The NCBA primarily functions as a trade association with regulation handled by different agencies.

Cooperative Development In Education and Banking

History, philosophy, principles and practices of cooperatives must be disseminated in formal and non-formal education.
Non-governmental organizations involved in cooperative promotion, organization, research, and education are recognized.
The CDA can accredit these organizations as non-academic training entities.
State colleges and universities are required to provide technical assistance to cooperatives in their communities upon request.
Promotion and development of cooperative banks are a major concern of the CDA.
The CDA collaborates with the Central Bank of the Philippines and the cooperative sector to develop programs for cooperative banks.

Rule-Making and Prohibition

The CDA can promulgate rules and regulations after public hearings and with the President's approval.
These regulations take effect after publication in the Official Gazette or two newspapers of general circulation.
The CDA prohibits cooperatives registered under previous laws from failing to submit their registration certificates, articles of incorporation, bylaws, and financial statements within one year of RA 6939's effectivity.
Cooperatives created under Presidential Decree No. 269, as amended by Presidential Decree No. 1645, have three years to qualify and register with the CDA.

Repeals, Separability Clause, and Effectivity

The law repeals or modifies any previous acts, general orders, executive orders, letters of implementation, letters of instruction, regulations, or circulars that are inconsistent with its provisions.
If any part of the law is declared unconstitutional, the remaining parts of the law remain in effect.
The law became effective fifteen days after its publication in the Official Gazette or in a newspaper of general circulation.

Pros of the CDA

Formalizes government support for cooperatives, providing access to development programs, training, and financial resources.
Promotes economic self-reliance and improves the livelihoods of communities, particularly in rural areas.
Ensures proper monitoring and governance of cooperatives, safeguarding members from mismanagement or exploitation.
Enhances accountability and transparency within cooperatives, fostering trust and confidence among members.
Empowers cooperative members by promoting participation in decision-making and governance of their organizations.

Conclusion

Republic Act No. 6939 is a landmark legislation aimed at fostering a thriving cooperative environment.
The CDA, established by this law, plays a vital role in promoting cooperative development and ensuring their sustainability.
This legislation reflects the Philippine government's commitment to empowering communities through cooperatives.

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Description

This quiz explores Republic Act No. 6939, which established the Cooperative Development Authority (CDA) in the Philippines. It covers the CDA's responsibilities, its role in supporting cooperatives, and the socio-economic context that led to its creation. Understand how cooperatives aim to empower communities through mutual aid and self-help principles.