REPUBLIC ACT 6939: An Act Creating the Cooperative Development Authority
| The Cooperative Development Authority (CDA) is a government agency created by virtue of Republic Act No. 6939 in compliance with the provisions of Section 15, Article XII of the Philippine Constitution of 1987 which mandates Congress to create an agency to promote the viability and growth of cooperatives as instruments for equity, social justice and economic development. RA 6939 was signed into law on March 10, 1990.
The CDA is governed by a Board of Administrators consisting of a Chairman and six (6) members appointed by the President and are chosen from among the nominees of the cooperative sector with two (2) representatives each from Luzon, Visayas, and Mindanao. They serve for a term of six (6) years without reappointment. [SOURCE: cda.gov.ph]
Firm owned, controlled, and operated by a group of users for their own benefit. Each member contributes equity capital, and shares in the control of the firm on the basis of one-member, one-vote principle (and not in proportion to his or her equity contribution). History
Cooperative efforts have occurred throughout history. Since early man cooperated with others to help kill large animals for survival, people have been cooperating to achieve objectives that they could not reach if they acted individually. Cooperation has occurred throughout the world. Ancient records show that Babylonians practiced cooperative farming and that the Chinese developed savings and loan associations similar to those in use today. In North America, clearing land in preparation for the planting of crops, threshing bees, and barn raisings all required cooperative efforts. In the United States, the first formal cooperative business is assumed to have been established in 1752, almost a quarter-century before the Declaration of Independence was signed. This cooperative, a mutual insurance company called the Philadelphia Contributionship for the Insurance of Houses from Loss by Fire, was organized by Benjamin Franklin and others, and it is still in operation today (Cobia). The cooperative as a modern business structure originated in 19th century Britain. The Industrial Revolution had a profound effect on the way business was organized and on the working conditions and economic situations of many people. In response to the depressed economic conditions brought forth by industrialization, some people began to form cooperative businesses to meet their needs. Among them was a group of 28 workers who were dissatisfied with the merchants in their community. They formed a consumer cooperative known as the Rochdale Society of Equitable Pioneers in 1844. They began by opening a cooperative store that sold items such as flour and sugar to members, and the Society quickly grew to include other enterprises. The founders also established a unique combination of written policies that governed the affairs of the cooperative. Among these rules were: democratic control of members, payment of limited interest on capital, and net margins distributed to members according to level of patronage. Based on its success, the Rochdale set of policies soon became a model for other cooperative endeavors, and became known as the general principles that make a cooperative unique from other business structures. What Are The Kinds Of Cooperative?
* Credit Cooperative- promotes thrift and savings among its members and creates funds in order to grant loans for productivity * Consumer Cooperative- the primary purpose is to procure and distribute commodities to member and non-members; * Producers Cooperative - undertakes joint production whether agricultural or industrial; * Service Cooperative- engages in medical, and dental care, hospitalization, transportation, insurance, housing , labor, electric light and power, communication and other services; and * Multi- Purpose Cooperative - combines two (2) or more of the...
Please join StudyMode to read the full document