SECTIONS 15 - 17

Beltran
Gallo
Tee
SECTION 15. The Congress shall
create an agency to promote the
viability and growth of cooperatives
as instruments for social justice and
economic development.
 SECTION 16. The Congress shall not,
except by general law, provide for the
formation, organization, or regulation of
private corporations. Government-owned
or controlled corporations may be
created or established by special charters
in the interest of the common good and
subject to the test of economic viability.

 SECTION 17. In times of national
emergency, when the public interest
so requires, the State may, during the
emergency and under reasonable
terms prescribed by it, temporarily
take over or direct the operation of
any privately owned public utility or
business affected with public interest.

Section 15, Article XII

1987 Philippine Constitution

Constitutional Provision
 The Congress shall create an agency
to promote the viability and growth
of cooperatives as instruments for
social justice and economic
development. (Section 15,Article XII)
What is a Cooperative?
 An autonomous and duly registered association of persons,
with a common bond of interest, who have voluntarily
joined together to achieve their social, economic, and
cultural needs and aspirations
 Established by making equitable contributions to the capital
required, patronizing their products and services, and
accepting a fair share of benefits and risks of the
undertaking in accordance with the universally accepted
cooperative principles
Nature of a Cooperative
 Groups of people who join together to do something they
cannot fully achieve as individuals
 Aims to provide services that is necessary and desirable in
their lives
 Operating on the basis of self-help, wherein people
involved look for one another as a group for the solution
of their problems
 Business motivated by service rather than profit
 RELATED LAW

Section 15, Article XII, 1987 Constitution

REPUBLIC ACT No. 6939

AN ACT CREATING THE

COOPERATIVE
DEVELOPMENT AUTHORITY
Declaration of Policy
 “Toward this end, the State shall recognize
cooperatives as associations organized for the
economic and social betterment of their members,
operating business enterprises based on mutual
aid, and founded upon internationally accepted
cooperative principles and practices.” (par. 1, Sec
1)
Declaration of Policy
 In furtherance of this policy, the appropriate national
economic planning agency and include the promotion of
growth and expansion of cooperatives as a major and
indispensable component of national development plans. All
departments, branches, subdivisions and instrumentalities of
the Government shall promote the formation of cooperatives
under their respective programs by providing them with
appropriate and suitable incentives. (par 2, Sec 1)
 Section2. Creation of the Cooperative
Development Authority. - The
Cooperative Development Authority is
hereby created under the Office of the
President to carry out the provision of this
Act.
Governing Body (Sec. 4)
Board of Administrators consisting of:
 Chairman
 Six members to be appointed by the President,
all of whom shall be chosen from among the
nominees of the cooperative sector with two
(2) representatives each from Luzon, Visayas,
and Mindanao.
Length of Term (Sec. 4)
They shall serve for a term of six (6) years without
reappointment: Provided, That among those first appointed, the
Chairman shall serve for a term of (6) years, three (3) members
to serve for a term of four (4) years, and three (3) members to
serve for a term of two (2) years

That there shall be four (4) ex officio members, one (1) each
from the:
 Department of Agriculture
 Department of Transportation and Communications
 National Electrification Administration
 Sugar Regulatory Administration
Meditation and Conciliation
(Sec. 8)
 Upon request of either or both parties, the Authority shall
mediate and conciliate disputes within a cooperative or
between cooperatives: Provided, That if no mediation or
conciliation succeeds within three (3) months from request
thereof, a certificate of non-resolution shall be issued by
the commission prior to the filing of appropriate action
before the proper courts.
Power to Register Cooperatives (Sec. 9)
The functions of the following departments and agencies
relating to the registration of cooperatives as such are
hereby transferred to the Authority:
 The Department of Agriculture;
 The Bureau of Agricultural Cooperatives Development;
 The Department of Transportation and Communications;
 The Sugar Regulatory Administration;
 The National Electrification Administration;
 Any other pertinent government agency.
Rule-Making Authority (Sec. 13)
 The Authority is hereby authorized to promulgate, after
due public hearing and upon approval of the President,
such rules and regulations as may be necessary to
implement the provisions of this Act. Such implementing
rules and regulations shall take effect within fifteen (15)
days after publication thereof in the Official Gazette or in
two (2) newspapers of general circulation. All subsequent
amendments to the implementing rules and regulations
shall undergo the same process.
RELATED JURISPRUDENCE

Section 15, Article XII, 1987 Constitution

COOPERATIVE DEVELOPMENT AUTHORITY vs.
DOLEFIL AGRARIAN REFORM BENEFICIARIES
COOPERATIVE, INC.
G.R. No. 137489

FACTS:

The CDA received from certain members of the Dolefil Agrarian Reform
Beneficiaries Cooperative, Inc., an agrarian reform cooperative that owns 8,860
hectares of land in Polomolok, South Cotabato, several complaints alleging
mismanagement and/or misappropriation of funds of DARBCI by the then
incumbent officers and members of the board of directors of the cooperative,
some of whom are herein private respondents.

CDA Executive Director Candelario L. Verzosa, Jr. issued an order dated

December 8, 1997 directing the private respondents to file their answer within ten
(10) days from receipt thereof.
COOPERATIVE DEVELOPMENT AUTHORITY vs. DOLEFIL AGRARIAN
REFORM BENEFICIARIES COOPERATIVE, INC.
G.R. No. 137489

The private respondents questioned the jurisdiction

of the CDA to resolve the complaints against the
private respondents, specifically with respect to the
authority of the CDA to issue the “freeze order” and to
create a management committee that would run the
affairs of DARBCI.

The Court of Appeals thereafter declared the

respondent Cooperative Development Authority orders null
and void and of no legal force and effect. Further, the
respondents are ordered to perpetually cease and desist
from taking any further proceedings. Hence, this petitioner
for review.
COOPERATIVE DEVELOPMENT AUTHORITY vs. DOLEFIL AGRARIAN
REFORM BENEFICIARIES COOPERATIVE, INC.
G.R. No. 137489
The petitioner avers that when an administrative agency is
conferred with quasi-judicial powers and functions, such as the CDA,
all controversies relating to the subject matter pertaining to its
specialization are deemed to be covered within the jurisdiction of said
administrative agency. The courts will not interfere in matters which
are addressed to the sound discretion of government agencies
entrusted with the regulation of activities undertaken upon their
special technical knowledge and training.

The private respondents on the other hand, contend that,

contrary to the claim of the petitioner, the powers, functions and
responsibilities of the CDA show that it was merely granted regulatory
or supervisory powers over cooperatives in addition to its authority to
mediate and conciliate between parties involving the settlement of
cooperative disputes.
COOPERATIVE DEVELOPMENT AUTHORITY vs. DOLEFIL AGRARIAN
REFORM BENEFICIARIES COOPERATIVE, INC.
G.R. No. 137489
ISSUE
Whether or not the CDA has a quasi-judicial authority to adjudicate
intra-cooperative disputes?

RULING:
No.
Nowhere in the said law can it be found any express grant to the CDA
of authority to adjudicate cooperative disputes. At most, Section 8 of the
same law provides that “upon request of either or both parties, the Authority
shall mediate and conciliate disputes with a cooperative or between
cooperatives” however, with a restriction “that if no mediation or conciliation
succeeds within three (3) months from request thereof, a certificate of non-
resolution shall be issued by the commission prior to the filing of appropriate
action before the proper courts”. Being an administrative agency, the CDA
has only such powers as are expressly granted to it by law and those which
are necessarily implied in the exercise thereof.
COOPERATIVE DEVELOPMENT AUTHORITY vs. DOLEFIL AGRARIAN
REFORM BENEFICIARIES COOPERATIVE, INC.
G.R. No. 137489

Apparently cognizant of the errors in the past, Congress declared in an

unequivocal language that the state shall “maintain the policy of non-
interference in the management and operation of cooperatives.”

After ascertaining the clear legislative intent underlying R.A. No.

6939, effect should be given to it by the judiciary. Consequently, we
hold and rule that the CDA is devoid of any quasi-judicial authority to
adjudicate intra-cooperative disputes and more particularly disputes as
regards the election of the members of the Board of Directors and
officers of cooperatives. The authority to conduct hearings or inquiries
and the power to hold any person in contempt may be exercised by the
CDA only in the performance of its administrative functions under
R.A. No. 6939.
Section 16
 Private Corporation: General law

 GOCC:
 by special charters in the interest of the common good and
subject to the test of economic viability
 If incorporated through the general corporation law
Republic Act 10149
 GOCC Governance Act of 2011
Republic Act 10149
 Section 5. Creation of the Governance Commission for
Government-Owned or -Controlled Corporations. - There
is hereby created a central advisory, monitoring, and
oversight body with authority to formulate, implement and
coordinate policies to be known as the Governance
Commission for Government-Owned or -Controlled
Corporations, hereinafter referred to as the GCG, which
shall be attached to the Office of the President.
 Article 17
In times of national emergency, when
the public interest so requires, the
State may, during the emergency and
under reasonable terms prescribed by
it, temporarily take over or direct the
operation of any privately owned
public utility or business affected
with public interest
 Temporary take-over or direction of private
business by the government
Under the said provision, the State
(government) in times of national emergency
when the public interest so requires, may
either temporarily take over the operation of
any privately-owned public utility or business
affected with public interest or merely direct
the operation of said public utility or
business.
In the first case, the government
virtually becomes owner of the
utility or business.
In either case, the temporary take over
or direction by the government must
not last beyond the period of the
public emergency and it must be
under reasonable terms prescribed
by it.
The President may declare a state
of national emergency and
exercise the powers granted by
Section 17 without need of an
emergency powers law enacted by
Congress as provided under
Section 23 (2) of Article VI.
Related
Jurisprudence
 RANDOLF DAVID, ET AL. VS. GLORIA MACAPAGAL-ARROYO, ET AL.

Facts:
On February 24, 2006, as the nation celebrated the 20th Anniversary of
the Edsa People Power I, President Arroyo issued PP 1017 declaring
a state of national emergency and call upon the Armed Forces of the
Philippines (AFP) and the Philippine National Police (PNP), to
prevent and suppress acts of terrorism and lawless violence in the
country. The Office of the President announced the cancellation of
all programs and activities related to the 20th anniversary
celebration of Edsa People Power I; and revoked the permits to hold
rallies issued earlier by the local governments and dispersal of the
rallyists along EDSA. The police arrested (without warrant)
petitioner Randolf S. David, a professor at the University of the
Philippines and newspaper columnist. Also arrested was his
companion, Ronald Llamas, president of party-list Akbayan.
In the early morning of February 25, 2006, operatives of the
Criminal Investigation and Detection Group (CIDG) of the
PNP, on the basis of PP 1017 and G.O. No. 5, raided the
Daily Tribune offices in Manila and attempt to arrest was
made against representatives of ANAKPAWIS, GABRIELA
and BAYAN MUNA whom suspected of inciting to sedition
and rebellion. On March 3, 2006, President Arroyo issued
PP 1021 declaring that the state of national emergency has
ceased to exist. Petitioners filed seven (7) certiorari with the
Supreme Court and three (3) of those petitions impleaded
President Arroyo as respondent questioning the legality of
the proclamation, alleging that it encroaches the emergency
powers of Congress and it violates the constitutional
guarantees of freedom of the press, of speech and assembly.
 Issue:
Whether or not the concurrence of Congress is
necessary whenever the alarming powers incident
to Martial Law are used?
Ruling:

Under Article XII Section 17 of the 1987 Philippine

Constitution, in times of national emergency, when the
public interest so requires, the President may temporarily
take over a privately owned public utility or business
affected with public interest only if there is congressional
authority or approval. There must enactment of appropriate
legislation prescribing the terms and conditions under which
the President may exercise the powers that will serves as the
best assurance that due process of law would be observed.
According to the Petitioner Cacho-Olivares, et al. contends that the
term "emergency" under Section 17, Article XII refers to "tsunami,"
"typhoon," "hurricane"and"similar occurrences." This is a limited view
of "emergency."

Emergency, as a generic term, connotes the existence of conditions

suddenly intensifying the degree of existing danger to life or well-
being beyond that which is accepted as normal. Implicit in this
definitions are the elements of intensity, variety, and perception.
Emergencies, as perceived by legislature or executive in the United
States since 1933, have been occasioned by a wide range of situations,
classifiable under three (3) principal heads: a) economic, b) natural
disaster, and c) national security.

"Emergency," as contemplated in our Constitution, is of the same

breadth. It may include rebellion, economic crisis, pestilence or
epidemic, typhoon, flood, or other similar catastrophe of nationwide
proportions or effect.