AN ACT TO AMEND SECTIONS TWO AND FIVE OF COMMONWEALTH ACT NUMBERED FIVE HUNDRED EIGHTEEN

Case Overview and Summary

Summary of Republic Act No. 5

Amends Commonwealth Act No. 518 on the National Coconut Corporation

I. Objects of the National Coconut Corporation (Section 1)
- Establish, maintain, and operate drying plants, copra driers, or coconut centrals to make the coconut industry independent of US trade preferences and improve copra products and coconut by-product utilization. (Section 2(a))
- Provide facilities for production loans to coconut planters and copra producers. (Section 2(b))
- Buy, sell, barter, export, and deal in coconut, copra, desiccated coconut, and their by-products, and act as agent, broker, or commission merchant for producers, dealers, or merchants of these products. (Section 2(c))

II. Management of the National Coconut Corporation (Section 2)
- Board of Directors with 7 members appointed by the President of the Philippines with consent of the Commission on Appointments of Congress. (Section 5)
- President appoints the Chairman from among the Board members and can remove any director. (Section 5)
- 4 members constitute a quorum for business transactions. (Section 5)
- Directors take an oath before assuming duties. (Section 5)
- Directors receive per diem of up to 25 pesos per meeting attended, except the Chairman who is also the General Manager and receives up to 15,000 pesos per annum. (Section 5)
- Government officers or employees serving as directors do not receive the per diem. (Section 5)
- Board submits annual report and balance sheets to the President and Congress. (Section 5)

III. Additional Operating Capital (Section 3)
- 5 million pesos appropriated as additional operating capital for the Corporation to carry out its objectives, particularly subdivision (c) of Section 2. (Section 3)
- Amount to be disbursed upon authority of the Board of Directors. (Section 3)

IV. Effectivity (Section 4)
- This Act takes effect upon its approval. (Section 4)