Question & AnswerQ&A (EXECUTIVE ORDER NO. 631)
Executive Order No. 631 amends Executive Order No. 339 by declaring the Sugar Regulatory Administration (SRA) as a government-owned and controlled corporation (GOCC) and mandates that its rationalization must be consistent with this status.
EO No. 631 amended Executive Order No. 339 dated July 29, 2004, which mandated the rationalization of the operations and organization of the Sugar Regulatory Administration (SRA).
The SRA is declared a government-owned and controlled corporation (GOCC).
Section 2 of EO No. 292, the Administrative Code of 1987, defines a GOCC as any agency organized as a stock or non-stock corporation, vested with functions relating to public needs, and owned by the government directly or through its instrumentalities, wholly or at least fifty-one percent of its capital stock.
(1) Created by a special law (EO No. 18, 1986), (2) acquires juridical personality based exclusively on the law, and (3) is endowed by its charter with a corporate form of governance.
The DOJ Opinion No. 80 (2006) recognized the SRA as a GOCC due to its special law charter (EO No. 18, 1986) and existing jurisprudence supporting this classification.
The Supreme Court ruled in 1991 that the SRA was neither a government-owned or controlled corporation nor a subsidiary, but an administrative agency.
EO No. 631 mandates that the SRA shall operate and adopt the organizational structure of a government-owned and controlled corporation consistent with prevailing jurisprudence.
The Executive Order takes effect fifteen (15) days after its publication in a national newspaper of general circulation.
Any executive orders, proclamations, issuances, rules, or regulations inconsistent with EO No. 631 are repealed, amended, or modified accordingly.
The Implementing Rules and Regulations of the Office of the Government Corporate Counsel (OGCC) defined GOCC in relation to the SRA.
Section 2, paragraph 1 of EO No. 339 was amended to reflect the SRA as a government-owned and controlled corporation.