Question & AnswerQ&A (Act No. 3922)
The authorized capital of NEA is five billion pesos, divided into fifty million shares with a par value of one hundred pesos (P100.00) each.
No, the shares shall not be transferred, negotiated, pledged, mortgaged, or otherwise given as security for the payment of any obligation.
NEA is empowered to invest and/or grant loans for the development of power generation industries including dendro-thermal and mini-hydro-power plants and associated facilities, organize wholly or partly owned companies and subsidiaries for power generating and distribution systems, and to organize subsidiaries for manufacturing materials and equipment for power generating systems.
NEA can issue orders, conduct investigations, and if cooperatives fail to comply, it may refuse loans, withhold advances and assistance, foreclose mortgages or securities, operate or lease foreclosed properties, sell acquired properties, and take preventive or disciplinary measures including suspension or removal of officers.
Foreign indebtedness may be contracted up to eight hundred million U.S. dollars or equivalent, with the President authorized to negotiate and guarantee repayment and performance of obligations on behalf of the Republic of the Philippines.
No, such indebtedness and payments, as well as importations paid from proceeds, are exempt from all direct and indirect taxes, fees, imposts, other charges, and import restrictions.
NEA has the right to be represented and participate in all board meetings and deliberations, and to approve all policies and resolutions of the cooperative's Board of Directors.
No, board members shall not receive salaries but may be allowed reasonable per diems and reimbursement of actual expenses incurred during their duties as specified by NEA policies.
Provisions of Section 15 to 40, Chapter III of Presidential Decree No. 269, governing cooperatives, also apply to mini-hydro and dendro-thermal power plants, alcogas, tree plantations, and other power generating entities supported by NEA.
The NEA Administrator, subject to Board confirmation, can designate acting general managers or project supervisors when vacancies occur or when the interests of the cooperative and the electrification program require, and their functions cannot be nullified by the cooperative's board.