Question & AnswerQ&A (Republic Act No. 5)
The main purpose of Republic Act No. 5 is to amend Sections Two and Five of Commonwealth Act No. 518, particularly to define the objects and management structure of the National Coconut Corporation and to appropriate additional operating capital for it.
The objects are: (a) to establish and operate drying plants, copra driers, or coconut centrals to make the coconut industry independent of U.S. trade preferences and to improve copra curing and utilization, (b) to provide production loans to bona fide Philippine coconut planters and copra producers, and (c) to trade in coconut products and act as agents or brokers for producers and merchants.
The President of the Philippines appoints the seven members of the board of directors with the consent of the Commission on Appointments of the Congress of the Philippines.
Four members of the board of directors constitute a quorum for the transaction of business.
Directors serve until relieved by the President of the Philippines, who may remove any director at his discretion.
Each director receives a per diem not exceeding twenty-five pesos for each meeting day actually attended, except the chairman, who is also the general manager and receives compensation not exceeding fifteen thousand pesos per annum. Government officers or employees receiving fixed public salaries do not receive per diem.
This provision enables the Corporation to actively participate in the coconut product market as a merchant, agent, or broker, providing a mechanism for stabilizing and supporting producers and merchants in the industry.
Five million pesos were appropriated as additional operating capital for the Corporation.
The Corporation must submit its annual report and balance sheets to the President of the Philippines and to the Congress of the Philippines.
The Act took effect upon its approval on August 1, 1946.