Question & AnswerQ&A (Republic Act No. 4156)
The corporation is named the Philippine National Railways and it shall exist for a term of fifty years from the date of approval of the Act.
The Philippine National Railways operates under the Office of Economic Coordination.
Its purposes include acquiring and holding the assets of the Manila Railroad Company, operating railroads and other modes of transportation, and owning and operating auxiliary facilities like powerhouses, hotels, warehouses, and manufacturing equipment related to rail transport.
The authorized capital stock is two hundred fifty million pesos divided into one million two hundred fifty thousand shares with a par value of two hundred pesos each, which includes the capitalization of the Manila Railroad Company.
The President of the Philippines appoints the Board of Directors, which consists of not more than eleven and not less than five members, including a chairman and vice-chairman, with the consent of the Commission on Appointments.
The Board can prescribe by-laws, appoint and fix compensations of officers including the General Manager, approve budgets, and suspend or remove the General Manager for cause with presidential approval.
Members need not be stockholders and no board member shall simultaneously hold any other position in the corporation unless authorized by the President or law.
The General Manager manages the corporation’s affairs on behalf of the Board, presides as vice-chairman of Board meetings, submits annual reports, appoints subordinate personnel with approval, and performs duties assigned by the Board.
Yes, appointments and promotions must be based on merit and efficiency without political tests and employees are subject to the Civil Service Law, rules, and regulations.
The Corporation is exempt from all taxes on capital stock, franchises, rights of way, earnings, all property, and from duties on imported railway materials and supplies as well as certain port charges.
The Auditor General appoints a representative as the Auditor, who conducts financial audits and submits reports to the Board of Directors, the President, and other government offices.
No, it is exempt from the authority and supervision of the Public Service Commission.
It continues as a body corporate for three years after dissolution to settle its affairs and a Board of Liquidators is appointed to oversee liquidation.
No, employees and laborers shall not strike during national emergencies or when national security or interest is in imminent danger as declared by the President.
The Manila Railroad Company was abolished and dissolved, and its rights, personnel, assets, liabilities, and obligations were transferred to the Philippine National Railways.