Question & AnswerQ&A (EXECUTIVE ORDER NO. 786)
The NRDC is a corporation created under the Ministry of Natural Resources to accelerate country development by promoting technologies that complement natural resource utilization with conservation.
The NRDC shall have a corporate term of fifty (50) years, which shall be automatically renewed for another equal period unless dissolved earlier by law.
The NRDC aims to hasten development by promoting or undertaking the use of technologies/systems that complement natural resource utilization with conservation and optimize utilization.
1) Engage in the production of charcoal pig iron and steel mills and support fuelwood plantations. 2) Encourage reforestation and industrial forestry through stumpage sale systems. 3) Promote investment in natural resources-based industries by providing support.
The NRDC can acquire and dispose lands, promulgate rules, enter into contracts, form subsidiaries, secure financing, guarantee loans, accept donations, and exercise eminent domain powers among others.
The Board includes the Minister of Natural Resources (Chairman), Minister of Trade and Industry, Chairman of the Development Bank of the Philippines, Minister of Transportation and Communications, Minister of Economic Planning, Minister of Finance, and the President of the NRDC.
The Board prescribes by-laws, formulates policies, directs operations, creates committees, fixes remuneration, submits annual reports to the President, and delegates powers to NRDC officers.
The NRDC is managed by a President who is appointed by the Board of Directors. The Board also determines the powers, duties, term, and compensation of officers.
The NRDC is exempt for ten years from payment of taxes, duties, fees, imposts, income taxes, franchise taxes, realty taxes, import duties, compensating taxes, sales tax, wharfage fees, and taxes on petroleum products used by it.
The NRDC has an authorized capital stock of P500 million divided into 5 million shares of P100 each, fully subscribed by the National Government, with at least P1 million to be released initially for operations.
The NRDC can enter into contracts with individuals, firms, corporations, government agencies, foreign governments, form joint ventures, share profits, and cooperate with any entity worldwide as needed for its operations.
Yes, the NRDC is expressly empowered to exercise eminent domain as necessary to carry out its purposes under this Order.
The NRDC shall be audited by a corporate auditor appointed by the Commission on Audit with Board approval, while its subsidiaries shall be audited by independent Certified Public Accountants selected by the Board.
A separability clause states that if any provision is held unconstitutional, other provisions shall remain unaffected and continue to be in effect.