Question & AnswerQ&A (PRESIDENTIAL DECREE No. 286)
The primary purpose is to undertake activities, business, or development projects for the establishment of a reliable aviation and aerospace industry in the Philippines, including the assembly and manufacture of aircraft, devices, equipment, and innovations and improvements related thereto.
The Corporation shall have succession for a period of fifty years from and after the date of the approval of this Decree.
The Corporation is granted powers including preparing corporate by-laws, engaging in any lawful business connected to its purposes, entering into contracts, holding agricultural and mineral lands beyond normal limits, acquiring and alienating properties, purchasing and holding shares in other corporations, performing acts authorized to partnerships or individuals, and other acts deemed appropriate for enforcing the Decree.
The initial authorized capital stock is Fifty Million (P50,000,000.00) Pesos, divided into five hundred thousand shares with a par value of one hundred (P100.00) pesos each.
The Government of the Republic of the Philippines subscribes to ten million pesos, the Development Bank of the Philippines subscribes to twenty million pesos, and twenty million pesos are offered for subscription to domestic and foreign investors.
The Board of Directors consists of four ex officio members: the Executive Secretary, the Secretary of National Defense, the Chairman of the Board of Governors of the Development Bank of the Philippines, and the Chairman of the Board of Investments; plus three members appointed by the President of the Philippines for a term of four years each. The President also appoints the Chairman from among the seven directors.
The Board appoints and fixes salaries of the General Manager and other officials, establishes necessary divisions for corporate purposes, and submits an annual report to the President and publishes it before the end of February each year.
The Chairman of the Commission on Audit appoints the auditor, who must be a certified public accountant with at least ten years of experience. No relatives within the fourth degree of consanguinity and affinity of the Board members or the Chairman of the Commission on Audit can be appointed.
The Corporation is exempt from all national, provincial, municipal, and city taxes and assessments for five years from the date it commences operations. It is also exempt from customs duties and other taxes on imported equipment and materials necessary for its authorized purposes.
The principal office is located in the City of Manila.