QuestionsQuestions (Republic Act No. 4850)
It is the policy of the Authority to lead, promote, and accelerate the development and balanced growth of the Laguna Lake area and surrounding provinces, cities, and towns within the context of national plans and policies for social and economic development.
A body corporate named the Laguna Lake Development Authority is created for the purpose of carrying out the policy in Section 1. It must be organized within 120 days after approval of the Act.
It must maintain its principal office at a convenient place within the region, and it may also have branch offices in other necessary places for proper business conduct.
They include: comprehensive surveys and planning for regional development; extending planning/management/technical assistance to investors; recommending priority and financing levels to proper agencies; passing upon/approving (or deciding no approval is needed) plans/projects related to regional development by local govt agencies, public corporations, and private enterprises; engaging in socio-economic activities via new ventures or activities beyond private scope (unless public interest requires otherwise); planning readjustment/relocation/resettlement of population; making annual reports (and others upon stockholders’ request); lending/facilitating financial assistance and acting as surety/guarantor; and reclaiming/undertaking reclamation or acquiring lake lands to accomplish its aims.
It can: succeed in its corporate name; sue and be sued; adopt/alter/amend its by-laws; enter contracts; acquire/hold/lease and dispose of real and personal property; lease/mortgage/sell/alienate/encumber/dispose property; and exercise eminent domain when necessary for attaining its objectives.
The Authority may borrow funds from local or foreign financial institutions independent of bonds it may issue or continue to issue, and it may also purchase/hold/alienate/mortgage/pledge or dispose shares of stock, or bonds/securities/evidence of indebtedness of other corporations or agencies, while exercising ownership rights including voting while it owns the stock.
The authorized capital is P100,000,000 divided into one million shares of P100 par value each. The shares are 700,000 common shares (voting) and 300,000 preferred shares (non-voting).
At least 60% of the subscribed common shares of P200,000 (as stated in the text) must be subscribed equally by the provinces of Laguna and Rizal. Of those subscribed common shares, 25% must be fully paid up.
Preferred shares may be subscribed by cities, municipalities, provinces, government corporations, and private investors. However, private investors subscribing to common shares must subscribe and/or purchase one preferred share for every common share they hold.
It authorizes P500,000 annually for two (2) years from the National Government general fund not otherwise appropriated.
When the Board deems it necessary to incur indebtedness or issue bonds, it must pass a resolution declaring the purpose of the proposed debt. This resolution must be confirmed by an affirmative vote of stockholders representing a majority of the subscribed capital stock outstanding and entitled to vote.
Bonds shall be issued in amounts needed at any one time, considering absorption by the buying public, project fund requirements of projects ready for execution, and a balanced mix of productive and non-productive projects to keep inflation at a minimum.
The Authority is exempt from all taxes, licenses, fees, and duties incidental to its operations. This exemption extends to subsidiary corporations but they become gradually subject to the taxes starting in the sixth year (20%) through the tenth year (100%) under a graduated scale.
The Board has seven (7) members. The affirmative vote of four (4) members is necessary at all times to pass or approve any act or resolution.
No Board member may be financially interested, directly or indirectly, in any contract entered into by the Authority or in special privileges granted by the Authority during his term. Violating contracts are automatically null and void. A 2/3 vote of the Board for violation disqualifies the member from serving the unexpired term and perpetually disqualifies him from membership in the Board.
A Board member may be removed by a vote of stockholders holding or representing three-fourths (3/4) of the subscribed capital stock outstanding and entitled to vote. No courtesy resignation is required during the term.