Question & AnswerQ&A (Republic Act No. 4850)
The policy is for 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 social and economic development plans.
The Laguna Lake Development Authority (LLDA), a body corporate, is created to carry out the provisions of the Act.
The principal office is maintained at a convenient place within the Laguna Lake region, with possible branch offices as necessary.
To conduct comprehensive surveys of the region's resources, provide planning and technical assistance, recommend financing priorities, approve regional development plans, engage in socio-economic activities, undertake population resettlement, lend financial assistance, and carry out reclamation projects.
The Authority can sue and be sued, enter contracts, acquire and dispose of properties, exercise eminent domain, borrow funds, invest in other corporations, and perform acts authorized to corporations for fulfilling its objectives.
The authorized capital stock is one hundred million pesos (P100,000,000), divided into one million shares with a par value of one hundred pesos each.
Provinces, cities, municipalities, government corporations, and private investors can subscribe. Provinces of Laguna and Rizal have special subscription quotas, and private investors subscribing to common shares must also subscribe to preferred shares.
The Authority is exempt from all taxes, licenses, fees, and duties related to its operations including subsidiary corporations, with graduated payment of such taxes by subsidiaries after five years. Bonds and obligations issued are also tax-exempt except for inheritance and gift taxes.
The Board has seven members elected by stockholders, with staggered terms initially from one to four years, then succeeding terms of four years. The Board elects a Chairman, Vice-Chairman, and Secretary annually.
Directors must be natural-born Filipino citizens of unquestioned integrity and competence. They must not have financial interest in contracts or special privileges granted by the Authority to avoid conflict of interest, with violations resulting in disqualification and nullification of contracts.