Question & AnswerQ&A (Commonwealth Act No. 518)
The purpose of Commonwealth Act No. 518 is to establish the National Coconut Corporation to manage and promote the coconut industry in the Philippines, including operating drying plants and providing production loans to coconut planters and producers.
The National Coconut Corporation was created on May 7, 1940, upon the approval of Commonwealth Act No. 518.
The National Coconut Corporation shall exist for a term of thirty years from the date of the approval of this Act.
The main office of the National Coconut Corporation shall be in the City of Manila.
The objectives include establishing and operating drying plants or coconut centrals to help the coconut industry and providing facilities for production loans to Philippine coconut planters and copra producers without direct or indirect subsidies.
The Corporation can grant bona fide production loans, buy, sell, assign, operate, rent or lease necessary equipment including presses, warehouses, and buildings for its purposes.
The management is vested in a board of directors consisting of five members appointed by the President of the Philippines with the consent of the Commission on Appointments of the National Assembly.
Each director is appointed to serve a one-year term.
Yes, the President of the Philippines may, in his discretion, remove any director.
Each member receives a per diem not to exceed twenty-five pesos for each day of meeting attended, except the chairman who is also the general manager and is entitled to compensation not exceeding fifteen thousand pesos per annum.
The 'Coconut Industry Promotion Fund' was created, consisting of appropriations from the Coconut Oil Excise Tax Fund, with an initial appropriation of two million pesos and a total ceiling of twenty million pesos.
No subsidy, direct or indirect, shall be paid to producers or processors of copra, coconut oil, or allied products.
Yes, it is subject to provisions of the Corporation Law insofar as they are compatible with this Act, and enjoys general powers under that law in addition to those specifically provided.
The board must submit annual reports and balance sheets to the President of the Philippines and to the National Assembly as provided by the Administrative Code.
This Act took effect upon its approval on May 7, 1940.