Question & AnswerQ&A (NLRC EN BANC Resolution NO. 05-13)
The official title of RA 6848 is "The Charter of the Al-Amanah Islamic Investment Bank of the Philippines."
The principal domicile and place of business of the Al-Amanah Islamic Investment Bank is in Zamboanga City.
The primary purpose is to promote and accelerate the socio-economic development of the Autonomous Region through performing banking, financing, and investment operations based on Islamic banking principles under the Islamic Shari'a.
The Shari'a Advisory Council consists of no more than five Islamic scholars and jurists, elected every three years. Its function is to advise and review the application of Islamic Shari'a principles to the bank's transactions without directly involving itself in operations.
The bank can prescribe its by-laws, make contracts, borrow money, own and dispose of properties, employ officers, establish branches, perform banking services (such as opening accounts, buying/selling foreign exchange), issue Islamic financial instruments, act as an official government depository, and invest under Islamic principles.
The authorized capital stock is One billion pesos divided into Series "A" shares (for present stockholders and government entities), Series "B" shares (for Filipino individuals and institutions), and Series "C" shares (open to Filipino and foreign individuals or entities).
The Board of Arbitration settles disputes among shareholders or between shareholders and the bank by majority decision. It consists of three members chosen by the parties or by the Shari'a Advisory Council if parties fail to decide.
The bank enjoys tax exemptions for its assets, profits, and related transactions—100% for the first 5 years and 75% for years 6 to 8. It is also exempt from customs duties on imported equipment within its first five years.
Violators may be punished by a fine not exceeding Ten thousand pesos (P10,000.00), imprisonment of not more than five years, or both, at the court's discretion.
Loans to officers or employees may not exceed six months' remuneration unless special circumstances exist. No loans shall be granted to directors or auditors or entities where they have substantial interest unless approved unanimously by at least two-thirds of the Board (excluding the concerned member). Violations lead to automatic vacancy of office and possible criminal prosecution.