Corporate Powers and Objectives
- Subject to the Corporation Law except where inconsistent with this Act.
- General corporate powers plus additional powers for economic development.
- Objectives include promoting efficient production, coordinating productive forces, securing stable markets for Philippine products.
- Permitted to engage in commercial, industrial, and other enterprises necessary or contributory to economic development.
- Authority to acquire, hold, mortgage, alienate personal and real property in the Philippines or elsewhere.
- Power to issue bonds and other obligations for business purposes.
- May mortgage or pledge stocks, bonds, or property to secure obligations.
- Can enter into contracts of any kind.
- Authorized to purchase, hold, alienate shares or securities of other corporations domestically or internationally, and to exercise ownership rights including voting.
- Empowered to perform all acts authorized of partnerships or natural persons in connection with its objectives.
Capital Structure
- Capital stock fixed at fifty million pesos.
- Capital divided into 500,000 shares with a par value of one hundred pesos each.
- No stock issuance below par value and only for cash.
Stock Subscription and Ownership
- Government of the Philippine Islands subscribes at least 51% of capital stock.
- Remainder offered to provincial/municipal governments or the public at no less than par value.
- Maximum of 100 shares per private person, corporation, association, or partnership.
- Ten percent payment required at subscription; balance payable per Board's schedule.
- Government-owned shares' voting power vested in a committee of the Governor-General and presiding officers of both Legislative Houses.
Appropriations and Investment Limits
- Appropriations from Insular Treasury funds not otherwise appropriated for payment of government subscription shares.
- Funds not recorded until payment necessary.
- Investment limit set at ten million pesos in 1919 and the same maximum for each subsequent year unless changed by Legislature.
Governance
- Board of Directors to consist of no more than nine members.
Penalties for Violations
- Fine up to five thousand pesos and/or imprisonment up to five years.
- Applicable offenses include:
- Making false statements to obtain funds or valuables.
- Willful overvaluation of securities securing advances.
- Forging, altering, or counterfeiting bonds, coupons, or papers of the NDC.
- Embezzlement, misapplication of company funds, or fraudulent falsification in company records by connected persons.
- Unauthorized disclosure of company or business secrets.
Legislative Control
- Philippine Legislature retains full authority to alter, amend, repeal this Act or any part thereof.
Effectivity
- The Act takes effect upon approval on March 10, 1919.