Law Summary
Corporate Powers
- Authority to adopt and use a corporate seal.
- Power to acquire, hold, lease, and dispose of real and personal property.
- Ability to collect funds, receive donations, and manage investments.
- Capacity to enter into contracts and obligations necessary for its operations.
- Possess full rights and powers as private or government-owned corporations under Philippine law.
Principal Office and Branches
- Principal office established in Tagaytay City.
- Authorized to establish branches within or outside the Philippines as necessary.
Governance: Board of Trustees
- Composed of 15 members including key government officials: Secretary of Finance, Executive Secretary, Secretary of National Defense, NEDA Director General, Central Bank Governor, heads of major financial and social security institutions.
- One appointed Muslim Filipino member of national prominence serving a two-year term.
- The President of the Academy is also a member.
- Trustees serve without compensation but may be reimbursed for actual expenses.
Board Responsibilities
- Formulate rules and regulations for Academy operations.
- Authorize program funding without influencing research methods or conclusions.
- Constitute an Executive Committee.
- Appoint the President and Vice Presidents.
- Periodically review the Academy’s management and programs.
Executive Committee
- Consists of the President and 3 to 5 Board members elected from the Board.
- Members serve two-year terms, eligible for re-election.
- Elect a Chairman among themselves.
Executive Committee Functions
- Administer Academy affairs with delegated powers, excluding filling Board vacancies and amending rules.
- Exercise all powers granted by the Board within delegated scope.
President of the Academy
- Chief executive officer appointed by the Board.
- Responsibilities include policy recommendation, program coordination, daily administration, and reporting to the Board.
- Can delegate administrative functions.
Financial Support and Endowment Fund
- Initial financing through contributions from founding public institutions.
- Establishes an Endowment Fund for financial self-sufficiency.
- Endowment principal protected from impairment; earnings used to fund operations.
- Founding institutions authorized to make substantial contributions overriding contrary charter provisions.
Financial Operations
- Exempt from government procurement laws in expenditures and disbursements.
Staff Appointments
- Appointment of staff may be part-time and exempt from Civil Service laws and salary standardization rules.
- Government retirees employed by Academy retain pensions and are not required to refund gratuities.
Tax Exemptions
- Donations, contributions, subsidies to the Academy are tax-exempt and deductible for donors.
- The Academy’s assets, income, operations exempt from all Philippine taxes except import duties and fees.
Asset Disposition Upon Dissolution
- Upon dissolution, assets after settling liabilities and returning Endowment Fund principal to contributors to be given to foundations or government entities with similar objectives.
Transfer of Productivity and Development Center Functions
- Functions, assets, funds, and appropriations of the Productivity and Development Center of NEDA transferred to the Academy for administration.