Law Summary
Policy and Purpose
- NRDC's mandate is to hasten development by promoting and utilizing technologies that balance resource use and conservation.
- Collaboration with private sector subsidiaries or joint ventures is encouraged.
Functions and Objectives
- Engage in production of charcoal pig iron and operate steel mills, including necessary fuel wood plantations.
- Promote reforestation and industrial forestry using stumpage sale systems and other means.
- Stabilize markets for natural resource-based products through coordination and marketing activities.
- Foster investment in natural resources industries by providing financial, technical, or management support.
- Conduct research and development on natural resources-based products.
- Produce and market minor forest, aquatic, and marine products.
Powers of the NRDC
- General corporate powers under Corporation Law, with additional powers including:
- Acquire, hold, dispose of lands for NRDC purposes.
- Promulgate rules and regulations.
- Enter into contracts with government and private entities domestically and internationally.
- Organize subsidiaries and functional units.
- Engage in profit-sharing arrangements and joint ventures globally.
- Obtain funds and invest idle funds in government depositories.
- Arrange financing and credit from diverse sources.
- Secure obligations by pledges, mortgages, or liens.
- Guarantee loans of subsidiaries or related companies.
- Accept or grant donations domestically or abroad.
- Acquire equipment and raw materials by purchase, lease, or contract.
- Exercise eminent domain as necessary.
Board of Directors Composition
- Chairman: Minister of Natural Resources.
- Members: Ministers of Trade and Industry, Transportation and Communications, Economic Planning, Finance; Chairman of Development Bank of the Philippines; President of the NRDC.
Board Powers and Functions
- Prescribe/amend By-Laws.
- Formulate policies, plans, and regulations.
- Direct management and operations.
- Create committees/positions and fix remuneration.
- Set terms of officials.
- Submit annual reports to the President.
- Delegate powers as needed.
Management and Leadership
- The NRDC is headed by a President appointed by the Board.
- Board may create additional officer positions and determine their powers, duties, terms, and compensation.
Powers and Duties of the President
- Prepare Board meeting agendas and propose policies.
- Execute and administer Board-approved policies.
- Represent NRDC in dealings with government and private or foreign entities.
- Exercise powers delegated by the Board.
Capitalization
- Authorized capital stock of PHP 500 million divided into 5 million shares at PHP 100 par value.
- Entire capital subscribed by the National Government.
- Initial release of PHP 1 million by Minister of Budget to start operations.
Tax and Duty Exemptions
- Exemption for ten years from:
- Taxes, duties, fees under Tariff and Customs Code.
- Income, franchise, and realty taxes.
- Import duties, compensating taxes, advance sales tax, wharfage fees.
- Taxes on petroleum and related products used by NRDC.
- Donations and subsidies to NRDC are tax-exempt and deductible for donors.
Audit Requirements
- Audited by a corporate auditor appointed by the Commission on Audit with Board approval.
- Subsidiaries audited by independent Certified Public Accountants selected by the Board.
Separability and Effectivity
- Should any provision be unconstitutional, other provisions remain unaffected.
- The Order takes effect immediately upon issuance.