Establishment and Duration of the Corporation
- Creation of the National Marketing Corporation (NAMARCO).
- NAMARCO exists for 25 years from the effective date of the Act.
Principal Office and Branches
- Main office located in Manila or Quezon City.
- Authorized to establish branches/agencies within and outside the Philippines for business needs.
General Powers of NAMARCO
- May adopt a corporate seal.
- Authority to make contracts and manage property.
- Right to sue and be sued.
- Conduct lawful business necessary to fulfill corporate purposes.
- Exercise corporate law powers not inconsistent with this Act.
Specific Authorized Powers
- Procure and distribute commodities at reasonable prices to Filipino businessmen.
- Stabilize prices for scarce commodities via fair distribution.
- Formulate policies on credit sales and acceptable indebtedness evidence.
- Establish distribution offices or contract with wholesalers.
- Accept and rediscount eligible indebtedness with government financial institutions.
- Borrow money for authorized purposes.
Capitalization and Revolving Fund
- Authorized capital of 30 million pesos, fully subscribed by the Republic.
- Initial payment of 10 million pesos and 10 million pesos annually for two years appropriated.
- Capital forms a revolving fund for business transactions.
- Board authorized to allocate up to one million pesos annually for operating expenses.
- Unused funds and earnings revert to revolving fund.
Board of Directors Composition and Appointment
- Seven members: Secretary of Commerce and Industry (ex-officio Chairman) and six presidential appointees.
- Terms of one to three years initially; successors serve three-year terms.
- Meetings held weekly; per diem limited to 25 pesos per meeting, capped at 200 pesos monthly.
Powers and Duties of the Board
- Prescribe by-laws, rules, and committees.
- Appoint and fix compensation of General Manager and Secretary.
- Approval and removal of General Manager and Assistant with Presidential consent.
- Approve annual and supplementary budgets.
Suspension and Removal of Directors
- President may suspend or remove board members on recommendation of Chairman.
Conflicts of Interest and Prohibitions for Directors
- Directors cannot serve in other corporate capacities within NAMARCO.
- Directors and General Manager barred from involvement or financial interest in businesses affected by the Corporation.
Management and Control
- General Manager vested with management authority, reporting to the Board.
- Participates in Board meetings without voting rights.
- Submits annual reports to the President.
- Appoints subordinate personnel, subject to Board approval.
Appointment and Promotion Policies
- Based on merit and efficiency solely.
- No political tests or qualifications allowed.
- Violations lead to removal by the Board.
Organizational Structure and Functions
- Purchasing Department: commodity procurement.
- Marketing Department: sales and distribution.
- Traffic-Storage Department: transport and warehousing.
- Support offices: Personnel, Finance, Market Analysis, General Services, Legal Counsel, and Auditing.
- Secretary of Justice acts as ex officio legal adviser.
- Auditor General oversees financial audits.
Financial Provisions and Obligations
- NAMARCO issues obligations secured by its assets, redeemable and interest-bearing.
- Obligations guaranteed unconditionally by the Philippine Government.
- Secretary of Finance shall pay obligations if NAMARCO defaults, with government succeeding rights.
- NAMARCO exempt from taxes except inheritance and gift taxes.
Penal Provisions
- Officers/employees prohibited from becoming guarantors or sureties for credits; violations result in removal, imprisonment, and fines.
- No fees/commissions for credit facilities; offenders fined and imprisoned.
- False information to obtain credit punished by imprisonment and fines.
- Speculation in commodity programs by officers/employees punishable by fines or imprisonment.
Transitory Provisions and Dissolution of PRISCO
- Retains PRISCO's regional and provincial sales organizations initially.
- At least one provincial sales organization required per province.
- PRISCO dissolved; assets, liabilities, personnel transferred to NAMARCO or Board of Liquidators.
- Personnel reappointed under the Reorganization Act; non-reappointed considered separated with benefits.
- Liquidation overseen by Auditor General.
Miscellaneous Provisions
- Repeals or modifies inconsistent laws and orders.
- Severability clause protects remaining provisions if parts declared invalid.
Effectivity
- The Act takes effect upon approval.