National Rice and Corn Corp. creation and powers

Development through education, practical demonstrations, cooperation, and assistance from government and private agencies.
Stabilization through maintaining stable prices consistent with production costs, preventing speculation and exploitation, financing producers and activities, and improving quality, yield, and cost efficiency.
Promotion of industrialization of by-products, nutritional improvement, and solutions to overproduction.
Enhancing social and economic conditions by promoting cooperative associations and general agricultural and industrial development in producing regions.

Act as government agent in social, civic, or governmental functions.
Engage in buying, selling, importing, exporting, and handling rice, corn, and their by-products.
Own and operate transportation, processing, storage, and power facilities.
Provide loans and financing to industry participants.
Borrow money and secure property through mortgages or other securities.
Enter contracts with private, public, or foreign entities.
Establish offices domestically and abroad.
Conduct research on industrialization, conservation, and utilization.
Promote home industries related to rice and corn production.
Exercise eminent domain in the name of the Republic of the Philippines for land acquisition when necessary.
Procure and distribute fertilizers and lime for farming experiments and demonstrations.
Cooperate with various agricultural and governmental entities in implementing programs.
Request assistance and advice from government officials; patents from inventions incidental to such services belong to the Corporation.
Take all actions necessary or incidental to fulfill its purpose.

The Corporation is subject to the Corporation Law provisions compatible with this Act.
It enjoys general corporate powers apart from those specified in the Act.

Exempt from import duties on rice, corn, and necessary supplies for demonstration farming.
Exempt from sales and milling taxes by national or local governments.
The President may further exempt it from other taxes if publicly justified.
Authority granted to the President to transfer government-owned properties in Manila to the Corporation.
The Corporation may inspect and record stocks of palay, rice, and corn held by individuals or entities.

Appointments and promotions must be based solely on merit and efficiency; no political tests allowed.
Violations by Board members result in removal by the President; violations by appointees result in removal by the Board.
The Board shall establish rules on employment policies, promotions, removals, welfare, compensation, and performance appraisal.

Capital stock fixed at twenty million pesos, divided into 200,000 shares at one hundred pesos each.
All shares subscribed by the Government except those sold to Board members.
Payment of subscriptions staggered over time with the government holding voting power.
Shares sold to Board members may be repurchased at par by the Government upon cessation of membership.

Maintain separate accounting for activities related to price stabilization, production development, and social-economic promotion.
Annual reports and financial statements submitted to the President and Congress.
Purchases and contracts require advertisement and competitive bidding, with specified exceptions.
Auditor General to conduct annual audits with full access and reporting obligations.
Auditor has authority to report conflicts or irregularities to the President and Congress.

Management vested in a five-member Board of Directors appointed by the President with Commission on Appointments' consent.
The President appoints the Chairman from among the members.
Directors serve staggered initial terms and subsequent five-year terms.
Vacancies filled for unexpired terms.
Three directors constitute a quorum.
Directors removable by the President.
Board members must believe in the Act's feasibility and wisdom.

The prior National Rice and Corn Corporation as merged with PRISCO is dissolved.
Its properties, liabilities, contracts, and operations transferred automatically to the new Corporation.
Net book value of assets accepted as payment for shares subscribed to by the new Corporation.
Existing references to the former corporation in laws or orders are deemed references to the new Corporation.

Appropriated funds up to twenty million pesos from the National Treasury for government subscriptions.
Disbursement staggered in three tranches over approval and subsequent years.
All corporate profits reinvested or expended for corporate purposes.