Powers of the Corporation
- Authorized to prepare corporate by-laws.
- May engage in any lawful business related to its primary purposes.
- Can enter into contracts domestically and internationally, and operate across local and foreign territories.
- May hold public agricultural and mineral lands beyond those allowed to private entities, for up to 25 years, renewable by the President.
- Empowered to acquire, hold, mortgage, and sell real and personal property.
- May transact in stocks, bonds, and securities of other corporations both local and foreign, exercising full ownership rights.
- Authorized to execute any acts permissible for partnerships or natural persons under existing or future laws.
Capital Structure and Subscription
- Authorized capital stock is Fifty Million Pesos (P50,000,000), divided into 500,000 shares at P100 par value each.
- Government subscribes to P10,000,000 from the General Fund.
- The Development Bank of the Philippines subscribes to P20,000,000.
- Remaining P20,000,000 offered to domestic and foreign investors.
- Subscribers for bank and public must pay 25% upfront, with the balance payable upon call with Board approval.
- Voting rights tied strictly to stock ownership; no transfer of voting rights to non-stockholders is allowed.
- Government’s voting shares are vested in the President or designated representatives.
- Voting rights for government financial institutions vested in their respective Chairmen.
Governance Structure
- Board of Directors consists of 7 members: 4 ex officio and 3 presidential appointees.
- Ex officio members are the Executive Secretary, Secretary of National Defense, Chairman of Development Bank, and Chairman of Board of Investments.
- Appointed members serve a four-year term.
- The President appoints the Board Chairman from among the directors.
Board Responsibilities
- Appoint and set salaries for the General Manager and other officials necessary for administration.
- Organize necessary divisions within the corporation for fulfilling its objectives.
- Submit an annual report on the Corporation’s condition to the President and publish the same by end of February each year.
Auditor Appointment and Qualifications
- The Chairman of the Commission on Audit appoints a representative auditor for PADCOR.
- Auditor must be a certified public accountant with at least ten years of experience.
- Auditor and staff salaries fixed by the Commission Chairman with Board advice; paid by the Corporation.
- Removal of auditor or staff only by the Chairman of the Commission on Audit.
- No auditor appointment within the fourth degree of consanguinity or affinity to Board members or Commission Chairman.
Tax and Customs Exemptions
- Corporation exempt from all national, provincial, municipal, and city taxes and assessments for 5 years from start of operations.
- Importations of equipment, materials, devices, and items necessary for authorized purposes are fully exempt from customs duties and related taxes.
Implementation and Effectivity
- The decree takes effect immediately upon approval.
- The Board Chairman must call an organizational meeting within 30 days of appointment to commence corporate activities.