Immediate Compliance and Notification Procedure
- If a single individual currently holds both positions, the governing board must act within three days to separate these roles.
- Upon resolution by the board, the Office of the President must be informed promptly.
- The President is then authorized to order the election or appointment of either the CEO or the Chairman to effect this separation.
Charter Amendment Requirement
- In cases where a corporation's charter explicitly allows the Chairman and CEO to concurrently hold office, the directive requires that a recommendation to amend the charter be submitted within three days.
- This ensures legal conformity with the separation policy and proper governance structure.
Scope and Applicability
- The instruction applies to all heads of ministries and all heads of GOCCs under the Philippine government.
- It emphasizes administrative and governance reforms within government corporate management to enhance transparency and accountability.
Legal and Administrative Authority
- The directive is issued under the authority of the President of the Philippines and carries obligatory compliance within the three-day period.
- The power to enforce appointments and elections as necessary is vested in the Office of the President, reflecting executive oversight over GOCC governance.