Principal Objectives of the National Coconut Corporation
- To establish, maintain, or operate drying plants, copra driers, or coconut centrals.
- Aim to make the coconut industry independent of U.S. trade preferences.
- Facilitate better curing of copra products and proper utilization of coconut by-products.
- Prohibition on direct or indirect subsidies to producers or processors of copra, coconut oil, or related products.
- Provide facilities for bona fide production loans to Philippine coconut planters and copra producers.
Powers and Authorities of the Corporation
- Authority to grant bona fide production loans to copra producers, secured by coconut crops or products.
- Powers to buy, sell, assign, establish, operate, rent, or lease related equipment, warehouses, buildings, and other materials necessary to fulfill its objectives.
Application of Corporation Law and Powers
- NCC is subject to the provisions of the Corporation Law where compatible with this Act.
- NCC enjoys general and additional powers as specified in the Corporation Law and this Act.
Board of Directors: Composition, Appointment, and Governance
- Board consists of five members appointed by the President of the Philippines with the consent of the Commission on Appointments.
- The President appoints the chairman from among the board members.
- Directors serve for one year; vacancies are filled only for the unexpired portion of the term.
- The President can remove any director at his discretion.
- The quorum for board meetings is three members.
- Directors must take an oath before assuming duties.
- Directors receive a per diem up to twenty-five pesos for each day attended, except:
- Chairman serves also as general manager and may receive up to fifteen thousand pesos annually.
- Government employees with fixed salaries serving as directors are exempt from per diem.
- The board must submit annual reports and balance sheets to the President and National Assembly as required under the Administrative Code.
Establishment and Use of the Coconut Industry Promotion Fund
- Creation of a special fund known as the "Coconut Industry Promotion Fund."
- Fund composed of appropriations from the Coconut Oil Excise Tax collected from January 1, 1939.
- Initial allocation of two million pesos upon Act approval; additional amounts may be appropriated annually.
- Total fund allocation capped at twenty million pesos.
- Disbursement of funds authorized only by the Board of Directors conforming to this Act and relevant public laws.
- All income or receipts from the fund's operations form part of the fund for reinvestment or expenditure for the same purposes.
Effectivity of the Act
- The Act takes effect immediately upon its approval on May 7, 1940.