A
collection of Philippine laws, statutes and codes
not
included or cited in the main
indices
of
the
Chan Robles Virtual Law Library
PRESIDENTIAL DECREE NO. 1402
PRESIDENTIAL DECREE NO. 1402 -
CREATING THE PHILIPPINE NATIONAL IRON AND STEEL CORPORATION, DEFINING
ITS POWERS AND FUNCTIONS, PROVIDING FUNDS THEREFOR, AND FOR OTHER
PURPOSES
|
chanroblesvirtualawlibrary
WHEREAS,
the availability at all times of iron and steel products at reasonable
cost is essential for the promotion and the national welfare, economic
progress and industrialization;chanroblesvirtualawlibrary
WHEREAS, it is imperative for the Government to take a more active role
in the iron and steel industry in order to so assure an adequate or
increased supply at all times of such iron and steel products at
reasonable cost.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution, do hereby
create the Philippine National Iron and Steel Corporation, and further
order and decree the following, as part of the law of the land, to be
the Charter of the Philippine National Iron and Steel Corporation;chanroblesvirtualawlibrary
Section 1. Title. — This Decree shall be known as
the "Charter of the Philippine National Iron and Steel Corporation."
Section 2. Declaration of Policy. — It is hereby
declared to be the policy of the Government to promote the welfare,
economic progress and industrialization of the country through the
effective development of the iron and steel industry. Accordingly, the
creation of an organized corporate entity is necessary to assure an
adequate or increased supply at all times of iron and steel products at
reasonable cost to all users for the accelerated economic growth and
industrialization of the country and the region.
Section 3. Creation, Name, Domicile and Term. — To
carry out the above policy, there is hereby created a body corporate to
be known as the Philippine National Iron and Steel Corporation,
hereafter referred to as the Corporation."
The principal office of the Corporation shall be determined by its
Board of Director. It may also establish such offices, branches,
agencies or correspondents or other units in the Philippines or abroad
as its business operations may require.
The Corporation shall have a term of fifty years from its creation
hereof, which shall be deemed renewed for an equal period unless sooner
dissolved by law.
Section 4. Purposes and Powers. — The Corporation
shall have the following purposes and powers;chanroblesvirtualawlibrary
a) To invest in the iron and steel industry as well
as in any activity related to iron or steel operations, and to set up
or form business subsidiaries under the Corporation Law or through the
acquisition of the controlling interests of existing corporations,
which may be necessary or contributory to the economic development of
the country and the region, or important in the public interest, or
deemed convenient or incidental to the carrying on of any of the
purposes of the Corporation, or which will promote the well-being of
the Corporation;chanroblesvirtualawlibrary
b) To provide and maintain an adequate or increased
supply at all times of iron and steel products at reasonable cost for
domestic requirements and exports; chanroblesvirtualawlibrary
c) To reduce the excessive dependence of the country
and the region on imports of iron and steel products;chanroblesvirtualawlibrary
d) To foster conditions of iron and steel production
conducive to a balanced and sustainable growth of the economy and the
region.
Subject to governmental policy, the Corporation shall also have the
following purposes and powers:cralaw:red
a) To enter into contracts with any person or
entity, domestic or foreign, and with governments for the undertaking
of the varied aspects of the iron or steel industry, under such terms
and conditions at it may deem proper and reasonable; chanroblesvirtualawlibrary
b) To purchase, hold, alienate, mortgage, pledge or
otherwise dispose of the stocks, bonds, and other securities or
evidences of indebtedness of any other corporation, association, firm
or entity, domestic or foreign, and, while the owner of holder thereof,
to exercise all the rights and powers of ownership, including the right
to vote thereon for any purpose;chanroblesvirtualawlibrary
c) To hold lands and acquire rights over mineral
lands as may be necessary to accomplish its purposes;chanroblesvirtualawlibrary
d) Subject to existing rights, to lease or contract
for unappropriated public waters and foreshore and offshore areas,
which, in the decision of the President of the Philippines, is
essential to the exercise of the purposes of the Corporation and the
same shall be granted to the Corporation by the proper government
agency concerned under such terms and conditions as may be mutually
agreed upon between them;chanroblesvirtualawlibrary
e) To enter into any lawful arrangements for sharing
profits, joint venture, union, interests, reciprocal concession or
cooperation with any person or corporation, association, partnership,
syndicate or entity located in or organized under the laws of any
authority in any part of the world in the carrying on of any business
which the Corporation is authorized to carry on, or any business or
transaction deemed necessary on of any of the purposes of the
Corporation; chanroblesvirtualawlibrary
f) To acquire assets, real or personal, or interest
therein, and encumber or otherwise dispose of the same as it may deem
proper and necessary in the conduct of its business;chanroblesvirtualawlibrary
g) To establish and maintain for its own use such
communication system, whether by radio, telegraph or any other manner,
without the need of a separate franchise therefor;chanroblesvirtualawlibrary
h) To determine its organizational structure, and
the number and salaries of its officers and employees, in accordance
with existing laws, rules and regulations;chanroblesvirtualawlibrary
i) To design, write, prepare, publish and display,
in any manner, advertisements, publicity or promotional devices of all
kinds for itself or for others which are necessary or convenient for
the accomplishment of the purposes of the Corporation;chanroblesvirtualawlibrary
j) To exercise the right of eminent domain as may be
necessary for the purposes for which the Corporation is created,
subject to existing provisions of laws;chanroblesvirtualawlibrary
k) Subject to payment of the proper amount, to enter
private lands for the purpose of conducting studies in connection with
its purposes, powers and functions;chanroblesvirtualawlibrary
l) To acquire easement over public and private lands
necessary for the purpose of carrying out any work essential to its
purposes, powers and functions, subject to payment of reasonable
considerations;chanroblesvirtualawlibrary
m) To adopt a code of by-laws to complement this
charter;chanroblesvirtualawlibrary
n) To adopt and use a corporate seal which shall be
judicially noticed; to sue and be sued; and
o) To perform such corporate acts and exercise such
corporate functions authorized by the Corporation Law not inconsistent
with this decree and such other acts necessary for the attainment of
the purposes and objectives herein specified.
The preceding clause shall be construed and interpreted as both
purposes and powers, and the matters expressed in them shall, except as
otherwise expressly provided, but in no wise limited by reference to or
inference from the terms of any other clause, but shall be regarded as
independent purposes and powers, and the enumeration of specific
purposes and powers shall not be construed to limit or restrict in any
manner the meaning in general terms of the general powers of the
Corporation, nor shall the expression of one thing be deemed to exclude
another not expressed, if it be of like nature. chanroblesvirtualawlibrary
Section 5. Subsidiaries. — The controlling interest
of the business subsidiaries of the Corporation shall, within a
reasonable period from their incorporation or the purchase of their
controlling interest by the Corporation, be transferred for value to
the private sector: Provided, That in consideration of the fact that
the business subsidiaries of the Corporation shall be transferred to or
controlled by the private sector within a reasonable period as
aforementioned and that these business subsidiaries are formed under
the Corporation Law, such business subsidiaries shall not be subject to
any law, decree, executive order, circular, rule or regulation or
restriction which pertains to government-owned or controlled
corporations nor shall the said subsidiaries be subject to the Civil
Service Law nor the Rules and Regulations or the standards and salary
scales prescribed by the Office of Compensation and Position
Classification, in addition the officers and employees of these
business subsidiaries of the Corporation shall not be covered by the
Government Service Insurance System or by any law, decree, executive
order, circular, rule or regulation relating to leaves of absences,
retirement privileges, regular working hours, or any other government
personal benefits. chanroblesvirtualawlibrary
Section 6. Governing Body. — The Corporation shall
be governed by a Board of Directors, hereinafter referred to as the
"Board," which shall be composed of seven (7) members, namely, the
Secretary of Industry, the Secretary of Finance, the Secretary of
National Defense, the Chairman of the Development Bank of the
Philippines, the Solicitor General, the Budget Commissioner, or their
duly authorized representatives, and the President of the Corporation.
The President of the Corporation shall be elected from among the
members of the Board.
The Secretary of Industry and the President of the Corporation shall be
the Chairman and Vice-Chairman, respectively, of the Board. In the
absence of the Chairman, the Vice-Chairman shall act as presiding
officer of the Board.
The members of the Board shall act as such for the duration of the term
of the Corporation.
The Board shall formulate the policies which may be necessary or
incidental to carry out the business of the Corporation or to the
exercise of its express and implied powers or for the accomplishment of
any of its purposes.
All the members of the Board of their duly authorized representative,
shall receive a per diem of Five Hundred Pesos for each board meeting
actually attended by them; Provided, That such per diem shall not
exceed One Thousand Pesos during any month for each member: Provided,
Further, that no other allowance or any form of compensation shall be
paid them, except actual expenses in travelling to and from their
residences to attend board meetings.
The Board shall meet as often and at such dates, times and places as
may be necessary to transact all matters as shall properly come before
them and require their action as the Board. The meetings of the Board
may be called by the President of the Corporation or by the Chairman or
by five members of the Board as and when necessary. At least five
members of the Board shall constitute a quorum and all decisions
of the Board shall require the concurrences of the majority of the
quorum.
Section 7. Capital Stock. — The Corporation shall
have a capital stock divided into Two Hundred Million shares with a par
value of P10 each to be subscribed, paid for and voted as follows:cralaw:red
a) One Hundred Sixty -Five Million Eight Hundred
Thousand shares shall be originally subscribed and paid for the
Government of the Republic of the Philippines.
b) The remaining shares of stock may be subscribed
and paid for by the Government of the Republic of the Philippines or by
government financial institutions.
The voting power pertaining to shares of stock subscribed by the
Government of the Republic of the Philippines shall be vested in the
President of the Philippines or in such person or persons as he may
designate.
The voting power pertaining to shares of stock subscribed by the
government financial institutions shall be vested in them. chanroblesvirtualawlibrary
Section 8. Powers and Duties of the President. — The
President, who shall be the chief executive of the Corporation shall
have the following powers and duties:cralaw:red
a) To prepare the agenda for the meetings of the
Board, and to submit for the consideration of the Board such policies
and measures as he believes necessary to carry out the purpose and
objectives of this Decree;chanroblesvirtualawlibrary
b) To execute, administer and implement the policies
and measures approved by the Board;chanroblesvirtualawlibrary
c) To direct and supervise the operation and
administration of the Corporation;chanroblesvirtualawlibrary
d) To appoint and fix the compensation for all the
employees, except the officers, of the Corporation; chanroblesvirtualawlibrary
e) To represent the Corporation in all dealings with
other offices, agencies and instrumentalities of the government and
with all persons and other entities, public or private, domestic or
foreign; and
f) To exercise such other powers and perform such
other duties provided in the by-laws and as may be vested in him by the
Board.
Section 9. Legal Counsel. — The Solicitor General
shall be the ex officio legal counsel of the Corporation and he may
designate a representative for that purpose.
Section 10. Auditor. — The Chairman of the
Commission on Audit shall appoint a representative who shall be the
Auditor of the Corporation and such personnel as may be necessary to
assist said representative in the performance of his duties. The budget
of the office of the Auditor shall be appropriated by the Corporation,
subject to the approval of the Board. Such representative shall render
a semestral report on the financial condition and operations of the
Corporation to the Chairman of the Commission on Audit and the Board.
The Chairman of the Commission on Audit shall submit to the
President of the Philippines an annual report covering the financial
conditions and operations of the Corporation. These auditing reports
shall contain a statement of the resources and liabilities including
earnings and expenses, reserves and profits, as well as losses, bad
debts and such other facts which, under the auditing rules and
regulations, are considered necessary to accurately describe the
financial conditions and operations of the Corporation; Provided, That
before such reports are made, the Corporation shall be given reasonable
opportunity to examine the reports and make exceptions to any
criticisms of the Auditor of the Corporation or the Chairman of the
Commission on Audit, as the case may be, to point out, explain or
answer any inaccuracies therein, if any, and to file a statement which
shall be appended by the Auditor of the Corporation and the Chairman of
the Commission on Audit in their respective reports. chanroblesvirtualawlibrary
The auditors of the business subsidiaries of the Corporation shall be
appointed by their respective Boards of Directors.
Section 11. Applicability of Civil Service law and
Other Laws. — The Corporation and its officers and employees shall be
subject to the Civil Service Law, rules and regulations, as well as to
all laws, decrees executive orders, circulars, rules or regulations
pertaining to government-owned or controlled corporations and relating
to government personnel benefits.
The provisions of the Corporation Law shall apply to the Corporation
and its business subsidiaries insofar as not inconsistent with the
provisions of this Decree. chanroblesvirtualawlibrary
Section 12. Loans; Guarantees; Issuance of Bonds. —
Subject to the provisions of existing laws, rules and regulations, the
Corporation is hereby authorized to contract loans, credits or any
indebtedness from time to time from foreign governments, or any
financial institutions or fund sources or any other entities, foreign
or domestic, on such terms and conditions as it shall deem appropriate
for the accomplishment of its purposes and to enter into and execute
agreements and other documents specifying the said terms and conditions
as well as do or perform any such acts as may be necessary in
connection therewith: Provided, That the total loans, credits or
indebtedness which the Corporation is hereby authorized to contract
shall in no case exceed the amount of One and a Half Billion Philippine
Pesos from domestic sources and the amount of Four Hundred Million US
Dollars, or the equivalent in other foreign currencies, from foreign
sources, outstanding at any one time, exclusive of interests.
The Republic of the Philippines, through the President of the
Philippines, or his duly authorized representative, is empowered to
guarantee, absolutely and unconditionally, as primary obligor and not
as surety merely, the payment of the loans, credits and indebtedness
contracted by the Corporation, as herein before provided, in accordance
with Republic Act Numbered Sixty-One Hundred Forty-Two, as amended, as
well as the performance of all or any of the obligations undertaken by
the Corporation pursuant to loan agreements entered into with foreign
governments or any international financial institutions or fund sources.
The provisions of any law to the contrary notwithstanding, any
financial institution owned or controlled by the Government of the
Republic of the Philippines, other than the Central Bank, the
Government Service Insurance System and the Social Security System, is
hereby empowered to guarantee also acceptance credits, loans,
transactions, undertakings, or obligations of any kind which may be
incurred by the Corporation, whether directly or indirectly in favor of
any person, association or entity, whether domestic or foreign.
The Corporation, upon the recommendation of the Secretary of Finance in
consultation with the Monetary Board and with the approval of the
President of the Philippines, is hereby empowered to issue bonds or
other securities, which the President of the Philippines may authorize
to be exempt from any or all taxes or to be guaranteed by the
Government, to finance its corporations.
Section 13. Appropriation. — The sum of One Billion
Six Hundred Fifty-Eight Million Pesos (P1,658,000,000) is hereby set
aside initially and appropriated from the General Funds not otherwise
appropriated, and the same shall be applied to the full payment of the
subscription of the Government of the Republic of the Philippines
referred to in Section 7, paragraph (a), of this Decree. Other
subsequent requirements shall be contained in the Annual Appropriation
Act. Releases from this appropriation shall be in accordance with a
schedule to be determine by the Secretary of Finance, subject to the
approval of the President.
Section 14. Transfer of Properties, Rights and
Interests. — To enable the Corporation to effectively carry out its
purpose and powers under this Decree, the Development Bank of the
Philippines and the Secretary of Finance, the latter acting on behalf
of the Government of the Republic of the Philippines, are hereby
directed and authorized to transfer, assign and convey to the
Corporation such properties, rights and/or interests as may be required
by the Corporation in connection therewith, under terms and conditions
to be mutually agreed upon among them. chanroblesvirtualawlibrary
Section 15. Reports. — The Corporation shall, within
three months after the end of every fiscal year, submit its annual
report to the President of the Philippines. It shall likewise submit
such periodic or other reports as may be required of its from time to
time.
Section 16. Miscellaneous. — All heads of
Departments, Agencies, Offices and instrumentalities of the National
Government as well as political subdivisions are hereby enjoined to
extend full cooperation and assistance to the Corporation in the
implementation of the provisions of this Decree.
Section 17. Separability Clause. — Should any
provision of this Decree be held unconstitutional, no other provision
hereof shall be affected thereby.
Section 18. Repealing Clause. — All laws, decrees,
executive orders, administrative orders, rules or regulations
inconsistent herewith are hereby repealed, amended or modified
accordingly. chanroblesvirtualawlibrary
Section 19. Effectivity. — This Decree shall take
effect immediately.
Done in the City of Manila,
this 6th day of June, in the year of Our Lord, nineteen hundred and
seventy-eight.
|
Back
to Home
- Back
to Main
chanroblesvirtuallawlibrary
Since 19.07.98
|