1. A corporation is hereby created which shall be known as "National
Abaca and Other Fiber Corporation" and which shall be organized
immediately upon the approval of this Act, shall exist for a term of
thirty years from the date of the approval of this Act, and shall have
its main office in the City of Manila.
Section2. The "National Abaca and Other Fiber
Corporation" shall have the following objects:
(a) To insure a permanent, sufficient and balanced
production of abaca and other fibers for the requirements of the local
industry and for exportation.
(b) To check all speculation tending to promote a
decrease in the prices of abaca and other fibers and to stabilize said
prices at a level sufficient to cover the cost of production plus a
(c) To assist in preventing a shortage as well as an
excess production of abaca and other fibers and in either case serve as
regulating organ in order to avoid a disorganization of this important
activity of the national economy and its consequences, such as
suspension of work, unemployment, and other social calamities.
Section3. For carrying out the purposes mentioned in
the preceding section, the National Abaca and Other Fiber Corporation
shall have authority:
(a) To buy, sell, export, barter, and in any other
manner deal in, abaca and other fibers.
(b) To buy, sell, assign, own, operate, rent or
lease, subject to existing law, merchant vessels, rails, railroad
lines, and any other means of transportation, stripping machines,
presses, warehouses, buildings, and any other equipment and material
for stripping, warehousing and, in general, for everything connected
with the proper handling of abaca and other fibers.
(c) To act as agent, broker, commission merchant, or
representative of the producers, merchants, pressmen or other dealers
in abaca and other fibers and the products derived therefrom.
(d) To grant loans to planters when it deems it
advisable, on reasonable terms, on account of abaca and other fiber
(e) To borrow, issue bonds or otherwise raise funds
for carrying out the objects of this corporation, whenever, the needs
of this industry require it.
(f) To enter into, make and execute contracts of any
kind as may be necessary or incidental to the attainment of its
purposes, with any person, firm or public or private corporation, with
the Governments of the Philippines or the United States or of any
State, territory or possession thereof, or with any foreign government.
(g) To have an office or offices outside of the
Philippines and transact business and exercise its powers in any part
of the Philippines or any foreign country, state or territory.
(h) In general, to do everything directly or
indirectly necessary or incidental to, or in furtherance of the
purposes of the corporation.
(i) In the transaction of its business, to perform
all acts which a co-partnership or natural person is authorized to
perform under the laws now existing or which may be enacted hereafter.
Section4. The capital stock of the National Abaca and
Other Fiber Corporation shall be twenty million pesos, divided into two
hundred thousand shares of stock, having a par value of one hundred
pesos each, and no stock of said corporation shall be issued at less
than par or except for cash.
Fifty-one per centum, at least, of said capital stork shall be
subscribed by the Government of the Commonwealth of the Philippines,
and the remainder thereof may be offered to provincial, municipal, and
city governments of the Philippines and to the general public.
Twenty-five per centum of the value of all stock subscribed shall be
paid at the time of subscription, and the balance thereof shall be
subject to call at such time or times as the Board of Directors of the
corporation may deem advisable: Provided, however, That as regards the
sum or sums subscribed by the Government by virtue of this Act, the
same shall be paid only upon certification to the President of the
Philippines by the Auditor General and the Secretary of Finance that
there are sufficient funds available in the National Treasury to
warrant their disbursement, in excess of the appropriations made for
the ordinary expenses of the National Government.
The voting power of all stock owned by the Government of the
Commonwealth shall be vested in the President of the Philippines or in
such person or persons as he may designate, and the voting power of the
stock owned by the provincial, municipal, or city governments shall be
vested in the chief executive officer of such respective governments.
Section5. The National Abaca and Other Fiber
Corporation shall be subject to the provisions of the Corporation Law
in so far as the same are compatible with the provisions of this Act
and with the purposes for which it has been created, and it shall enjoy
the general powers mentioned in said Corporation Law in addition to
those herein specified.
Section6. The management of the National Abaca and
Other Fiber Corporation shall be vested in a Board of Directors
consisting of not more than five members appointed by the President of
the Philippines, with the consent of the Commission on Appointments of
the National Assembly. The President of the Philippines shall appoint
the chairman of the board from among its members.
Of the five directors first appointed as above prescribed, the
President of the Philippines shall designate one to serve for one year,
one for two years, one for three years, one for four years, and one for
five years; and thereafter, each director appointed shall serve for
five years. Whenever a vacancy shall occur among the directors, the
person appointed to fill it shall hold office for the unexpired term of
the member whose place he is selected to fill. Any director shall be
subject to removal by the President of the Philippines. Three members
of the Board of Directors shall constitute a quorum for the transaction
Before entering upon the discharge of their duties, each of the
directors shall take the oath prescribed in section twenty-three of the
Revised Administrative Code and in the Constitution of the Philippines.
The members of the Board shall each receive a per diem of not to exceed
thirty pesos for each day of meeting actually attended by them, except
the chairman of the Board who shall at the same time be general manager
of the corporation and shall receive a salary not to exceed fifteen
thousand pesos per annum.
The Board shall submit its annual report and balance sheets to the
President of the Philippines and to the National Assembly, as provided
in sections five hundred and seventy-four to five hundred and
seventy-seven, inclusive, of the Revised Administrative
Section7. The sum of eleven million pesos is hereby
appropriated, out of any funds in the National Treasury not otherwise
appropriated, to pay for the shares of stock of the National Abaca and
other fiber corporation which shall be acquired by the Government of
the Commonwealth in accordance with this Act.
Section8. This Act shall take effect on its approval.
Approved: June 18, 1938.