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V  •'i.iV.T  Of  IK  |j:-"v t rV J  V  ,Jiijii:Ji lr V " GOVERN NCE  COMMISSION I-OR  GOVhKNMI  l \'  I OWN  M l  OR  CON'I  ROi  LI I  H '•  WORM  IO\> Room  479,  Mabini Hall, Malacanang  Compoun d, M anila,  P hili ppines  1005 G C G  MEMORANDUM CIRCULAR  N o .  2012-04  (RE-ISSUED)  . SUBJECT  :  NOMINATION  A N D  APPOINTMENT  OF  APPOINTIVE MEMBERS  OF THE BOARD OF DIRECTORS/TRUSTEES OF  GOCCs,  SUBSIDIARIES AND AFFILIATES DATE  :  01JUNE2012 1.  APPLICABLE LEGAL PROVISIONS 1.1.  Coverage  of the Law  -  Section  4 of  Republic  Act No.  1 0149, otherwise known  as the  GOCC  Governance  Act of  2011 (RA No.  10149), provides that  This  A ct  shall  b e  applicable  to all  GOCCs,  CICPs/GCEs, and government financial institutions, including their subsidiaries,  b u t excluding the Bangko Sentral ng Pi li pinas, state universities and coll eges, cooperatives, local water di stricts, economic zone authorities and research institutions;  Provided,  That  in  economic zone authorities  an d  research institutions,  th e  President shall appoint one-third 1/3)  of the  board members  from  th e  list submitted  by the  GCG. 1 1.2.  Definition  of  GOCC -  Section  3(o)  of  R.A.  No.  10149  defines  Government-Owned or  -Controlled Corporation  (GOCC) as  any agency organized as a stock or nonstock corporation, ves ted with functi ons relati ng to publ ic needs whether governmental or proprietary in nature,  and owned by the  Government  of the  Republic  of the  Philippines directly  or through  it s  instrumentalities either wholly  o r,  where applicable  as in th e  case  o f  stock corporations,  to the  extent  of at  least  a  majority  of its outstanding  capital  stock. 2  It  also  provides that  th e  term GO CC includes Government Instrumentalities with Corporate Powers  (GICP), Government Corporate Entities  (GCE)  and Government Financial Institutions  (GFI). 1.2.1.  Section 3(z) defines  Subsidiary as a corporation  where at least a majority of the  outstanding capital stock  is  owned  or controlled,  directly  o r  indirectly, through  one or  more intermediaries,  by the  GOCC. 3 Subsidiaries t herefore fall within the definition of GO C Cs and are also expressly stated within  the  coverage  of  R.A.  No.  10149, Section 4 thereof. 1  Emphasis supplied. 2 Emphasis  supplied. 3 Emphasis  supplied.
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V •'i.iV.T Of 'IK |j:-"v!t!rVJ V ,Jiijii:Ji!lr!V"

GOVERNANCE COMM I S S I ONI -OR GOVhKNMI l\' I OWNMlORCON'I ROi LI IH '• WORM IO\>

Room 479 , Mabini Hall , Malacanang Compound, Manila, Phil ippines 1005

GCG MEMORANDUM CIRCULAR No. 2012-04 (RE- ISSUED) .

SUB JE CT : NOMINATION A N D A P P OINT ME NT OF APPOINTIVE MEMBERS OF T HEBOARD OF DIRECTORS/TRUSTEES OF GOCCs, SUBSIDIARIES ANDAFFILIATES

DATE : 01JUNE2012

1. APPLICABLE LEGAL PROVISIONS

1.1. Coverage of the Law - Section 4 of Republic Act No. 10149, otherwise

known as the "GOCC Governance Act of 2011" ( R A N o . 10149), provides

that "This Act shall be applicable to all GOCCs, CICPs/GCEs, andgovernment financial institutions, including their subsidiaries, b u texcluding the Bangko Sentral ng Pilipinas, state universities and colleges,

cooperatives, local water districts, economic zone authorities and research

institutions; Provided, That in economic zone authorities an d research

institutions, th e President shall appoint one-third (1/3) of the board

members from th e list submitted by the GCG."1

1.2. Definition of "GOCC" - Section 3(o) of R.A. No. 10149 defines

"Government-Owned or -Controlled Corporation (GOCC)" a s "any agency

organized as a stock or nonstock corporation, vested with functions relating

to public needs whether governmental or proprietary in nature, and owned

by the Government of the Republic of the Philippines directly or

through its instrumentalities either wholly or, where applicable as in

th e case of stock corporations, to the extent of at least a majority of itsoutstanding capital stock."

2 It also provides that th e term "GOCC"

includes Government Instrumentalities with Corporate Powers (GICP),

Government Corporate Entities (GCE) and Government Financial

Institutions (GFI).

1.2.1. Section 3(z) defines "Subsidiary" as "a corporation where at least a

majority of the outstanding capital stock is owned or

controlled, directly or indirectly, through one or more

intermediaries, by the GOCC."3

Subsidiaries therefore fall within the definition of "GOCCs" and are

also expressly stated within the coverage of R.A. No. 10149,

Section 4 thereof.

1Emphasis supplied.

2Emphasis supplied.

3Emphasis supplied.

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1.2.2. Section 3(a) defines "Affiliate" as "a corporation fifty percent (5 0 %)o r l ess o f t he out s t a n d i n g c a p i t a l s t oc k o f whi c h i s own ed orcontro l led, d i rect ly or indi rect ly, by the GOCC."

A f fi l ia tes , therefore, d o n ot fa l l wi thin the def in i tion of "GOC C " and inf a c t a r e n o t within th e d e f in e d c o v e ra g e o f R . A . N o . 10149, Sec t i on4 thereof .

1.3. Appointive Directors - Sec t i on 15 of R . A . No. 1 0 1 4 9 prov i des t ha t "An

Appo i n t i ve D i rec t or sha l l b e a ppo i n t ed b y t he Pres i den t o f t he Phi l i pp i n esfrom a short l ist prepared by the GCG, " whi c h does n o t d i s t i n gu i sh whet herthe A pp o i n t i ve D i rec t or i s wi th the GO C C , a S ub s i d i a ry, o r a n A f fi li a t e.

1.2.1. Sec t i on 3(b ) def i n es "Appointive D irector" as :

" (1 ) In t he c a se o f c ha r t ered GO CCs, a ll memb ers o f i t sB o a r d o f D i rec t ors / Trust ees who a re n ot ex officiom e m b e r s th e r e o f ;

" (2) In t he c a se o f n on c ha r t ered GO CCs, memb ers o f i t sB o a r d o f Di rec t ors / Trust ees whom th e State is entit ledt o n omi n a t e , t o t he ext en t o f i t s perc en t a ge

s h a r e h o l d in g s i n s u c h G O C C ; a n d"(3) In the c a s e o f sub s i d i a r i es a n d a f f i l i a t es , memb ers of its

Board of Directors/Trustees whom the GOCC is

entit led t o n omi n a t e t o t he ext en t o f i t s perc en t a gesha reho l d i n gs in suc h sub s i d i a ry o r aff i l iate."

1 .2.2. S ec t ion 1 5 a l so s t a t es t ha t "the GC G sha l l fo rm ul a t e i ts ru l es a n dc r i t er i a i n t he se l ec t i on a n d n omi n a t i on o f prospec t i ve a ppo i n t eesa n d s h a l l c a u s e th e creat ion o f s e a r c h c o m m i t t e e s to a c hi eve th esa m e. T he GC G sha l l en su re tha t the sho r tl is t sha l l exc ee d b y a tleast f i f ty percent (50%) of the number of d i rectors/ t rustees to bea pp o i n t ed. In the even t tha t the P res iden t d oes n ot see fi t toa ppo i n t a n y o f t he n omi n ees i n c l uded i n t he shor t l i s t , t he Pres i den tshall ask the GCG to submit additional nominees."

1.4. All CEO Positions Deemed to Constitute Appointive Director Position -

P u r s u a n t to the following prov i s i on s o f R . A . N o . 10149. t hus :

(a ) Sec t i on 1 7 : " An y prov i s i on o f l a w t o t he c on t ra ry notwi thstand ing.all incumbent CEOs a n d a p p o i n t i v e m e m b e r s o f t h e B o a r d o fG O C C s shall, upon a pprova l o f t h i s Ac t , ha ve a t erm of o f f i c e un t i lJ u n e 30 , 20 1 1 . un l ess soon er rep l a c ed b y th e President :Provided, however. T h a t the incumbent CEOs a n d a p p o i n t m e n tmemb ers o f t he Boa rd sha l l c on t i n ue i n o f f i c e un t i l t he suc c essorh a v e b e e n a p p o i n te d by th e President:" a n d

(b ) Sec t i on 18: " T h e C E O o r th e highest-ranking of f icer provided in thec ha r t ers o f t he GO CCs, sha l l b e e l ec t ed a n n ua l l y b y t h e m e m b e r so f th e B o a r d fr o m a m o n g i ts r a n k: "

the legal ef fect is that a l l CEO positions i n G O C C s c o v e r e d b y R . A . N o .1 0 1 4 9 . h a v e a l l b e c o m e p a r t o f t h e A p p o i n t i v e M e m b e r s o f t h e G o v e r n i n gBoa rd , who ma y b e " sub j ec t t o t he d i sc i p l i n a ry powers f t he Boa rd a n d m a yb e r e m o v e d b y th e B o a r d fo r c a use." un der th e c l ea r t erms o f Sec t i on 1 8thereof, a n d therefore sit in the G o v e r n i n g B o a r d h a v i n g th e sa me r i ght s .

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pr ivi leges a n d i n h i b i t i on s t o whi c h a l l o t her Appo i n t i ve Memb ers o f t heGoverning B o a r d .

1.5. Term of Office - U n d e r GCG M e m o r a n d u m C i rc u la r No.2012-3, the GCG

has formally taken cognizance of the fact that Section 17 of R.A. No. 10149

ha s p rov ided for the " Term of O ffi c e" o f A ppo i n ti ve D i rec t ors i n GO CC s t oof f i c i a l l y b eg i n on 0 1 Ju l y o f ea c h yea r a n d en d i n g on 30 Jun e o f t he

f o ll owi n g yea r , t hus :

(a ) "Any provision in the charters of each GOCC to thecontrary notwithstanding, t he t erm of o f f i c e o f ea c hAppointive Director shall be for one (1) year, unless sooner

r e m o v e d for c a u s e ...;"

(b ) "Any provision of law to the contrary notwithstanding,al l incumbent CEOs and appointive members of theBoard of GOCCs shall, upon a pprova l o f t h i s Ac t , ha ve aterm o f off ice unt i l June 3 0 , 2 0 1 1 , un l ess soon er rep l a c edb y the President. . ."

1 .5 .1 . S i n c e Af f i l i a t es a re n ot c overed wi t h i n t he t erm " GO CCs" a n d do n otf a l l w i t h i n t he def i n ed c overa ge o f R.A. No. 1 0 1 49 per Sec t i on 4t hereof , t hey a re n ot b oun d b y t he prov i s i on s o f Sec t i on 17 on t he" Term o f Off ice" of the Appo i n t i ve D i rec t ors .

1.5.2. Si n c e economic zone authorities and research institutions are

express l y exc luded from th e def i n ed c overa ge o f R . A . N o . 10149 p erSec t i on 4 t hereof , t hey a re a l so n ot b oun d b y t he prov i s i on s o fSec t i on 1 7 o n th e "Term o f Off ice" o f Appo i n t i ve D i rec t ors .

2. LEVELS O F GOCCS

2.1. F o r p u r p o s e s o f a dmi n i s t er i n g th e n o m i n a t i o n , a p p o i n t m e n t o r elect ion

proc esses f or Appo i n t i ve D i rec t ors i n GO CCs a n d Sub s i d i a r i es , A f f i l i a t es ,e c o n o m i c z o n e a u t h o ri ti e s a n d research inst i tut ions, th e fo l lowing levels a rehereb y rec ogn i zed:

2.1.1. GOCCs under G C G Annex A: At t a c hed heret o is A n n e x A whi c hlists down in six (6) sectors the one-hundred-fifty-eight (158) G O C C st ha t ha ve b een rec ogn i zed b y va r i ous govern men t a gen c i es a t t het i me o f t he en a c t men t o f R.A. No. 1 0 1 89 a s c on st i t u t i n g t he c overed" GO CCs, GICPs/ GCEs, a n d govern men t f i n a n c i a l i n s t i t u t i on s [GFIs],

a n d the i r sub s i d ia r ies , " ref erred t o i n S ec t ion 4 o f the A c t .

T he l is ti n g i n A n n ex A sha l l b e without pre jud i c e to t he p ower o fGCG to update and reclassify them further as the n eed a r i ses. The

G O C C s a p p e a ri n g in A n n e x A s h a ll h e r e in a f te r b e r e fe r re d to a s"G O C C s u n d e r GC G A n n e x A . "

2.1.2. GO CC Subsidiaries: A ll sub s i d i a r i es o f G O C C s w h i c h f a l l u n d e r th edef i n i t i on un der Sec t i on 3(z) o f R.A. No. 1 0 1 49 whi c h a re n ot l i s t edin GCG A n n e x A sha l l here i n a f ter b e refer red t o a s " Sub s i d ia r ies" .

2.1.3. GOCC Affi l iates: A ll aff i l iates o f G O C C s w h i c h f a l l u n d e r th edef i n i t i on un der Sec t i on 3(a ) o f R.A. No. 1 0 1 49 sha l l here i n a f t er b ereferred t o a s "A ffi l iates".

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2.1.4. Economic Zone Authorities: T he term "economic zone author i t ies"re ferred to in Sect ion 4 of R.A. No. 1014 9 as be ing exc luded f romthe coverage of the Act , sha l l cover on ly those hav ing a char terwhich provides the pr imary purpose of which is to act as aneconomic zone author i ty , such as the P h i l ipp ine Economic ZoneA u t h o r i t y ( P E Z A ) , A u r o r a P a c i f i c E c o n o m i c Z o n e a n d F r e e p o r tAuthor i ty (AP EZFA) , Au thor i ty of the Freepor t Area of Bataan

( A F A B ) , C a g a y a n E c o n o m i c Z o n e A u t h o r i t y ( C E Z A ) , S u b i c B a yMetropol i tan Author i ty (SBMA) , T our ism I n f rast ructure andEnterpr ise Zone Author i ty ( T I E Z A ) , a n d Z a m b o a n g a C i t y S p e c i a lE c o n o m i c Z o n e A u t h o r i t y ( Z C S E Z A ) .

A l l o ther char tered GOCCs where regu la t ion of zone author i t ies i sjust an add i t iona l funct ion , such as the Bases Convers ion andD e v e l o p m e n t A u t h o r i t y ( B C D A ) , o r nonchartered G O C C s o r g a n i z e da n d reg istered wi th the Secur i t ies and Exchange Commiss ion , wh ichu n d e r their art ic les of incorporat ion are to engage in the regulat ion ofe c o n o m i c z o n e s , s u c h as the Clark Deve lopment Corporat ion( C D C ) , J o h n H a y M a n a g e m e n t C o r p o r a t i o n ( J H M C ) , a n d P o r o P o i n tM a n a g e m e n t C o r p o r a t i o n ( P P M C ) a r e w i t h i n t h e full c o v e r a g e o f

R.A. N o . 1 0 1 4 9 , no t fa l l ing with in the tech nica l term of "au thor it ies."

2.1.5. Research Institutions: T he term "rese arch inst itutions" referred to inS e c t i o n 4 o f R . A . N o . 1 0 1 4 9 as be ing exc luded f rom the coverage ofthe Act , shal l cover only those having a charter which provides thepr im ary purpose of wh ich is to ac t as a research institution, s u c h a sPhi l ipp ine Rice Research Inst i tute (IRRI) a n d th e Phil ippine Institutefo r D e v e lo p m e n t S t u d ie s ( P I D S ) .

All other chartered GOCCs where engaging in research constitutes

mere ly an add i t iona l funct ion of the GOCC, such as theD e v e l o p m e n t A c a d e m y o f t h e Philippines ( D A P ) , o r n o n c h a r t e r e dGOCCs organ ized under the i r ar t i c les o f incorporat ion to e n g a g einto inst i tut ional research, a re within th e fu l l coverage o f R.A. N o .

1 0 1 4 9 .

3. NOMINATION A N D A P P O IN TM E N T OF APPOINTIVE

DIRECTORS OF G O C C s A N D SUBSIDIARIES

3.1 From Whom Formal Nomination Shall Be Solicited

3.1.1. GOCCs Under GCG Annex A: GCG shal l formal ly sol ic i tnom inations for a l l the pos i tions of App oin t ive D i rectors in each ofthe GOCCs, w i th ind icat ions as to who are be ing endorsed to thepos i t ions of Cha i rman and CEO, f rom the fo l lowing:

( a ) T h e D e p a r t m e n t o r G o v e r n m e n t A g e n c y t o w h i c h t h e

GOCC is a t tached;(b) Board of Directors/Trustees of the parent G O C C , when

app l i cab le ;

(c ) Sectora l organ izat ions for Appoin t ive Members who aredesigna ted to represent such sector , when a pp l icab le ; a nd

(d ) S takeholder groups af fec ted by the GOCC .

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3.1.2. Subsidiaries: GC G sha l l fo rm a l l y so li c it n om i n a ti on s for al l theposi t ions o f A pp o i n t ive D i rec t ors in e a c h of the GO CCs, wi t hindicat ions as to who are b e i n g e n d o r s e d to the pos i t i on s o fC h a i r m a n and C E O , fro m the fo l lowing:

(a) The Department or Govern men t Agency to which the

G O C C is a tta c h e d ; a n d

( b ) B o a r d o f D i re c t o rs / T r u s te e s o f th e p a r e n t G O C C .

3.2. Submissions Required for Nominations:

3.3.1. A ll n omi n a t i on s sha l l b e a c c o m p l i s h e d b y a F o r m a l N o m i n a t i o n F o r msub mi t t ed to the GC G that shal l :

(a ) Con t a i n a cert i f icat ion that th e n o m i n e e s a re qual if iedun der t he l a w a n d t he c ha r t er o f t he GO CC, a s wel l a s t heF i t a n d Proper Rul es o f t he GCG f or t he pos i t i on s t o whi c hth e y h a v e b e e n n o m i n a te d ; a n d

( b ) A c c o m p a n i e d for or e a c h of the i n d i v i dua l s n omi n a t ed b y:

• A biographica l wr i te-up or c ur r ic u l um v it a e• Cl ea ra n c e f rom: O f f i c e of the O m b u d s m a n , C i v i l

S e r v i c e C o m m i s s i o n , S a n d i g a n y a n a n d t h e N a t i o n a lB u r e a u o f Invest igat ion.

3.3.2. For D e p a r t m e n t or G o v e r n m e n t A g e n c y to which the GOCC is

a t t a c h e d , th e fo r m a l n o m i n a ti o n fo r m a d d r e s s e d to the GCG, sha l l b e :

(a ) Cert if ied b y H e a d o f A g e n c y ;

( b ) T h e n o m i n e e s s h a l l b e a n u m b e r of at l ea st 1 5 0 % of thepos i t i on s fo r which th e n o m i n a t i o n is m a d e .

3.3.3. For t he Boa rd o f D i rec t ors / Trust ees o f pa ren t GO CCs, t he f orma ln o m i n a tio n fo r m a d d r e s s e d to the GC G sha l l b e :

(a ) Certif ied by the C h a i r m a n of the B o a r d ;

(b ) A c c o m p a n i e d b y a f o rma l Boa rd reso l ut i on c on f i rm i n g th en o m i n a tio n b y th e B o a r d o f e a c h o f th e n o m in e e s ;

( c ) T h e n o m i n e e s s h a l l b e a n u m b e r o f a t l e a s t 1 5 0 % o f t h eposi t ions fo r which th e n omi n a t i on is m a d e .

3.3. Individual Applications and Other Nominations/Endorsements: T h eforegoing provis ions a re without prejudice t o G C G proc ess i n g i n d i v i dua la pp l ic a t ion s rec e i ved from i n terested c a n d i da t es , a s wel l a sn omi n a t i on s / en dorsemen t s rec e i ved f rom ot her sec t ors , a n d i m p o s i n g th es a m e or similar documentary requirements as provided for above.

4. NOMINATION A N D ELECTION OFAPPOINTIVE DIRECTORS OF AFFILIATES

4.1 From Whom Formal Nomination Shall Be Originate

4.1.1. A ffi l ia tes , n o t being within th e c overa ge o f R . A . N o . 1 0 1 4 9 , c o n t i n u eto be g o v e r n e d b y their art ic les o f incorporat ion a n d b y- l a ws a sregistered with th e S E C , a n d c on sequen t l y th e n omi n a t i on o f

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Appointive D i rectors to the ir B oards sha l l rema in w i th in the bu s inessjudgment prerogative of the Board of Directors/Trustees of the

parent or ho ld ing GOCCs.

4 .1 .2 . I n p reparat ion for the annua l s tockholders ' or members ' meet ings ofth e Af f i l i a tes a t wh ich the members of the i r Board are nominatedand e lec ted , the Boards of D i rectors /T rustees of parent or ho ld ing

GOCCs sha l l , th rough formal board reso lu t ions, nominatecand idates for the Appoint ive D i rectors for each Af f i l i a te whom theparent or hold ing GOCC is ent i t led to nominate to the extent of i tspercentage sharehold ings in such A f fi li a tes.

4.2. Election of Appointive Directors at the Annual Stockholders' or Members'Meetings - At e a c h of the annua l s tockholders ' or m e m b e r s ' m e e t i n g s , or

a n y other spec ia l meet ings, a t wh ich the members of the Af f i l i a te ' s Board ofD i rectors /T rustees sha l l be e lec ted , the nominees to the Board of the parento r hold ing GOCC sha l l be formal ly announced dur ing the por t ion on thee lect ion of the members of the Board of D i rectors /T rustees, w i th thenominat ion and e lec t ion of the rest of the members be ing then conductedwhere the parent or ho ld ing GOCC sha l l no longer be cast ing any votes. At

the end of such exerc ise the nominees of the parent or ho ld ing GOCC,together with th e rest of the can d idates rece iving th e h ighest number o f votesfor the rest of the posi t ion avai lable in the Board shal l be formal ly announceda s du ly nominated and e lec ted members of the Af f i l i a te ' s Board ofD i rectors /T rustees.

A n y other s imi lar p roceed ings may be conducted in the formal e lec t ion of them e m b e r s o f t h e B o a r d of D irectors/T rustees o f the Aff i liate, provided i tpreserves the r ight of the B oard of D irectors/T rustees of the parent or ho ld ingGOCCs to nominate and e lec t in to of f i ce such number of members in to theAf f i l i a te ' s Board as it is entit led by the percentage of its equity hold ing o rinvestments in the Aff i l iate.

4.3. Reportto the GCG-

Within f i f teen (15) days fromthe

electionof

Appoint iveDi rectors in Af f i l i a tes , the Cha i rman of the Board of the parent or ho ld ingGOC C sh a l l subm i t to the GCG the fo l lowing :

(a ) T he board resolut ion nominating their candidates;

(b ) B iograph ica l wr i te-ups o r curr i cu lum v i tae for al l theind iv idua ls nominated and e lec ted in to the Board of theA ffi l iate; and

(b) Cer t i f i ca t ion of the amounts of per diem and other benef i tsthey are receiv ing as Appoint ive Directors of the Aff i l iate.

5. NOMINATION, A P P O IN TM E N T OR ELECTION OF APPOINTIVE DIRECTORS

OF ECONOMIC ZONE AU THORITIES A N D RESEARCH INSTITUTIONS

5 .1 Th e Peculiar Situation of Economic Zone Authorities and ResearchInstitutions

5.1.1. Economic Zone Author i t ies and Research I nst i tu t ions, be ingexpress ly exc luded f rom the coverage of R.A. No. 1014 9 , cont inueto be governed by their char ters , and conseq uent ly the T erm ofOf f i ce of the members of the i r Board of D i rectors /T rustees, or their

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equi va l en t c on t in ue to b e go vern ed b y the re leva n t prov is i on o f the i rcharters.

5 .1 .2. Exc ept f or t he prov i s i on o f Sec t i on 4 o f R.A. No. 1 0 1 49 " Tha t i nec on omi c zon e a ut hor i t i es a n d research inst i tut ions, th e Pres i den tsha l l a ppo i n t on e- t h i rd (1 / 3) o f t he b oa rd memb ers f rom t he l i s tsubmitted by the GCG," the nomination and appointment of the rest

of the Appo i n t i ve D i rec t ors to the b o a r d s o f E c o n o m i c Z o n eA ut hor iti es a n d Rese a rc h In s ti tu t ion s , rema i n s go vern ed b y theprovis ions o f their charters a n d a l l other laws related thereto.

5.2. From Who m Formal Nom ination Shall Be Solicited

5.2.2. In prepar ing the short l ist for the one-thi rd (1 /3) of the members oft h e i r b o a r d s o f E c o n o m i c Z o n e A u t h o r i t i e s a n d R e s e a r c hInstitutions, GCG shall formally solicit nominations from the

fo l lowing:

( a ) T h e D e p a r t m e n t o r G o v e r n m e n t A g e n c y t o w h i c h t h e ya re a t t a c hed;

(b ) Boa rd o f D i rec t ors / Trust ees o f t he pa ren t GO CC, whena p p l ic a b l e ; a n d

(c) Sec t ora l o rga n i za t i on s for A p p o i n t i v e M e m b e r s who are

des i gn a t ed to represen t suc h sec t or , when a pp l i c a b l e.

5.2.2. Individual Applications and Other Nominations/Endorsements:The f orego i n g prov i s i on s a re without prejudice t o G C G proc ess i n gi n d i v i dua l a pp l i c a t i on s rec e i ved f rom i n t erest ed c a n d i da t es , a s wel la s n omi n a t i on s / en dorsemen t s rec e i ved f rom ot her sec t ors , a n di m p o s i n g t h e s a m e o r s i m i l a r d o c u m e n t a r y r e q u i r e m e n t s a sprov i ded for a b o v e .

5.3. Submissions Required for Nominations:

5.3.1. A l l n o m i n a t i o n s s h a l l b e a c c o m p l i s h e d b y a F o r m a l N o m i n a t i o n F o r msub m i tt ed t o the GCG t ha t sha l l :

(a ) Con t a i n a c er t i f i c a t i on t ha t t he n omi n ees a re qua l i f i edun der t he l a w a n d t he c ha r t er o f t he pa r t i c u l a r Ec on omi cZone Author i ty or the Resea rc h Institution c overed; and

( b ) A c c o m p a n i e d f o r o r e a c h o f th e i n d iv id u a l s n o m in a t e d b y :

• A biographica l wr i te-up or c ur r ic u l um v ita e

• Cl ea ra n c e f rom: O f f i c e of the O m b u d s m a n , C i v i lS e r v i c e C o m m i s s i o n , S a n d i g a n y a n and the N a t i o n a l

B u r e a u o f Invest igat ion.5.3.2. For Department or Government Agency to which the GO CC is

a t t a c h e d , th e fo r m a l n o m i n a ti o n f o r m a d d r e s s e d to the GCG, sha l l b e :

(a ) Cert i f i ed b y Hea d o f Agen c y;

(b ) The n omi n ees sha l l b e a n umb er o f a t l ea st 1 5 0 % of t heone-thi rd (1 /3) of the n u m b e r s of the B o a r d fo r whi c h t heyshall b e a p p o i n t e d .

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5.3.3. For the Board of Directors/Trustees of parent GOCCs, the formal

nomination form addressed to the GCG shall be:

(a) Certified by the Chairman of the Board;

(b) Accompanied by a formal Board resolution confirming the

nomination by the Board of each of the nominees;

(c) The nominees shall be a number of at least 150% of the

one-third (1/3) of the positions for which the nomination ismade.

B Y A UT HOR I T Y O F T H E C OMMI SSI ON:

CESAR L. VILLANUEVA

Chairman

MA. ANGELA E. IGNACIO

Commissioner

RAINIER B. BUTALID

Commissioner