Article 7. Powers and Duties of the Board. —

The Board shall be responsible for the regulation and promotion of investments in the Philippines. It shall meet as often as may be necessary but not less than once a week on such day as it may fix. Notice of regular and special meetings shall be given all members of the Board. The presence of three (3) governors shall constitute a quorum, and the affirmative vote of three (3) governors in a meeting validly held shall be necessary to exercise its powers and perform its duties, which shall be as follows:

1. Prepare annually the Investment Priorities Plan as defined in Article 28, which shall contain a listing of specific activities that can qualify for incentives under this Code, duly supported by the studies of existing and prospective demands for such products and services in the light of the level and structure of income, production, trade, prices and relevant economic and technical factors of the regions as well as existing facilities;

2. Promulgate such rules and regulations as may be necessary to implement the intent and provisions of this Code;

3. Process and approve applications for registration under this Code, imposing such terms and conditions as it may deem necessary to promote the objectives of this Code, including refund of incentives when appropriate, restricting availment of certain incentives not needed by the project in the determination of the Board, requiring performance bonds and other guarantees, and payment of application, registration, publication and other necessary fees;

4. After due hearing, decide controversies concerning the implementation of this Code that may arise between registered enterprises or investors therein and government agencies, within thirty (30) days after the controversy has been submitted for decision: Provided, That the investor or the registered enterprise may appeal the decision of the Board within thirty (30) days from receipt thereof to the President;

5. Recommend to the Commissioner of Immigration and Deportation the entry into the Philippines for employment of foreign nationals under this Code;

6. Periodically check and verify, either by inspection of the books or by requiring regular reports, the proportion of the participation of Philippine nationals in a registered enterprise to ascertain compliance with its qualification to retain registration under this Code;

7. Periodically check and verify the compliance by registered enterprises with the provisions of this Code, with the rules and regulations promulgated under this Code and with the terms and conditions of registration;

8. After due notice, cancel the registration or suspend the enjoyment of incentives benefits of any registered enterprise and/or require refund of incentives enjoyed by such enterprise including interests and monetary penalties, for (a) failure to maintain the qualifications required by this Code for registration or (b) for violation of any provisions of this Code, of the rules and regulations issued under this Code, or of the terms and conditions of registration, or of laws for the protection of labor or of the consuming public: Provided, That the registration of an enterprise whose project timetable as set by the Board is delayed by one year, shall be considered automatically cancelled unless otherwise reinstated as a registered enterprise by the Board;

9. Determine the organizational structure taking into account Article 6 of this Code, appoint, discipline and remove its personnel consistent with the provisions of the Civil Service Law and Rules;

10. Prepare or contract for the preparation of feasibility and other pre-investment studies for pioneer areas either upon its own initiative or upon the request of Philippine nationals who commit themselves to invest therein and show the capability of doing so: Provided, That if the venture is implemented, then the amount advanced by the Board shall be repaid within five (5) years from the date the commercial operation of said enterprise starts;

11. When feasible and considered desirable by the Board, require registered enterprises to list their shares of stock in any accredited stock exchange or directly offer a portion of their capital stock to the public and/or their employees;

12. Formulate and implement rationalization programs for certain industries whose operation may result in dislocation, overcrowding or inefficient use of resources, thus impending economic growth. For this purpose, the Board may formulate guidelines for progressive manufacturing programs, local content programs, mandatory sourcing requirements and dispersal of industries. In appropriate cases and upon approval of the President, the Board may restrict, either totally or partially, the importation of any equipment or raw materials or finished products involved in the rationalization program;

13. In appropriate cases, and subject to the conditions which the Board deems necessary, suspend the nationality requirement provided for in this Code or any other nationalization statute in cases of ASEAN projects or investments by ASEAN nationals in preferred projects, and with the approval of the President extend said suspension to other international complementation arrangements for the manufacture of a particular product on a regional basis to take advantage of economies of scale;

14. Extend the period of availment of incentives by any registered enterprise for a period not exceeding five (5) years and/or increase the rate of tax exemption of registered enterprises to not more than 50% of the tax exemption enjoyed prior to the increase, subject to any of the following criteria:

    1. The registered enterprise has suffered heavy financial loses and is in a distressed condition;

    2. The registered enterprise has suffered operational force majeure that has impaired its viability;

    3. The registered enterprise has not fully enjoyed the incentives granted to it for reasons beyond its control;

    4. The project of the registered enterprise has a gestation period which goes beyond the period of availment of needed incentives; and

    5. The operation of the registered enterprise has been subjected to unforeseen changes in government policies, particularly, protectionism policies of importing countries, and such other supervening factors which would affect the competitiveness of the registered firm.

15. To regulate the making of investments and the doing of business within the Philippines by foreigners or business organizations owned in whole or in part by foreigners;

16. Gather and compile statistical data required for the effective implementation of this Code;

17. Within four (4) months after the close of the fiscal year, submit annual reports to the President which shall cover its activities in the administration of this Code, including recommendations on investment policies;

18. Provide, through Philippine diplomatic missions, such information as may be of interest to prospective foreign investors;

19. Collate, analyze and compile pertinent information and studies concerning areas that have been or may be declared preferred areas of investments; and

20. Generally, exercise all the powers necessary or incidental to attain the purposes of this Code and other laws vesting additional functions on the Board.