Section 12
SEC. 12. Section eighty-six of the same Act is hereby amended to read as follows: "SEC. 86. Board of Directors; Membership; Per Diem. — The affairs and business of the Bank shall be directed and its property managed and preserved by a Board of Directors consisting of seven (7) members to be composed of the Secretary of Finance as Chairman, the President of the Bank as Vice-Chairman, the Secretary of Agrarian Reform and the Secretary of Labor as ex officio members, and three members to be elected as hereinafter provided. "Annually, on the first Tuesday after the First Monday in December, the stockholders shall meet to take up, among others, the election of three (3) members of the Board of Directors for the succeeding year, each common shareholder or proxy to beentitled to as many votes he may have shares of stock registered in his name on the 31st day of October last preceding and held by him at the time of the election. "The Board shall convene as frequently as is necessary to discharge its responsibilities properly, but shall meet at least once every two weeks. The Board may be convoked either by the Chairman or, in his absence, the Vice-Chairman. "The presence of four (4) members shall constitute a quorum. "AH decisions of the Board shall require the concurrence of at least four (4) members. "The Chairman and the members of the Board shall receive a per diem of two hundred fifty pesos for each session of the Board attended, but in no case to exceed two thousand pesos a month." "SEC. 86-A. Powers and Responsibilities of the Board. — The Board of Directors shall have, among others, the following specific powers and responsibilities: "1. Formulate policies, rules and regulations for the effective operation of the Bank; "2. Take decisions concerning loans as well as fix the rates of interest thereon, guarantees, investments, borrowing by the Bank, furnishing of technical assistance and other operations of the Bank; "3. Establish such branches and agencies as may be deemed necessary and convenient; "4. Provide for the appointment and removal and fix the reasonable compensations of such personnel as may be necessary for the expeditious conduct of the business of the Bank; and "5. Approve the budget of the Bank."