Section 2
SEC. 2. Section 1 of the same Decree is hereby amended to read as follows: "SECTION 1. The Corporation shall be governed and its activities shall be directed, controlled and managed by a Board of Directors which shall be composed of the Secretary of National Defense and the Executive Secretary as ex officio directors and five other persons as regular directors to be appointed by the President of the Philippines from a list of qualified veterans and retirees in good standing submitted by the Secretary of National Defense. The Secretary of National Defense and the Executive Secretary shall act as Chairman and Vice-Chairman, respectively, of the Board of Directors; the members of the Board of Directors, except the ex officio directors, shall receive a per diem allowance of P100 for every meeting of the Board actually attended by them. “The term of office of each of the five regular directors shall be three years with a right to hold over until a successor shall have been duly appointed and qualified. Whenever a vacancy shall occur among the regular directors, the person appointed to fill the vacancy shall hold office for the unexpired term of the member whose place he is selected to fill. The President of the Philippines may remove any regular director for cause. “The Board of Directors shall have the following powers: “a. To prescribe, amend and repeal, with the approval of the President of the Philippines, bylaws, rules and regulations governing the manner in which the general business of the Corporation may be conducted and the powers granted by law to the Corporation may be exercised, including a provision for the formation of such committee or committees as the Board of Directors may deem necessary to facilitate its business; “b. To establish such subsidiaries, branches and agencies as may be deemed necessary and convenient; “c. To provide for the appointment and removal and to fix the reasonable compensation of such personnel, including financial, legal, investment and other technical consultants, as may be necessary for the expeditious conduct of the business of the Corporation. The officers and employees of the Corporation shall not be subject to the Civil Service Law and the rules and regulations of the Wage and Position Classification Office and Section two hundred fifty-nine of the Revised Administrative Code. “No member of the Board of Directors shall in any manner, directly or indirectly, participate in the deliberation upon or the determination of any question affecting his personal interests, or the interests of any corporation, partnership or association in which he is directly or indirectly interested. Any director violating the provision of this Section shall be summarily removed by the President of the Philippines from office and shall upon conviction be punished with a line not to exceed ten thousand pesos and with imprisonment not to exceed five years.