GCG MC No. 2012-09 - The Chief Executive Officer (CEO)

7/27/2019 GCG MC No. 2012-09 - The Chief Executive Officer (CEO)

1/13

GCG MEiiIoRANDUM CIRCULAR No. 2012.09 .

Oftr(a of tllc lJrc5rb.Il 0f thr lJlntrppnrrsGOVERNANCE COMMISSTONFOR COVIRNMI N r or1 Ntl) OR ( (l\ I R(rr I I l) ( ()Rl()R\r r()\\

: THE CHTEF EXECUTTVE OFFTCER (CEO):09ocToBER2012

SUBJECTDATE

t.1.

DEFINITIONS, OOCTRINES AND PRINCIPLESOEFtNtitoN oF " CHTEF ExEcuflvE OFFICER"

Section 3(g) of the "GOCC Govemance Act of 2011" (R.A. No. 101a9)defines the "CHIEF ExEcuflvE OFFICER (CEO)" as "the highest rankingcorporate executive, who could be the President or the General Manager,Chairperson or the Administrator of a GOCC."' On the other hand, Section 18 ofR.A. No. 10149 refers to the CEO as "the highest-ranking officet prcvided inthe chaiers ol the GOCCS.D

2. ApporNTNE PowER ANp TERM oF OFFTCE oF CEOS UNoER R.A. No. 10149Section 18 establishes the principle that the CEO of every GOCC coveredby R.A. No. 10149 "shall be elected annually by the members of the Board fromamong its ranks," which means that a would-be CEO must first have been

qualified under the Fit and Proper Rule, and appointed by the President of thePhilippines into the Governing Board of the GoCC, and only thereafter willhe/she be qualified to be elected as the CEo of the company.ln addition, Section 17 of R.A. No. 10149 provides that "Any provision in thecharters of each GOCC to the contrary notwithstanding, the term of office ofeach Appointive Director shall be for one (1) year, unless sooner removed forcause," which means that necessarily the maximum term of office of every CEOcoincides with his/her remaining a member of the Governing Board, thus:

xxxAny provisioh of law to lhe contrary notwithstanding, all incumbent

CEOS and appointive nembets ol the Board of GOCCS shall, uponapproval of this Acl, have a tonn ot office until June 30,20rr, unlesssooner replaced by the President Provicled, however That the incumbenlCEOS and appointive members of the Board shall contlnue in office until thesuccessor have been appointed by the President.3

Consequently, all provisions to the contrary in the charters of CharteredGOCCS, or in the Articles of lncorporation (AOl) and/or By-laws of Nonchartered


2/13

GOCCs, are deemed amended by Sections '17 and 18 of R.A. No. 10149 in that:(a) ln spite of their provisions that the CEO shall be appointed by thePresident of the Philippines, the CEO of every GOCC that iscovered by R.A. No. 10149, shall be elected by the members of

the Governing Board from among their ranks;(b) ln the case of provisions where the appointment by the Presidentof the CEO makes the latter an ex officlo lvlember of theGoverning Board, under R.A. No. 10149 rFso JUre such exo,Tlcio position has been converted into an appointive position;(c) ln case of provisions where the CEO is appointed by thePresident of the Philippines without being entitled to become amember of the Governing Board, it shall mean that henceforththe CEO must be nominated by the Governing Board from

among their ranks, without adding to the number of themembership of the Board; and(d) Notwithstanding the provisions granting the CEO a fixed term ofoffice, the CEO of every GOCC covered by R.A. No. '10149 hasa term of office that coincides with his/her term of office as amember of the Governing Board, unless sooner removed by theBoard for cause.

3. GovERr{ANcE PRNcTpLE AppLTcABLE To CEOs UNpER R.A. No. 10149ln addition to the Ex Off,clo l\,lembers having been nominated by thePresident of the Philippines to respective Governing Boards of GOCCS, underSection 15 of R.A. No. '10'149, all "Appointive Directorlsl shall be appointed bythe President of the Philippines from a shortlist prepared by the GCG."ln turn, under Section 18 of R.A. No. 10149, "The CEO or the highes!ranking officer provided in the charters of the GOCCS, shall be elected annuallyby the members of the Board from among its ranks."Finally, under Section 19 of R.A. No. 10149, among the fiduciary dutiesimposed on the Governing Boards is to "Elect and/or employ only Officers whoare fit and proper to hold such office with due regard to the qualifications,competence, experience and integrity."Such configuration under R.A. No. 10'149 is meant to institutionalize withinthe GOCC Sector the underlying public governance principle that "IheGoveming Board of every GOCC ls respons,b/e to the State and itsStakeholders; while Management, headed by the CEO, is responsible to theGoveming Board."Consequently, by the process of mandating that the CEO must be elected bythe members of the Governing Board from among their ranks' it ensures thatManagement is accountable to the Governing Board.


3/13

ln addition, Section 18 of R.A. 10149 provides in clear terms that "The CEOshall be subject to the disciplinary powers of the Board and may be removed bythe Board for cause."II. SITUATIONS INVOLVING CEOS4. CEO As BoARo MEMBER oF GOCCS ANp SuBsrprARrEsln all GOCCS covered by R.A. No. 10'149, whether chartered ornonchartered, the position of the CEO in the Governing Board which may haveoriginally been in an ex officio capacity shall have been deemed lpso /ureconverted into an Appointive Director's position to be included in the shortlistsubmitted by the GCG to the President pursuant to Section 18 of R.A. No.10149. Thus, the following rules shall apply:

4.1. ln every GOCC where the Charter or the AOI/By-Laws provide that theCEO is appointed by the President of the Philippines or elected by theBoard members, then:(a) Where it is provided expressly that the CEO is allotted a seat inan ex officio capaclty in lhe Governing Board, it shall henceforthbe construed to mean that:

(i) At the organizational meeting of a newly-appointedGoverning Board, they shall elect the CEO from amongtheir ranks under the following terms:. Preference shall be given to the individualnominated by the President; and. The CEO preferably should not beChairperson. unless provided inCharter or AOI/By-Laws.(b) Where there is no provision that expressly allots a seat for theCEO in the Governing Board:

(i) Where there is an available Appointive Director's seat0.e., either a private sector representative or sectoralnon-government representative) in the GoverningBoard. the CEo-nominee shall be deemed to beallotted to any one of those available positions. Thus,where lhe board of five (5) is composed of:. Cabinet Secretary as ex officio member. Three (3) sectoral representatives; and. A private sector representative,the CEo-nominee may be allotted the seat of theprivate sector represenlative as member of theBoardi

(ii) Where there is no available Appointive Director'sposition, such as when all seats are ex officio' lhen

thethe


4/13

ipso jure a new Appointive Directois seat shall bedeemed to have been created by virtue of Section 18of R.A. No. 10149 to be occupied by the CEO-nominee.4.2. Where the GOCC Charter or AOI/By-Laws is completely silent or do notprovide for a CEO position:

(a) The President may nominate from among the AppointiveDirectors the CEO, who shall then be elected formally by thenewly constituted Governing Board at its organizationalmeeting;(b) lf the President does not nominate specifically a CEO, theGoverning Board shall, at its organizational meeting, nominateand elect from among themselves the CEO, who preferablyshould not be the Chairperson of the Board.

4.3. ln all Nonchartered GOCCs covered by R.A. No. 10'149, regardless ofwhat may be provided for in their AOI and/or By-laws, the followingrules shall apply:(a) The CEO shall be elected by the newly-appointed GoverningBoard from among the Appointive Directors so nominated bythe President.(b) Where the Articles and/or By-laws provide that the CEO sitsas an ex officio member of the Board, all such provisions aredeemed to have ,pso./ure been amended to provide for theCEO'S seat in the Governing Board to be an AppointiveDirector's position.

5. NoMTNATToN ANp ELEcroN oF CEOs5.1. Nomination and election of CEOS into the Governing Boards shall be inaccordance with the requirements laid down under GCG MemorandumCircular (MC) No.2012-04. The submission of the Parent GOCC shall bethrough a Board Resolution and shall include the curricula vitae of thenominees.5.2. The provisions of Section 4.2 of GCG MC No. 2012-04 on "Election ofAppointive Directors at the Annual Stockholders'or Members' Meetings"are hereby reiterated, to witr

4.2. Election of Appointive Dircctors at the Annual Stockholdors' orMembers' Meetings - At each of the annual stockholderc'or members'meetings, or any other special meetings, at which the members of theAffiliate's Board of Directors/Trustees shall be elected, the nominees tothe Board of the parent or holding GOCC shall be formally announceddunng the portion on the election of the membe6 of the Board ofDirectols/Tnrstees. with the nomination and election of the rest of themembers being then conducted where the parent or holding GoCC shallno longer be casting any votes At the end of such exercise the nomineesof the parent or holding GOCC, together with the rest of the candidates


5/13

receiving the highest number of votes for the rest of the posttion availablein the Board shall be formally announced as duly nominated and electedmembers of the Affiliate's Board of Directors/Trustees. Any other similarproceedings may be conducted in the formal election of the members ofthe Board of Directors/Trustees of the Affiliate, provided it preserves theright of the Board of Directors/Trustees of the parent or holding GOCCSto nomrnate and elect into office such number of members into theAffiliate's Board as it is entrtled by the percentage of its equity holding orinvestments in the Affilate

6. TERM oF OFFTCE of CEOSln conformity with Section 17 of R.A. No. '10149, GCG MC No. 2012-03 hasprovided for the "Term of Office" of Appointive Directors in GOCCS to officiallybegin on 01 July of each year and end on 30 June of the following year, thus:

6.1 "Any provision in tho chartars of each cOCc lo lhe contarynotvtiahstanding, lhe lerm of office of each Appornlive Director shall befor one ( 1 ) year, u n less sooner removed for cause "6.2. 'Any prcvisioh of law to the contrary notwithstanding, aincumbent CEOS and appointive fiembers o, the Board of GOcCssrarr, upon approval of this Act, have a term of office until June 30,

20'11, unless sooner replaced by the President. . .'7. CEO's CoMpENsATroil PACKAGE: ENITLEMENT ro PER DrE rs

7.1. By express mandate under Section 18 of R.A. No. 10149, the CEOoccupies two positions:(a) Primarily as an Appointive Member of the Governing Board;and(b) Thereafter elected by the Board as the highest rankingcorporate executive of the GOCC.

Thus, the CEO is entitled to receive lhe per diems allowed to anAppointive Member under existing legal issuances, i.e., Executive OrderNo. 24, s. 201'l (E.O. No. 24) as implemented under GCG MC No. 20'12-02 (Re-lssued), and also to lhe compensation package that is officiallyattached to the office of the CEO.7.2. Likewise, as any other Appointive Director and any other Officer of aGOCC, the CEO may be: (a) nominated to represent the GOCC in theGoverning Boards of subsidiaries and affiliates, but not exceeding two (2)positions; (b) entitled to receive the per dlems granted to the members ofthe Governing Boards of such subsidiaries and afllliates, subject to thelimitations provided under GCG Memorandum Circular No. 2012-02 (Re-lssued), including the obligation to remit to the GOCC all profits, interestsand amounts received or benefited beyond the limits provided for in saidmemorandum circular.

7.3. ln cases where the CEO is designated in an ex officio capacity in theGoverning Boards of other Goccs, he/she would not, under the terms of


6/13

E.O. No. 24, and as indicated in GCG MC No.2012-02 (Re-lssued), beentitled to receive for himself any ot lhe per diems paid by said GOCCs tothe Appointive Members of their Boards, thus:3. Ex OFF,cro DrREcroRs: Rule3 on EntitlemenuNon-Entatlement to PerDiems

3.'1. Ex Officio Dircctots Are Genera y NotEnti ed to Per Diems andOlher Allowable Compensauons with lha ParcnvHolding GOCC- Secton 7(a) of EO 24 specifically prohibits OepartmentSecretaries, Undersecretaries, Assistant Secretaries and othetoovemment officials, who are Ex Officio Board Members,in"train, A"ir eu/ll,orir"O erc^ ,0 troreceiving any lotm ol per diem and other forms of compensations"for their services as such," thus:a) Depanment Secrtaries Undersecretaries, AssislanlSecretaries and other govemment officials, who are Ex-OffcioAoard Members, including lheir Aulho zed AlternalevRepresentatives, shal nol be enlilled lo any additionalcompensation for their services as such:

3.1.2. Resolution of ths Conflict with Rospect to Non-Cabinetoflicials. - when rt comes to Non-Cabinet Officials whobecome Ex O,ficio Directors. the non-entillement clause underSection 7(a) of E O 24 prevails over limited-multiple-position-with-compensation rule under Section 49 Chapter 10, Book lVof the Administrative Code of 1987, because the former rule isconsistent with prevailing jurisprudence that an ex offlcio positionrs not 'another office but merely a designation of additionalduties io the primary offlce, and would not authorize the drawngof addrtional per drems and other allowance compensatlon, thus:The ex-o,fl6lo positron being actually and in legal contemplationpart of the principal office, it follows that the official concernedhas no right to receive additional compensation for his servicesin the said position The reason is that these services arealready paid for and covered by the compensation attiached tohis princrpal offlce. For such attendance, therefore, he rs notenUtled to collect any extra compensation, whether it be in theform of a pet diem or an honorarium or an allowance, or someolher such euphemtsm By whatever name ( rs nominated. suchaddiionalcompensatton ts prohtbtted by the Constitution "

3,2. Ex ollicio Directors Arc Gonen y Not Entiled to Per Diems andOthor Allowable Componsations Given by the Subsidiary otAffiliate.3.2-1. Obligation to Remit to lhe ParenqHolding GOCC the ParDiems and Other Foms of Compensaaion Received. -Section 7(c) of EO 24 obliges Ex Officlo Directors to remit tothe GOCC represented (ie.. ParenuHolding GOCC) the perd/ems and other forms of compensation they may have received

l"The agent, aliernate or representalive cannol have a better right that his principal, the ex o't'cio member'The laws,;ules, prohibiiions;r rcstndions that cover lhe e, officio members apply with equal force to hisrepresentative t; short, since lhe ex oftcio member is prohibited from receiving additronat compensatiofr for aposilion held in an ex offc,o capacity, so is his represenlalNe likewise reslricled. NationalAmnesty Comnissionv. COA,437 SCRA 655, ffi8 (2004)scivitLibedies Union v Executive Secretary 194SCRA317 335(1991).


7/13

or be entitled from the Subsidiaries and Affiliates ("privatecorporations") wherern a GOCC has investmenl, thus:c) Compensarion granted to Ex-Oflicio Board Members ofsubsidiaries or privale corporalions wherein a GOCChas investments shall accrue to ihe GOCC represenledj

As previously discussed Section 20 of R.A 10'149 governs thetreatment of pet diems and other forms of compensation thathave been received by Ex Officio Directors but who weredisqualified from recerving such items for themselves7.4. Ex officio positions are not to be counted as part of the two (2) otherallowable positions in subsidiaries and affiliates of the Parent GOCC sincelhe Rule Limiting to Two Additional Positions Where Multiple Positions lsAllowed for Members of the Executive Branch lound in Section 49, Chapter10 of Book lV (THE ExECUnvE BMNCH) of the Administrative Code of 1987

refers to "compensable" positions.8. CHATRPERSoI aNo CEO

8.1. Section 3(g) of R.A. No. 10149 in defining CEO clearly distinguishes theCEO from the Chairperson of the Board. The same is true even with theinclusion of "Chairperson" in the enumeration in line with the principle ofejusdem generis in statutory construction, which inclusion was made toaccommodate the exceptional situation in some GOCCS wherein theChairperson of the Board is also the CEO.8.2. Under R.A. No. 10149, the Governing Board, headed by the Chairperson,has primacy over the Management, headed by the CEO. Thus, underSection 18, "the CEO shall be subject to the disciplinary powers of theBoard and may be removed by the Board for cause." The Commissionencourages the GOCCS to adopt a policy of electing different individualsas Chairperson and CEo to provide a structure of checks-and-balancesbetween the Board and [4anagemenl.8.3. The following rules apply in nominating and electing the Chairperson andCEOs:

(a) A Board Member may not be nominated and elected as CEOof more than one (1) Parent GOCC;(b) A Board Member may be nominated and elected as CEO ofa Parent GOCC. as well as, a Member of not more than two(2) subsidiaries of the Parent GOCC;(c) For Chartered GOCCS, a Board Member may be nominatedand elected as CEO and Chairperson of a GOCC only whenso provided by the GOCC'S Charter; and(d) For Nonchartered GOCC's, a Board Member may be

nominated and elected as CEO and Chairperson of a


8/13

GOCC only when so provided by the GOCC'S AOI and By-laws.9. AppoTNTMENToR DESlGNATtoN oF OFFlcERTN-CHARGE (OlC!

Ll. As the governing body that exercises the corporate powers of a GOCC,6 itis within the power of the Governing Board to appoint Officers of thecorporation. Section 19 of R.A. No. 10'149 provides among the fiduciaryduties of the Governing Board is to "Elect and/or employ only Officers whoare fit and proper to hold such office with due regard to the qualifications,competence, experience and integrity."9.2. All provisions of law which empower the Head of Supervising Agencies toappoint an Officer-in-Charge (OlC) when a vacancy occurs in the CEOposition of a GOCC are deemed overturned by Section 18 of R.A. No.

10149 which provides that the "CEO or the highest-ranking officerprovided in the charters of the GOCCS, shall be elected annually by themembers of the Board from among its ranks [who] shall be subject to thedisciplinary powers of the Board and may be removed by the Board forcause."9.3. The following rules shall apply in appointing an Ofiicer-ln-Charge (OlC)when it comes to GOCCS covered by R.A. No. 10149:

(a) When a vacancy occurs in the CEO position, it is within thepower of the Governing Board to appoint from among theirranks an OlC, while awaiting recommendation from theSupervising Agency of who among those remaining in theirranks may be nominated as the new CEO,

(b) The Supervising Agency to which the GOCC is attached canonly recommend to the Governing Board an OIC to act astemporary CEO;(c) ln exceptional circumstances such as when a CEO dies,retires, or becomes incapacitated to perform the duties ofhis/her office, the Chairperson of the Board shallautomatically act as the temporary/acting CEO, subject tothe following rules:

(i) The Chairperson shall act only as the temporary/actingCEo. Within forty-eight (48) hours, the Chairpersonshall call for a Board meeting for the election of theCEO among the members of the Governing Board;and(ii) The duly-elected CEO shall then serve the unexpiredterm of the Preceding CEO.

9.4. There may be exceptions to an OIC'S membership in the board. lnextraordinary circumstances, the Officer-Next-ln-Rank to the CEO may be6 Secrion 3(c), R A. No 10149


9/13

designated as the OIC of the GOCC in a temporary/acting capacity incases where any of the following elements is present:(a) As provided in the GOCC charter or AOI and By-Laws, theChairperson is also the CEO and he/she dies, retires,becomes incapacitated to perform the duties of his/her office,or is removed by the Board for cause;(b) None of the incumbent Board lvlembers is willing to take overthe CEO position; or(c) The Governing Board cannot constitute a quorum and thereis an urgent need for the filling of the same.

The Officer-Next-ln-Rank designated as the Temporary/Acting OIC mayonly serve for the unexpired term of the CEO he/she replaced, and shallnot be considered part of the GOCC Board, as he/she was neverappointed by the President of the Philippines under the authority of R.A.No. 10149.III. SECURITY OF TENURE ISSUES10. CEOS CovEREp By R.A. No. 10149 FALL UNoER "TVoN-CAFEER SERvrcE"

10.1. Under Section 17, upon the enactment of R.A. No. 10149, all CEOpositions have been converted into regular appointive positions with one(1) year terms, thus:SEc. 17 Term of Affice - Any provision in ahe charters of eachGOCC to ahe contrary nolwithslanding, the lem of office of eachAppointive Directot shall be for one (1) yeaL unless sooner removedfofcausa.xxxAny ptovision of law to the contrary notwithstanding, incumbenlCEO9 and appointive memberc ol the Board of GOCCS sha , uponapproval ol this Act, have a tem ol office until June 30,2011, unlesssooner rcplaced by th6 President; Provided, however, That theincumbent CEOS and appointive membe$ of lhe Board shall continuein oflica until thet successo6 have bee, app ointed by tho President.T

10.2. Due lo the one (1) year term of office as provided in R.A. No. 10149, allGOCC Board Members including the CEOs now fall within the definitionol "Non-Career Service" as stated in Executive Order No. 292 (E.O. No.292) otherwise known as the Administrative Code of 1987, whichspecifically provides that Non-Career Service shall include "Chairmanand members of commissions and boards ltilXlEIglLtsIES-qLg[lgCand their personal or confidential staff."B

lEmphasts supptied3 TBE AoMrNrsrRArvE CooE oF 1987. Executive Order No. 292, Eook V, Chapter ll Section 9, Par 3 (25 July

1987)


10/13

I I. CEOS WHo WERE CESO AT PRoMULGATIoN oF R.A. No. 10149The rules hereunder constitutes the Commission's understanding on theapplicable laws, rules and regulations pertaining to CEOS of GOCCS coveredby R.A. No. '10'149 who at the time of its enactment had already earned CESO

title to their positions as CEO of a covered GOCC.11.1. Under Section 1, Rule ll of the Career Execulive Service Board (CESB)Resolution No. 554,'ga "CESO" is deflned thusl

Ca.eer Executive Servico Officer (CESO) - refers to one who isconferred CES Eligrbility by the Board, assrgned to a CES position, andappointed by the President to a CES rank upon recommendation by theBoard.'11.2. CESOS were further classifled in Rule lll of CESB Resolution No. 554,"CESOs in Active and lnactive Status," as thus:Section l. Classificataon of a CESO, There are two (2) classes olCESOS rn the CES. These ate 7)-9.EsgS-!2-.9@!9-. 5--e.0!JlCESOS in inactive slatus. The CESOS in active status are further sub-classified into Presidential and Non-presidentia I a ppointees.l0'11.3. A CESO in "inactive status" is defined thus;

7, CESO in lnactive Status - is a CESO who no longer occupies apositon in the CES as a resull of any of the modes of separation fromthe government service provded that such separation is not due todismissal from the service for cause r1

11.4. R.A. No. 10149inmakingtheTermof Office of the CEO one [1] year doesnot violate the security of tenure of the CESO CEO since it does not atfecthis/her CES eligibility. The CEO still retains his/her CES Rank andEligibility. Upon the appointment to and the subsequent acceptance of aBoard Member position, a CESo's CES Rank is deemed merelydeactivated.11.5. Security of tenure of employees in the career executive service (exceptfirst and second-level employees in the civil service), pertains only to rankand not to lhe office or to the position to which they may be appointed.Thus, a career executive service otficer may be transferred or reassignedfrom one position to another without losing his rank which follows himwherever he is transferred of reassigned. ln fact, a CESO suffers nodiminution of salary even if assigned to a CES position with lower salary

e "The Rules and Procedue Goveming the Deaclivalion anc! Reactivation of Ca@et Executive Sevice (CES)Rarr(s."CAREER ExEcurrvE SERVcE SoARD (CESB) Resolulion 554, s 2004 Rulell,Section1,(15June2004)

'0 "ihe Rules and Pnxedue Goveming the Deactivation and Reactjvat on ol Career Execut've SeNtce (CES)Rankr " CaREER ExEcur vE SERVIoE BoAR6 (CESB) Resolulion 554, s 2004, Rule ll l, Seciion 1 , (1 5 June 2004)

''' "fhe Riles and Procedurc Goveming lhe Deactvalion and Reactivation ol Career Executive sevice (CEs)Rarls "CAREER ExEcurrvE SERVTCE BoARD (CESB) Resolulion 554, s. 2004 Rulell,Seclionl,(15June2004)


11/13

grade, as he is compensated according to his CES rank and not on thebasis of the position or office he occupies.r'z11.6. :(a) As stated in CESB Resolution No. 554, CESOS sitting in theCEO position of GOCC have not been totally severed from theCES and the privileges incumbent on them. The CES Ranks ofCESO individuals who are appointed as Board lvlembers are nolrevoked but merely deactivated.(b) The deactivation of the CES Rank should only be with theconsent of the CESO individual who will be appointed asmember of the GOCC Governing Board and elected as CEO.Consent is obtained through the voluntary acceptance of theappointment from the President of the Philippines into the

GOCC Board.(c) CESB Resolution No. 554 further provides the several modes ofdeactivating a CES rank. The following may be grounds tohave one's CES rank suspended, thus:Section l. Modes of Deactivating a CES Rank. There arethree (3) modes by which the CES rank of a CESO may bedeactivated from the CES:1. Acceotance of a oosition bv virtua ot an aooointmentoutside the cov.taoe of the CES:2 Dropping from the rolls of government officlals andemployees, and3. Other modes of separation from the CES, provided thatseparation from the CES resulting from dismissal from the

service for cause and after due process shall result in the loss ofCES rank and shall not be considered as a mode ofdeactivation xxx13Acceptance by a CESO-nominee of his/her appointment to aGOCC Governing Board will result in only the suspension anddeactivation of his/her CES Rank. The CES Rank will remaindeactivated for the duration of the term of office, until the CESRank is reactivated in accordance with the reactivationprocedures as provided for by the CESB.ln accordance with Section 2, Rule lV of Resolution No. 55414,the Deactivation of CES Rank has the following effects:

Seclion 2. Effect of Deactivation ot CES Rank. A CESOwhose CES rank has been deactivated by the Board loses all

(d)

(e)

f Gereral v. Roco, G.R. No 143366, (29 January 2oo1) c,u4g lhe CAREER ExEculf/E SERVTE HaNoBooK t6'ti Err,phass supptieclt'-iie aiis ,lnb procearre Govemng lhe Deactivation and Reactivation of Careet Executive seNice (cEs)Ranks.I C,rneea Execurve sERvrcE BoaRd (CESB) Resolution 554, s. 2004. Rule lv, seclion 2, (15 June 2004)


12/13

the rights and privileges accorded toof his/her CES rank him/her by law on account

I1.7. REAcrvAroN oF CES RANKs;(a) CES Rank and privileges can be reactivated through the properreapplication. ln Section 1, Rule ll of Resolution No. 554,r5"Reactivation" of CES Rank is defined thus:

9, Reactivation of CES Rank - refers to a process by whicha CESO in an inactive staius is placed by the Board in an activestatus after his/her apporntment to a CES posttion and uponcompliance wth the requirements of the Board (CESB)A CESO who has aetired upon reaching the mandatoryretirement age of srxtyjive (65) shall no longer apply forreactivation of his/her rank rn case he/she rs re-employed ingovernment(b) The process of Reactivation of CES Rank is provided for in RuleV of CESB Resolution No, 554'6 under the subheading"Reactivation of CES Rank by the Board."(c) Upon the full compliance with the Reactivation Process and uponthe subsequent approval by the CESB of the application forReactivation. the CESO whose CES Rank was Deactivatedshall be returned to his/her former CES Rank without diminutionof rights and privileges. Section 6, Rule V of CESB ResolutionNo. 554'7 provides:

Section 6. Reactivation of CES Rank. After the properevaluation of the merits of the applicatron the Board if warranted,shall reactivate the CES rank of the CESO concerned. Tho CESJank to be rcactivated shall be the same rank D.ior to theseoaElion from the government service, regardless of the CESpositron to which the CESO is presently appointed r3(d) Upon proper application, the CES Rank of the former CESOSare reactivated without loss of Rank. This privilege is given tosuch CESOS, notwithslanding their voluntary separation from

the former CESO positions via the acceptance of theirappointments to GOCC Boards are therefore restored.

15 "The Rules and Pbcedurc coveming the Deactivation an(l Reactivaton of Carcer Execulve SeMce (CES)Rari(S. CAREER ExEcurvE SRvrcE BoaRD (CESB) Resolution 554, s.2004, Rule ll, Section 1. (15 June 2004)." - The Rules and P.(xedure Goveming the Deactivation ancl Reactivalon ol Career Executive Sevice (CES)Rarls, " CpeEER ExEcurvE SERVTGE BoARo (CESB) Resolution 554, s 2004, Rule V, (15June2004)17 "The Rules and Procedurc coveming the Deac[vation anet Reacl|aton of Career Execubve Sevice (CES)Rarr,s. CAREER ExEcurvE SERvcE EoaRD (CESB) Resolution 554, s. 2004, Rule V, Section 6, (15 June 2004).,-tmphasts supplecl.


13/13

BY AurHoRtrY oF THE CoMMrsJIQN./.) ,z2arrWa-ESAR LI'III4-ANUEVAChaimanl.^,-J CAZ2--A. AAIGEU/A E. IGNACIO RAINIER B. BUTALIDcomlnissioner Commissioner

Date post:	02-Apr-2018
Category:	Documents
Upload:	egabad
View:	268 times
Download:	5 times

GCG MC No. 2012-09 - The Chief Executive Officer (CEO)

Documents