Section 11Sec./Art. 11

A new section, to be designated as Section 26-B, is hereby inserted under Presidential Decree No. 269, as amended to read as follows:

"SEC. 26-B. Fit and Proper Rule. To ensure that the management and operations of electric cooperatives are carried out with due regard to its economic viability, the NEA shall prescribe, pass upon and review the qualifications and disqualifications of individuals appointed or elected to electric cooperatives and disqualify those found unfit.

"A candidates integrity, experience, education, competence and probity shall be considered in determining whether he or she shall be fit and proper to become a director or officer of the electric cooperative.

"For this purpose, the minimum qualifications of a director or officer of the electric cooperative shall be as follows:

"(a) He or she is a Filipino citizen;

"(b) He or she is a graduate of a four (4)-year course;

"(c) He or she is between twenty-one (21) and seventy (70) years old, on the date of election;

"(d) He or she is of good moral character;

"(e) He or she is a member of the electric cooperative in good standing for the last five (5) years immediately preceding the election or appointment;

"(f) He or she is an actual resident and consumer in the district that he or she seeks to represent for at least two (2) years immediately preceding the election; and

"(g) He or she has attended at least two (2) Annual General Membership Assemblies (AGMA) for the last five (5) years immediately preceding the election or appointment.

"The NEA may, after due notice to the board of directors and officers of the electric cooperative, disqualify, suspend or remove any director or officer, who commits any act which renders him unfit for the position."