Section 10Sec./Art. 10

Functions of the Board.- The Board of Directors shall be the policy-making body of the Conversion Authority and shall perform the following functions:

a. Determine the organizational structure of the Conversion Authority, define the duties and responsibilities of all officials and employees and adopt a compensation and benefit scheme at least equivalent to that of the Central Bank of the Philippines:

b. Appoint all Officials down to the third level and authorize the president of the Conversion Authority to appoint all others:Provided,That all appointments shall be on the basis of merit and fitness and all personnel action shall be in pursuance of Civil Service Laws, rules and regulations, except those coterminous employees of the members of the Board;

c. Prepare the annual and supplemental budgets of the Conversion Authority;

d. Submit an annual report of the operation of the Conversion Authority to the President of the Philippines, President of the Senate and Speaker of the House of Representatives;

e. Carry out the purposes of the Conversion Authority with the following terms and references:

1. As much as possible, major conversion projects shall be undertaken under the complete project turnkey or build-operate-transfer (BOT) scheme, as provided under Republic Act Numbered Sixty-nine hundred and fifty-seven (RA 6957); and

2. Starting the fourth year of the Conversion Authority-s full operation, a privatization or divestment program of its projects and subsidiaries shall begin under general guidelines prescribed by the President of the Philippines.