Relationships of Government-Owned or Controlled Corporations and Regulatory Agencies to the Department
SECTION 42. Government-Owned or Controlled Corporations.—Government-owned or controlled corporations shall be attached to the appropriate department with which they have allied functions, as hereinafter provided, or as may be provided by executive order, for policy and program coordination and for general supervision provided in pertinent provisions of this Code.
In order to fully protect the interests of the government in government-owned or controlled corporations, at least one-third (1/3) of the members of the Boards of such corporations should either be a Secretary, or Undersecretary, or Assistant Secretary.
SECTION 43. Regulatory Agencies.—(1) A regulatory agency shall be subject to the administrative supervision of the department under which they are placed, except when they are government corporations in which case they shall be governed by the provisions of the preceding section;
(2) The heads of regulatory agencies shall submit annually, for the approval of the Secretary concerned, their budgets and work plans which shall be the basis of their day-to-day operations; and
(3) The regulatory agencies may avail themselves of the common auxiliary and management services of the department as may be convenient and economical for their operations.