On October 1, 1979, the Board of Directors was established by Public Law 96-70 (98 Stat. 456) to supervise the Panama Canal Commission. The Board held meetings as provided in regulations adopted by the Commission and approved by the Secretary of Defense. A quorum for the transaction of business consisted of a quorum majority of the Board members of which a majority of those present were nationals of the United States.
It was composed of nine members, of which at least five were nationals of the United States and the remaining members were nationals of the Republic of Panama. All of the members were appointed by the President of the United States. United States nationals were appointed by and with the advice and consent of the Senate and Panamanian nationals were proposed by the Republic of Panama. At least one United States national member of the Board was to be experienced and knowledgeable in the management or operation of an American-flag steamship line which has or had ships regularly transiting the Panama Canal; at least one other such member was to be experienced and knowledgeable in United States port operations or in the business of exporting or importing one of the regular commodities dependent on the Panama Canal as a transportation route; and at least one other such member was to be experienced and knowledgeable in labor matters in the United States. One member was the Secretary of Defense or an officer of the Department of Defense as designated by the Secretary. Members of the Board who were nationals of the United States were to cast their votes as directed by the Secretary of Defense or his designee.
