Policy on Exemptions from PD 1123

June 23, 1977POLICY INSTRUCTIONS NO. 27-77TO:All Concerned   SUBJECT:Policy on Exemptions from PD 1123 To expedite the processing of applications for exemption from PD 1123 and the corresponding implementing regulations, the following policy guidelines are hereby established.I. Criteria:Distressed Employer — An employer shall be considered distressed when any of the following conditions are present:1) Where the applicant is a partnership or stock corporation. —When accumulated losses have impaired to the extent of 20% or more the total invested capital in case of corporations.2) Where applicant is a non-profit/non-stock organizations. —A. Non-profit/non-stock organizations that are engaged in business activities such as operating school, publishing house, hospital, recreational facilities and charge fees for such services, shall be governed by the same rules as stock corporations; andB. Non-stock/non-profit organizations that do not charge fees for services rendered and whose revenues are derived primarily from donations and contributions shall be exempted where such have declined by an average of 10% or more during the last two accounting periods.3) Where applicant is a single proprietorship. —When the accumulated losses during the...