Adjusting the dividend rates of selected government owned and/or controlled corporations on their 1995 net earnings pursuant to section 5 of Republic Act No. 7656

EXECUTIVE ORDER NO. 359 August 16, 1996

ADJUSTING THE DIVIDEND RATES OF SELECTED GOVERNMENT OWNED AND/OR CONTROLLED CORPORATIONS ON THEIR 1995 NET EARNINGS PURSUANT TO SECTION 5 OF REPUBLIC ACT NO. 7656

WHEREAS, Section 1 of Republic Act No. 7656 provides that;

"Section 1. Declaration of Policy. It is hereby declared the policy of the State that in order for the National Government to realize additional revenues, government owned and/or controlled corporations, without impairing their viability and the purposes for which they have been established, shall share a substantial amount of their net earnings to the national Government."

WHEREAS, to support the viability and mandate of the government owned and/or controlled corporations (GOCCs), the liquidity, retained earnings position and medium-term plans and programs of these GOCCs were considered in the determination of the reasonable dividend rates of such corporations on their 1995 net earnings;

WHEREAS, pursuant to Section 5 of RA 7656, the Secretary of Finance recommended the adjustment on the percentage of annual net earnings that shall be declared by various government...

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Summary of Executive Order No. 359

Declaration of Policy
- The State declares the policy that government-owned and/or controlled corporations (GOCCs) shall share a substantial amount of their net earnings to the National Government without impairing their viability and purposes. (Section 1 of Republic Act No. 7656)

Adjustment of Dividend Rates
- The dividend rates of the following GOCCs on their 1995 net earnings are adjusted from at least 50% to the specified rates:
• Land Bank of the Philippines - 30% (cash) (Section 1)
• Manila International Airport Authority - 25% (cash) (Section 1)
• Metropolitan Waterworks and Sewerage System - 20% (cash) (Section 1)
• National Electrification Administration - 15% (cash) (Section 1)
• Philippine Center for Economic Development - 25% (cash) (Section 1)
• Philippine Ports Authority - 50% (cash) (Section 1)
• Phividec Industrial Authority - 20% (cash) (Section 1)
• Public Estates Authority - 20% (cash) (Section 1)

Applicability
- The adjusted dividend rates are only applicable to the 1995 net earnings of the concerned GOCCs. (Section 2)

Supersession
- This Executive Order supersedes all other issuances on the same subject matter. (Section 3)

Effectivity
- This Executive Order takes effect immediately. (Section 4)