EXECUTIVE ORDER NO. 209 October 24, 1994
ADJUSTMENT OF DIVIDEND RATE OF SELECTED GOVERNMENT-OWNED AND-CONTROLLED CORPORATIONS ON THEIR 1993 EARNINGS PURSUANT TO SECTION 5 OF REPUBLIC ACT NO. 7656
WHEREAS, Section 1 of Republic Act No 7656 provides that:
"Sec. 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 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 -controlled corporations, the liquidity, retained earnings position and medium term plans and programs of these government-owned and-controlled corporations were considered in the determination of the reasonable dividend rates of such corporations on their 1993 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...
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Executive Orders
Adjustment of Dividend Rate of Selected Government-Owned And-Controlled Corporations on Their 1993 Earnings Pursuant To Section 5 of Republic Act No. 7656
Executive Order No. 209
Summary of Executive Order No. 209
Adjustment of Dividend Rate of Selected Government-Owned and -Controlled Corporations on Their 1993 Earnings Pursuant to Section 5 of Republic Act No. 7656
- Policy and Purpose (Sec. 1 of RA 7656):
• The State declares a policy that government-owned or -controlled corporations shall share a substantial amount of their net earnings to the National Government, without impairing their viability and purposes.
- Determination of Dividend Rates (Whereas clauses):
• The liquidity, retained earnings position, and medium-term plans and programs of the government-owned and -controlled corporations were considered in determining the reasonable dividend rates on their 1993 net earnings.
• The Secretary of Finance recommended the adjustment of dividend rates pursuant to Section 5 of RA 7656, in the interest of national economy and general welfare.
- Adjusted Dividend Rates on 1993 Net Earnings (Sec. 1):
• Manila International Airport Authority - ten percent (10%)
• Metropolitan Waterworks and Sewerage System - twenty percent (20%)
• National Development Company - zero percent (0%)
• National Power Corporation - zero percent (0%)
• Natural Resource and Development Corporation - forty percent (40%)
• PHIVIDEC Industrial Authority - ten percent (10%)
• Subic Bay Metropolitan Authority - thirty percent (30%)
- Applicability (Sec. 2):
• The adjusted dividend rates are only applicable on the 1993 net earnings of the concerned government-owned and -controlled corporations.
- Effectivity (Sec. 3):
• This Executive Order shall take effect immediately.
Adjustment of Dividend Rate of Selected Government-Owned and -Controlled Corporations on Their 1993 Earnings Pursuant to Section 5 of Republic Act No. 7656
- Policy and Purpose (Sec. 1 of RA 7656):
• The State declares a policy that government-owned or -controlled corporations shall share a substantial amount of their net earnings to the National Government, without impairing their viability and purposes.
- Determination of Dividend Rates (Whereas clauses):
• The liquidity, retained earnings position, and medium-term plans and programs of the government-owned and -controlled corporations were considered in determining the reasonable dividend rates on their 1993 net earnings.
• The Secretary of Finance recommended the adjustment of dividend rates pursuant to Section 5 of RA 7656, in the interest of national economy and general welfare.
- Adjusted Dividend Rates on 1993 Net Earnings (Sec. 1):
• Manila International Airport Authority - ten percent (10%)
• Metropolitan Waterworks and Sewerage System - twenty percent (20%)
• National Development Company - zero percent (0%)
• National Power Corporation - zero percent (0%)
• Natural Resource and Development Corporation - forty percent (40%)
• PHIVIDEC Industrial Authority - ten percent (10%)
• Subic Bay Metropolitan Authority - thirty percent (30%)
- Applicability (Sec. 2):
• The adjusted dividend rates are only applicable on the 1993 net earnings of the concerned government-owned and -controlled corporations.
- Effectivity (Sec. 3):
• This Executive Order shall take effect immediately.