Amending Further Section 6 Of Presidential Decree No. 902-A

Case Overview and Summary

Summary of Presidential Decree No. 1799

Confidentiality of Bank Deposits
• The decree aims to preserve the confidentiality of deposits in banking institutions. (Whereas clause)

Powers of the Securities and Exchange Commission (SEC)
• Appoint receivers for corporations (Section 1c)
- For corporations not supervised by other agencies, SEC can appoint receivers to preserve rights of parties and protect investors/creditors.
- For corporations supervised by other agencies like banks and insurance companies, SEC can appoint receivers upon request of the concerned agency.
• Appoint management committees, boards, or bodies (Section 1d)
- For corporations not supervised by other agencies, SEC can appoint management committees in cases of imminent danger of asset dissipation, loss, or business paralyzation.
- For corporations supervised by other agencies like banks and insurance companies, SEC can appoint management committees upon request of the concerned agency.
• Powers of management committees/rehabilitation receivers (Section 1d)
- Take custody and control over assets and properties of the entity under management.
- Evaluate assets, liabilities, earnings, and operations of the entity.
- Determine the best way to salvage and protect the interests of investors and creditors.
- Study the feasibility of continuing operations and restructure/rehabilitate the entity if feasible.
- Overrule or revoke actions of previous management and board of directors.
- Not subject to any action, claim, or demand for acts done in good faith.
- Report and be responsible to the SEC until dissolved.
• SEC can order dissolution and liquidation of the entity if continuance is not feasible or profitable. (Section 1d)

Subpoena and Investigation Powers (Section 1h)
• SEC can issue subpoena duces tecum and summon witnesses in its proceedings.
• SEC can order examination, search, and seizure of documents, papers, files, records, tax returns, and books of accounts of any entity or person under investigation.