MALACAÑANG
M a n i l aPRESIDENTIAL DECREE No. 934 May 14, 1976
AMENDING FURTHER SECTION TWELVE OF REPUBLIC ACT NUMBERED SEVENTEEN HUNDRED AND EIGHTY-NINE, AS AMENDED, OTHERWISE KNOWN AS THE REPARATIONS LAW
WHEREAS, under the present provisions of the Reparations Laws (Republic Act No. 1789, as amended), the acquisition and use of reparations goods is limited to Filipino citizens or to entities at least seventy per centum of the capital stock outstanding and entitled to vote is owned and held by the Filipino citizens;
WHEREAS, certain Filipino owned vessels thus acquired have passed their economic lives resulting in high operating costs and low operating efficiency and in turn adversely affecting the viability of the Philippine merchant fleet;
WHEREAS, the said vessels may be resold in the world market at prices favorable to the owners, in particular, and the industry in general;
WHEREAS, the sale of those vessels at the said advantageous price shall generate substantial funds needed for the acquisition of more modern and efficient replacement vessels in line with the...
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Presidential Decrees
Amending Further Section Twelve Of Republic Act Numbered Seventeen Hundred And Eighty-Nine, As Amended, Otherwise Known As The Reparations Law
Presidential Decree No. 934
Summary of Presidential Decree No. 934 Amending the Reparations Law
- Allows transfer of ownership of fully paid capital goods (vessels) to non-Filipino citizens or entities, subject to approval by the Maritime Industry Authority. (Section 1)
• Net proceeds from such transfer must be reinvested in acquiring more modern vessels.
- Allows foreign equity participation in recipient corporations or associations of reparations goods, subject to the following conditions: (Section 1)
• Approval of the President of the Philippines on a case-to-case basis upon recommendation of the National Economic and Development Authority.
• The corporation or association must maintain at least 70% Filipino ownership of capital stock and 70% of the Board of Directors must be Filipino citizens.
• The foreign investment must be reported to the Board of Investments within 30 days and registered with the Central Bank of the Philippines.
- Allows transfer of ownership of fully paid capital goods to corporations or associations organized under Philippine laws, subject to the following conditions: (Section 1)
• Approval of the President of the Philippines on a case-to-case basis upon recommendation of the National Economic and Development Authority.
• At least 70% of the capital stock must be owned by Filipino citizens, and at least 70% of the Board of Directors must be Filipino citizens.
• The new owners must begin utilizing the capital goods in projects determined by the National Economic and Development Authority within one year from notice of the Authority's decision.
- Allows transfer of ownership of fully paid capital goods (vessels) to non-Filipino citizens or entities, subject to approval by the Maritime Industry Authority. (Section 1)
• Net proceeds from such transfer must be reinvested in acquiring more modern vessels.
- Allows foreign equity participation in recipient corporations or associations of reparations goods, subject to the following conditions: (Section 1)
• Approval of the President of the Philippines on a case-to-case basis upon recommendation of the National Economic and Development Authority.
• The corporation or association must maintain at least 70% Filipino ownership of capital stock and 70% of the Board of Directors must be Filipino citizens.
• The foreign investment must be reported to the Board of Investments within 30 days and registered with the Central Bank of the Philippines.
- Allows transfer of ownership of fully paid capital goods to corporations or associations organized under Philippine laws, subject to the following conditions: (Section 1)
• Approval of the President of the Philippines on a case-to-case basis upon recommendation of the National Economic and Development Authority.
• At least 70% of the capital stock must be owned by Filipino citizens, and at least 70% of the Board of Directors must be Filipino citizens.
• The new owners must begin utilizing the capital goods in projects determined by the National Economic and Development Authority within one year from notice of the Authority's decision.