Amending Presidential Decree No. 257 Creating The PEFTOK Investment And Development Corporation

Case Overview and Summary

SUMMARY OF PRESIDENTIAL DECREE NO. 536

Capital Stock of PEFTOK Corporation
- The capital stock of PEFTOK Corporation is P4,000,000 divided into 400,000 common shares with a par value of P10 each. (Section 1)
- At least 51% of the capital stock shall be fully subscribed by the Philippine government on behalf of PEFTOK veterans, amounting to P2,198,360. (Section 1)
- Within 3 years from the decree's proclamation, all shares held by the government shall be transferred to PEFTOK veterans. (Section 1)
- A PEFTOK veteran, widow, or legitimate child is entitled to 30 common shares. (Section 1)
- After accounting for all PEFTOK members, unsubscribed shares shall be available for subscription by PEFTOK veterans. (Section 1)
- Sale or transfer of shares to non-PEFTOK veterans is not allowed. (Section 1)
- Shares may be sold or transferred to the corporation, which shall issue them to veteran stockholders. (Section 1)
- No PEFTOK veteran shall be issued more than 100 shares. (Section 1)

Definition of PEFTOK Veteran
- A PEFTOK veteran is an officer or enlisted man of the Armed Forces of the Philippines who served in any PEFTOK unit, as certified by the Adjutant General, or their widow and legitimate children. (Section 2)
- For subscription to unsubscribed shares and transfer of shares, "PEFTOK veterans" or "veterans" also includes other persons who served in PEFTOK units as determined by the Board, and honorary members authorized by the Board. (Section 2)