Authorizing The Creation Of A Philippine Aerospace Development Corporation, Appropriating Funds Therefore, And For Other Purposes
Download as PDF
Download as Word
Collections
Create new Collection
Overview
Full Text
Details
Case
Agency Issuance Number
Published Date
Authorizing The Creation Of A Philippine Aerospace Development Corporation, Appropriating Funds Therefore, And For Other Purposes
Presidential Decree No. 286
September 5, 1973
Case Overview and Summary
Summary of Presidential Decree No. 286Creation of Philippine Aerospace Development Corporation
- A body corporate and politic to be known as the Philippine Aerospace Development Corporation is created. (Section 1)
- The Corporation shall have succession for 50 years from the date of approval of this Decree. (Section 1)
- The principal office of the Corporation shall be in the City of Manila. (Section 1)
Corporate Purposes and Powers
- To undertake activities, businesses, or development projects for establishing a reliable aviation and aerospace industry, including:
- Assembly and manufacture of aircraft, devices, equipment, or contraptions (Section 1.1)
- Studies or researches for innovations and improvements (Section 1.1)
- To engage in maintenance, repair/overhaul, and modification of aerospace and associated flight and ground equipment and components to provide technical services and overhaul support. (Section 1.2)
- To prepare corporate by-laws (Section 2.1)
- To carry on any other lawful business related to the corporate purposes (Section 2.2)
- To enter into and perform contracts (Section 2.3)
- To have offices in and outside the Philippines and conduct business anywhere (Section 2.3)
- To hold public agricultural and mineral lands up to 25 years, renewable for another 25 years (Section 2.4)
- To acquire, hold, mortgage, and alienate personal and real property (Section 2.5)
- To purchase, hold, alienate, mortgage, pledge or dispose of shares of other corporations (Section 2.6)
- To exercise all rights of ownership, including voting rights, on owned shares (Section 2.6)
- To execute any acts authorized for partnerships or natural persons (Section 2.7)
- To perform other acts for proper enforcement of this Decree (Section 2.8)
Capital Stock
- Initial authorized capital stock is 50,000,000 Pesos divided into 500,000 shares with par value of 100 Pesos per share. (Section 3)
- Stock subscription and payment:
- 10,000,000 Pesos by the Government of the Philippines (Section 3(a))
- 20,000,000 Pesos by the Development Bank of the Philippines (Section 3(b))
- 20,000,000 Pesos offered to domestic and foreign investors (Section 3(c))
- 25% of stock value under (b) and (c) to be paid at subscription, balance subject to call by Board of Directors with Chairman's approval. (Section 3)
- Voting power of government shares vested in the President or designee. (Section 3)
- Voting power of government financial institution shares vested in the Chairman, Board of Governors. (Section 3)
- One share, one vote. Agreements transferring voting rights prohibited. (Section 3)
Board of Directors
- Composed of 4 ex officio members and 3 appointive members appointed by the President for 4-year terms. (Section 4)
- Ex officio members: Executive Secretary, Secretary of National Defense, Chairman of Development Bank of the Philippines Board of Governors, and Chairman of Board of Investments. (Section 4)
- President shall appoint the Chairman from among the 7 directors. (Section 4)
- Functions and Duties:
- Appoint and fix salaries of General Manager and other officials (Section 5(1))
- Establish necessary Divisions in the Corporation (Section 5(2))
- Submit and publish annual report before end of February (Section 5(3))
Auditor
- Appointed by the Chairman of the Commission on Audit, along with necessary personnel. (Section 6)
- Salaries and expenses paid by the Corporation, fixed by Commission on Audit Chairman with advice of Board of Directors. (Section 6)
- Auditor and personnel can only be removed by Commission on Audit Chairman. (Section 6)
- Auditor must be a Certified Public Accountant with at least 10 years of experience. (Section 6)
- No relative within 4th degree of consanguinity/affinity to Board of Directors or Commission on Audit Chairman can be appointed. (Section 6)
Tax and Customs Duty Exemptions
- Corporation exempt from all national, provincial, municipal, and city taxes and assessments for 5 years from start of operations. (Section 7)
- Importation of equipment, materials, devices, and other items by the Corporation fully exempt from customs duties and all other taxes, assessments, and charges related to importation. (Section 7)
Effectivity
- Decree takes effect upon approval. (Section 8)
- Chairman shall call for organizational meeting of Board within 30 days of appointment to commence corporate business. (Section 8)
Amends
n/a
Amended by
n/a
Tags
Executive Issuances
Presidential Decrees
aerospace
aviation
aircraft
manufacture
assembly
repair
maintenance
corporation
government
investment
tax exemption
customs exemption
board of directors
auditor
capital stock
shares
voting rights
appropriation
fund
Law
Authorizing The Creation Of A Philippine Aerospace Development Corporation, Appropriating Funds Therefore, And For Other Purposes
Presidential Decree No. 286
•September 5, 1973
MALACAÑANGM a n i l a
PRESIDENTIAL DECREE No. 286 September 5, 1973
AUTHORIZING THE CREATION OF A PHILIPPINE AEROSPACE DEVELOPMENT CORPORATION, APPROPRIATING FUNDS THEREFORE, AND FOR OTHER PURPOSES
WHEREAS, in order to maximize the national utility of the aviation and aerospace industry, a definite policy for its rationalization has become imperative;
WHEREAS, such a rationalization calls for a positive government participation in development project for study and research in and assembly and manufacture of appropriate aircraft or devices and for the improvement of existing facilities for technical and maintenance support for such aircraft or devices;
WHEREAS, government initiative in and control of the industry in aircraft assembly and manufacture and technical, repair and maintenance support facilities shall result in substantial savings of valuable foreign exchange reserves and optimum utilization of skilled manpower in the country;
WHEREAS, the public utility and public service elements of the industry can, thus, be enhanced by standardized and modernized flight and ground equipment and a reasonable fare structure that shall allow air travel for a larger segment of the...
Login to see full content
Amends
n/a
Amended by
n/a