Extending The Corporate Life Of The National Development Company For Another Twenty-Five (25) Years And Increasing Its Authorized Capital To Two Hundred Million Pesos, With Additional Power

Case Overview and Summary

Summary of Presidential Decree No. 668

Extension of Corporate Life of National Development Company (NDC)
- The corporate life of NDC is extended for another twenty-five (25) years from January 5, 1976. (Section 1)
- NDC was originally created under Commonwealth Act No. 182 as amended by Commonwealth Act No. 311, to exist for fifty (50) years from January 9, 1938. (Whereas clause 1)
- Executive Order No. 399 amended the original charter, setting NDC's corporate life to terminate on January 5, 1976. (Whereas clause 2)

Increase in Authorized Capital
- The authorized capital of NDC is increased to Two Hundred Million Pesos (P200,000,000). (Section 1)
- The increased capital is to be subscribed by the National Government. (Section 1)

Powers and Duties of NDC
- NDC is empowered to engage in commercial, industrial, mining, agricultural and other enterprises necessary for economic development. (Whereas clause 3)
- NDC can hold public agriculture lands and mineral lands in excess of the area permitted for a public corporation. (Whereas clause 3)
- NDC can organize subsidiary companies over which it has control. (Whereas clause 3)
- NDC is authorized to acquire, hold, develop and dispose all lands acquired by Americans under the Parity amendment before July 3, 1974. (Section 1)

Placement under Office of the President
- NDC, being an implementing arm of the government's economic policies, shall be directly under the Office of the President. (Section 1)

Rationale
- NDC is a principal instrumentality of the government in furtherance of its economic policies, as evidenced by its investments in various economic ventures. (Whereas clause 5)
- The extension of NDC's corporate life is necessary to ensure the security of its existing contracts with private parties. (Whereas clause 5)
- The increase in authorized capital is needed for the expansion of NDC's activities and furtherance of the government's economic policies, particularly in agricultural enterprises. (Whereas clause 7)