Facilitating Bank Mergers Or Consolidations

MALACAÑANG
M a n i l a

PRESIDENTIAL DECREE No. 117 January 29, 1973

FACILITATING BANK MERGERS OR CONSOLIDATIONS

WHEREAS, the Government is currently engaged in instituting vital reforms in the banking system to enable it to play a more effective role in the socio-economic development of the country;

WHEREAS, as a means of further promoting the financial stability and capacity of the different banking units, it is imperative that incentives be provided to encourage bank mergers or consolidations;

WHEREAS, to encourage bank mergers or consolidations, Presidential Decree No. 71 dated November 29, 1972, in amending certain provisions of the General Banking Act, exempts merged or consolidated banks from the application of Section 28 of the Corporation Law (Act No. 1459, as amended), which limits the number of directors in a corporation;

WHEREAS, other provisions of the Corporation Law tend to restrict or impede bank mergers or consolidations;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers in me vested by the Constitution as Commander-in-Chief...

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Presidential Decree No. 117

Purpose: To facilitate bank mergers or consolidations

- Allows banks to merge or consolidate with another bank by affirmative vote of stockholders representing at least a majority of the subscribed capital stock in a stockholders' meeting called for the purpose. (Section 1)
- Overrides provisions of Section 28 1/2 and 17 of the Corporation Law (Act No. 1459, as amended) which may restrict or impede bank mergers or consolidations. (Section 1)
- Allows increase in capital stock of a bank to the extent necessary to effect such merger or consolidation. (Section 1)
- Decree to remain in force for a period of three (3) years from January 29, 1973. (Section 2)