Facilitating Bank Mergers Or Consolidations
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Facilitating Bank Mergers Or Consolidations
Presidential Decree No. 117
January 29, 1973
Case Overview and Summary
Presidential Decree No. 117Purpose: 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)
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Tags
Executive Issuances
Presidential Decrees
bank mergers
bank consolidations
financial stability
socio-economic development
Corporation Law
capital stock
stockholders' meeting
subscribed capital stock
Monetary Board
Central Bank of the Philippines
Law
Facilitating Bank Mergers Or Consolidations
Presidential Decree No. 117
•January 29, 1973
MALACAÑANGM 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 of the Armed Forces of...
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Amends
n/a
Amended by
n/a
Tags
Executive Issuances
Presidential Decrees
bank mergers
bank consolidations
financial stability
socio-economic development
Corporation Law
capital stock
stockholders' meeting
subscribed capital stock
Monetary Board
Central Bank of the Philippines
MALACAÑANGM 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 of the Armed Forces of...
Login to see full content