Increasing the Rate of Cash Dividends To Be Declared By Government Owned Or Controlled Corporations Subject To Certain Exceptions
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Increasing the Rate of Cash Dividends To Be Declared By Government Owned Or Controlled Corporations Subject To Certain Exceptions
Executive Order No. 399
April 24, 1990
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Summary of Executive Order No. 399Increasing the Rate of Cash Dividends to be Declared by Government Owned or Controlled Corporations
- Increases the rate of cash dividends to be declared by government-owned or controlled corporations from at least 5% to at least 10% of their respective net earnings of each year. (Section 1)
- This increase is based on Executive Order No. 518, S. of 1979, Section 17, which originally set the rate at 5%.
- The increase aims to support the government's development projects and social services by equitably sharing in the earnings of government-owned or controlled corporations without impairing their viability and purposes. (Whereas clause)
- The following are exempt from the increased dividend rate:
- Government Service Insurance System (Section 2)
- Social Security System (Section 2)
- Government-owned or controlled corporations whose profit distribution is provided for by their respective charters or by special law (Section 2)
- The Executive Order took effect 15 days after its publication in a national newspaper of general circulation. (Section 3)
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Executive Issuances
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cash dividends
government-owned corporations
controlled corporations
net earnings
Executive Order No. 518
Government Service Insurance System
Social Security System
profit distribution
charters
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Increasing the Rate of Cash Dividends To Be Declared By Government Owned Or Controlled Corporations Subject To Certain Exceptions
Executive Order No. 399
•April 24, 1990
EXECUTIVE ORDER NO. 399 April 24, 1990
INCREASING THE RATE OF CASH DIVIDENDS TO BE DECLARED BY GOVERNMENT OWNED OR CONTROLLED CORPORATIONS SUBJECT TO CERTAIN EXCEPTIONS
WHEREAS, Executive Order No. 518, S. of 1979, Section 17, provides that:
"Sec. 17 Cash Dividends. Each corporation shall declare at least five per cent of net earnings of each year as cash dividends: Provided, That cash dividends accruing to the National Government shall be received by the Treasury and recorded as income of the General Fund: Provided, Further, That the fraction of net earnings that shall be declared by a corporation as cash dividends may be changed by the President/Prime Minister upon recommendation of the Minister of Finance: Provided, Finally, That this Section shall not apply to the Government Service Insurance System, the Social Security System, and those government-owned or controlled corporations whose profit distribution is provided for by their respective charters or by special law."
WHEREAS, to support its development projects and social services, the government must equitably share in the earnings of the government- owned or...
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