Providing The Presidential Commission On Good Government With Provisional Authority To Replace Directors In Sequestered Or Surrendered Corporations

MALACAÑAN PALACE
MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 42

PROVIDING THE PRESIDENTIAL COMMISSION ON GOOD GOVERNMENT WITH PROVISIONAL AUTHORITY TO REPLACE DIRECTORS IN SEQUESTERED OR SURRENDERED CORPORATIONS

WHEREAS, the Presidential Commission on Good Government is mandated to oversee the judicious management of shares and/or corporations sequestered by or surrendered to it through, among others, the supervision of nominee-directors to such corporations;

WHEREAS, it is recognized that a number of nominee-directors presently occupying various positions in such corporations continue to do so in a holdover capacity from the previous administration; and,

WHEREAS, there is a need to ensure that the directors appointed to these positions are faithful in the discharge of their fiduciary duties and in serving and safeguarding the interest of the Philippines and the Filipino people,

NOW, THEREFORE, I, BENIGNO S. AQUINO III, President of the Philippines, by virtue of the powers vested in me by the Constitution and by law, do hereby order;

SECTION 1. Granting of Provisional Authority. The Presidential Commission on Good Government (PCGG) in addition...

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Summary of Executive Order No. 42

Granting Provisional Authority to the Presidential Commission on Good Government (PCGG)
- The PCGG is granted provisional authority to replace any nominee-directors currently holding positions in corporations sequestered by or surrendered to it. (Section 1)
- The PCGG can replace nominee-directors with up to two members of the PCGG. (Section 1)

Validity and Designation of Provisional Nominees
- The provisional authority shall be exercised by the PCGG Chairperson. (Section 2)
- The designation of PCGG members as provisional nominees will be valid until permanent replacements are made by the President. (Section 2)
- The permanent replacements shall be under the general supervision of the PCGG. (Section 2)

Reporting Requirements
- The PCGG shall furnish the President with a list of the temporary replacements to the board of corporations within a reasonable time. (Section 3)
- All nominee-directors shall submit monthly reports, or as often as required, to the PCGG on the affairs, developments, and transactions affecting the respective corporations. (Section 4)
- The PCGG shall submit a detailed summary of these reports to the President from time to time. (Section 4)

Duration of Provisional Authority
- The provisional authority granted to the PCGG shall be valid until December 31, 2011, unless otherwise extended by the President. (Section 5)

Repealing Clause and Effectivity
- All other rules, regulations, and issuances inconsistent with this Executive Order are repealed or modified accordingly. (Section 6)
- This Order shall take effect immediately upon its publication in a national newspaper of general circulation. (Section 7)