Veterans And Retirees And The Armed Forces Of The Philippines

Case Overview and Summary

PRESIDENTIAL DECREE No. 243

Purpose:
- To create the Philippine Veterans Investment Development Company (the Corporation) to utilize the productive capacities of veterans and retirees of the Armed Forces of the Philippines. (Section 2)

Governance:
- The Corporation shall be governed by a Board of Directors composed of:
    - Secretary of National Defense (Chairman)
    - Executive Secretary (Vice-Chairman)
    - Five persons designated by the President from qualified veterans and retirees, serving for 2 years. (Section 1)

Powers and Functions:
- Formulate policies, programs, and projects for employment and investment of veterans and retirees. (Section 2a)
- Direct, control, manage, and operate enterprises and investment ventures for veterans and retirees. (Section 2b)
- Engage in commercial, industrial, mining, agricultural, and other enterprises. (Section 3a)
- Invest, reinvest, and trade in securities. (Section 3a)
- Hold public agricultural and mineral lands up to 25 years, renewable for another 25 years. (Section 3b)
- Acquire, hold, mortgage, and alienate personal and real property. (Section 3b)
- Purchase, hold, alienate, mortgage, pledge shares of other corporations. (Section 3b)

Capital Structure:
- Authorized capital stock of ₱3,000,000 divided into 600,000 shares with par value of ₱5 each. (Section 5)
- 20% subscribed by the Philippine government, 80% by qualified veterans, retirees, or their organizations. (Section 5)
- 25% of subscription paid at time of subscription, balance subject to call by Board of Directors. (Section 5)

Other Provisions:
- Corporation shall have succession for 50 years from approval date. (Section 4)
- Principal office in Manila. (Section 4)
- Board of Directors shall appoint manager and other officials. (Section 7)
- Appropriation from General Fund for government's subscription. (Section 8)
- President may amend, change, or modify the decree. (Section 9)