EXECUTIVE ORDER NO. 209 - ADJUSTMENT OF DIVIDEND RATE OF SELECTED GOVERNMENT-OWNED AND-CONTROLLED CORPORATIONS ON THEIR 1993 EARNINGS PURSUANT TO Sec. 5 OF REPUBLIC ACT NO. 7656

WHEREAS, Section 1 of Republic Act No 7656 provides that:

“Section 1. Declaration of Policy. — It is hereby declared the policy of the State that in order for the national government to realize additional revenues, government-owned or-controlled corporations, without impairing their viability and the purposes for which they have been established, shall share a substantial amount of their net earnings to the National Government.”

WHEREAS, to support the viability and mandate of the government-owned and -controlled corporations, the liquidity, retained earnings position and medium term plans and programs of these government-owned and-controlled corporations were considered in the determination of the reasonable dividend rates of such corporations on their 1993 net earnings;  

WHEREAS, pursuant to Sec. 5 of RA 7656, the Secretary of Finance recommended the adjustment on the percentage of annual net earnings that shall be declared by various government-owned and controlled corporations in the interest of national economy and general welfare.