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PRESIDENTIAL DECREE NO. 286
PRESIDENTIAL DECREE NO. 286
- AUTHORIZING THE CREATION OF A PHILIPPINE AEROSPACE DEVELOPMENT
CORPORATION, APPROPRIATING FUNDS THEREFORE, AND FOR OTHER PURPOSES
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WHEREAS, in
order to maximize the national utility of the aviation and aerospace
industry, a definite policy for its rationalization has become
imperative;chanroblesvirtualawlibrary
WHEREAS, such a rationalization calls for a positive government
participation in development project for study and research in and
assembly and manufacture of appropriatercraft or devices and for the
improvement of existing facilities for technical and maintenance
support for suchrcraft or devices;chanroblesvirtualawlibrary
WHEREAS, government initiative in and control of the industry inrcraft
assembly and manufacture and technical, repair and maintenance support
facilities shall result in substantial savings of valuable foreign
exchange reserves and optimum utilization of skilled manpower in the
country;chanroblesvirtualawlibrary
WHEREAS, the public utility and public service elements of the industry
can, thus, be enhanced by standardized and modernized flight and ground
equipment and a reasonable fare structure that shall allowr travel for
a larger segment of the population;chanroblesvirtualawlibrary
WHEREAS, such a government venture shall best serve the interests of
national security and facilitate the performance of other governmental
functions, such as mail service, relief and other civic undertakings;chanroblesvirtualawlibrary
WHEREAS, a modernized and reliablercraft technical repair and
maintenance support system and a developedr craft assembly and
manufacture industry shall likewise respond to the market demands of
neighboring countries in Southeast Asia;chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, by virtue of the powers vested
in me by the Constitution as Commander-in-Chief of all the Armed Forces
of the Philippines, and pursuant to Proclamation No. 1081, dated
September 21, 1972 and General Order No. 1 dated September 22, 1972, as
amended, and in order to effect the desired changes and reforms in the
social and economic structure of our society, do hereby decree and
order the creation and organization of a body corporate and politic to
be known as the Philippine Aerospace Development Corporation, in
accordance with the following:cralaw:red
Section 1. The Philippine Aerospace Development
Corporation, hereinafter referred to as the Corporation, shall be
governed by this Decree and its by-laws, as authorized hereunder, and
shall have succession for a period of fifty years from and after the
date of the approval of this Decree. The principal office of the
Corporation shall be in the City of Manila.
1. To undertake all manner of activity, business or
development projects for the establishment of a reliable aviation and
aerospace industry, including the assembly and manufacture of all forms
ofrcraft, device, equipment or contraption and studies or researches
for innovations and improvement thereon. chanroblesvirtualawlibrary
2. To engage in the maintenance, repair/overhaul, and
modification of aerospace and associated flight and ground equipment
and components thereof in order to provide technical services and
overhaul support to the Philippiner Force, the nationalrline,
foreignrline companies, foreignr forces and to the aviation industry in
general.
Section 2. Powers of the Corporation. — In order to
accomplish the foregoing corporate purposes, the Corporation shall be
vested with the following powers:cralaw:red
1. To prepare the corporate by-laws;chanroblesvirtualawlibrary
2. To carry on any other lawful business whatsoever
in pursuance of or in connection with the foregoing primary purposes;chanroblesvirtualawlibrary
3. To enter into, make and perform and carry out
contracts of every kind and description for the foregoing corporate
purposes with any person, firm, association or corporation; to have one
or more officers in and outside of the Philippines, and to conduct its
business and exercise its powers throughout and in any part of the
Republic of the Philippines and/or in any and all foreign countries,
states and territories;chanroblesvirtualawlibrary
4. To hold public agricultural lands and mineral
lands in excess of the areas permitted to private corporations,
associations and persons by the laws of the Philippines for a period
not exceeding twenty-five years, renewable by the President of the
Philippines for another twenty-five years;chanroblesvirtualawlibrary
5. To acquire, hold, mortgage and alienate personal
and real property in the Philippines or elsewhere;chanroblesvirtualawlibrary
6. To purchase, hold, alienate, mortgage, pledge or
otherwise dispose of the shares of the capital stock of, or any bond,
security, of other corporations or associations of this or any other
country; and while the owner of said stock to exercise all the rights
of ownership, including the right to vote thereon;chanroblesvirtualawlibrary
7. To execute any and all acts which a partnership or
a natural person is authorized to perform under the laws now existing
or which may hereafter be enacted; and
8. To perform such other acts as it may deem
appropriate for the proper enforcement of this Decree.
Section 3. Capital Stock. — The initial authorized
capital stock of the Corporation shall be Fifty Million
(P50,000,000.00) Pesos, divided into five hundred thousand shares,
having a par value of one hundred (P100.00) pesos no share of stock
shall be transferred at less than par.
Such Capital stock shall be subscribed to, paid for and voted upon as
follows:cralaw:red
(a) The amount of ten million (P10,000,000.00) pesos
shall be subscribed and paid for by the Government of the Republic of
the Philippines and for which purpose, said amount is hereby set aside
and appropriated from the proceeds of the General Fund not otherwise
appropriated.
(b) The amount of twenty million (P20,000,000.00)
shall be subscribed and paid for by the Development Bank of the
Philippines.
(c) The amount of twenty million (P20,000,000.00)
pesos shall be offered for subscription to domestic and foreign
investors. chanroblesvirtualawlibrary
Twenty five per centum of the value of all stock subscribed under
paragraphs (b) and (c) shall be paid for at the time of subscription,
and the balance thereof shall be subject to call upon a majority vote
of the Board of Directors, with the approval of the Chairman.
The voting power pertaining to stock subscribed by the Government of
the Republic of the Philippines shall be vested in the President or in
such person or persons as he may designate.
The voting power pertaining to stock subscribed by the government
financial institutions under paragraph (b) shall be vested in the
Chairman, Board of Governors.
Each share of stock shall represent one vote and any agreement,
contract, arrangement, scheme or plan that shall transfer voting rights
to any person other than the stockholders is prohibited.
Section 4. Board of Directors. — The Corporation
shall be governed and its activities shall be directed, controlled and
managed by a Board of Directors which shall be composed of four (4) ex
officio members, namely, the Executive Secretary, the Secretary of
National Defense, the Chairman, Board of Governors of the Development
Bank of the Philippines and the Chairman, Board of Investments and
three (3) members to be appointed by the President of the President.
The three appointive directors shall each serve for a term of four (4)
years. The President shall appoint a Chairman from among the seven
directors.
Section 5. Functions and Duties of the Board of
Directors — (1) The Board shall appoint and fix the salaries of a
General Manager and such other officials as may be necessary for the
internal administration of the Corporation.
(2) The Board shall establish such number of
Divisions in the Corporation as may be necessary for the accomplishment
of its corporate purposes. chanroblesvirtualawlibrary
(3) The Board shall submit to the President of the
Philippines and shall publish an annual report of the condition of the
Corporation before the end of February of each year.
Section 6. The Auditor. — The Chairman of the
Commission on Audit shall appoint a representative who shall be the
auditor of the Corporation. He shall likewise appoint the necessary
personnel to assist said representative in the performance of his
duties. The salaries of the auditor and his staff shall be fixed by the
Chairman of the Commission on Audit with the advice of the Board of
Directors and said salaries, and other expenses for the auditor's
office shall be paid by the Corporation. The Auditor of the Corporation
and personnel under him may be removed only by the Chairman of the
Commission on Audit.
The Auditor must be a certified public accountant with at least ten
years experience as certified public accountant. No relative of any
member of the Board of Directors or the Chairman of the Commission on
Audit within the fourth degree of consanguinity and affinity shall be
appointed as such representative.
Section 7. Exemptions from tax and customs duties. —
The Corporation shall be exempt from all national, provincial,
municipal and city taxes and assessments now in force or hereafter
established for a period of five (5) years from the date it commences
operations.
The importation by the Corporation of all such equipment, materials,
devices and other items to be used or necessary for the purposes
authorized under this Decree shall be fully exempt from all customs
duties and all other taxes, assessments and charges related to such
importation.
Section 8. Effectivity. — This Decree shall take
effect upon its approval. The Chairman of the Board, shall within
thirty (30) days from the date of his appointment, call for an
organizational meeting of the Board in order that corporate business
may immediately be commenced. chanroblesvirtualawlibrary
Done in the City of Manila,
this 5th day of September, in the year of Our Lord, nineteen hundred
and seventy-three.
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