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A
collection of Philippine laws, statutes and codes
not
included or cited in the
main indices
of
the Chan Robles Virtual Law Library.
This page features the full text of
Republic Act No. 8523.
REPUBLIC
ACT NO. 8523
AN ACT
STRENGTHENING
THE DEVELOPMENT BANK OF THE PHILIPPINES, AMENDING FOR THE PURPOSE
EXECUTIVE ORDER NO.
81.
Section 1. Sec. 7 of Executive
Order No. 81, entitled "Providing for the 1986 Revised Charter of the
Development
Bank of the Philippines" is hereby amended, as follows:
"Sec. 7. Authorized
capital
stock-par value. — The capital stock of the Bank shall be
Thirty-five
billion pesos (P35,000,000,000.00) to be divided into Three hundred
fifty
million (350,000,000) common shares with par value of P100.00 per
share,
which shall be fully subscribed by the national government. Upon the
effectivity
of this Charter, the National Government shall initially subscribe to
One
hundred twenty-five million (125,000,000) common shares of stock worth
Twelve billion five hundred million pesos (P12,500,000,000.00), Five
billion
pesos (P5,000,000,000.00) of which shall be deemed paid for by the
government
and the balance shall be paid for by the government out of the stock
dividends
to be declared by the Bank from its unappropriated retained earnings: Provided,
That the dividends due the national government pursuant to Republic Act
No. 7656 shall first be paid."
Sec. 2. Sec. 8 of the
same Charter is hereby amended to read as follows:
"Sec. 8. Board
of
Directors;
Composition; Tenure; Per Diems. — The affairs and business of the
Bank
shall be directed and its properties managed and preserved and its
corporate
powers exercised, unless otherwise provided in this Charter, by a Board
of Directors consisting of nine (9) members, to be appointed by the
President
of the Philippines. The term of office of the Chairman, President and
the
members of the Board of Directors shall be for a period of one year or
until such time as their successors are appointed.
"The Chairman of the
Board
shall be appointed by the President of the Philippines from among the
members
of the Board: Provided, That the position of chairman of the Board and
president of the Bank shall not be held by the same person.
"The Chairman shall
preside
at meetings of the Board and of the stockholders.
"The President of the
Bank
shall be vice-chairman of the Board, and as such, shall assist the
Chairman
and act in his stead in case of absence or incapacity. In case of
incapacity
or absence of both the chairman and the Vice-chairman, the Board of
Directors
shall designate a temporary chairman from among its members.
"No person shall be
appointed
director of the Bank unless he is a natural-born citizen of the
Philippines,
not less than thirty-five (35) years of age, of good moral character
and
has attained proficiency, expertise and recognized competence in one or
more of the following: banking, finance, economics, law, agriculture,
business
management or government administration.
"At least four of the
members
of the Board shall come from the private sector.
"Except for the
Chairman
and the President, no officer or employee of the Bank may be appointed,
as a member of the Board of directors of the Bank; nor shall any
director,
officer or employee of any other bank be eligible as a member of the
Board
of Directors of the Bank.
"Unless otherwise set
by
the Board and approved by the President of the Philippines, members of
the Board shall be paid a per diem of One thousand pesos (P1,000.00)
for
each meeting of the Board of Directors actually attended: Provided,
That
the total amount of per diems for every single month shall not exceed
the
sum of Seven thousand five hundred pesos (P7,500.00)."
Sec. 3. Sec. 10 of the
same Charter is hereby amended to read as follows:
"Sec. 10. President
and
Chief Executive Officer. — The Chief Executive Officer of the Bank
shall be the President who shall be elected by the Board of Directors
from
among themselves with the advice and consent of the President of the
Philippines.
No person shall be appointed President of the Bank unless he is at
least
forty (40) years of age, of good moral character and reputation, with
at
least ten (10) years previous experience in banking, and has a reputed
proficiency, expertise and recognized competence in banking or
financial
management.
"The President shall,
among
other powers and duties, execute, carry out and administer the
policies,
measures, orders and resolutions approved by the Board; direct and
supervise
the operation and administration of the Bank; and exercise such other
powers
and perform such other functions or duties as may be directed to
assigned
to him by law or by the Board from time to time.
"Particularly, he
shall
have the power and duty:
"(a) To
sign and
execute
all contracts concluded by the Bank and enter into all necessary
obligations
required or permitted by this Charter, upon proper authorization by the
Board; and sign all notes, securities, certificates and other major
documents
of the Bank;
"(b) To exercise,
as
Chief
Executive Officer of the Bank, the powers of control and supervision
over
decisions and actions of subordinate officers and all other powers that
may be granted by the Board;
"(c) To report to
the
Board
the main facts concerning the operations of the Bank and to recommend
changes
in policies which he may deem advisable;
"(d) To submit an
annual
report to the President of the Philippines on the result of the
operations
of the Bank;
"(e) To recommend
to
the
Board the appointment, promotion, or removal of all officers of the
Bank,
with the rank of at least vice-president or its equivalent;
"(f) To appoint,
promote
or remove employees and officers below the rank of vice president or
its
equivalent: Provided, That promotions, transfers, assignments
or
reassignments of officers and personnel of the Bank are personnel
actions
deemed made in the interest of the service and not disciplinary, any
provision
of the Civil Service Law to the contrary notwithstanding; and
"(g) As required by
circumstances,
to delegate any of his powers, duties or functions to any officer or
director
of the Bank, with the approval of the Board."
Sec. 4. Sec. 11 of the
same Charter is hereby repealed.
Sec. 5. Sec. 12 of
the same Charter is hereby amended to read as follows:
"Sec. 12. Legal
matters
and cases. — The Bank shall have its own Legal Department, the head
of which shall be appointed by the Board of Directors of the Bank upon
recommendation of the President of the Bank.
"In appropriate
cases,
the
Bank may avail also of the legal services of any government legal
office
authorized to render such services to government-owned or -controlled
corporations.
"The Bank may, upon
the
recommendation of its Chief Legal Counsel, deputize any member of its
legal
staff to act as special sheriff in foreclosure cases, in the sale or
attachment
of the debtor's properties, and in the enforcement of court writs and
processes
in cases involving the Bank. The special sheriff of the Bank shall make
a report to the proper court after any action taken by him, which shall
treat such action as if it were an act of its own sheriffs in all
respects."
Sec. 6. Sec. 13 of the
same Charter is hereby amended to read as follows:
"Sec. 13. Other
officers
and employees. — The Board of Directors shall provide for an
organization
and staff of officers and employees of the Bank and upon recommendation
of the President of the Bank, fix their remunerations and other
emoluments.
All positions in the Bank shall be governed by the compensation,
position
classification system and qualification standards approved by the Board
of Directors based on a comprehensive job analysis of actual duties and
responsibilities. The compensation plan shall be comparable with the
prevailing
compensation plans in the private sector and shall be subject to
periodic
review by the Board of Directors once every two (2) years, without
prejudice
to yearly merit or increases based on the Bank's productivity and
profitability. The Bank shall, therefore, be exempt from existing laws,
rules, and regulations on compensation, position classification and
qualification
standard. The Bank shall however, endeavor to make its system conform
as
possible with the principles under Compensation and Position
Classification
Act of 1989 (Republic Act No. 6758, as amended).
"No officer or
employee
of the Bank subject to Civil Service Law shall be dismissed except for
cause as provided by law."
Sec. 7. Separability clause.
— In the event that any provision of this Act or the applicability of
such
provision to any person or circumstance is declared invalid, the
remainder
of the Act or the application of said provision to other persons or
circumstances
shall not be affected by such declaration.
Sec. 8. Repealing
clause. — All acts, executive orders, administrative orders,
proclamations,
rules and regulations or parts thereof inconsistent with any of the
provisions
of this Act are hereby repealed or modified accordingly.
Sec. 9. Effectivity.
— This Act shall take effect fifteen (15) days following the completion
of its publication in the Official Gazette or in two (2) national
newspapers
of general circulation.
Approved:
February 14, 1998
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