REPUBLIC ACT NO. 7798 - AN
ACT AMENDING Sec. 25 OF BATAS PAMBANSA BLG. 232, OTHERWISE KNOWN AS
THE "EDUCATION ACT OF 1982"
Section 1. Sec. 25, Chapter 3 of the Education Act of 1982
is hereby amended to read as follows:
"Sec. 25. Establishment of Schools. — All schools
shall be established in accordance with law. The establishment of
new national schools and the conversion of existing schools from
elementary to national secondary schools or from secondary to national
secondary or tertiary schools shall be by law: provided, that any
private school proposed to be established must incorporate as either a
non-stock or a stock educational corporation in accordance with the
provisions of the Corporation Code of the Philippines. This
requirement to incorporate may be waived in the case of
family-administered pre-school institutions.
"Provided, that the minimum paid-up capital for stock educational
institutions for those engaged in elementary education shall not be
less than One million pesos (P1,000,000.00); not less than Two million
five hundred thousand pesos (P2,500,000.00) for those offering both
elementary and secondary education; and not less than Five million
pesos (P5,000,000.00) for those offering elementary, secondary and
tertiary and postgraduate courses, except existing educational
institutions organized as stock corporations which may retain their
original capitalization.
"Existing educational institutions organized as stock corporations may
automatically apply for renewal of their corporate existence when the
original period is about to expire.
"Provided, finally, that stock educational institutions may be allowed
only in capital-intensive courses of study as may be determined by the
Department of Education, Culture and Sports, the Commission on Higher
Education, and the Department of Science and Technology, as the case
may be.
"Any school that is established or organized as a stock corporation
shall be ineligible for any form of government subsidy, incentive or
assistance, except those given to individual students and teachers in
the form of scholarships, student loans or other forms of subsidy as
already mandated under existing laws. Government assistance to
non-stock schools for educational programs shall be used exclusively
for that purpose.
"Taxes shall not be due on donations to educational corporations."
Sec. 2. The Department of Education, Culture and
Sports and the Commission on Higher Education, as the case may be, are
hereby authorized to formulate within sixty (60) days from the approval
of this Act implementing rules and guidelines governing the
establishment and operation of stock educational corporations that may
be organized pursuant to this Act with particular emphasis on meeting
the objectives of quality education and academic excellence provided
for by the provisions of Batas Pambansa Blg. 232, otherwise known as
the Education Act of 1982.
Sec. 3. All laws, rules and ordinances
inconsistent with this Act are hereby repealed or modified accordingly.
Sec. 4. This Act shall take effect fifteen (15)
days after its publication in at least two (2) national newspapers of
general circulation.
Approved: August 25, 1994
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