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PRESIDENTIAL DECREE NO. 117
PRESIDENTIAL DECREE NO. 117 -
FACILITATING BANK MERGERS OR CONSOLIDATIONS
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WHEREAS, the Government is currently
engaged in instituting vital reforms in the banking system to enable it
to play a more effective role in the socio-economic development of the
country;chanroblesvirtualawlibrary
WHEREAS, as a means of further promoting the financial stability and
capacity of the different banking units, it is imperative that
incentives be provided to encourage bank mergers or consolidations;chanroblesvirtualawlibrary
WHEREAS, to encourage bank mergers or consolidations, Presidential
Decree No. 71 dated November 29, 1972, in amending certain provisions
of the General Banking Act, exempts merged or consolidated banks from
the application of Section 28 of the Corporation Law (Act No. 1459, as
amended), which limits the number of directors in a corporation;chanroblesvirtualawlibrary
WHEREAS, other provisions of the Corporation Law tend to restrict or
impede bank mergers or consolidations;chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers in me vested by the Constitution as
Commander-in-Chief of the Armed Forces of the Philippines, and pursuant
to Proclamation No. 1081, dated September 21, 1972, Proclamation No.
1104 dated January 17, 1973, and General Order No. 1 dated September
22, 1972, as amended, in order to facilitate bank mergers or
consolidations, do hereby order that this Decree be adopted as part of
the law of the land.
Section 1. For the sole purpose of facilitating bank
mergers or consolidations duly approved by the Monetary Board of the
Central Bank of the Philippines, any bank may merge or consolidate with
another bank and the capital stock of a bank may be increased to the
extent necessary to effect such merger or consolidation by the
affirmative vote of the stockholders representing at least a majority
of the subscribed capital stock in a stockholders' meeting called for
the purpose, notwithstanding the provisions of Section 28 ½ and
17 of the Corporation Law (Act No. 1459, as amended).
Section 2. This Decree shall take effect immediately
and shall remain in force for a period of three (3) years from date
hereof.
Done in the City of Manila,
this 29th day of January, in the year of Our Lord, nineteen hundred and
seventy-three.
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