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PRESIDENTIAL DECREE NO. 270
PRESIDENTIAL DECREE NO. 270 -
REQUIRING THE DECLARATION AND DISTRIBUTION OF EXCESS SURPLUS PROFITS AS
DIVIDENDS TO STOCKHOLDERS
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WHEREAS,
many corporation which have surplus profits even in excess of 100% of
the paid up capital stock do not declare the same as dividends to
stockholders;chanroblesvirtualawlibrary
WHEREAS, this failure to declare dividends when corporations are able
to do so stultifies investors' interest in channelling their investible
funds in equities even of productive industries and enterprises and
thereby retards the economic growth and development of the
country; chanroblesvirtualawlibrary
WHEREAS, a more favorable and healthier climate for investments would
be promoted if stockholders are able to share in the profits of
corporations whenever possible, the same not being subject to the
absolute or arbitrary action of management on the matter;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, do hereby order and decree as part of the law of the
land the following: chanroblesvirtualawlibrary
1. All corporations which have surplus profits in
excess of necessary requirements for capital expansion and reserves
shall declare and distribute the excess profits as dividends to
stockholders, pursuant to such rules and regulations as the Securities
and Exchange Commission, which is hereby authorized to promulgate, may
issue with the approval of the Security of Trade.
2. This Decree shall take effect immediately.
Done in the City of Manila,
this 7th day of August, in the year of Our Lord, nineteen hundred and
seventy-three.
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