WHEREAS, in
line with the government's policy of encouraging investments, both
domestic and foreign, and more active public participation in the
affairs of private corporations and enterprises through which desirable
activities may be pursued for the promotion of economic development;
and, to promote a wider and more meaningful equitable distribution of
wealth, there is a need for an agency of the government to be invested
with ample powers to protect such investment and the public;chanroblesvirtualawlibrary
WHEREAS, to achieve these national objectives, it is necessary to
reorganize and restructure the Securities and Exchange Commission to
make it a more potent, responsive and effective arm of the government
to help in the implementation of these programs and to play a more
active role in national-building;chanroblesvirtualawlibrary
WHEREAS, it is necessary and desirable to professionalize such agency
by investing it with adequate powers so that it could avail itself of
the services of highly technical and qualified men in the government
service;chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of
the Philippines, by virtue of the powers vested in me by the
Constitution, do hereby order and decree that:cralaw:red
Section 1. The administrative supervision of the
Securities and Exchange Commission is hereby transferred from the
Department of Trade and shall hereafter be under the direct general
supervision of the President.
Section 2. That the Commission shall be a collegial
body composed of a Chairman and two (2) Associate Commissioners who
shall be appointed by the President and the tenure of the office of
each member shall be seven (7) years: Provided, however, That the
Chairman and the Members of the Commission first appointed by the
President shall serve for a period of seven (7) years, five (5) years
and three (3) years, as fixed in their respective appointments:
Provided, further, That upon the expiration of his term, a Member shall
serve as such until his successor shall have been appointed and
qualified: and Provided, Finally, that no vacancy shall be filled
except for the unexpired portion of the term. The Chairman shall
receive an annual salary of Fifty Thousand (P50,000.00) Pesos and a
monthly allowance of Two Thousand (P2,000.00) Pesos and each Member
shall receive an annual salary of Forty-Two Thousand Five Hundred
(P42,500.00) Pesos and a monthly commutable allowance of One Thousand
Five Hundred (P1,500.00) Pesos.
The Commission shall meet as often as may be necessary on such day or
days as the Chairman may fix. The notice of the meeting shall be given
to all members of the Commission and the presence of at least two (2)
shall constitute a quorum. In the absence of the Chairman, the more
senior associate commissioner shall act as presiding officer of the
meeting.
The Chairman shall have the general executive control, direction and
supervision of the work and operation of the Commission and of its
members, bodies, boards, personnel and all of its administrative
business.
There shall be a Secretary of the Commission, under the control and
direction of the Chairman, who shall be in charge of all the
administrative business of the Commission and shall perform such other
duties and functions as may be assigned to him. He shall be the
recorder and official reporter of the proceedings of the Commission and
shall have authority to administer oath in all matters coming under the
jurisdiction of the Commission. He shall be the custodian of all
records, profiles, reports, minutes and other documents and papers
filed with the Commission or entrusted to his care and shall be
responsible therefor to the Commission.
There shall be an Executive Director of the Commission who shall be
responsible for the effective implementation of the policies, rules and
standards promulgated by the Commission, to coordinate and supervise
the activities of the different operating units; to report to the
Chairman the operations of such units; to report to the Chairman the
operations of such units; and to perform such functions as may be
assigned to him by the Chairman and/or by Commission. The position of
the Executive Director is hereby declared primarily confidential in
nature.
Section 3. The Commission shall have absolute
jurisdiction, supervision and control over all corporations,
partnerships or associations, who are the grantees of primary franchise
and/or a license or permit issued by the government to operate in the
Philippines; and in the exercise of its authority, it shall have the
power to enlist thed and support of any and all enforcement agencies of
the government, civil or military.
Section 4. The Commission shall reorganize and
restructure the present staff and personnel of the agency. The proposed
staffing pattern of the Commission with the corresponding salary scale,
attached as Annex "A" is hereby approved: Provided, That except as to
the technical staff and such other positions as the Commission, with
the approval of the President, may declare to be highly technical,
policy-determining or primarily confidential, all positions in the
Commission are subject to the Civil Service Law and Rules. chanroblesvirtualawlibrary
Section 5. In addition to the regulatory and
adjudicative functions of the Securities and Exchange Commission over
corporations, partnerships and other forms of associations registered
with it as expressly granted under existing laws and decrees, it shall
have original and exclusive jurisdiction to hear and decide cases
involving.
a) Devices or schemes employed by or any acts, of the
board of directors, business associates, its officers or partnership,
amounting to fraud and misrepresentation which may be detrimental to
the interest of the public and/or of the stockholder, partners, members
of associations or organizations registered with the Commission;chanroblesvirtualawlibrary
b) Controversies arising out of intra-corporate or
partnership relations, between and among stockholders, members, or
associates; between any or all of them and the corporation, partnership
or association of which they are stockholders, members or associates,
respectively; and between such corporation, partnership or association
and the state insofar as it concerns their individual franchise or
right to exist as such entity;chanroblesvirtualawlibrary
c) Controversies in the election or appointments of
directors, trustees, officers or managers of such corporations,
partnerships or associations.
Section 6. In order to effectively exercise such
jurisdiction, the Commission shall possess the following powers:cralaw:red
a) To issue preliminary or permanent injunctions,
whether prohibitory or mandatory, in all cases in which it has
jurisdiction, and in which cases the pertinent provisions of the Rules
of Court shall apply;chanroblesvirtualawlibrary
b) To punish for contempt of the Commission, both
direct and indirect, in accordance with the pertinent provisions of,
and penalties prescribed by, the Rules of Court;chanroblesvirtualawlibrary
c) To compel the officers of any corporation or
association registered by it to call meetings of stockholders or
members thereof under its supervision; chanroblesvirtualawlibrary
d) To pass upon the validity of the issuance and use
of proxies and voting trust agreements for absent stockholders or
members;chanroblesvirtualawlibrary
e) To issue subpoena duces tecum and summon witnesses
to appear in any proceedings of the Commission and in appropriate cases
order search and seizure or cause the search and seizure of all
documents, papers, files and records as well as books of accounts of
any entity or person under investigation as may be necessary for the
proper disposition of the cases before it;chanroblesvirtualawlibrary
f) To impose fines and/or penalties for violation of
this Decree or any other laws being implemented by the Commission, the
pertinent rules and regulations, its orders, decisions and/or rulings;chanroblesvirtualawlibrary
g) To authorize the establishment and operation of
stock exchanges, commodity exchanges and such other similar
organization and to supervise and regulate the same; including the
authority to determine their number, size and location, in the light of
national or regional requirements for such activities with the view to
promote, conserve or rationalize investment;chanroblesvirtualawlibrary
h) To pass upon, refuse or deny, after consultation
with the Board of Investments, Department of Industry, National
Economic and Development Authority or any other appropriate government
agency, the application for registration of any corporation,
partnership or association or any form of organization falling within
its jurisdiction, if their establishment, organization or operation
will not be consistent with the declared national economic policies;chanroblesvirtualawlibrary
i) To suspend, or revoke, after proper notice and
hearing, the franchise or certificate of registration of corporations,
partnerships or associations, upon any of the grounds provided by law,
including the following: chanroblesvirtualawlibrary
1. Fraud in procuring its certificate of registration;chanroblesvirtualawlibrary
2. Serious misrepresentation as to what the
corporation can do or is doing to the great prejudice of or damage to
the general public;chanroblesvirtualawlibrary
3. Refusal to comply or defiance of any lawful order
of the Commission restraining commission of acts which would amount to
a grave violation of its franchise;chanroblesvirtualawlibrary
4. Continuous inoperation for a period of at least
five (5) years;chanroblesvirtualawlibrary
5. Failure to file by-laws within the required period;chanroblesvirtualawlibrary
6. Failure to file required reports in appropriate
forms as determined by the Commission within the prescribed period;chanroblesvirtualawlibrary
j) To exercise such other powers as implied,
necessary or incidental to the carrying out the express powers granted
to the Commission or to achieve the objectives and purposes of this
Decree.
In the exercise of the foregoing authority and jurisdiction of the
Commission, hearings shall be conducted by the Commission or by a
Commissioner or by such other bodies, boards, committees and/or any
officer as may be created or designated by the Commission for the
purpose. The decision, ruling or order of any such Commissioner,
bodies, boards, committees and/or officer may be appealed to the
Commission sitting en banc within thirty (30) days after receipt by the
appellant of notice of such decision, ruling or order. The Commission
shall promulgate rules of procedures to govern the proceedings,
hearings and appeals of cases falling within its jurisdiction. chanroblesvirtualawlibrary
The aggrieved party may appeal the order, decision or ruling of the
Commission sitting en banc to the Supreme Court by petition for
petition for review in accordance with the pertinent provisions of the
Rules of Court.
Section 7. The Commission is authorized to recommend
to the President the revision, alteration, amendment or adjustment of
the charges and fees, which by law, it is authorized to collect.
Section 8. With the approval of the President, the
Commission is further authorized to create additional positions as it
may deem necessary to carry out the provisions and intents of this
Decree.
Section 9. So much amount as may be needed to
implement the provisions of this Decree taken from the income of the
Commission not to exceed twenty-five (25%) per cent thereof and any
unexpended balance in the current appropriation is hereby authorized to
be appropriated.
Section 10. When the exigency of the service so
requires and with the approval of the President, funds may be set aside
from the appropriation provided for the Commission and/or from the fees
collected under existing laws, decrees, rules and regulations to defray
expenses to be incurred by the Commission.
Section 11. The Commission shall submit an annual
report to the President of the Philippines not later than January 31 of
each year with such recommendations as may be necessary.
Section 12. All laws, executive orders, decrees,
rules and regulations or parts thereof, contrary to or inconsistent
with the provision of this Decree are hereby repealed, amended or
modified accordingly.
This decree shall take effect immediately.
Done in the City of Manila,
this 11th day of March, in the year of Our Lord, nineteen hundred and
seventy-six.
ANNEX "A"
REVISED STAFFING PATTERN
SECURITIES AND EXCHANGE COMMISSION
One Chairman, Securities and Exchange
Commission P50.000 p.a.
Two members, Securities and Exchange
Commission @ P42,500 p.a 85,000
p.a.
One SEC executive director (Confidential) 27,600 p.a.
One Auditor 27,600 p.a.
One director, corporate and legal Dept. 24,000 p.a.
One director, brokers and exchanges Dept. 24,000 p.a.
One director, examiner and appraisers Dept. 24,000
p.a.
One director, investments and research Dept. 24,000
p.a.
One director, money market operations Dept.
24,000 p.a.
One chief administrative and finance Dept. 24,000
p.a.
One Secretary to the Commission 24,000 p.a.
One assistant SEC executive director 20,580 p.a.
One assistant auditor 19,800 p.a.
Seventeen supervising securities exchange
special @ P19,584 p.a. 332,928
p.a.
One special assistant on public information 16,860
p.a.
Seventeen senior securities exchange
special @ P15,264 p.a. 259,488
p.a.
One budget and fiscal planner 15,264 p.a.
One chief accountant 15,264 p.a.
One assistant secretary to the Commission 15,264 p.a.
One chief personnel officer 14,532 p.a.
One senior audit examiner 14,400 p.a.
Twenty-five securities exchange
specialist @ P13,824 p.a. 345,600
p.a.
One private secretary II (Confidential) 13,152 p.a.
Thirty-four securities exchange analyst II
@ P12,516 p.a. 425,544 p.a.
One administrative officer 12,516 p.a.
One clinic physician 12,516 p.a.
One records officer 12,516 p.a.
Thirty-four securities exchange analyst I
@ P11,328 p.a. 385,152 p.a.
Two private secretary I
@ P10,776 p.a. (Confidential)
21,552 p.a.
One budget officer 10,260 p.a.
One training officer 10,260 p.a.
One supply and property officer 10,260 p.a.
One administrative assistant 10,260 p.a.
One EDP programmer 9,756 p.a.
One audit examiner 9,600 p.a.
Seventeen securities exchange researcher
@ P7,236 p.a. 123,012 p.a.
One dentist 9,288 p.a.
One cashier 8,832 p.a.
One disbursing and collecting officer 7,236 p.a.
One personal assistant 7,236 p.a.
One records assistant 7,236 p.a.
One liaison officer 7,236 p.a.
One budget examiner 6,888 p.a.
One head data transcriber 6,888 p.a.
One bookkeeper 6,888 p.a.
Three stenographic reporter
@ P6,888 p.a. 20,662 p.a.
Eight secretaries @ P6,888 p.a. 55,104 p.a.
One audit clerk 6,000 p.a.
Eight stenographers @ P5,928 p.a. 47,424 p.a.
Four supervising clerk @ P5,928 p.a. 23,712 p.a.
Eight senior clerk @ P5,640 p.a. 45,120 p.a.
Two personnel clerk @ P5,640 p.a. 11,280 p.a.
Two accounting clerk @ P5,640 p.a. 11,280 p.a.
One librarian 5,640 p.a.
One supply and property clerk 5,640 p.a.
Nine data transcriber @ P5,640 p.a. 50,760 p.a.
Two statisticalde @ P4,632 p.a. 9,264 p.a.
Three cash clerk @ P4,632 p.a. 13,896 p.a.
Forty clerk @ P4,632 p.a. 185,280 p.a.
One duplicating equipment operator 4,632 p.a.
Two security guard @ P4,632 p.a. 9,264 p.a.
One driver 4,632 p.a.
One photographer 4,404 p.a.
One illustrator 4,404 p.a.
Seven messenger @ P3,984 p.a. 27,888 p.a.
Six janitor @ P3,984 p.a. 23,904 p.a.
Seven laborer @ P3,984 p.a. 27,888 p.a.
Total 3,160,344 p.a.
Total number of positions 303 positions
|