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PRESIDENTIAL DECREE NO. 934
PRESIDENTIAL DECREE NO. 934 -
AMENDING FURTHER Section TWELVE OF REPUBLIC ACT NUMBERED SEVENTEEN
HUNDRED AND EIGHTY-NINE, AS AMENDED, OTHERWISE KNOWN AS THE REPARATIONS
LAW
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WHEREAS,
under the present provisions of the Reparations Laws (Republic Act No.
1789, as amended), the acquisition and use of reparations goods is
limited to Filipino citizens or to entities at least seventy per centum
of the capital stock outstanding and entitled to vote is owned and held
by the Filipino citizens;chanroblesvirtualawlibrary
WHEREAS, certain Filipino owned vessels thus acquired have passed their
economic lives resulting in high operating costs and low operating
efficiency and in turn adversely affecting the viability of the
Philippine merchant fleet;chanroblesvirtualawlibrary
WHEREAS, the said vessels may be resold in the world market at prices
favorable to the owners, in particular, and the industry in general;chanroblesvirtualawlibrary
WHEREAS, the sale of those vessels at the said advantageous price shall
generate substantial funds needed for the acquisition of more modern
and efficient replacement vessels in line with the fleet modernization
program of the Government;chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution, do hereby
decree and order, and make as part of the law of the land the further
amendment of Section 12 of Republic Act No. 1789, as amended as follows:cralaw:red
Section 1. The fifth paragraph of Section 12 of
Republic Act No. 1789, as amended, is hereby amended to read as
follows: chanroblesvirtualawlibrary
"Sec. 12. .
"The contract of sale shall bear the conditions that no capital goods
thus acquired shall be resold, leased or in any other manner disposed
of except to Filipino citizens or to entities wholly owned by Filipino
citizens who shall continue the utilization thereof in the projects for
which the goods were originally intended or in similar projects
included in the economic development program of a similar priority,
subject, however, to the further condition that groups, associations
and corporations which are recipient of such goods shall not permit any
subsequent change in ownership or control as shall at any time
thereafter change the control or ownership wholly held therein change
in therein by Filipino citizens: Provided, however, that, subject to
the approval of the President of the Philippines on a case to case
basis upon recommendation of the National Economic and Development
Authority, recipient corporations or associations which have fully paid
for such goods may allow foreign equity participation therein when the
same is necessary for further development and expansion, on condition
that the corporation or association shall maintain Filipino ownership
of at least seventy per centum of the capital stock outstanding and
entitled to vote, and that seventy per centum of the member of the
Board of Directors shall be Filipino citizens; Provided, further, that
the corporation or association in which such foreign investment has
been made shall report the same to the Board of Investments within
thirty days after the investment is received by it, and investments
made in the form of foreign exchange or other assets actually
transferred to the Philippine shall also be registered with the Central
Bank of the Philippines pursuant to Section 2 (2) of Republic Act No.
5455, as amended. It shall further contain a provision that any
transfer of ownership, whether by virtue of a private contract or
through court proceedings shall be to Filipino citizens or to entities
wholly owned by Filipino citizens: Provided, however, that, subject to
the approval of the President of the Philippines on a case to case
basis upon recommendation of the National Economic and Development
Authority, transfer of ownership of such capital goods which have
already been fully paid for may be made to corporations or associations
organized and existing under the laws of the Philippines of which at
least seventy per centum of the capital stock outstanding and entitled
to vote is owned and held by Filipino citizens, and at least seventy
per centum of the Board of Directors are Filipino citizens, who shall
begin utilizing them in such projects as the National Economic and
Development Authority shall determine within one year from notice of
the Authority's decision; Provided, finally, that, in case the capital
goods consist of vessels which have already been fully paid for,
transfer of ownership thereof to non-Filipino citizens or entities may,
subject to approval by the Maritime Industry Authority, be allowed
provided that the net proceeds therefrom shall be reinvested in the
acquisition of more modern vessels."
Section 2. All provisions of existing laws, decrees,
orders, rules and regulations, or parts thereof, in conflict or
inconsistent herewith, are hereby repealed or modified
accordingly. chanroblesvirtualawlibrary
Section 3. This Decree shall take effect immediately.
Done in the City of Manila,
this 14th day of May, in the year of Our Lord, nineteen hundred and
seventy-six.
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