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PHILIPPINE LAWS, STATUTES & CODES
A collection of Philippine laws, statutes and codes not included or cited in the main indices of the Chan Robles Virtual Law Library.
Republic Acts :
REPUBLIC ACTS
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REPUBLIC ACT NO. 7656 - AN ACT
REQUIRING GOVERNMENT-OWNED OR CONTROLLED CORPORATIONS TO DECLARE
DIVIDENDS UNDER CERTAIN CONDITIONS TO THE NATIONAL GOVERNMENT, AND FOR
OTHER PURPOSES Section 1. Declaration of Policy. — It is hereby declared the policy of the State that in order for the National Government to realize additional revenues, government-owned or -controlled corporations, without impairing their viability and the purposes for which they have been established, shall share a substantial amount of their net earnings to the National Government. Sec. 2. Definition of Terms. — As used in this
Act, the term: Sec. 3. Dividends. — All government-owned or -controlled corporations shall declare and remit at least fifty percent (50%) of their annual net earnings as cash, stock or property dividends to the National Government. This section shall also apply to those government-owned or -controlled corporations whose profit distribution is provided by their respective charters or by special law, but shall exclude those enumerated in Sec. 4 hereof: provided, that such dividends accruing to the National Government shall be received by the National Treasury and recorded as income of the General Fund. Sec. 4. Exemptions. — The provisions of the preceding section notwithstanding, government-owned or -controlled corporations created or organized by law to administer real or personal properties or funds held in trust for the use and the benefit of its members, shall not be covered by this Act such as, but not limited to: the Government Service Insurance System, the Home Development Mutual Fund, the Employees Compensation Commission, the Overseas Workers Welfare Administration, and the Philippine Medical Care Commission. Sec. 5. Flexible Clause. — In the interest of national economy and general welfare, the percentage of annual net earnings that shall be declared by a government-owned or -controlled corporation may be adjusted by the President of the Philippines upon recommendation by the Secretary of Finance. Sec. 6. Penalty. — Any member of the governing board, the chief executive officer and the chief financial officer of a government-owned or -controlled corporation who violates any provision of this Act or any of the implementing rules and regulations promulgated thereunder, in addition to other sanctions provided by law, upon conviction thereof, shall suffer the penalty of a fine not less than Ten thousand pesos (P10,000.00) but not more than Fifty thousand pesos (P50,000.00) or imprisonment of not less than one (1) year but not more than three (3) years, or both, at the discretion of the court. Sec. 7. Implementing Rules and Regulations. — The Department of Finance shall formulate and issue the necessary rules and regulations within sixty (60) days from the effectivity of this Act and shall exercise primary jurisdiction in its implementation. Sec. 8. Separability Clause. — If for any reason or reasons any part of the provision of this Act shall be deemed to be unconstitutional or invalid, the other parts or provisions hereof which are not affected thereby shall continue to be in force and effect. Sec. 9. Repealing Clause. — Executive Order No.
399, dated April 29, 1990, and other laws, decrees, executive orders,
letters of instruction, rules and regulations, and portions thereof
inconsistent with the provisions of this Act are hereby repealed or
modified accordingly. Approved: November 9,
1993 |
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