BATAS PAMBANSA BLG. 390 - AN ACT
FURTHER AMENDING SECTION FOUR OF REPUBLIC ACT NUMBERED FORTY HUNDRED
NINETY-THREE, AS AMENDED, OTHERWISE KNOWN AS THE PRIVATE DEVELOPMENT
BANKS' ACT, WHICH PROVIDES FOR THE ORGANIZATION OF PRIVATE DEVELOPMENT
BANKS |
Section 1. Section four of Republic Act Numbered Forty
hundred and ninety-three, as amended, is further amended to read as
follows: "Sec. 4. A
private development bank shall be organized in the form of a stock
corporation: Provided, That at least seventy percent of the voting
stock subscribed by the private sector shall be owned and held by
citizens of the Philippines, except where a new bank is established as
a result of the consolidation of existing private development banks in
any of which there are foreign-owned voting stocks at the time of
consolidation: Provided, however, That the Monetary Board may with the
approval of the President of the Philippines reduce the required
minimum percentage of the Philippine ownership prescribed herein from
seventy (70%) percent to sixty (60%) percent: Provided, further, That
shares of stock subscribed by the Development Bank of the Philippines
under authority existing prior to the effectivity of Batas Pambansa
Bilang 63 shall be preferred shares entitled to cumulative dividends at
the yearly rate of one percent during the first five years, two percent
during the following five years, and three percent thereafter, shall be
preferred as against common and other preferred stockholders in the
distribution of assets in the event of liquidation, and shall be
entitled to voting privileges: Provided, still further, That such
preferred shares of the bank may at any time be paid off at not less
than par and retired in whole or in part if, in the opinion of the
Monetary Board, the bank has accumulated enough capital strength to
permit retirement of such shares, or sold at not less than par to
private individuals who are citizens of the Philippines, and in the
sale thereof, the qualified registered stockholders shall have the
right of pre-emption within one year from the date of offer in
proportion to their respective holdings, but in the absence of such
buyers, preference shall be given to residents of the province or city
where the development bank is located: Provided, finally, That such
preferred shares may be converted to common shares when sold to private
individuals. At least two-thirds of the members of the board of
directors of the private development bank shall be citizens of the
Philippines: Provided, however, That no appointive or elective public
official, whether full-time or part-time, shall at the time serve as
officer of any private development bank, except in cases where such
service is incident to financial assistance provided by the government
or a government-owned or controlled corporation to the bank: Provided,
further, That in the case of merger or consolidation of private
development banks duly approved by the Monetary Board, the limitation
on the maximum number of corporate directors in a corporation, as
provided for in Sec. 14 of the Corporation Code of the Philippines,
shall not be applied so that membership in the new board may include up
to the total number of directors provided for in the respective
articles of incorporation of the merging or consolidating private
development banks." Sec. 2. All laws, executive orders and rules and regulations, or parts thereof, which are inconsistent with the provisions of this Act are hereby repealed or modified accordingly. Sec. 3. This Act shall take effect upon its approval. Approved: April 14, 1983. (P.B. No. 2383) |