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Batas Pambansa Bilang 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.
chan
robles
virtual law library
BATAS
PAMBANSA BILANG 390AN
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.chan
robles
virtual law library
chan
robles virtual law librarySection
1. Section four of Republic
Act Numbered Forty hundred and ninety-three, as amended, is further
amended
to read as follows:chanroblesvirtuallawlibrary
"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 Section 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.chanrobles virtual law library
Sec.
3. This Act shall take
effect upon its approval.chanrobles virtual law library
Approved:
April 14, 1983
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