FACILITATING THE MERGER OR CONSOLIDATION OF PUBLIC UTILITIES IN TELECOMMUNICATIONS.

• Number: Presidential Decree No. 1756
• Sections: 4

Preamble

WHEREAS, the Government is currently engaged in instituting

vital reforms in the telecommunications industry to enable the system to play a

more effective role in the socio-economic development of the country;

WHEREAS, it is necessary that incentives be

provided to encourage the merger or consolidation of public utilities,

especially in the field of telecommunications, as a means of further promoting

the financial stability and capacity of the public utility operators;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the

Philippines, by virtue of the powers vested in me by the Constitution, do hereby

order and decree:

Section 1

SECTION 1. For the purpose of facilitating mergers or

consolidations of public utilities engaged in the operation of

telecommunications facilities, any such public utility corporation may be

increased to the extent necessary to effect such merger or consolidation by the

affirmative vote of the stockholders representing at least a majority of the

subscribed capital stock in a stockholders' meeting called for that purpose,

notwithstanding procisions of existing laws to the contrary.

Section 2

SEC. 2. The proceeds from the sale of stocks and/or the

consolidation of assets, resulting from any corporate merger of consolidation,

upon the approval of the President, shall be free from all taxes on capital

gains and income tax, notwithstanding provisions of existing laws to the

contrary.

Section 3

SEC. 3. This Decree shall take effect immediately and shall

remain in force for a period of five (5) years from date hereof.

Done in the City of Manila, this 1st day of January, in the year of Our Lord,

nineteen hundred and eighty-one.

(Sgd.) FERDINAND E. MARCOS

President of the

Philippines

By the President:

(Sgd.) JOAQUIN T. VENUS, JR.

Deputy Presidential Executive Assistant

Vol. 25, Vital Documents,

Presidential Decree 1980-1981