Presidential Decree No. 444 (PD 444) — Amending Certain Sections of Republic Act Numbered Three Thousand Eight Hundred and Forty-Four, as Amended, Entitled "The Code of Agrarian Reforms in the Philippines"
WHEREAS, certain provisions of Republic Act Numbered Three
Thousand Eight Hundred and Forty-Four were amended by Presidential
Decree Numbered Two Hundred and Fifty-One in order to strengthen and
revitalize the Land Bank of the Philippines and thus provide it with the
means to effectively discharge to its role as the financing arm of the
government for land reform;
WHEREAS, further modifications in Republic Act Numbered
Three Thousand Eight Hundred and Forty-Four are necessary in order to
improve the organizational and administrative structure of the Land Bank
of the Philippines, as well as strengthen its capital base.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers in me vested by the Constitution do
hereby and order:
SECTION 1. A new section is hereby added after section
seventy-seven of Republic Act Numbered Three Thousand Eight Hundred and
Forty-Four, to read as follows:
"SEC. 77-A. The provisions of their respective charters
to the contrary notwithstanding, all government-owned or controlled
corporations, including government financial institutions, are
authorized to invest in preferred shares of the Land Bank and/or accept
those shares in exchange for any of their assets or properties under
such terms and conditions as shall be agreed upon between the
corporations or institutions concerned and the Land Bank."
SEC. 2. Section eighty-six of the said Act is hereby amended
to read as follows:
"SEC. 86. The Board of Directors; Membership; Per Diem.—The
affairs and business of the Bank shall be directed and its property
managed and preserved by a Board of Directors consisting of seven (7)
members to be composed of the Secretary of Finance as Chairman the
President of the Bank as Vice-Chairman, the Secretary of Agrarian Reform
and the Secretary of Labor as ex officio members, and three members to
be elected as hereinafter provided.
"Annually, on the first Tuesday after the first Monday in
December, the stockholders shall meet to take up, among others, the
election of three (3) members of the Board of Directors for the
succeeding year, each shareholder or proxy to be entitled to as many
votes as he may have shares of stock registered in his name on the 31st
day of October last preceding and held by him at the time of the
election. The said three (3) members of the Board of Directors shall be
elected preferably from the holders of the preferred shares depending on
the outstanding amount of said shares, as follows: (A) Not exceeding
P50 million—One member; (B) Exceeding P50 million but not over P100
million—Two members; and (C) Exceeding P100 million—Three members.
"The Board shall convene as frequently as necessary to discharge
its responsibilities properly, but shall meet at least once every two
weeks. The Board may be convoked either by the Chairman or, in his
absence, the Vice-Chairman.
"The presence of four (4) members shall constitute a quorum.
"All decisions of the Board shall require the concurrence of at
least four (4) members.
"The Chairman and the members of the Board shall receive a per
diem of two hundred fifty pesos for each session of the Board attended,
but in no case to exceed two thousand pesos a month."
SEC. 3. Section eighty-two of the same Act is hereby
amended to read as follows:
"SEC. 82. Government Shares. — All shares of stock
in the Bank subscribed or owned by the government shall not be entitled
to participate in the income earned by the Bank from its investments
and other operations, whether in the form of cash or stock dividends or
otherwise. Amounts expended for the administration of the Bank shall not
be deemed as a participation of the government in income: Provided,
That the Bank may declare all its earnings accumulated prior to the
issuance of preferred shares as stock dividends to the government as the
sole shareholder of the Bank or in lieu of dividends, set aside said
earnings as contributed surplus to serve as fund for the guaranteed
dividend to preferred shareholders. The manner of distributing the
surplus shall be determined by the Board of Directors."
Repealing Clause.
SEC. 4. Repealing Clause.—All laws, decrees,
executive orders, rules and regulations, or parts thereof inconsistent
with this Decree are hereby repealed and/or modified accordingly.
Effectivity.
SEC. 5. Effectivity.—This Decree shall take
effect immediately.
Done in the City of Manila, this 4th day of May, in the year
of Our Lord, nineteen hundred and seventy-four.
(Sgd.) FERDINAND E.
MARCOS
President of the Philippines
By the President:
(Sgd.) ALEJANDRO
MELCHOR
Executive Secretary
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
