INCREASING THE MAXIMUM NUMBER OF DIRECTORS OF COMMERCIAL BANKS BY AMENDING REPUBLIC ACT NO. 337, AS AMENDED.

• Number: Presidential Decree No. 515
• Sections: 3

Preamble

WHEREAS, the Central Bank has initiated a program increasing

the minimum capitalization of commercial banks;

WHEREAS, increased capitalization may be achieved, among

other things, through the infusion of capital from investors other than

existing stockholders, including foreign banks;

WHEREAS, in order to allow new stockholders contributing a

substantial amount to the equity of commercial banks representation in

the Board without displacing existing directors, there is a need to

increase the maximum number of directors for commercial banks;

WHEREAS, the Investments Incentives Act, in order to

accomplish the desired objectives thereof, permits enterprises

registered thereunder to fix the number of their directors at any number

not in excess of fifteen;

WHEREAS, in order to promote bank mergers and

consolidations, membership in the board of directors of the resulting

bank may include up to the total number of directors provided for in the

respective articles of incorporation of the merging or consolidating

banks;

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

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

do hereby decree and order that —

Section 1

SECTION 1. Republic Act Numbered Three Hundred Thirty-Seven

is hereby amended by adding the following section after section twenty

thereof, which shall read as follows:

"SECTION 20-A. Any provision of law to the contrary

notwithstanding, commercial banking corporations may fix the number of

their directors at any number not less than five (5) nor in excess of

fifteen (15).

Section 2

SEC. 2. This Decree shall take effect immediately.

Done in the City of Manila, this 19th day of July, 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