Preamble
WHEREAS, under Title 17, Chapter III, of Presidential Decree No. 612, otherwise known as the Insurance Code, a domestic stock life insurance company doing business in the Philippines may convert itself into an incorporated mutual life insurer; WHEREAS, a big majority of the stockholders of one such stock life insurance company, recognizing the contribution made by the policyholders to the total assets of the company over the years, and fully believing that the social, economic and political development of the country will be enhanced by the wider ownership of companies, have decided to mutualize under the provisions of the aforementioned Title 17, Chapter III, of the Insurance Code, and thus achieve the widest conceivable distribution of ownership of the company; WHEREAS, under the aforementioned provisions of the Insurance Code, a stock life insurance company becomes mutualized only when outstanding shares of its capital stock are purchased and surrendered for cancellation or retired, and the articles of incorporation are amended to formalize the conversion; WHEREAS, there is need to amend the aforementioned provisions of the Insurance Code in order that the desire of the big majority of the stockholders of a stock life insurance company may not be thwarted by the obstinacy or disapproval of a few of such stockholders; NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines by virtue of the powers vested in me by the Constitution, do hereby decree and order: