Capital Stock Appropriation.
Section 4
SEC. 4. Capital Stock Appropriation.—The PNL shall have a capital stock divided into FIVE MILLION no-par shares to be subscribed, paid for, and voted on, as follows: Two million shares of stock shall be subscribed and paid for the Government of the Republic of the Philippines. Such shares shall have an initial value of Forty Pesos (P40.00) per share and may be redeemed by the PNL and resold only to the National Government at re-issue value to be determined by the Board of Directors and approved by the President of the Philippines. For this purpose, the amount of EIGHTY MILLION PESOS out of the General Fund, not otherwise appropriated, is hereby appropriated for the payment of the two million shares subscribed by the Republic of the Philippines. One million shares of stock shall be subscribed and paid for by the National Development Company at issue value to be determined by the Board of Directors of the PNL. Subject to the approval of the President of the Republic of the Philippines, the remaining two million shares shall be subscribed to by the Government of the Republic of the Philippines or any of its national financial institutions or government-owned or controlled corporations or the private sector to the extent of up to twenty-five (25%) per-centum of the capital stock at issue values to be determined by the Board of Directors of the PNL. Twenty-five percentum of the value of all stock subscribed under paragraphs (b) and (c), this section, shall be paid for at the time of subscription, and the balance thereof shall be subject to call upon a majority vote of the Board of Directors. The voting power pertaining to shares of stock subscribed by the Government of the Republic of the Philippines shall be vested in the President of the Philippines or in such persons as he may designate. The voting power pertaining to shares of stock subscribed by the National Development Company shall be vested in the Chairman of the Board of Directors. The voting power pertaining to shares of stock hereinafter subscribed by or transferred to national financial institutions or government-owned or controlled corporations or to the private sector shall be vested in the Chairman of their respective Board of Directors/Trustees, or in the absence of the Board of Directors/Trustees, in their respective chief executive official. Each share of stock shall represent one vote. Issuances or transfers of shares be allowed only upon offer of such shares for subscription or purchase having first been made to the Government of the Republic of the Philippines. Any agreement, contract, arrangement, scheme or plan that shall transfer ownership and voting rights over such shares such that the majority control by the National Government over the total number of voting shares of the PNL shall be impaired is prohibited.