QuestionsQuestions (PRESIDENTIAL DECREE NO. 1799)
PD 1799 amends further Section 6 of PD 902-A by clarifying and expanding the Securities and Exchange Commission’s (SEC) powers—particularly on receivers/rehabilitation receivers and subpoena/compelled examination—while preventing overlap with other regulators and respecting bank deposit confidentiality.
PD 1799 amends Section 6 of PD 902-A, specifically subparagraphs (c), (d) (by reference), and (h) of Section 6.
It allows the SEC to appoint one or more receivers of the property subject of the action pending before it, following the Rules of Court in other cases when necessary to preserve parties’ rights and/or protect the investing public and creditors.
The SEC may appoint a rehabilitation receiver of corporations, partnerships, or other associations not supervised or regulated by other government agencies.
In addition to the powers of a regular receiver under the Rules of Court, the rehabilitation receiver is given functions and powers as provided in the succeeding paragraph (the text indicates these powers are set out in the referenced succeeding paragraph).
It provides that the management committee, rehabilitation receiver, board, or body may overrule or revoke actions of the previous management and board of directors, despite any contrary provision in law, the articles of incorporation, or by-laws.
It states that the management committee/receiver is not subject to any action, claim, or demand for acts done or omitted in good faith in the exercise of its functions or in connection with its conferred powers.
It authorizes the SEC to issue subpoena duces tecum and summon witnesses to appear in SEC proceedings.
In appropriate cases, it allows the SEC to order the examination, search and seizure of documents, papers, files, records, tax returns, and books of accounts of any entity or person under investigation as necessary for proper case disposition.
It emphasizes government policy to encourage and preserve confidentiality of deposits in banking institutions, and limits SEC powers so they do not impinge on that policy.
To prevent duplicative or conflicting regulatory authority—particularly in matters where other agencies already supervise or regulate the entity—so that SEC intervention via receivership is properly confined.
For subpoena and related investigative orders (including examination, search and seizure of records), it states these powers apply notwithstanding any law to the contrary, but still within the overall policy concern not to violate bank deposit confidentiality.
They preserve parties’ rights and protect the investing public and creditors by taking control (via court-recognized functions and enhanced powers) over the entity’s property and management during proceedings.
It provides that all laws, decrees, rules, and regulations inconsistent with PD 1799 are repealed or modified accordingly.
It takes effect immediately, as stated in Section 3 of the decree.