Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 444)
Section 77-A was added, authorizing all government-owned or controlled corporations, including government financial institutions, to invest in preferred shares of the Land Bank and/or accept those shares in exchange for any of their assets or properties under agreed terms.
The Board comprises seven members: the Secretary of Finance as Chairman, the President of the Bank as Vice-Chairman, the Secretary of Agrarian Reform, the Secretary of Labor as ex officio members, and three members elected by the stockholders.
The three members are elected annually by the stockholders. The number depends on the outstanding preferred shares: one member if not exceeding P50 million, two members if exceeding P50 million but not over P100 million, and three members if exceeding P100 million.
The Board must convene as frequently as necessary but at least once every two weeks.
The presence of at least four members constitutes a quorum for the Board meetings.
They receive a per diem of two hundred fifty pesos per Board session attended, but not exceeding two thousand pesos a month.
No, all shares subscribed or owned by the government are not entitled to participate in the income earned by the Bank in any form such as cash or stock dividends.
The Bank may declare such earnings as stock dividends to the government or set aside the earnings as contributed surplus to serve as a fund for guaranteed dividends to preferred shareholders, as determined by the Board of Directors.
They are repealed and/or modified accordingly to conform with the provisions of Presidential Decree No. 444.