Question & AnswerQ&A (PROCLAMATION NO. 139)
The main purpose of Presidential Decree No. 645 is to authorize the Government Service Insurance System (GSIS) to assist in the construction, development, and/or operation of a new Manila Hotel and to dissolve the existing Manila Hotel Company.
There was a need to develop a new Manila Hotel because the existing hotel, constructed before the war, was no longer adequate to meet international standards or accommodate the increasing influx of tourists, businessmen, and foreign visitors.
The existing Manila Hotel Company is dissolved, liquidated, and abolished. Its net asset value is to be determined for compensating minority stockholders, and its assets are transferred to the Government Service Insurance System.
Minority stockholders shall be adequately compensated based on the net asset value of their shares, determined in accordance with accepted accounting and appraisal principles. GSIS may pay from its own funds if necessary.
The GSIS is authorized to initiate, finance, develop, construct, and operate the new Manila Hotel, either alone or in partnership with other entities. It may also form subsidiary corporations as necessary.
Yes. The GSIS is authorized to cause the partial or full demolition of the present Manila Hotel building and to renovate any portion it chooses to retain, or construct a new building with international standard amenities.
Two parcels of land covered by TCT No. 67398, part of the Manila Hotel premises, are ceded and transferred by the National Government to the GSIS to augment its Retirement Insurance Fund and consolidate ownership for the new hotel development.
No. The GSIS shall not be liable for any capital gains tax or any other taxes as a consequence of liquidating the Manila Hotel Company.
Personnel are entitled to a gratuity of one month's pay for every year of service, up to a maximum of one year's pay, if not otherwise entitled to retirement benefits under existing laws.
Any provisions of law, executive order, rules, and regulations inconsistent with this decree are repealed or modified accordingly.