QuestionsQuestions (PRESIDENTIAL DECREE NO. 645)
PD 645 authorizes the Government Service Insurance System (GSIS) to assist in the construction, development, and/or operation of a new Manila Hotel and dissolves/liquidates the existing Manila Hotel Company.
It is dissolved, liquidated, and abolished.
It provides that the net asset value (NAV) of the shares be determined using generally accepted accounting and appraisal principles, with the land owned by the Manila Hotel Company appraised at fair market value; this NAV becomes the basis for compensating minority stockholders.
PD 645 authorizes GSIS to pay the minority stockholders from its own funds.
PD 645 states that the records, properties, equipment, assets, rights, and choses in action of the Manila Hotel Company are transferred and vested in GSIS as a return of its investments.
Yes. PD 645 provides that GSIS shall not be liable for capital gains tax or any other taxes as a consequence of the liquidation of the Manila Hotel Company.
It grants a gratuity of one month’s pay for every year of service, capped at one year’s pay, if the personnel are not otherwise entitled to retire under existing laws; payment may be by the Manila Hotel Corporation or GSIS, with GSIS treating it as part of its investments on transferred land.
GSIS is authorized to initiate and pursue development, construction, and operation of a new Manila Hotel either singly or in partnership with any entity; GSIS may also form partially- or wholly-owned subsidiaries.
GSIS (directly or through subsidiaries) is authorized to cause partial or full demolition and to renovate any portion of the old building it chooses to retain, and/or construct a new building with internationally comparable facilities and amenities.
GSIS is authorized to negotiate and contract for demolition/removal/disposal, construction/renovation, procurement of materials/supplies/equipment/machineries, and to contract with architects, engineers, and necessary firms or persons.
They are parcels located in Manila covered by TCT No. 67398 (described in the decree). They are conveyed, transferred, and ceded to GSIS; the Register of Deeds must immediately transfer the title to GSIS.
The transfer is as additional contribution of the National Government to augment the actuarial solvency of the GSIS-administered Retirement Insurance Fund, in consideration of the financial and other supports extended by GSIS for demolition and for construction/development/operation of a new hotel meeting international standards.
It notes that IMF/IBRD had selected Manila for their annual conference in September 1976 and that it is a matter of national priority to complete the new Manila Hotel by that time.
It repeals or modifies any provision of law, executive order, rules, and regulations inconsistent with PD 645.
It is a tax exemption specifically tied to the liquidation transaction; students can analyze it as a legislative directive affecting tax liability arising from the dissolution/liquidation.
“All concerned” are directed to implement the decree, meaning the relevant agencies and entities involved in dissolution, liquidation, title transfer, contracting, demolition, and construction/operation should comply with its mandates.