Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 2012)
The short title of Presidential Decree No. 2012 is the "Charter of the Assets Management Company."
The principal purpose of the Company is to act as a vehicle of the National Government to handle, administer, manage, or otherwise dispose of the non-performing accounts and other assets of the Development Bank of the Philippines (DBP) and other government financial institutions transferred to it.
The Assets Management Company shall have a corporate existence of twenty-five (25) years from the date of effectivity of the Decree.
The Company is granted general corporate powers under the Corporation Code of the Philippines, including acquiring, holding, administering, managing, mortgaging, alienating property, contracting loans, entering contracts for rehabilitation, and others necessary to perform its objectives.
The authorized capital stock is One Hundred Billion Pesos (P100,000,000,000), divided into 100 million shares with a par value of One Thousand Pesos (P1,000) per share, to be fully subscribed and paid by the Republic of the Philippines or its agencies.
The Board consists of a Chairman, Vice-Chairman, and seven members appointed by the President of the Philippines, serving for a term of three (3) years unless removed earlier for any cause.
Non-Performing Accounts refer to DBP accounts including loans, contract mortgage receivables, equities, bond investments, advances, guarantees, and accounts receivable classified as non-performing by the DBP.
Acquired Assets refer to tangible and intangible property owned or registered in the name of the DBP acquired due to lending operations which are no longer used or needed by the DBP.
All corresponding liabilities, debts, obligations, or responsibilities related to the transferred non-performing accounts shall be assumed by the National Government.
No, all assets of the Company, including securities of non-performing accounts transferred by the DBP, shall not be subject to attachment and execution.
The Company is exempt from all national, provincial, municipal, and city taxes and assessments, including on its properties, resources, receipts, expenditures, profits, income, contracts, deeds, and related transactions.
Priority shall be given to qualified DBP personnel whose services may be dispensed with by the DBP as a result of the transfers to the Company or related units.
The Board must convene as often as necessary but at least once every two (2) weeks.
The Board of Directors chooses and may remove the President, whose appointment and removal must be approved by the President of the Philippines.
The Company must submit an annual report within three months after the fiscal year ends to the President of the Philippines, including recommendations, and other periodic reports as required.