QuestionsQuestions (PRESIDENTIAL DECREE No. 286)
It authorizes the creation of the Philippine Aerospace Development Corporation, appropriates funds, and aims to rationalize the aviation and aerospace industry through rational government participation in development projects, research, assembly/manufacture of aircraft or devices, and improvement of technical and maintenance facilities.
It has succession for 50 years from and after the date of approval of the decree.
In the City of Manila.
It may undertake development projects for a reliable aviation/aerospace industry (including assembly and manufacture of aircraft/devices and studies/research for innovations), and it may conduct maintenance, repair/overhaul, and modification of aerospace and related flight and ground equipment to provide technical services and overhaul support.
The Philippine Air Force, the national airline, foreign airline companies, foreign air forces, and the aviation industry in general.
It may enter into, make, perform, and carry out contracts of every kind and description for its corporate purposes with any person, firm, association, or corporation.
It may conduct business and exercise powers throughout the Republic of the Philippines and/or in foreign countries, states, and territories.
It may hold such lands in excess of areas permitted to private corporations, associations, or persons, but only for a period not exceeding 25 years, renewable by the President for another 25 years.
It may acquire, hold, mortgage, and alienate personal and real property in the Philippines or elsewhere.
It may purchase, hold, alienate, mortgage, pledge, or otherwise dispose of shares of capital stock and other securities; as owner of said stock, it exercises stockholder rights including the right to vote.
P50,000,000.00 divided into 500,000 shares with par value of P100 per share.
No share may be transferred at less than par value.
Government: P10,000,000.00 (appropriated from the General Fund). Development Bank of the Philippines: P20,000,000.00. Offered to domestic and foreign investors: P20,000,000.00.
At least 25% of the value must be paid at subscription; the balance is subject to call upon a majority vote of the Board of Directors with approval of the Chairman.
Government voting power is vested in the President or designee. Voting power for stock from government financial institutions is vested in the Chairman, Board of Governors. Each share represents one vote.
Any agreement, contract, arrangement, scheme, or plan that transfers voting rights to any person other than the stockholders is prohibited.
It has four ex officio members: the Executive Secretary; the Secretary of National Defense; the Chairman, Board of Governors of the Development Bank of the Philippines; and the Chairman, Board of Investments, plus three appointive directors by the President.
The President appoints the Chairman from among the seven directors.
The Board appoints and fixes salaries of a General Manager and other necessary officials; establishes necessary divisions; submits to the President and publishes an annual report by end of February each year. For auditing, the Chairman of the Commission on Audit appoints a CPA auditor with at least 10 years experience, and related removal is only by the Chairman of COA; the auditor and staff salaries are fixed by COA with advice of the Board.
Exempt from all national/provincial/municipal/city taxes and assessments for 5 years from commencement of operations. Importation by the Corporation of equipment, materials, devices, and other items necessary for its authorized purposes is fully exempt from customs duties and related taxes/assessments/charges.