QuestionsQuestions (PRESIDENTIAL DECREE NO. 2030)
It is a body corporate created to take title to, conserve, and dispose of certain government assets, in trust for and for the benefit of the National Government.
It exists for six (6) years from the date of the Decree; upon expiry, all assets, moneys and other property, and all liabilities outstanding revert to and are assumed by the National Government.
It is capitalized with P100,000,000.00, paid by the National Government chargeable against applicable appropriations in Batas Pambansa Blg. 879.
No. While the Board of Trustees oversees the Trust’s functions, the Trust is not to directly undertake conservation and disposition or manage/market the assets; it must employ the Asset Management Corporation and other external agencies.
The Board has five members: (1) Minister of Finance (Chairman), (2) NEDA Director-General, (3) Budget and Management Director-General, and (4)-(5) two private sector members appointed by the President. Quorum is three members, and three members’ concurrence is necessary for any decision.
A person must be of good moral character, of unquestionable integrity and responsibility, and of recognized business competence. Disqualification includes being a director/officer/consultant/stockholder of corporations having an interest in assets held by the Trust, and similarly disallowing appointment of such persons to the Board or alternates; also prohibits participating in direct management of corporations constituting Trust assets.
The President may remove a member if the member commits fraudulent, unlawful acts, manifests opposition to the Decree’s purposes, or ceases to be qualified under the qualifications/disqualifications in Section 7.
Borrowing by the Trust is subject to prior approval of the Ministry of Finance.
All proceeds form part of the General Fund of the National Government and must be remitted to the National Treasury immediately upon receipt, except that the Trust may retain a portion needed for a revolving fund for fees/reimbursable expenses of the Asset Management Corporation and external agencies, and costs of conservation/disposition.
The Trust and all assets held by it are exempt from all income and other taxes, fees, charges, imposts, duties, and assessments imposed by the national government or any local government, including stock transfer taxes, capital gains taxes, and registration fees.
The National Government through the National Development Company may organize an asset management corporation under the Corporation Code and subscribe to/hold up to 50% of its authorized capital stock.
A management contract must exist between the Trust and the Asset Management Corporation. For each disposition, the Trustees approve or disapprove the recommendations of the Asset Management Corporation, and once approved, the disposition is final and does not require or is subject to prior approval/ratification by any other government agency.
Some assets may be better conserved and disposed of by other entities. Within a specified time after receiving the instrument describing transferred assets, the Asset Management Corporation advises which assets should be handled by others; the Trust then refers those assets to government/private institutions or specially formed entities as appropriate.
No. Under Section 24, no restraining order or injunction may be issued to prevent the Trust from taking possession, consolidating title, disposing of assets, or foreclosing rights (except if the injunction is sought by the Trust itself on grounds of fraud, breach, or material misrepresentation by the purchaser).
Under Section 23, the Trust’s determination that sale terms are consistent with the Decree objectives and best interest of the National Government is conclusive. Sales/dispositions are incontestable and binding/enforceable against the National Government and third parties except for fraud, breach, or material misrepresentation by the purchaser.
Transferred assets include (i) receivables and other obligations due to government institutions with collateral security and related rights (including rights relating to shares, voting, and appointment of directors to secure enforcement of payments), (ii) real/personal property obtained through foreclosure or other means in settlement of obligations, and (iii) shares of stock and other investments held by government institutions.
Under Section 25, the SEC shall, upon ex parte petition filed by the Trust or Asset Management Corporation on behalf of the Trust, appoint a receiver nominated by them to take over management/custody of such corporations’ properties in specified circumstances (imminent danger of dissipation/loss/wastage/paralysis prejudicial to stakeholders or where receiver is stipulated in agreements as aid to foreclosure).