Law Summary
Powers and Functions of the Board of Liquidators
- Tasked with implementing the abolition of the corporations listed.
- Operates under Executive Order No. 372, Series of 1950.
- Authorized, with Presidential approval, to lease, sell, assign, transfer, or dispose of funds, properties, developmental projects, and other assets of the abolished corporations.
- If assets are transferred to government entities, funding shall come from the unexpended balances of the National Treasury.
- Proceeds from disposition of assets and corporation funds shall settle pending obligations by legal priority.
- Remaining balances after obligations and liquidation costs go to the National Treasury's General Fund.
- In case of insufficient assets to pay liabilities, payments follow Civil Code rules on credit preferences.
- Holds incidental and necessary powers for efficient implementation and may receive additional powers from the President.
Personnel and Financial Considerations
- Personnel of abolished corporations are entitled to termination benefits as mandated by relevant laws and regulations.
- Appropriations and remaining funds of the abolished corporations, after liabilities, revert to the General Fund.
Notice and Consent Requirements
- Any organizational changes materially affecting third-party rights must comply with contractual notice or consent requirements prior to implementation.
Supervision and Reporting
- The Board of Liquidators is supervised by the Department of Budget and Management.
- Required to submit periodic performance reports to the Department.
Specific Provision for Abolition of Philippine National Lines
- The National Development Company (NDC) will implement its abolition under the Committee on Privatization's supervision.
- NDC assumes the powers and functions akin to the Board of Liquidators for this matter.
- All actions involving disposal of assets require approval by the Committee on Privatization.
Separability Clause
- Any unconstitutional or invalid provision will not affect the rest of the Executive Order, which remains effective as long as it can stand independently.
Repeal of Previous Charters and Inconsistent Regulations
- The Executive Order expressly repeals various older executive orders and presidential decrees related to the abolished entities:
- EO No. 871, Series of 1983
- EO No. 662, Series of 1981
- PD No. 1349, Series of 1978
- PD No. 1289, Series of 1978
- PD No. 625, Series of 1974
- PD No. 900, Series of 1976
- Repeals or modifies all laws, rules, regulations, or issuances inconsistent with this order.
Effectivity
- The Executive Order takes effect upon approval and publication in the Official Gazette or a national newspaper of general circulation.