EXECUTIVE ORDER NO. 131

Legal Principle: Under Republic Act (RA) No. 7656, the State mandates that government-owned and/or controlled corporations (GOCCs) contribute a substantial portion of their net earnings to the National Government to generate additional revenues without compromising their operational viability.
Key Definitions:
- GOCCs: Corporations owned and/or controlled by the government.
Important Requirements: GOCCs must declare and remit dividends based on their net earnings, in alignment with their operational needs and fiscal health.

Legal Principle: The percentage of net earnings to be declared as dividends by specific GOCCs has been adjusted.
Key Definitions:
- Net Earnings: The total profit of a corporation after expenses, taxes, and other costs.
Important Requirements/Procedures:
- The Land Bank of the Philippines is required to remit 6% of its 1998 net earnings.
- The Development Bank of the Philippines is required to remit 30% of its 1998 net earnings.
Relevant Timeframes: The adjusted rates apply specifically to the 1998 net earnings of the aforementioned GOCCs.

Legal Principle: This Executive Order takes effect immediately upon adoption.
Important Requirements: No additional procedural steps are mentioned for implementation.
Relevant Timeframes: The Executive Order was adopted on July 27, 1999, and takes effect immediately.

Legal Principle: This Executive Order was issued under the authority vested in the President of the Philippines.
Important Requirements: The order is signed and authenticated by the President and the Executive Secretary.
Consequences: Compliance with the adjusted dividend rates is mandatory for the specified GOCCs.

The Executive Order adjusts the dividend rates for the Land Bank of the Philippines and the Development Bank of the Philippines from the statutory minimum of 50% to 6% and 30%, respectively, based on their 1998 net earnings.
The adjustments are aimed at enhancing the financial contributions of GOCCs to the National Government while considering their operational viability.
The order is effective immediately as of July 27, 1999, and mandates compliance from the concerned corporations to remit the specified percentages of their net earnings.