Law Summary

Declaration of Policy

• Legal Principle: This section outlines the state’s policy regarding the sharing of net earnings from government owned and/or controlled corporations (GOCCs) with the National Government to enhance revenue generation while maintaining the viability of these corporations.
• Key Definitions:
  • Government Owned and/or Controlled Corporations (GOCCs): Entities established by law to perform specific functions and generate revenue for the state.
• Requirements: GOCCs must contribute a substantial portion of their net earnings to the National Government without compromising their operational viability.

Adjustment of Dividend Rates

• Legal Principle: The Executive Order adjusts the percentage of net earnings that selected GOCCs must remit to the National Government as dividends based on their 1997 net earnings.
• Key Definitions:
  • Dividends: The portion of net earnings distributed to shareholders, in this case, the National Government.
• Important Requirements:
  • The Manila International Airport Authority (MIAA) is required to remit 35% of its net earnings.
  • The Phividec Industrial Authority (PIA) must remit 25% of its net earnings.
• Timeframe: The adjustment applies specifically to the 1997 net earnings of the MIAA and PIA.

Implementation and Effectivity

• Legal Principle: This section affirms the immediate effectivity of the Executive Order.
• Important Requirements:
  • The adjusted dividend rates are applicable only for the financial year 1997.
• Effectivity: The order takes effect immediately upon issuance.

Signatories

• Legal Principle: The document is officially enacted by the President of the Philippines and countersigned by the Executive Secretary, thereby validating the order.
• Signatories:
  • Fidel V. Ramos, President of the Philippines
  • Alexander P. Aguirre, Executive Secretary

Key Takeaways

• Executive Order No. 483 adjusts the dividend rates for the MIAA and PIA from a minimum of 50% to 35% and 25%, respectively, for their 1997 net earnings.
• The policy aims to enhance revenue for the National Government while ensuring the operational viability of GOCCs.
• This order is effective immediately and pertains solely to the financial results from the year 1997.