Amendment to PD 902-A on Securities Commission Powers

The decree declares a government policy to encourage and preserve the confidentiality of deposits in banking institutions.
It states a need to prevent overlap between Securities and Exchange Commission (SEC) powers and powers of other government agencies that supervise and regulate corporations.
It states the SEC’s powers to issue subpoena duces tecum and related powers must not impinge on the policy of confidentiality of bank deposits.

Section 1 further amends Subparagraphs (c), (d) and (h) of Section 6 of PD 902-A (as amended).
Section 6(c) is expanded to authorize the SEC to appoint one or more receivers of the property (real and personal) that is the subject of a pending SEC action, following the pertinent provisions of the Rules of Court.
Section 6(c) authorizes receivers in “other cases” whenever necessary to preserve the rights of the parties-litigants and/or protect the interest of the investing public and creditors.
Section 6(c) further authorizes the SEC to appoint a rehabilitation receiver for corporations, partnerships or other associations not supervised or regulated by other government agencies.
A rehabilitation receiver’s powers include those of a regular receiver under the Rules of Court, plus functions and powers provided in the succeeding paragraph (d).

Section 6(c) provides that the SEC may appoint a rehabilitation receiver or a management committee, or a rehabilitation receiver, board, or body, with authority to control the entity in rehabilitation.
The rehabilitation receiver, management committee, rehabilitation receiver, board, or body may overrule or revoke the actions of the previous management and board of directors notwithstanding anything in law, articles of incorporation, or by-laws to the contrary.
Section 6(c) grants immunity for good-faith acts: the management committee or rehabilitation receiver, board, or body is not subject to any action, claim or demand for or in connection with any act done or omitted in good faith in the exercise of its functions or power under the section.

Section 6(h) empowers the SEC “to issue subpoena duces tecum and summon witnesses” to appear in any proceedings of the Commission.
Section 6(h) empowers the SEC, in appropriate cases, to order the examination, search and seizure of all documents, papers, files and records, tax returns, and books of accounts of any entity or person under investigation.
Section 6(h) limits the compulsory process to instances “as may be necessary for the proper disposition of the cases before it.”
Section 6(h) expressly states this authority applies notwithstanding any law to the contrary.

The decree contains an amendatory mechanism: it amends PD 902-A by further amending Section 6 through its stated subparagraph revisions.
Section 2 requires repeal or modification: all laws, decrees, rules, and regulations inconsistent with the decree are repealed or modified accordingly.
Section 3 sets the effectivity: the decree takes effect immediately.

The decree is signed in the City of Manila on January 16, 1981 by Ferdinand E. Marcos.
It is attested/authorized by Juan C. Tuvera, identified as Presidential Executive Assistant, “By the President.”