Law Summary
Legal Framework and Powers
- Subject to the provisions of the Corporation Law except where inconsistent with this Act.
- Possesses the general powers under the Corporation Law.
- Additional powers to drill wells, develop petroleum deposits, manage these deposits, and sell petroleum products.
Capitalization and Stock Issuance
- Authorized capital set at five hundred thousand pesos.
- Capital divided into five thousand shares, each with a par value of one hundred pesos.
- Stock issuance must be at par value and exclusively for cash.
Government Subscription and Stock Ownership
- Governor-General to subscribe for not less than 51% of capital stock on behalf of the Government of the Philippine Islands.
- Remaining shares may be offered to provincial and municipal governments or the public at no less than par value.
- Ten percent of subscribed stock value to be paid upon subscription; balance payable as determined by the board of directors.
- Voting rights for government-owned stock vested exclusively in a committee composed of the Governor-General and the presiding officers of both Houses of the Legislature.
Corporate Governance
- Board of directors to consist of five members.
Appropriations and Financial Provisions
- Appropriation authorized from the Insular Treasury funds for government purchase of company stock.
- The Insular Auditor shall not record sums until payment is required.
- Investment by the government limited to a maximum of fifty thousand pesos for the year 1919 and subsequent years unless otherwise provided by the Philippine Legislature.
Effectivity Clause
- The Act takes effect immediately upon approval.