Dissolution and Liquidation of the Manila Hotel Company (Section 1)
- Manila Hotel Company is dissolved, liquidated, and abolished.
- Net asset value of company shares determined by generally accepted accounting and appraisal standards.
- Land appraised at fair market value; this valuation forms basis for compensation of minority shareholders.
- Private accounting/appraisal firms may be engaged for certification of asset valuation.
- If Manila Hotel Company’s liquid assets are insufficient, GSIS is authorized to pay minority shareholders from its own funds.
- All company records, assets, and rights vest in GSIS as return of its investment.
- GSIS exempt from capital gains tax or other taxes arising from liquidation.
- Company personnel entitled to gratuity: one month’s pay per year of service, capped at one year’s pay if not retiring.
- Gratuities may be paid by Manila Hotel Company or GSIS; if GSIS pays, it books this as part of its investment.
Authority Granted to GSIS for the Hotel Project (Section 2)
- GSIS authorized to initiate, pursue plans for development, construction, and operation of new Manila Hotel.
- GSIS may undertake the project alone or in partnership with other government or private entities.
- GSIS may form wholly or partially owned subsidiary corporations necessary for project implementation.
Demolition and Construction Powers (Section 3)
- GSIS or its subsidiaries authorized to partially or fully demolish existing Manila Hotel building.
- GSIS may renovate any retained portions or build a completely new hotel.
- New construction to meet international standards regarding facilities and amenities.
Contracting and Procurement Powers (Section 4)
- GSIS or subsidiaries empowered to negotiate contracts for demolition, construction, or renovation.
- Authority includes contracting for removal/disposal of existing structures.
- Authority to procure materials, supplies, equipment, and machinery for hotel construction or improvement.
- Power to engage architects, engineers, firms, or individuals to achieve project objectives.
Transfer and Inclusion of Government-Owned Land (Section 5)
- Two specific parcels of land in Ermita, City of Manila (TCT No. 67398) are transferred to GSIS by the National Government.
- Parcels total approximately 11,663.4 square meters and form an integral part of the Manila Hotel project site.
- Transfer intended to augment the Retirement Insurance Fund's actuarial solvency under GSIS administration.
- Register of Deeds is directed to immediately transfer the titles to GSIS.
Repeal and Modification of Inconsistent Laws (Section 6)
- Any law, executive order, rule, or regulation inconsistent with this decree is repealed or modified accordingly.
Implementation Directive (Section 7)
- All concerned government agencies and entities instructed to implement the decree as prescribed.
Important Legal Concepts Covered
- Government ownership consolidation through GSIS.
- Protection and fair compensation of minority shareholders during dissolution.
- Transfer of government land to support public welfare projects.
- Authorization of GSIS to operate as a commercial entity through subsidiaries.
- Eminent domain-type government acquisition and transfer to a government financial institution.
- Provision of employee benefits as part of company liquidation.
- Tax exemptions for the financial transactions involved in the project.
- Government facilitation of infrastructure to enhance tourism and international prestige.