Definitions of GOCCs and Government Instrumentalities
- GOCCs are defined under PD 2029 as stock or non-stock corporations, performing governmental or proprietary functions, chartered by special law or organized under general corporation law, with majority government ownership or control.
- Government instrumentalities are agencies of the National Government outside the department framework, vested by law with special functions and some or all corporate powers, managing special funds and enjoying operational autonomy.
Criteria for Identifying GOCCs
- Corporations under general law with majority shares conveyed to government financial institutions temporarily, pending disposition to private ownership, are not considered GOCCs before disposition.
- Corporations created by special law for eventual private ownership are considered GOCCs until the transfer is effected.
- Corporations authorized by special law but requiring SEC registration for juridical personality are not GOCCs by the special law alone.
Definitions of Parent, Subsidiary, and Affiliate Corporations
- Parent corporation: created by special law.
- Subsidiary corporation: organized under general corporation law, majority shares owned by government corporations, especially linked to debt recovery and asset management, intended for eventual private disposition.
- Affiliate corporation: government ownership is less than majority of outstanding capital and voting stock.
Repeal of Inconsistent Issuances
- All executive issuances, rules, or regulations inconsistent with this Executive Order (EO) are repealed or modified to conform with the EO.
Effectivity
- The EO takes effect fifteen (15) days after publication in a national newspaper of general circulation.