Principal Purpose
- Acts as the National Government’s vehicle to manage and dispose of DBP’s non-performing accounts and assets.
- Also handles non-performing accounts/assets transferred from other government financial institutions.
Definition and Scope of Transferred Assets
- "Non-Performing Accounts": DBP classified accounts, including loans, mortgages, equities, bonds, advances, guarantees, and receivables.
- "Assets": All property linked to non-performing obligors, including tangible and intangible assets assigned or secured in favor of the DBP.
- "Acquired Assets": Properties owned by DBP from lending operations but unused or unnecessary for current operations.
Powers and Functions
- General corporate powers consistent with the Corporation Code, supplemented by specific authority such as:
- Acquiring, managing, mortgaging, alienating, and disposing real or personal properties including government permits/licenses.
- Receiving and collecting income from investments and properties.
- Selling or transferring assets with or without bidding and on various payment terms.
- Contracting loans, issuing bonds, and securing obligations.
- Entering rehabilitation contracts and acquiring equipment or materials.
- Suing and being sued.
- Performing all acts necessary or directed by the President for accomplishment of objectives.
Capitalization and Funding
- Authorized capital stock of ₱100 billion, divided into 100 million shares at ₱1,000 par value each.
- Fully subscribed and paid by the Republic of the Philippines or its agencies.
- Government funding appropriated for subscription from the National Treasury.
Governance: Board of Directors
- Comprises a Chairman, Vice-Chairman, and seven members appointed by the President.
- Three-year term with meetings at least biweekly.
- Quorum requires five members; majority vote needed for decisions.
- Members receive per diem (up to ₱2,000/month) plus reimbursable transportation and representation allowances.
- Members must abstain and withdraw from discussions where personal interest or conflicts arise; disclosures made public and recorded in minutes.
Board's Powers and Responsibilities
- Defining and approving company programs, policies, organizational structure, budgets, and staffing.
- Approving salary ranges and employment terms upon President’s recommendation.
- Hiring, disciplining, and terminating officers/employees.
- Creating committees for management purposes.
- Approving terms for asset sales and delegating approval of specific contracts to executive committees.
- Authority to compromise or release claims.
- Reorganizing internal structures including offices and branches.
- Adopting and amending bylaws and promulgating implementing rules and regulations.
- Other powers incidental or as directed by the President.
Executive Officers
- The President of the AMC is the Chief Executive, member of the Board, appointed by the Board with Presidential approval.
- President supervises operations, executes Board policies, enters contracts, manages company affairs, and reports to the Board.
- Additional officers appointed with Board approval.
Personnel Management
- Employees are subject to Civil Service Law except for positions declared policy-determining, confidential, or highly technical by the President upon recommendation.
- Priority employment given to displaced DBP personnel due to asset transfers.
Legal and Audit Services
- Government Corporate Counsel acts as legal counsel; Company may have own Legal Department under Corporate Counsel’s supervision.
- Commission on Audit appoints Company auditor with personnel; costs borne by Company.
Transfer of Assets and Liabilities
- Effective immediately, all DBP non-performing accounts, assets, and acquired assets transferred to AMC, which inherits all associated rights and interests.
- The National Government assumes liabilities related to these transferred non-performing accounts.
- An office under the National Treasurer is created to service assumed liabilities.
- Procedures for transfers to be formulated by DBP, AMC, and President’s representatives.
Tax and Legal Exemptions
- AMC exempt from all national, provincial, municipal, and city taxes and assessments related to its properties, income, receipts, contracts, and business operations.
- Exemptions do not apply to taxes payable by third parties transacting with AMC.
- AMC assets, including securities, are exempt from attachment and execution.
Appropriations and Funding
- The National Government’s annual budget shall allocate operational funding for AMC.
- Initial funding of ₱172,044,000 appropriated from the general funds.
Reporting Requirements
- AMC must submit annual reports within three months after fiscal year-end to the President with recommendations.
- Additional reports and recommendations to be submitted as required.
Legal Provisions
- Separability clause ensuring the remainder of the Decree remains effective if any part is invalidated.
- Repealing clause rescinds inconsistent laws, decrees, orders, rules, and regulations.
- Effectivity clause mandates immediate enforcement upon signing.