Definition and role of government-owned corporations

Government-owned or controlled corporations include stock or non-stock entities directly chartered by special law or organized under the general corporation law but majority-owned or controlled by the government.
Includes corporations owned indirectly through parent or subsidiary government corporations.
Exceptions exist for corporations organized to dispose assets to private ownership within a specified time, and those required to register with the Securities and Exchange Commission but not yet having juridical personality.
Corporations explicitly created for transfer to private ownership remain government corporations until such transfer is effected.

Parent Corporations: Created by special law.
Subsidiary Corporations: Majority-owned by parent or other government-owned subsidiaries.
Acquired Asset Corporations: Formed from private entities whose shares were transferred to government corporations to settle debts with government financial institutions; intended for eventual privatization.
Affiliate Corporations: Government ownership is less than majority.

Acquired asset corporations and affiliate corporations are excluded from coverage.
Chartered universities, colleges, schools, and municipal corporations, though government corporations, are also excluded.
Exclusions do not exempt such entities from reportorial requirements; financial reports may be consolidated with parent corporations.

Justified when greater operational flexibility is needed and cannot be achieved through regular government agencies.
Financial viability expected; the corporation should operate without losses or special government aid.
Exceptions to financial viability for subsidized programs or cultural/civic corporations not competing with private sector.

Ministers or equivalents designated by law as board members may appoint senior ministry officials as their representatives.
Deputies must represent ministers serving as ex-officio chairmen.
Central Bank charter provisions on alternates remain applicable.

Government corporations are given sufficient autonomy to act promptly without prior external approval, within their charter and budget constraints.
Flexibility must be consistent with public accountability requirements.

Government corporations receive treatment aligned more closely with private corporate practices rather than regular government agencies.
Service-wide agencies (Civil Service Commission, Commission on Audit, Office of Budget and Management) must adopt industry standards.
Commission on Audit to promulgate uniform accounting and auditing standards, withdraw resident auditors, and allow private audits while maintaining audit oversight.
Civil Service Commission to tailor personnel policies; OBM to formulate competitive compensation and classification policies.
Responsibilities and accountability of government corporations remain intact despite differential treatment.

Corporations with at least 20% private voting stock enjoy maximal regulatory flexibility.
Employment issues referred to Ministry of Labor and Employment.
May engage private external auditors; Commission on Audit may review externally produced audits.
Not subject to OBM's position classification and compensation rules.

President to create a committee including key government bodies to review and adjust policies/regulations within two years.
Status quo maintained for two years for previously excluded corporations regarding audit and employment policies.
All chartered government corporations are immediately subject to Commission on Audit jurisdiction.
Collective bargaining agreements in excluded corporations remain effective until expiration.

Invalidity of any provision does not affect the validity of the remainder of the Decree.

Laws and rules inconsistent with this Decree are repealed or modified accordingly.