PRESIDENTIAL DECREE NO. 257, July 31, 1973
CREATING THE PEFTOK INVESTMENT AND DEVELOPMENT CORPORATION DEFINING ITS POWERS AND FUNCTIONS AND FOR OTHER PURPOSES.
WHEREAS, the Philippine Expeditionary Force to Korea
((PEFTOK) veterans having gloriously fought in the battlefields of that country
on the side of the free world and having contributed to the preservation of
democratic institutions in this part of the globe, would not want to render at
naught the role and sacrifice they made at the cost of the lives of many of
their comrades-in-arms;
WHEREAS, the officers and men of the Armed Forces of the
Philippines include PEFTOK veterans, and more than any other body of government
personnel they have been called upon to carry and are now carrying a great share
of the great burden of suppressing the activities of men actively engaged in a
criminal conspiracy to seize political and state power in the Philippines, and
the burden of eradicating widespread lawlessness, anarchy, disorder and wanton
destruction of lives and property now prevailing throughout the country;
WHEREAS, one of the objectives of the proclamation of
martial law is to effect economic reforms to enhance the atmosphere of foreign
and local investments, and in the process, create jobs for the country’s
unemployed; and
WHEREAS, the PEFTOK veterans, through their PEFTOK Veterans
Association, have signified their desire to render service to the New Society
not only in the preservation of peace and order but also in the economic uplift
of the Filipino people in general and their fellow PEFTOK veterans in
particular;
NOW, THEREFORE, I, FERDINAND E. MARCOS, by virtue of the
powers vested in me by the Constitution as Commander-in-Chief of all the Armed
Forces of the Philippines, and pursuant to Proclamation No. 1081, dated
September 21, 1972, as amended, do hereby create a corporation to be known as
the PEFTOK Investment and Development Corporation, hereinafter referred to as
the Corporation. Its principal domicile and place of business shall be in Quezon
City, Philippines, or at such other place as the Board of Directors may
determine.
SECTION 1. The Corporation shall be a body corporate and
shall be subject to the provisions of the Corporation Law insofar as they are
not inconsistent with the provisions of this Decree, or with the provisions of
this Decree, or with the purpose for which this Corporation is formed, and shall
have the general powers mentioned in said law, and such other powers as may be
necessary to enable it to accomplish its purposes.
In particular, the Corporation, shall among others be vested with the
following powers:
- To create, generate, develop, improve, promote, and enhance any and all
kinds of investment opportunities or fields of investment whether now in being
or not and whether new or old; and for the purpose, the Corporation shall invest
in, purchase, acquire, hold, use, sell, lease, assign, transfer, alienate,
dispose or encumber real and personal property of every kind and description,
including shares of stock, bonds, debentures, notes, evidence of indebtedness,
and other securities and interests in property, and shall exercise all rights,
powers and privileges connected with on incident to the ownership, possession,
interest in, and use of such real and personal properties; and may undertake,
organize, form, promote, develop, or establish businesses and all forms of
enterprise, whether here or abroad, as are necessary, suitable, or convenient to
be undertaken, organized, formed, promoted, developed or established to carry
out, directly or indirectly, the purposes and interests or to enhance the
businesses or to render more valuable or profitable any of the rights,
properties, interests or enterprises of this Corporation; - To promote and develop agriculture in the Philippines and turn to account
the resources of land and rights therein, to carry on and conduct an
agricultural enterprise by means of planting, cultivating, constructing,
raising, purchasing, processing, threshing, milling, and selling any and all
plants, trees, fish, livestock, crops and other products of the soil; to engage
in the production and manufacture of any kind of materials and substances which
may be of use or convenience for utilization of agricultural products; to buy,
sell, import, export, or in any manner trade in same, and to carry on studies
and experiments in the cultivation, manufacturing and marketing of such
products, in connection therewith; - To manufacture, buy, sell, and in all ways deal in, and with respect to
articles, goods, wares, merchandise and commodities of all kinds and
descriptions, to engage in and conduct, in all branches and details, the
business of manufacturing and trading; - To enter into and perform contracts, undertakings and obligations of every
kind and character; - To acquire and/or lease lands from the Philippine Government for
agricultural, pastural and related purposes in excess of the areas allowed to
private corporations, associations by existing laws which may prove beneficial
both to the Corporation and the Government; - To borrow money and to incur indebtedness, without limit as to the amount,
and in excess of the capital stock of the Corporation and to issue bonds,
debentures, debenture stock, warrants, notes or other obligations therefor, and
to secure the same by any lien, charge, grant, pledge, deed of trust or mortgage
of the whole or any part of the real and/or personal property of the Corporation
then owned and/or thereafter to be acquired, and/or to issue bonds, debentures,
without any such security; - To grant loans to stockholders for the purpose of enabling said stockholders
in joining cooperative associations which are owned or controlled by PEFTOK
veterans: Provided, That the amount of such loans shall not exceed
fifty percent (50%) of the par value of the stocks actually owned by said
stockholders: Provided, further, That such loan shall be
payable in full within a period of not exceeding one year; - To engage in and carry on the business of general wholesale and retail
merchants, importers, exporters, commission merchants, brokers, factors, agents,
manufacturers, processors, dealing in or with any and all classes of materials,
merchandise, supplies and commodities of every kind and nature; - To carry on any other lawful business whatsoever which may seem to the
Corporation capable of being carried on in connection with the foregoing
purposes and powers, or calculated directly or indirectly to promote the
interest of the Corporation or to enhance the value of its property, and to
have, enjoy and exercise all the rights, powers and privileges which are now or
which may hereafter be conferred upon similar corporations organized under the
laws of the Republic of the Philippines; - To exercise the general powers mentioned in the Corporation Law, insofar as
they are not inconsistent or incompatible with the provisions of this Decree.
SEC. 2. The Corporation shall be governed and its activity
shall be directed, controlled and managed by a Board of Directors which shall be
composed of the Secretary of National Defense, the Chief of Staff of the Armed
Forces of the Philippines, the President of the PEFTOK Veterans Association,
Incorporated and six (6) other persons who shall be designated by the President
of the Philippines from a list of qualified PEFTOK veterans. The six (6) persons
so designated shall serve and act as Directors from the date hereof until their
successors are elected and qualified as provided for in the by-laws of
the Corporation.
SEC. 3. The capital stock of the PEFTOK Corporation shall be
four million pesos (P4,000,000.00) divided into four hundred thousand (400,000)
common shares with a par value of ten pesos (P10.00) each.
At least fifty-one percent (51%) of the capital stock of the PEFTOK
Corporation shall be fully subscribed by the Government of the Republic of the
Philippines for and in behalf of the PEFTOK veterans and the amount of two
million one hundred ninety-eight thousand and three hundred sixty pesos
(P2,198,360.00) shall be initially paid and transferred to said Corporation out
of the PEFTOK- savings under RA 573: Provided, That within three years
from the date of the proclamation of this Decree all shares of capital stock
subscribed and held by the Government of the Republic of the Philippines for and
in behalf of the PEFTOK veterans shall be transferred to and in the name of
PEFTOK veterans who shall thereafter vote said common shares. A PEFTOK veteran,
his widow, or legitimate children shall only be entitled to three common shares:
Provided, further, That after three years from the date of the
proclamation of this Decree, the Board of Directors of said Corporation shall
from time to time determine the number of unsubscribed capital stock which shall
be available for subscription by PEFTOK veterans.
The sale or transfer of common shares to a party not a PEFTOK veteran shall
not be allowed under any circumstance. Any share may be sold or transferred to
the Corporation which shall issue the same to stockholders who are veterans:
Provided, That no PEFTOK veteran shall be issued a total of more than
one hundred shares.
SEC. 4. As defined in this Decree, a PEFTOK veteran is any
officer or enlisted man of Armed Forces of the Philippines, active, inactive, or
honorably separated from the service, who served with any unit of the
Philippines Expeditionary Force to Korea (PEFTOK) as duly certified to by the
Adjutant General of the Armed Forces of the Philippines: Provided, that
for purposes of this Decree, the term “PEFTOK veteran” or “veterans” shall
include the widow and legitimate children of the deceased veteran.
SEC. 5. The Corporation shall contribute the amount of five
percent (5%) of its net profit to the assistance fund administered by the
Philippine Veterans Assistance Commission created by Presidential Decree No.
244, dated July 12, 1973.
SEC. 6. The legal existence of the Corporation under this
Decree shall be for a period of fifty (50) years from and after the promulgation
of this Decree.
SEC. 7. This Decree shall take effect upon its approval.
Done in the City of Manila, this 31st day of July, in the year of Our Lord,
nineteen hundred and seventy-three.
(Sgd.) FERDINAND E. MARCOS
President
Republic of the Philippines
By the President: (Sgd.) ALEJANDRO MELCHOR Assistant Executive Secretary