GUIDELINES ON THE SALE OR TRANSFER OF COASTWISE VESSEL(S) AND/OR FRANCHISE(S) (RATIONALIZATION OF INTER-ISLAND SHIPPING OPERATIONS)
and the MARINA-BOT Memorandum of Agreement dated February 26, 1982 and
in order to protect the interest of existing operators and to stabilize
domestic shipping operations, the sale or transfer of coastwise
vessel(s) and/or franchise(s) shall be made in accordance with the
following guidelines:
1. Prior to the actual sale or transfer of a coastwise vessel
and/or its franchise, the seller shall inform the Maritime Industry
Authority and the Board of Transportation of his intention by
appropriate written notice which shall include the following: the name
and address of the proposed buyer; the proposed selling price; the
particulars of the vessel and/or franchise, as the case may be; and the
consequential replacement of vessel, re-routing, redeployment or other
changes, as the case may be.2. The sale or transfer of the vessel and/or franchise shall
be based on just and reasonable grounds and shall not be to the
prejudice or detriment of public interest.3. The sale or transfer of a franchise is subject to the following requirements:
a. The proposed buyer must be a citizen of the Philippines or a
corporation, partnership, association, or entity constituted and
organized under the laws of the Philippines at least sixty per centum
(60%) of the stock or paid-up capital of which belongs entirely to
citizens of the Philippines;b. The proposed buyer must be financially capable of
undertaking the proposed service and meeting the responsibilities
incident to its operation.4. If the seller of a franchise is, at the time of
application for approval of sale, in violation of any law, regulations
or conditions which would warrant imposition of the penalty of
cancellation of its franchise, the proposed sale shall not be approved,
the franchise shall be cancelled, and the route shall be declared open
to new applicants on a first come-first-serve basis.
This Circular shall take effect on 28 November 1983.
Adopted: 28 Nov. 1983
(SGD.) VICTORINO A. BASCO
Administrator
(SGD.) JOSE P. DANS, JR.
Minister of Transportation and Communication