REQUIRING THE DECLARATION AND DISTRIBUTION OF EXCESS SURPLUS PROFITS AS DIVIDENDS TO STOCKHOLDERS.

WHEREAS, many corporations which have surplus profits even
in excess of 100% of the paid-up capital stock do not declare the same as
dividends to stockholders;

WHEREAS, this failure to declare dividends when corporations
are able to do so stultifies investors interest in channelling their investible
funds in equities even of productive industries and enterprises and thereby
retards the economic growth and development of the country; and

WHEREAS, a more favorable and healthier climate for
investments would be promoted if stockholders are able to share in the profits
of corporations whenever possible, the same not being subject to the absolute or
arbitrary action of management on the matter;

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 and General Order No. 1, dated September 22, 1972, as amended
do hereby order and decree as part of the law of the land the following:

1. All corporations which have surplus profits in excess of necessary
   requirements for capital expansion and reserves shall declare and distribute the
   excess profits as dividends to stockholders, pursuant to such rules and
   regulations as the Securities and Exchange Commission, which is hereby
   authorized to promulgate, may issue with the approval of the Secretary of Trade.

2. This Decree shall take effect immediately.

Done in the City of Manila, this 7th day of August, 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