Section 3 of the Amended Rules Governing Pre-emptive and other Subscription Rights

February 23, 1996 SEC-BED * MEMORANDUM CIRCULAR NO. 02-96 TO : The Philippine Stock Exchange All Banks whose Securities are Listed in the Stock Exchange SUBJECT : Section 3 of the Amended Rules Governing Pre-emptive and other Subscription Rights and Declaration of Stock or Cash Dividends of Corporations Whose Securities are Registered Under the RevisedSecurities Act or Listed in the Stock Exchange(s) Section 3 of the Amended Rules Governing Pre-emptive and other Subscription Rights and Declaration of stock or Cash Dividends of Corporations Whose Securities are Registered Under the Revised Securities Act or Listed in the Stock Exchange(s) provides for the record date for cash dividend declarations of said corporations, to wit: "All cash dividends declared by corporations shall have a record date which shall not be less than ten (10) days nor more than thirty (30) days from such declaration. . . ." Under CB Circular No. 18, Series of 1994, the record date for cash dividends cannot be set earlier than 30 days after declaration. In view of this conflict, the aforecited provision of the SEC Rule has to be amended to reconcile with the Bangko Sentral ng Pilipinas, rule considering that the latter has supervision over banks, and that under the Revised Securities Act, any security issued or guaranteed by any banking institution authorized to do business in the Philippines is exempt from registration. Accordingly, the Commission has resolved to AMEND Section 3 of the Amended Rules Governing Pre-emptive and Other Subscription Rights and Declaration of Stock or Cash Dividends of Corporations Whose Securities are Registered Under the Revised Securities Act or Listed in the Stock Exchange(s) to read as follows: "All cash dividends declared by corporations, except banks, shall have a record date which shall not be less than ten (10) days nor more than thirty (30) days from such declaration. . . ." This Memorandum Circular shall take effect immediately. (SGD.) PERFECTO R. YASAY, JR. Acting Chairman