Adjusting the Dividend rate of the LBP on Its 2003, 2004 and 2005 Net Earnings
Executive Order No. 601, issued on February 9, 2007, adjusts the dividend rates of the Land Bank of the Philippines (LBP) on its net earnings for the years 2003, 2004, and 2005, in accordance with Republic Act No. 7656. This law mandates government-owned corporations to remit a portion of their net earnings to the National Government to enhance revenue without compromising their operational viability. Following recommendations from the Secretary of Finance, the adjusted dividend rates include specific cash and non-cash amounts for each year, with percentages set at 23% for 2005, 18% for 2004, and 14.01% for 2003. The order takes effect immediately upon issuance.
Quick Answers
- What is Adjusting the Dividend rate of the LBP on Its 2003, 2004 and 2005 Net Earnings about?
- Executive Order No. 601, issued on February 9, 2007, adjusts the dividend rates of the Land Bank of the Philippines (LBP) on its net earnings for the years 2003, 2004, and 2005, in accordance with Republic Act No. 7656. This law mandates government-owned corporations to remit a portion of their net earnings to the National Government to enhance revenue without compromising their operational viability. Following recommendations from the Secretary of Finance, the adjusted dividend rates include specific cash and non-cash amounts for each year, with percentages set at 23% for 2005, 18% for 2004, and 14.01% for 2003. The order takes effect immediately upon issuance.
- What type of law is Executive Order No. 601?
- Adjusting the Dividend rate of the LBP on Its 2003, 2004 and 2005 Net Earnings (Executive Order No. 601) is a Philippine Presidential Issuances enacted by the Congress of the Philippines.
- When was Adjusting the Dividend rate of the LBP on Its 2003, 2004 and 2005 Net Earnings enacted?
- Adjusting the Dividend rate of the LBP on Its 2003, 2004 and 2005 Net Earnings (Executive Order No. 601) was enacted on Feb 9, 2007.
- What is the citation for Adjusting the Dividend rate of the LBP on Its 2003, 2004 and 2005 Net Earnings?
- Adjusting the Dividend rate of the LBP on Its 2003, 2004 and 2005 Net Earnings, Executive Order No. 601, Feb 9, 2007 (Philippines)
Law Information
- Reference Number
- Executive Order No. 601
- Date Enacted
- Category
- Presidential Issuances
- Subcategory
- Executive Orders
- Jurisdiction
- Philippines
- Enacting Body
- Congress of the Philippines
Full Law Text
February 9, 2007
EXECUTIVE ORDER NO. 601
ADJUSTING THE DIVIDEND RATE OF LAND BANK OF THE PHILIPPINES (LBP) ON ITS 2003, 2004 AND 2005 NET EARNINGS PURSUANT TO SECTION 5 OF REPUBLIC ACT NO. 7656
WHEREAS, under Section 1 of Republic Act No. 7656, it is the declared policy of the state that in order for the National Government to realize additional revenues, government-owned and/or controlled corporations, without impairing their viability and the purposes for which they have been established, shall share a substantial amount of their net earnings to the National Government; DSETac
WHEREAS, Section 5 of Republic Act No. 7656 provides that "in the interest of national economy and general welfare, the percentage of annual net earnings that shall be declared by a government owned and/or controlled corporations may be adjusted by the President of the Philippines upon recommendation by the Secretary of Finance";
WHEREAS, to support the viability and mandate of LBP, their liquidity, capital position, retained earnings and medium term plans and programs were considered in the determination of reasonable dividend rates; and
WHEREAS, pursuant to Section 5 of Republic Act No. 7656, the Secretary of Finance recommended the adjustment on the percentage of dividend rates for 2003, 2004 and 2005 net earnings that shall be declared by LBP to the National Government, in the interest of national economy and general welfare.
NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Philippines, by virtue of the powers vested in me by law, do hereby order:
SECTION 1. The percentage of dividends for years 2003, 2004 and 2005 to be remitted by LBP to the National Government, which are composed of:
| YEAR | AMOUNT | PERCENTAGE |
| 2005 | At least eight hundred million | 23.00% cash |
| (P800 M) cash and | 14.00% non-cash | |
| five hundred million (P500 M) | ||
| stock dividends | ||
| 2004 | At least seven hundred million | 18.00% cash |
| (P700 M) cash and | 15.40% non-cash | |
| six hundred million (P600 M) | ||
| stock dividends | ||
| 2003 | At least six hundred million (P600 M) | 14.01% cash |
| cash and eight hundred seventy one | 20.33% non-cash | |
| million (P871 M) stock dividends |
SECTION 2. This Executive Order shall take effect immediately.
DONE in the City of Manila, this 9th day of February, in the year of Our Lord, Two Thousand and Seven.
Cite This Law
Adjusting the Dividend rate of the LBP on Its 2003, 2004 and 2005 Net Earnings, Executive Order No. 601, Feb 9, 2007 (Philippines)
Adjusting the Dividend rate of the LBP on Its 2003, 2004 and 2005 Net Earnings, Executive Order No. 601 (Phil. 2007)
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