Adjusting the Dividend Rate of the Power Sector Assets and Liabilities Management Corporation Pursuant to Section 5 of R.A. No. 7656
Executive Order No. 59, issued on July 25, 2018, adjusts the dividend rate that the Power Sector Assets and Liabilities Management Corporation (PSALM) must remit to the National Government. Under Republic Act No. 7656, government-owned or controlled corporations are required to declare at least 50% of their annual net earnings as dividends. However, based on the recommendation of the Secretary of Finance, the President has reduced this percentage to 3.3030407% for specific years (2004, 2007, 2008, 2013, 2014, and 2015) to support PSALM's financial viability. This adjustment is aimed at addressing the corporation's liquidity and debt servicing needs and will take effect immediately.
Quick Answers
- What is Adjusting the Dividend Rate of the Power Sector Assets and Liabilities Management Corporation Pursuant to Section 5 of R.A. No. 7656 about?
- Executive Order No. 59, issued on July 25, 2018, adjusts the dividend rate that the Power Sector Assets and Liabilities Management Corporation (PSALM) must remit to the National Government. Under Republic Act No. 7656, government-owned or controlled corporations are required to declare at least 50% of their annual net earnings as dividends. However, based on the recommendation of the Secretary of Finance, the President has reduced this percentage to 3.3030407% for specific years (2004, 2007, 2008, 2013, 2014, and 2015) to support PSALM's financial viability. This adjustment is aimed at addressing the corporation's liquidity and debt servicing needs and will take effect immediately.
- What type of law is Executive Order No. 59?
- Adjusting the Dividend Rate of the Power Sector Assets and Liabilities Management Corporation Pursuant to Section 5 of R.A. No. 7656 (Executive Order No. 59) is a Philippine Presidential Issuances enacted by the Congress of the Philippines.
- When was Adjusting the Dividend Rate of the Power Sector Assets and Liabilities Management Corporation Pursuant to Section 5 of R.A. No. 7656 enacted?
- Adjusting the Dividend Rate of the Power Sector Assets and Liabilities Management Corporation Pursuant to Section 5 of R.A. No. 7656 (Executive Order No. 59) was enacted on Jul 25, 2018.
- What is the citation for Adjusting the Dividend Rate of the Power Sector Assets and Liabilities Management Corporation Pursuant to Section 5 of R.A. No. 7656?
- Adjusting the Dividend Rate of the Power Sector Assets and Liabilities Management Corporation Pursuant to Section 5 of R.A. No. 7656, Executive Order No. 59, Jul 25, 2018 (Philippines)
Law Information
- Reference Number
- Executive Order No. 59
- Date Enacted
- Category
- Presidential Issuances
- Subcategory
- Executive Orders
- Jurisdiction
- Philippines
- Enacting Body
- Congress of the Philippines
Full Law Text
July 25, 2018
EXECUTIVE ORDER NO. 59
ADJUSTING THE DIVIDEND RATE OF THE POWER SECTOR ASSETS AND LIABILITIES MANAGEMENT CORPORATION PURSUANT TO SECTION 5 OF REPUBLIC ACT NO. 7656
WHEREAS, Republic Act (RA) No. 7656 requires all government-owned or -controlled corporations (GOCCs) to declare and remit at least fifty percent (50%) of their annual net earnings as cash, stock or property dividends to the National Government;
WHEREAS, RA No. 7656 provides that the President of the Philippines, upon the recommendation of the Secretary of Finance, may adjust the percentage of annual net earnings to be declared and remitted by a GOCC, in the interest of national economy and general welfare;
WHEREAS, to support the viability and mandate of the Power Sector Assets and Liabilities Management Corporation (PSALM), its liquidity and debt servicing were considered in the determination of reasonable dividend rates relative to its net earnings for specific years; and
WHEREAS, pursuant to RA No. 7656, the Secretary of Finance has recommended the downward adjustment of the percentage of net earnings that shall be declared by the PSALM as dividends to the National Government for years 2004, 2007, 2008, 2013, 2014 and 2015, in the interest of national economy and general welfare;
NOW, THEREFORE, I, RODRIGO ROA DUTERTE, President of the Philippines, by virtue of the powers vested in me by the Constitution and existing laws do hereby order:
SECTION 1. Pursuant to Section 5 of RA No. 7656, the percentage of net earnings to be declared and remitted by the PSALM as dividends to the National Government is adjusted from at least fifty percent (50%) of their annual net earnings to 3.3030407%, or an estimated amount of P2.11 Billion, for calendar years 2004, 2007, 2008, 2013, 2014 and 2015.
SECTION 2. The adjusted dividend rate set forth in Section 1 of this Order is only applicable to the net earnings of the PSALM for the years stated above.
SECTION 3. This Order shall take effect immediately.
DONE in the City of Manila, this 25th day of July, in the year of Our Lord, Two Thousand and Eighteen. TCAScE
Published in the Official Gazette, Vol. 114, No. 32, p. 5446 on August 6, 2018.
Cite This Law
Adjusting the Dividend Rate of the Power Sector Assets and Liabilities Management Corporation Pursuant to Section 5 of R.A. No. 7656, Executive Order No. 59, Jul 25, 2018 (Philippines)
Adjusting the Dividend Rate of the Power Sector Assets and Liabilities Management Corporation Pursuant to Section 5 of R.A. No. 7656, Executive Order No. 59 (Phil. 2018)
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