Facilitating the Merger or Consolidation of Public Utilities in Telecommunications
Presidential Decree No. 1756, issued on January 1, 1981, aims to facilitate the merger or consolidation of public utilities in the telecommunications sector in the Philippines. The decree allows public utility corporations to merge or consolidate with others by obtaining a majority vote from stockholders, overriding existing laws that may restrict such actions. It also provides tax exemptions on capital gains and income from the sale of stocks or assets related to these mergers, subject to presidential approval. This measure is intended to enhance the financial stability and operational capacity of telecommunications providers, and it is effective for five years from its issuance.
Quick Answers
- What is Facilitating the Merger or Consolidation of Public Utilities in Telecommunications about?
- Presidential Decree No. 1756, issued on January 1, 1981, aims to facilitate the merger or consolidation of public utilities in the telecommunications sector in the Philippines. The decree allows public utility corporations to merge or consolidate with others by obtaining a majority vote from stockholders, overriding existing laws that may restrict such actions. It also provides tax exemptions on capital gains and income from the sale of stocks or assets related to these mergers, subject to presidential approval. This measure is intended to enhance the financial stability and operational capacity of telecommunications providers, and it is effective for five years from its issuance.
- What type of law is Presidential Decree No. 1756?
- Facilitating the Merger or Consolidation of Public Utilities in Telecommunications (Presidential Decree No. 1756) is a Philippine Presidential Issuances enacted by the Congress of the Philippines.
- When was Facilitating the Merger or Consolidation of Public Utilities in Telecommunications enacted?
- Facilitating the Merger or Consolidation of Public Utilities in Telecommunications (Presidential Decree No. 1756) was enacted on Jan 1, 1981.
- What is the citation for Facilitating the Merger or Consolidation of Public Utilities in Telecommunications?
- Facilitating the Merger or Consolidation of Public Utilities in Telecommunications, Presidential Decree No. 1756, Jan 1, 1981 (Philippines)
Law Information
- Reference Number
- Presidential Decree No. 1756
- Date Enacted
- Category
- Presidential Issuances
- Subcategory
- Presidential Decrees
- Jurisdiction
- Philippines
- Enacting Body
- Congress of the Philippines
Full Law Text
January 1, 1981
PRESIDENTIAL DECREE NO. 1756
FACILITATING THE MERGER OR CONSOLIDATION OF PUBLIC UTILITIES IN TELECOMMUNICATIONS
WHEREAS, the Government is currently engaged in instituting vital reforms in the telecommunications industry to enable the system to play a more effective role in the socio-economic development of the country;
WHEREAS, it is necessary that incentives be provided to encourage the merger or consolidation of public utilities, especially in the field of telecommunications, as a means of further promoting the financial stability and capacity of the public utility operators; cdt
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order and decree:
SECTION 1. For the purpose of facilitating mergers or consolidations of public utilities engaged in the operation of telecommunications facilities, any such public utility corporation may merge or consolidate with another such public utility corporation, and the capital stocks of such corporations may be increased to the extent necessary to effect such merger or consolidation by the affirmative vote of the stockholders representing at least a majority of the subscribed capital stock in a stockholders' meeting called for that purpose, notwithstanding provisions of existing laws to the contrary.
SECTION 2. The proceeds from the sale of stocks and/or the consolidation of assets, resulting from any corporate merger of consolidation, upon the approval of the President, shall be free from all taxes on capital gains and income tax, notwithstanding provisions of existing laws to the contrary.
SECTION 3. This Decree shall take effect immediately and shall remain in force for a period of five (5) years from date hereof.
DONE in the City of Manila, this 1st day of January, in the year of Our Lord, Nineteen Hundred and Eighty-One.
Published in the Official Gazette, Vol. 77 No. 19, 2451-1 Supp., on May 11, 1981.
Cite This Law
Facilitating the Merger or Consolidation of Public Utilities in Telecommunications, Presidential Decree No. 1756, Jan 1, 1981 (Philippines)
Facilitating the Merger or Consolidation of Public Utilities in Telecommunications, Presidential Decree No. 1756 (Phil. 1981)
Related Laws
- Facilitating the Merger or Consolidation of Public Utilities in TelecommunicationsPresidential Decree No. 1756-A • Jan 2, 1981 • Presidential Issuances
- Consolidation or Merger of Domestic Record CarriersLetter of Instructions No. 1344 • Jul 20, 1983 • Presidential Issuances
- Facilitating Bank Mergers or ConsolidationsPresidential Decree No. 117 • Jan 29, 1973 • Presidential Issuances
- Consolidation and Merger of the National Livelihood Support Fund and the People's Credit and Finance CorporationExecutive Order No. 362 • Sep 22, 2004 • Presidential Issuances
- An Act Authorizing the Merger or Consolidation of Certain Corporations, and for Other PurposesAct No. 2772 • Mar 6, 1918 • Statutes
- Guidelines on the Submission of Application for Merger and ConsolidationBSP Memorandum No. M-2009-028 • Aug 12, 2009 • Other Rules and Procedures
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