MORNBFI Vol. 1 - Planters Development Bank

APP. Q-1808.12.31l) Unimpaired capital and surplusmeans the total of the unimpaired paid-incapital, surplus, and undivided profits netof such valuation reserves as may berequired by the Commission provided thatthe Commission may include such otheritems as it may deem appropriate.m) Quasi-banking functions shall referto the functions defined as such by law andappropriate implementing rules andregulations.n) Commission shall mean theSecurities and Exchange Commission.Sec. 3. Organization and RegistrationA. Investment Houses shall beorganized in the form of stock corporationsin accordance with the provisions of theCorporation Law, subject to the followingrequirements:1) At least a majority of the voting stockof the corporation shall be owned by citizensof the Philippines. In determining thepercentage of foreign-owned voting stocksin an IH, the basis of the computation shallbe the citizenship of each stockholder, and,with respect to corporate owners of votingstock, the citizenship of the individualowners of voting stock in the corporationholding shares in the IH;2) The majority of the members of theBoard shall be citizens of the Philippines;3) Foreign equity participation shallbe registered or reported with the Boardof Investment in accordance with the rulesand regulations of that Office, prior to orsimultaneous with the registration with theCommission;4) The corporation shall have aminimum initial paid-in capital of P20.0million at the time of incorporation;5) Resident foreign directors ortechnicians of an IH, if any, shall register withthe Bureau of Immigration and Deportation;6) In no event shall an officer of an IH beat the same time an officer of a bank, as definedin Section 3 of R.A. No. 337, as amended;7) No director or officer of an IH shallat the same time be a director of a bank,and no director of an IH shall at the sametime be an officer of a bank, except as maybe authorized as an exception by theMonetary Board of the BSP.B. Procedure - The organizers shallfile with the Commission, a swornapplication for registration in accordancewith the prescribed form, together with thefollowing documents:(1) All documents required forregistration as a stock corporation;(2) An information sheet of theregistrant corporation; [SEC Form 129-2](3) A statement under oath by theorganizers and the proposed managerialstaff, of their educational background andwork experience, as well as informationon any position currently held by them inbanking and other FIs, if any (SEC Form129-3);(4) A one-year projected statement ofassets and liabilities of the proposed IH;(5) A tentative program of operationfor one year, including its investmentdirection and volume, its expected sourcesand intended uses of funds and its quasibankingfunctions, if any.C. Hearing on Application - TheCommission shall conduct a hearing todetermine whether the establishment ofthe proposed IH will promote publicinterest and economic growth. The BSP shallbe officially notified.The SEC Commissionershall not register any articles ofincorporation unless his Office shall haveconsulted the BSP and is satisfied on thebasis of the evidence submitted that:(1) All the requirements of P.D. No.129 and of existing laws relative to theorganization of an IH have been compliedwith;(2) Public interest and economicgrowth are promoted;(3) The amount of capital, theproposed organization, direction andQ RegulationsAppendix Q-18 - Page 2Manual of Regulations for Non-Bank Financial Institutions