MORNBFI Vol. 1 - Planters Development Bank

§§ 4146Q - 4148Q08.12.31schedule approved by the Monetary Board,as well as all amortizations due ondeferred charges;(4) Provisions for the current year’s taxes;(5) Income tax deferred for the year:Provided, however, That in case of reversalof deferred income taxes excluded from netincome in previous years’ profit sharings,the deferred income tax reversed to expenseshall be added back to net income to arriveat the basis for profit sharing for the yearduring which the reversal is made;(6) Accumulated profits not yet receivedbut already recorded by a QB representingits share in profits of its subsidiaries underthe equity method of accounting; andb. The QB may provide in its by-lawsfor other priorities in the computation of netprofits for purposes of profit sharing:Provided, That in no case shall profit sharingtake precedence over any of the items inthe preceding paragraph.Sec. 4147Q Compensation and OtherBenefits of Directors/Trustees andOfficers. To protect the funds of creditors,the Monetary Board may regulate/restrictthe payment by the QB/trust entity ofcompensation, allowances, fees, bonuses,stock options, profit sharing and fringebenefits to its directors/trustees and officersin exceptional cases and when thecircumstances warrant, such as, but notlimited to, the following:a. When the QB/trust entity is undercontrollership, conservatorship or when ithas outstanding emergency loans andadvances and such other forms of creditaccommodation from the BSP which areintended to provide it with liquidity in timesof need;b. When the institution is found by theMonetary Board to be conducting businessin an unsafe or unsound manner; andc. When it is found by the MonetaryBoard to be in an unsatisfactory financialcondition such as, but not limited to, thefollowing cases:(1) Its capital is impaired;(2) It has suffered continuous lossesfrom operations for the past three (3) years;(3) Its composite CAMELS rating in thelatest examination is below “3”; and(4) It is under rehabilitation by the BSP/PDIC which rehabilitation may includedebt-to-equity conversion, etc.In the presence of any one (1) ormore of the circumstances mentionedabove, the Monetary Board may imposethe following restrictions in thecompensation and other benefits ofdirectors and officers:a. In the case of profit sharing, theprovision of Sec. 4146Q shall be observedexcept that for purposes of this Section, thetotal amount of unbooked valuation reservesand deferred charges shall be deducted fromthe net income.b. Except for the financial assistanceto meet expenses for the medical,maternity, education and other emergencyneeds of the directors/trustees or officersor their immediate family, the other formsof financial assistance may be suspended.c. When the total compensationpackage including salaries, allowances,fees and bonuses of directors/trustees andofficers are significantly excessive ascompared with peer group averages, theMonetary Board may order their reductionto reasonable levels: Provided, That evenif a QB/trust entity is in financial trouble,it may nevertheless be allowed to grantrelatively higher salary packages in orderto attract competent officers and qualitystaff as part of its rehabilitation program.The foregoing provisions founded onSection 18 of R.A. No. 8791 shall be deemedpart of the benefits and compensationprograms of QBs/trust entities.Sec. 4148Q (Reserved)Manual of Regulations for Non-Bank Financial InstitutionsQ RegulationsPart I - Page 43