House OKs bill raising DBP's capital stock to P300B on final reading

The House of Representatives on Tuesday approved on final reading a bill increasing the capital stock of the state-run Development Bank of the Philippines (DBP) from P50 billion to P300 billion.

House Bill 11230, which provides for a new DBP Charter, received 199 yes votes, three no votes, and no abstentions during the plenary session.

Under the bill, the P300 billion capital stock of the DBP will be divided into three billion common shares with a par value of P100 per share, of which P32 billion or 10.67% will be subscribed and fully paid by the national government.

Likewise, the bill allows the DBP to allocate its unrestricted retained earnings for the increase in the paid-up capital stock of the national government.

The voting power of all common shares owned and controlled by the government will be vested in the President of the Philippines or any ex-officio member of the DBP Board of Directors composed of nine members appointed by the President.

Further, the bill authorizes the DBP to temporarily appoint directors when urgent action is needed from its subsidiaries and a quorum of the Board is lacking.

The bill states that the DBP president will serve as the vice chairperson and chief executive officer of the DBP Board of Directors, with the Secretary of Finance serving as the ex-officio chairperson and the Secretary of the National Economic and Development Authority as an ex-officio member.

The subsidiaries of the DBP include the DBP Leasing Corporation, DBP Data Center, Inc., and Al-Amanah Islamic Investment Bank of the Philippines. — VBL, GMA Integrated News