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receipt of notice, said share of stock shall be available for subscription to other veterans
in accordance with such rules or regulations as may be promulgated by the Board of
Directors. Moreover, under Sec. 6(a), the affairs of the Bank are managed by a board of
directors composed of eleven members, three of whom are ex officio members, with the
other eight being elected annually by the stockholders in the manner prescribed by the
Corporation Law. Significantly, Sec. 28 also provides as follows:
Sec. 28. Articles of incorporation. This Act, upon its approval, shall be
deemed and accepted to all legal intents and purposes as the statutory
articles of incorporation or Charter of the Philippine Veterans' Bank; and
that, notwithstanding the provisions of any existing law to the contrary,
said Bank shall be deemed registered and duly authorized to do business
and operate as a commercial bank as of the date of approval of this Act.
This point is important because the Constitution provides in its Article IX-B,
Section 2(1) that "the Civil Service embraces all branches, subdivisions,
instrumentalities, and agencies of the Government, including government-owned or
controlled corporations with original charters." As the Bank is not owned or controlled by
the Government although it does have an original charter in the form of R.A. No. 3518, it
clearly does not fall under the Civil Service and should be regarded as an ordinary
commercial corporation. Section 28 of the said law so provides. (PVB Employees
Union-NUBE v. Philippine Veterans Bank, G.R. No. 67125, August 24 1990)
The purpose of the constitutional provision prohibiting Congress from creating
private corporations was to prevent the granting of special privileges to certain
individuals, families, or groups, which were denied to other groups. PVBs Charter does
not come within the spirit of this constitutional provision, as it does not grant special
privileges to a particular individual, family, or group, but creates an entity that strives to
serve the common good.
Furthermore, a strict and mechanical interpretation of Article XII, Section 16 of
the 1987 Constitution will hinder the State in adopting measures that will serve the public
good or national interest. It should be noted that a special law, R.A. No. 9520, the
Philippine Cooperative Code of 2008, and not the general corporation code, vests
corporate power and capacities upon cooperatives which are private corporations, in
order to implement the States avowed policy. (Liban v. Gordon, G. R. No. 175352,
January 18, 2011)
II.
THE SHARE OF EACH BENEFICIARY, WAR VETERAN OR WIDOW, ORPHAN OR
COMPULSORY HEIR OF A DECEASED VETERAN WILL BE EQUAL REGARDLESS
OF RANK AND SERVICES RENDERED.
Under RA 3518, PVBs shares are subject to the following restrictions:
1.
2.
3.