REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Third Regular Session

House Bill No._8039

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJAN(

EXPLANATORY NOTE

The Filipino people, being the very lifeblood of this great nation, should be entitled to
partake in the determination of this country’s economic direction, thus in the endeavor of owning
shares in the disposition of government corporations under the privatization program, the
Government must make sure that it encourages greater public participation.

Privatization has 3 primary objectives: revenue generation for the National Government,
increase in economic/technical efficiency and to broaden public ownership of enterprises including
the development of capital markets.

Despite the broadening of public ownership being one of privatization’s primary goals, the
existing disposition schemes for privatizing enterprises remains elusive to many Filipinos. What has
become of this is the extreme concentration of economic power in the hands of the affluent few.
‘These economic elites have rendered these enterprises vulnerable to their whims and decisions. The
reality on the ground is that no ordinary Filipino can afford to bid millions, let alone thousands.

This proposed measure therefore seeks to address this problem by prioritizing securitized
selling or public offer. A public offering is the offering of securities of a company or a simi
corporation to the public. Generally, the securities are to be listed on a stock exchange. In most
jurisdictions, a public offering requires the issuing company to publish a prospectus detailing the
terms and rights attached to the offered security, as well as information on the company itself and
its finances.

‘Through the enactment of this bill, Congress shall promote wider ownership base of
enterprises and uphold the principles against restraint of trade or unfair competition. The Filipino
people deserve the fruits of this country’s once and future prosperity. It is time that we level the
playing field and give every citizen a stake in this country’s economy.

In view of the foregoing, approval of this measure is earnestly sought.



REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

House Bill No._8039

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO

AN ACT
PROVIDING FOR PUBLIC SALE SHARES IN THE DISPOSITION OF GOVERNMENT
CORPORATIONS UNDER THE PRIVATIZATION PROGRAM

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled,

SECTION 1. Public Offering of Stocks.—Whenever government-owned and controlled
corporations or any of their assets are privatized, it shall be through a public offering of not less
than sixty (60) percent of its shares of stock: Provided, That no single person shall own, directly or
indirectly, more than five (5) percent of the shares of stock of the corporation.

SEC. 2. Implementing Rules and Regulations. —Within sixty (60) days upon the approval
of this Act, the Asset Privatization Trust, in coordination with the Committee on Government
Enterprises and Privatization, shall issue the necessary rules and regulations in conformance to this

Act.

SEC. 3. Repealing Clause.—Alll laws, decrees, orders, rules and regulations or parts thereof
inconsistent with this Act are hereby amended, repealed or modify accordingly.

SEC. 25. Effectivity.—This Act shall take effect fifteen (15) days after its publication in at
least two (2) national newspapers of general circulation.

Approved,