Section 5Sec./Art. 5

Authorized Capital Stock, Par Value.

(a) The capital stock of the Veterans Bank shall be Ten billion pesos (P10,000,000,000.00) divided into seventy-five million (75,000,000) common shares and twenty-five million (P25,000,000) preferred shares with a par value of One hundred pesos (P100.00) each. The Board of Directors and stockholders are hereby authorized to increase the authorized capital stock and provide the features of preferred shares, subject to pertinent laws and the rules and regulations of the BSP and Securities and Exchange Commission (SEC).

(b) The seventy-five million (75,000,000) common shares shall include: (1) the original five hundred ten thousand (510,000) common shares subscribed and fully paid by the government for and in behalf of the World War II veterans and was already issued/transferred to the said veterans; (2) the stock dividends on common shares issued to the stockholders representing subscription on increases in an authorized capital stock, common, approved by the SEC as of the date of the effectivity of this Act. The unsubscribed balance shall opened for subscription by the existing stockholders and the other veterans entitled to benefit from this Act as described in Section 6(a) hereof.

The twenty-five million (25,000,000) preferred shares shall include: (1) the original four hundred ninety thousand (490,000) preferred shares subscribed and fully paid by the veterans; and (2) the stock dividends on preferred shares issued to the stockholders. The unsubscribed shares on increases in the authorized capital stock, preferred, approved by the SEC as of the date of the effectivity of this Act, shall be opened for subscription by the existing stockholders and the other veterans entitled to benefit from this Act as described in Section 6(a) hereof. The transfer of the share/s of a veteran to the widow, orphan or compulsory heir of a veteran by way of succession or donation shall not be subject to tax.

Shares may be opened for investment to non-veterans: Provided, That at all times the majority of the common shares shall be held by the veterans as defined under this Act.

(c) The Board of Trustees of the Veterans of World War II (BTVWW II), provided for under Section 24 hereof, which was originally designated as such under Section 8 of Republic Act No. 7169, otherwise known as An Act to Rehabilitate the Philippine Veterans Bank, shall continue to be the trustee of all issued but undelivered common and preferred shares.