Section 6Sec./Art. 6

Capitalization and Initial Funding.- The MIC shall have an authorized capital stock of Five hundred billion pesos (P500,000,000,000.00) to be divided pesos (P100.00) per share which save have the following classifications and features:

(1) Common shares of three billion seven hundred fifty million (3,750,000,000) equivalent to Threes hundred seventy five billion pesos (375,000,000,000.00), to be subscribed by the National Government, its agencies or instrumentalities, including government owned and -controlled corporations (GOCCs) or government-financial institutions (GFIs): Provided, That one billion two hundred fifty million (1,250,000,000) shares equivalent to One hundred twenty-five billion pesos (P125,000,000,000.00) shall initially be subscribed by the following:

(a) Land Bank of the Philippines - Fifty billion pesos (P50,000,000,000.00);

(b) Development Bank of the Philippines - Twenty-five billion pesos (P25,000,000,000.00); and

(c) National Government - Fifty billion pesos (P50,000,000,000,00):

Provided, further, That of the One hundred twenty-five billion pesos (P125,000,000,000.00), Seventy-five billion pesos (P75,000,000,000.00) pertaining to the contributions of the Founding GFIs shall be fully paid by them; and

(2) Preferred shares of one billion two hundred fifty million (1,250,000,000) equivalent to One hundred twenty-five billion pesos (P125,000,000,000.00) to be made available for subscription by the National Government, its agencies or instrumentalities, GOCCs or GFIs, except Social Security System (SSS), Government Service Insurance System (GSIS), Philippine Health Insurance Corporation (PhilHealth) Home Development Mutual Fund (Pag-IBIG Fund), Overseas Workers Welfare Administration (OWWA), and Philippines Veterans Affairs Office (PVAO) Pension Fund: Provided, That preferred shares shall be non-voting, non-participating, non-convertible, and may be issued from time to time by the Board of Directors in one or more series, specifying the relative rights, preferences and further limitations thereof.

For this purpose, a single private sector shareholder's interest includes the direct or indirect shareholdings in MIC held by the shareholder, as well as those held by the corporation, its subsidiaries, affiliates, and related parties that are owned or controlled directly or indirectly by the shareholder.

The contribution of the National Government shall come from the following sources:

(a) Bangko Sentral ng Pilipinas (BSP) Dividends. For the first and second fiscal years upon the effectivity of this Act, One hundred percent (100%) of the BSP's total declared dividends, as computed under Republic Act No. 7653 also known as the "New Central Bank Act", as amended by Republic Act No. 11211, shall be remitted to the National Government for the capitalization of the MIC, in the amount not exceeding the Fifty billion pesos (P50,000,000,000.00) initial subscription of the National Government to the capitalization of the MIC under this section; Provided, That the Monetary Board may recommend to the President of the Philippines the reduction of BSP's dividend contribution to the MIC whenever economic conditions may warrant.

Thereafter, the dividends of the BSP shall be remitted to the National Government to fund the increase in the capitalization of the BSP in accordance with Section 2 of Republic Act No. 7653, as amended by Republic Act No. 11211.

(b) Government Share in the Philippine Gaming Corporation (PAGCOR). Ten percent (10%) of the National Government's share from the income of the PAGCOR, as provided for in Presidential Decree No. 1869, as amended: Provided, That the share earmarked for the Universal Health Care Act under Sec. 37(b) of Republic Act No. 11223 shall not in any manner be diminished: Provided, further, That the above funding from PAGCOR will be for a period of five (5) years. Other government-owned gaming operators and/or regulators shall also contribute ten percent (10%) of their revenues from gaming operations. Within thirty (30) days from the effectivity of the Implementing Rules and Regulations, the Governance Commission for GOCCs (GCG) shall submit the list of government-owned gaming operators and/or regulators that should remit to the MIC.

The list shall be updated annually, or as often as necessary. The remittance of revenues of gaming operators and/or regulators that should remit to the MIC. The list shall be updated annually, or as often as necessary. The remittance of revenues of gaming operator and/or regulators shall be five (5) years.

PAGCOR and other government-owned gaming operators and/or regulator shall remit the National Government's share to the Bureau of the Treasury (BTr). Thereafter, the BTr shall immediately release and transfer the portion intended for the MIF to the MIC, subject to the usual budgeting, accounting, and auditing rules and regulations.

(c) Department of Finance - Privatization and Management Office (DOF-PMO).

(i) Properties, real and personal, identified by the Privatization Council. The real and personal properties to be identified by the Privatization Council to be contributed to the MIC shall be directly related to its mandate. The properties to be contributed to the MIC shall be appraised at their fair market value at the time of their transfer. The title, as well as all rights and obligations pertaining thereto, shall be transferred to the MIC: Provided, That the MIC shall in no case be held liable for outstanding tax liabilities of the properties; and

(ii) Proceeds from the privatization of government assets, the amount of which shall be determined by the Privatization Council consistent with the fiscal program of the government. (d) Other sources, such as royalties and/or special assessments based on the fiscal regime to be implemented by the National Government.

(d) Other sources, such as royalties and/or special assessments based on the fiscal regime to be implemented by the National Government.

The Founding GFIs and the National Government may, upon recommendation of the Advisory Body, and without prejudice to additional subscription and payment, use its stock dividends from its unappropriated retained earnings in the MIC, to subscribe and pay for the balance of the authorized capital stock.

The government agencies and GOCCs providing for the social security and public health insurance of government employees, private sector workers and employees, and other sectors and subsectors such as, but not limited to, the SSS, GSIS, PhilHealth, Pag-IBIG Fund, OWWA, and PVAO Pension Fund shall be absolutely prohibited, whether mandatory or voluntary, to contribute to the capitalization of the MIC.