Section 2Sec./Art. 2

The following conditions shall be adhered to in Privatization:

a. In the disposition of assets in corporate form, there shall be no undue dislocation of labor unless all benefits as provided by existing laws or Collective Bargaining Agreement (CBA) shall be complied with.

b. Assets for disposal shall not revert to previous owners who after final judgment by the proper agency or a court of law have been found to have mismanaged or diverted the resources of the assets which resulted in loss and bankruptcy: Provided, That if assets are to be reverted back to the previous owners, the price shall not be less than the original transfer price.

c. Privatization of government assets classified as a strategic industry by the National Economic and Development Authority shall first be approved by the President of the Philippines.

d. A minimum of ten (10) percent of the sale of assets in corporation form shall first be offered to small local investors including Filipino Overseas Workers and where practicable also in the sale of any physical asset.1шphi1

e. Sale of all assets shall be published in at least (3) national newspapers of general circulation for three (3) consecutive days: Provided, That the first publication shall occur at least ten (10) days prior to the scheduled bidding date or date of negotiation.

f. A loss recovery provision must be included in the terms and conditions of the sale of any asset sold below the transfer price.