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Hanggang Ngayon Di Pa Nai-distribute ang Hacienda Luisita sa Farmers
Monday, 07 December 2009 09:13

CLAIM: Hanggang ngayon di pa nai-distribute ang Hacienda Luisita to its farmers
TRUTH: Hacienda Luisita offered its genuine farmer-beneficiaries a Stock Distribution Option (SDO). The farmers received this option in formal referendum in 1989
The Stock Distribution Option (“SDO”) is an option provided under Section 3(a) of the Comprehensive Agrarian Reform Law for a corporation owning an agricultural land, like HLI, as a mechanism to distribute shares of capital stock, as opposed to small parcels of land, to qualified farmer-beneficiaries.
Under the proposed SDO of Hacienda Luisita, the farmer-beneficiaries will become stock holders of the corporation, and in effect, co-owners of the hacienda. The features of the SDO include:
1. Acquisition and distribution, on the basis of number of days worked during the year, the entire block of 118,391,976.85 shares of capital stock in HLI
2. Four (4) seats in the Board of Directors allotted to the farmer-beneficiaries;
3. Share in the production equivalent to 3% of gross sales of HLI, in addition to what the farmers receive as regular salaries and wages; and
4. Award of free residential home lots of not less than 240 square meters each to family beneficiaries.

HLI entered into a Memorandum of Agreement (“MOA”) with the TDC and the genuine farmer-beneficiaries, which embodied the basics and the mechanics of the SDO. In a referendum conducted on 24 October 1989 under DAR Secretary Philip Ella Juico, 92.6% of farmer-beneficiaries approved the SDO. In another referendum conducted by the PARC under DAR Secretary Miriam Defensor-Santiago, 96.27% of the farmer-beneficiaries voted for the adoption of the SDO. The MOA was formally approved by the PARC on 21 November 1989.