September 12, 1974
CBP MEMORANDUM
TO : All Non-Bank Financial Intermediaries
The Monetary Board, in its Resolution No. 1744 dated August 9, 1974, adopted the following "Guidelines" to ensure the full and effective implementation of citizenship requirements imposed by existing applicable laws on financial institutions and to prevent circumvention of such an objective by means of provisions in articles of incorporation, by-laws or similar documentation:
1. Where at least a majority of the equity is reserved by law to be held by Filipino citizens and foreign stockholders are occupying or will occupy a substantial minority position, no corporation in a financial sector will be permitted to provide in its articles of incorporation, by-laws or similar documentation a provision that certain corporate transactions would require a voting concurrence of greater than 70% of the subscribed capital stock entitled to vote for banks, investment houses, finance companies and such other corporations similarly subject to regulation by the Central Bank.
The 70% ceiling on the voting concurrence requirement shall extend to all levels of corporate decisions: (a) stockholders, (b) board of directors, as...
