Penalties for Increase of Foreign Equity without Prior Compliance with the Foreign Investments Act

August 10, 1998

SEC MEMORANDUM CIRCULAR NO. 08-98

PENALTIES FOR INCREASE OF FOREIGN EQUITY WITHOUT PRIOR COMPLIANCE WITH THE FOREIGN INVESTMENTS ACT

Pursuant to RA No. 7042, as amended and PD No. 902-A, as amended, the following penalties shall be imposed on corporations and partnerships which increased the percentage of their foreign equity without first complying with the provisions of the Foreign Investments Act of 1991, as amended, in cases where registration with the SEC of foreign investment is required. digest

Penalty of an amount
equivalent to the following:
First Violation1/10% of the paid-in
capital but not less than
P5,000.00
Second Violation1/5 of 1% of the paid-in
capital but not less than
P10,000.00
Third Violation1/2 of 1% of the paid-in
capital but not more than
P5,000,000.00

This Circular shall take effect fifteen (15) days after publication in a newspaper of general circulation. cda

(SGD.) FE ELOISA C. GLORIA
Associate Commissioner
Officer-In-Charge

AIC Grande Tower Garnet Road
Ortigas Center, Pasig City
Metro Manila Philippines

Mobile No. +639451244898
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