Penalties Imposed to Entities which Increased the Percentage of their Foreign Equity Without First Complying with the Provisions of FIA of 1991

August 10, 1998

SEC-CLD MEMORANDUM CIRCULAR NO. 08-98

TO:All Concerned
SUBJECT:Penalties Imposed to Entities which Increased the Percentage of their Foreign Equity Without First Complying with the Provisions of FIA of 1991

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. cdll

Penalty of an amount equivalent to the following:

First Violation1/10 of 1% 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. LibLex

(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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