Re: Allowable Foreign Equity in Cargo and Freight Forwarding Activities

November 18, 2019SEC-OGC OPINION NO. 52-19RE: ALLOWABLE FOREIGN EQUITY IN CARGO AND FREIGHT FORWARDING ACTIVITIESProcy FernandezBlk. 16 L9, Diamond VillageSalawag, Dasmariñas, CaviteDear Ms. Fernandez :This refers to your letter dated 10 September 2019, raising the following inquiries/concerns:1. What is the allowable percentage of foreign equity in cargo and freight forwarding activities? Are there constitutional provisions or existing laws which allows foreign equity on said activities? In the event that the allowable foreign equity has exceeded, what are the possible penalties or actions that may be imposed? 2. May a foreign corporation or entity, which is not registered with the Securities and Exchange Commission (SEC), subscribe to a domestic corporation's shares and what are the requirements of the same?3. Are there restrictions of the SEC for Cargo/Freight forwarding companies; and4. What are the possible penalties that may be imposed for companies operating without the necessary permits from the Department of Information and Communication and Technology and local government licenses?As to your first query, a freight forwarder is considered an operator of a public utility, which is...