December 6, 2018
SEC-OGC OPINION NO. 23-18
RE: APPLICABILITY OF ANTI-DUMMY LAW
Antonio G. Marfori
Chairman
Southwestmin Corporation
San Rafael, San Marcelino
2207, Zambales
Dear Mr. Marfori :
This refers to your letter dated 12 April 2018 requesting for an opinion on whether the appointment of a foreign national as President of the Southwestmin Corporation (Southwestmin) is violative of the Anti-Dummy Law (Commonwealth Act No. 108). 1
In your letter, you stated that Southwestmin is a domestic corporation duly registered with the Commission primarily engaged in the business of quarrying, mining, cutting strip, finishing, setting, purchasing on wholesale basis and dealing in non-metallic ore, among others. At present, you have two (2) foreign nationals as stockholders with aggregate shareholdings totaling 1.17% and one of them sits as a Board Director. You are contemplating on appointing this director as President of the corporation because he has specialized knowledge in an onshore mining technique called "borehole process."
Under the circumstances presented, we opine that you cannot appoint this director as President.
The business activity of Southwestmin is mining, which is a partly nationalized activity. The law has specific...
