Re: Applicability of Anti-Dummy Law on Partly-Nationalized Activities

August 24, 2018SEC-OGC OPINION NO. 16-18RE: APPLICABILITY OF ANTI-DUMMY LAW ON PARTLY-NATIONALIZED ACTIVITIESRodrigo Berenguer & GunoSuite 1517, 15th Floor, AIC-Burgundy Empire TowerADB Avenue Corners Garnet & Sapphire RoadsOrtigas Center, Pasig City, Philippines 1605Attention: Atty. Francisco E. Rodrigo, Jr.Atty. Manuel C. Fausto, Jr.Atty. Bryan Orville R. CipresAttorneys :This refers to your letter dated 11 May 2016, requesting the Commission's opinion, on behalf of your client, Cenertec Philippines, Inc., ("Cenertec") on whether or not it is engaged in a partly-nationalized activity, and the applicability of the Anti-Dummy Law 1 thereof. ICHDcaAs stated in your letter, Cenertec is engaged in the business of power generation, trading, supply, distribution and/or transmission. Its current equity structure is sixty percent (60%) owned by Filipinos and forty percent (40%) owned by foreigners. Its incumbent president is a French national. Your letter further states that you were advised by the Company Registration and Monitoring Department of the Commission that Cenertec is a corporation engaged in a partly-nationalized activity because its paid-up capital is less than the peso equivalent of US$200,000. Thus, you were...