September 19, 2019
SEC-OGC OPINION NO. 42-19
RE: NATIONALITY REQUIREMENT FOR TRANSPORT NETWORK COMPANY
Tiongco Siao Bello Law Offices
Units 2104 to 2105, Robinson's Equitable Tower
4 ADB Avenue, Ortigas Center, Pasig City
Attention: Atty. Joyce G. Jucutan
Atty. Nikka M. Baccay
Attorneys :
This refers to your letter dated 26 April 2019 requesting an opinion on whether Velox Technology Philippines, Inc. (Velox Philippines) is compliant with the foreign equity limits under Section 11, Article XII of the 1987 Constitution.
Based on your letter, Velox Philippines is an applicant for accreditation as a Transport Network Company (TNC) with the Land Transportation Franchising and Regulatory Board (LTFRB). After submission and pending approval of the application, the Department of Transportation (DOTr) issued Department Order (DO) No. 2018-12 dated 11 June 2018 classifying TNCs as public utilities. To comply with the mandate of the said DO and in accordance with Section 11, Article XII of the 1987 Constitution, Velox Philippines undertook ownership restructuring.
Pursuant to such restructuring, Velox South-East Asia Holdings Pte. Ltd. (Velox SEA), a foreign Singaporean corporation and a stockholder of Velox Philippines, sold 245,000,000 of...
