Practice question
An investor calls an acquisition passive but uses the shares to elect controlling directors and direct the target’s policies. It relies solely on Section 21’s investment-only proviso. Which is correct?
- The claimed proviso’s nonvoting and noncontrol conditions are not met.
- Calling it passive conclusively proves the exemption
- All securities investments are immune regardless of use
- Only purchase price determines the proviso
- The investor may ignore the actual use
Legal references
- Philippine Competition Act, RA 10667, Sections 3 and 20-23: https://lawphil.net/statutes/repacts/ra2015/ra_10667_2015.html
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