Practice question
A foreign government controls an enterprise through the power to appoint most of its board, although it owns only 40% of the capital. The enterprise proposes a new investment in a covered public utility after RA 11659 took effect. It is not within the fund exception. Can it defeat the restriction solely by pointing to its minority shareholding?
- Yes, because only 100% state ownership counts.
- Yes, because all minority shareholders are private investors.
- Yes, because board appointments never matter.
- Yes, if it uses the word private in its name.
- No. The statutory definition includes the state's majority-board appointment power.
Legal references
- RA 11659, Sections 2(g) and 24; https://lawphil.net/statutes/repacts/ra2022/ra_11659_2022.html
- 2023 IRR of RA 11659, Section 44; https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/2/97017
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