Practice question
A qualifying sovereign wealth fund and a qualifying independent pension fund of the same foreign state propose holdings of 20% and 15%, respectively, in the same Philippine public utility. No other fund investments are involved. They argue that each holding is below 30%. Assess only their compliance with Section 24's collective fund limit.
- Compliant, because each fund has a separate 30% limit.
- Noncompliant, because their combined 35% exceeds the collective 30% limit.
- Compliant, because pension funds never count toward the limit.
- Noncompliant, because Section 24 prohibits every qualifying fund investment without exception.
- Compliant, because the limit applies only to voting shares held by one fund.
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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