Practice question
Before RA 11659 took effect, an ordinary foreign state-owned enterprise lawfully held capital in a Philippine public utility. It is not a sovereign wealth or independent pension fund. May it rely on its old holding to subscribe for additional capital after effectivity?
- Yes, because an old investment removes all future restrictions.
- Yes, provided the subscription occurs through a subsidiary.
- Yes, because only complete acquisitions are restricted.
- No. Existing capital may be maintained, but additional investment is prohibited under the stated rule.
- No, and Section 24 automatically confiscates its existing shares.
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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