Practice question
An otherwise eligible private foreign investor seeks 65% of a registered critical-infrastructure operator after classification. It submits only a letter saying that its country is friendly to Filipinos, without identifying any foreign law, treaty, agreement, or qualifying reciprocal investment right. The operator claims that friendship conclusively establishes reciprocity. Which response is correct?
- Agree; diplomatic friendship conclusively satisfies Section 25.
- Disagree; the requisite reciprocal rights must be established, and IRR 45 requires documentary evidence.
- Agree; only investors above 90% must establish reciprocity.
- Disagree; no foreign investor can ever satisfy reciprocity.
- Agree; SEC registration of the operator permanently waives reciprocity.
Legal references
- RA 11659, Section 25; https://lawphil.net/statutes/repacts/ra2022/ra_11659_2022.html
- 2023 IRR of RA 11659, Section 45; https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/2/97017
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