Practice question
An investor takes less than half of the shares but receives arrangements stipulated to grant effective control of a public service indirectly. It argues section 23 can never apply unless the nominal share percentage exceeds 50%. Which is best?
- A percentage below 50 always ends the inquiry
- The section focuses on effective direct or indirect foreign control; the stipulated control cannot be ignored merely because nominal ownership is a minority
- All minority holdings automatically confer control
- Only share certificates printed abroad count
- Every investment is automatically prohibited regardless of findings
Legal references
- https://lawphil.net/statutes/repacts/ra2022/ra_11659_2022.html — RA 11659, section 23
- https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/2/97017 — final IRR of RA 11659, national-security review provisions
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