Practice question
For Section 40’s qualifying exchange provisions, what voting-power ownership constitutes control under the CREATE amendment?
- Exactly 10%
- At least 51% of total voting power of voting stock, using the prescribed collective ownership rule
- Only the longest-serving director’s vote
- Any single share in every case
- Only a verbal claim of influence
Legal references
- RA 11534, Section 10, amended NIRC Section 40(C)(2) and (6): https://lawphil.net/statutes/repacts/ra2021/ra_11534_2021.html
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