Practice question
The Republic owns all shares of a corporation managing government infrastructure investments. Its board negotiates the sale of a controlling interest in a subsidiary to a private consortium. The governing rules require approval by a national executive committee, which reviews and approves the transaction. Before closing, a challenger invokes a constitutional restriction addressed to the State. Assume that the restriction otherwise covers the transaction. The corporation argues that its separate juridical personality, commercial role, and arm's-length negotiations place the sale outside constitutional control. Which is the best response?
- The restriction is inapplicable because the corporation has a personality separate from the Republic.
- The transaction remains constitutionally constrained; corporate personality does not insulate this government-approved transaction.
- The restriction applies only if the corporation exercises regulatory authority over the consortium.
- The restriction binds Congress alone because the corporation operates under legislation.
- The restriction applies only after the consortium takes control.
Legal references
- Manila Prince Hotel v. GSIS, G.R. No. 122156, February 3, 1997, main opinion: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/1/34508
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