Practice question
A licensing official indirectly owns a material stake in a transaction requiring approval of the same office. The official says Section 7(a) concerns only shares registered directly in the official's own name. Is that defense correct?
- Yes, indirect financial interests are expressly exempt.
- Yes, unless the official receives a salary increase.
- Yes, every indirect arrangement defeats the statute.
- No; Section 7(a) expressly reaches direct or indirect financial or material interests.
- No; because every relative automatically owns the official's office.
Legal references
- RA 6713, Section 7, prohibited acts and transactions: https://lawphil.net/statutes/repacts/ra1989/ra_6713_1989.html
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