Practice question
The President enters an agreement with a wholly foreign-owned corporation involving financial or technical assistance for large-scale mineral development. Assume that the agreement satisfies the governing law and all constitutional conditions, retains full State control and supervision, and Congress is timely notified. An opponent argues that foreign ownership alone necessarily invalidates the agreement because every resource arrangement requires sixty-percent Filipino capital. Which is correct?
- The opponent is correct because the Constitution contains no foreign-owned-corporation provision.
- The agreement automatically conveys ownership of all national minerals.
- Foreign ownership makes State control constitutionally unnecessary.
- The objection is overbroad because the Constitution separately allows the specified foreign assistance arrangement subject to its conditions.
- The agreement is valid even if every stipulated safeguard is removed.
Legal references
- 1987 Constitution, Article XII Section 2: https://lawphil.net/consti/cons1987.html
- La Bugal-B'laan Tribal Association v. Ramos, G.R. No. 127882, December 1, 2004, main resolution on reconsideration: https://lawphil.net/judjuris/juri2004/dec2004/gr_127882_2004.html
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