Practice question
After RA 11659 takes effect, an ordinary foreign state-owned enterprise seeks a new direct capital investment in a Philippine public utility. It has no pre-existing stake and is neither a sovereign wealth fund nor an independent pension fund. It argues that remaining below the usual forty-percent foreign ceiling necessarily permits its investment. What additional statutory issue defeats that categorical argument?
- No statute regulates the identity of a foreign investor.
- Only the enterprise's chosen trade name matters.
- The Act permits every state-owned enterprise to own all utilities.
- The exception for sovereign wealth funds automatically covers every foreign ministry-owned company.
- RA 11659 separately prohibits the specified new investments by foreign state-owned enterprises, subject to its stated exceptions.
Legal references
- RA 11659, Section 24, investments by foreign government-controlled entities or foreign state-owned enterprises: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/2/94539
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