Practice question
A public-utility corporation meets the capital and Philippine-organization requirements. Foreign investors then demand board participation exceeding their capital share, arguing that valid corporate eligibility makes every governance arrangement constitutional. Which is best?
- Eligibility removes every subsequent governance limit
- Only the total capitalization matters for all constitutional purposes
- The board-participation limit remains a separate requirement despite compliance with the entry qualifications
- All board seats must automatically belong to foreigners
- A shareholder agreement can repeal Section 11
Legal references
- 1987 Constitution: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/3/353; Article XII, Section 11.
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