Practice question
An admitted public utility has forty-percent foreign capital and a ten-seat governing board. It proposes assigning six seats to those foreign investors, with no other distinction relevant to the constitutional allocation. Which rule applies?
- Any foreign investment permits all ten seats
- Only the proposed directors’ personal preference controls
- The equity ratio is irrelevant to the board
- Public utilities are exempt from governing-body restrictions
- Six of ten exceeds the foreign investors’ forty-percent proportionate share
Legal references
- 1987 Constitution: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/3/353; Article XII, Section 11.
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