SEC issues guidelines on Foreign Ownership





The Philippines Securities and Exchange Commission (SEC) issued Memorandum Circular No. 8, series of 2013, setting forth the guidelines on compliance with foreign ownership in nationalized and partly nationalized industries.

The SEC rules that in determining the required percentage of Filipino ownership, the following conditions must be applied: a) the total number of outstanding shares of stock entitled to vote in the election of directors; and b) the total number of outstanding shares of stock, whether or not entitled to vote in the election of directors. The guidelines cover corporations engaged in identified areas of activities and enterprises be reserved to Philippine Nationals. Registered corporations were given one (1) year for the publication of the guidelines to comply with the rules.

The new rules stems from the Supreme Courtís decision on the Philippine Long Distance Telephone Co. (PLDT) case involving the computation of foreign ownership. The law provides that a 40% limit on foreign ownership should be applied on areas of activities and enterprises be reserved to the Philippine nationals.

For a copy of the memorandum, please click link below:


SEC Memorandum Circular No. 8, s2013.