MANILA, Philippines – The Securities and Exchange Commission (SEC) has finalized the foreign ownership cap rules for Philippine companies.
In a memorandum issued yesterday, the SEC en banc said it will no longer implement the hotly-contested 40-percent foreign ownership cap for each class of shares.
“The required percentage of Filipino ownership shall be applied to both the total number of outstanding shares of stock entitled to vote in the election of directors, and the total number of outstanding shares of stock, whether or not entitled to vote in the election of directors,” SEC said.
“All covered corporations, shall at all times, observe the constitutional or statutory ownership requirement,” SEC added.
Erring firms will be given one year to comply with the foreign ownership limit.
In March, SEC sought public comments for the second and final draft that outlines the rules on the ownership of local firms.
Under the SEC’s first draft released in November, all covered corporations like utility firms are required to meet the constitutional requirements of 40 percent foreign ownership limit for each class of shares at all times.
Source: Neil Jerome C. Morales, The Philippine Star, 21 May 2013
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