A corporation with 55% Filipino ownership and 45% foreign ownership intends to engage in the exploration of petroleum. Under the Constitution, what options are available to them?
Understand the Problem
The question asks about the constitutional limitations on a corporation with a mix of Filipino and foreign ownership engaging in petroleum exploration in the Philippines. It requires knowledge of the Philippine Constitution's provisions regarding natural resource exploitation.
Answer
The corporation can participate through a service contract with the government or explore opportunities under the "Grandfather Rule".
Based on the Constitution, a corporation with 55% Filipino ownership and 45% foreign ownership intending to engage in petroleum exploration has a couple of options:
- They may be able to participate in petroleum exploration through a service contract with the government.
- They could also explore opportunities under the "Grandfather Rule."
Answer for screen readers
Based on the Constitution, a corporation with 55% Filipino ownership and 45% foreign ownership intending to engage in petroleum exploration has a couple of options:
- They may be able to participate in petroleum exploration through a service contract with the government.
- They could also explore opportunities under the "Grandfather Rule."
More Information
Foreign ownership in the Philippines is subject to certain limitations, especially in sectors deemed vital to national interest. The exploration of petroleum resources often falls under this category due to its strategic importance.
Tips
The application of the "Grandfather Rule" can be complex and fact-dependent, so it's not always a straightforward solution.
Sources
- 1st-Law-MC (pdf) - Course Sidekick - coursesidekick.com
- [PDF] RESTRICTED WT/TPR/S/368 5 February 2018 (18-0780) Page - wto.org
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