The 1987 Philippine Constitution has set forth requirements a corporation must meet before involving itself in certain activities. Depending on its nationality, a corporation may or may not undertake specific business ventures or invest in certain areas. Indeed, the 1987 Constitution was crafted to protect the rights of Filipinos to utilize natural resources, operate public utilities, and engage in fully or partly nationalized activities.

Under the Foreign Investments Act of 1991, a corporation is a “Philippine National” if it is organized under the laws of the Philippines and at least 60 percent of its capital stock outstanding and entitled to vote are owned and held by Filipino citizens. This definition echoes the ownership requirements provided by the 1987 Constitution.

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