Topic: Revised Corporation Code of the Philippines (RA 11232)

ABC is a public utility. Under the Philippine Constitution, at least 60% of its capital must be owned by the Filipinos. The outstanding capital stock is Php 10 Million divided into 100,000 shares with par value of 100/share. Of the 100,000 outstanding shares, 60% is owned by XYZ while 40% is held by foreigners. XYZ, as investing corporation in ABC, in turn, is 60% owned by Filipinos and 40% owned by the same foreigners who directly own 40% of ABC Corporation. Is ABC a Philippine national? Is it compliant with the Constitution insofar as 60% Filipino capital requirement is concerned? Explain. (5%)