QAU Memo 2017-02: SEC Updates
| SEC Notice: The Cashier’s Office at SEC Ortigas Branch will be Closed |
The Cashier’s Office at SEC Ortigas Branch will be closed effective January 3, 2017 (Tuesday). In case of payments, kindly proceed to SEC PICC Head Office-CASHIER or SEC Satellite Offices.
| SEC Opinion No. 16-29: Election of Foreign Stockholder as President of a Renewable Energy Company |
Issue
The SEC was requested to provide an opinion on whether or not a foreign stockholder can be elected as President of a Renewable Energy Company, 60% of which is Filipino owned.
Background
Austworks Corporation:
- venturing into renewable energy, engaged in the exploration, development and utilization of natural resources, which is a partially nationalized activity;
- 88% currently owned by Australian stockholders.
- fully aware that Department of Energy Circular No. DC2009-07-0011 requires a Renewable Energy Company to be a Filipino corporation at least 60% being owned by Filipinos.
Austworks will restructure its capitalization to comply with the 60% Filipino-ownership requirement after that it plans to elect, as its President, one of its Australian stockholders.
Opinion
The Commission states that this intention of Austworks to elect an Australian Stockholder as its President is governed by Section 2-A of the Anti-Dummy Law which prohibits aliens from being appointed to management positions as president, vice-president, etc. of corporations engaged in wholly or partially nationalized activities.
Consequently, it cannot elect one of its Australian stockholders as its President.
---xxx---
| QAU Memo is the official publication of R.S. Bernaldo & Associates to keep the Firm’s professional staff informed of the issues affecting the practice. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
The Firm cannot be held liable for any losses suffered as a result of reliance upon information contained in this memo. This is a property of R.S. Bernaldo & Associates. Reproduction of any material included in the alert should be subject to the approval of the Editorial Board. R.S. Bernaldo & Associates is a correspondent firm of the PKF International Limited family of legally independent firms and does not accept any responsibility or liability for the actions or inactions of any individual member or correspondent firm or firms. Comments and suggestions are welcome. |
Editorial Board
Managing Partner/ Technical Partner cherry [dot] bernaldo [at] rsbernaldo [dot] com
Assist. Quality Assurance Manager/ Quality Assurance Leader anthony [dot] pano [at] rsbernaldo [dot] com
Quality Assurance Associate/ Learning and Training Leader qau [at] rsbernaldo [dot] com
Quality Assurance Associate/ Quality Control Review Leader qau [at] rsbernaldo [dot] com
Quality Assurance Associate/ Consultation Leader qau [at] rsbernaldo [dot] com
Quality Assurance Associate/ Ethics Leader qau [at] rsbernaldo [dot] com
|
