H. No. 6101 / 65 OG No. 29, 7410 (July 21, 1969)
(a) In any enterprise registered under the Investment Incentives Act, to the extent that the total investment of non-Philippine nationals therein would not affect its status as a registered enterprise under that law;SEC. 3. Permissible Investments.—If an investment by a non-Philippine national in an enterprise not registered under the Investment Incentives Act is such that the tot participation by non-Philippine nationals in the outstanding capital thereof shall exceed thirty percent, the enterprise must obtain prior authority from the Board of Investment' which authority shall be granted unless the propose investment—
(b) In any enterprise not registered under the Investment Incentives Act, to the extent that the total investment of non-Philippine nationals therein shall not exceed thirty percent of the outstanding capital of that enterprise, unless existing law forbids any non-Philippine ownership in the enterprise or limits ownership by non-Philippine nationals to a percentage smaller than thirty percent.
(2) Within thirty days after notice of the investment is received by it, the enterprise in which any investment is made by a non-Philippine national shall register the same with the Board of Investments for purposes of record. Investments made in the form of foreign exchange or other assets actually transferred to the Philippines shall also be registered with the Central Bank. The Board shall assess and appraise the value of such assets other than foreign exchange.
(a) Would conflict with existing constitutional Provisions and laws regulating the degree of required ownership by Philippine nationals in the enterprise; or
(b) Would pose a clear and present danger of promoting monopolies or combinations in restraint of trade; or
(c) Would be made in an enterprise engaged in an area adequately, being exploited by Philippine nationals; or
(d) Would conflict or be inconsistent with the Investments Priorities Plan in force at the time the investment is sought to be made; or
(e) Would not contribute to the sound and balanced development of the national economy on a self-sustaining basis.
(1) That the operation or activity of such alien, firm, association, partnership, corporation or other form of business organization is not inconsistent with the Investments Priorities Plan;Upon granting said certificate, the Board shall impose the following requirements on the alien or the firm, association, partnership, corporation or other form of business organization that is not organized or existing under the laws of the Philippines—
(2) That such business or economic activity will contribute to the sound and balanced development of the national economy on a self-sustaining basis;
(3) That such business or economic activity by the applicant would not conflict with the Constitution or laws of the Philippines;
(4) That the field of business or economic activity is not one that is being adequately exploited by Philippine nationals; and
(5) That the entry of applicant therein will not pose a clear and present danger of promoting monopolies or combinations in restraint of trade.
(1) To appoint a citizen of the Philippines, of legal age, good moral character and reputation, and sound financial standing, as resident agent, who shall be authorized to accept summons and other legal process in behalf of the applicant;The above requirements shall be in addition to those set forth in the Corporation Law, as amended, for licensing foreign corporations and a violation of any of these requirements shall be sufficient cause to cancel a license or permit issued pursuant to this Act: Provided, however, That this section shall not apply to aliens or foreign firms, associations, partnerships, corporations or other forms of business organization not organized or existing under the laws of the Philippines who may lawfully have been licensed to do business in the Philippines prior to the effectivity of this Act: Provided, further,That where the issuance of said license has been irregular or contrary to law, any person adversely affected thereby may file an action with the Court of First Instance where said alien or foreign business organization resides Or has its principal office to cancel the said license. In such cases, no injunction shall issue without notice and hearing; and appeals and other proceedings for review shall be filed directly with the Supreme Court.
(2) To establish an office in the Philippines and to notify the Securities and Exchange Commission in writing of the applicant's exact address and of every contemplated transfer thereof or of the opening of new offices, at least fifteen days before the same are to be effected; and once effected, not later than ten days afterwards;
(3) To bring assets into the Philippines to constitute the capital of the office or offices, of such kind and value as the Board may deem necessary to protect those who may deal with the applicant, and to maintain that capital unimpaired during the period it does business in the Philippines;
(4) To present prior proof that citizens of the Philippines and corporations or other business organizations organized or existing under the laws of the Philippines are allowed to do business in the country or individual state within a federal country of which applicant is a citizen or in which it is domiciled: Provided, however, That if the state or country of domicile of the applicant imposes on, or requires of, Philippine nationals other conditions, requirements or restrictions besides those set forth in this Act, the Board of Investments shall impose the said other conditions, requirements or restrictions on the applicant if, in its judgment, the imposition thereof shall foster the sound and balanced development of the national economy on a self-sustaining basis;
(5) To submit to the Securities and Exchange Commission certified copies of applicant's charter and by-laws and all amendments thereto, if any, with their translation into an official language within twenty days after their adoption or after the grant of the prescribed certificate by the Board of Investments; and annually, of applicant's financial statements showing all assets, liabilities, and networth and results of operations, setting out separately those pertaining to the branch office;
(6) To keep a complete set of accounting records with the resident agent, which shall fully and faithfully reflect all transactions within the Philippines, and to permit inspection thereof by the Securities and Exchange Commission, the Bureau of Internal Revenue, the Board of Investments and, if a corporation, by the officers mentioned in Section fifty-four of the Corporation Law;
(7) To give priority to resident creditors as against non-resident creditors and owners or stockholders in the distribution of assets within the Philippines upon insolvency, dissolution or revocation of the license;
(8) To give the Securities and Exchange Commission at least six months advance notice in writing of applicant's intention to stop doing business within the Philippines; and to give such public notice thereof as the Securities and Exchange Commission may require for the protection of resident creditors and others dealing with the applicant; and
(9) Not to terminate any franchise, licensing or other agreement that applicant may have with a resident of the Philippines, authorizing the latter to assemble, manufacture or sell within the Philippines the products of the applicant, except for violation thereof or other just cause and upon payment of compensation and reimbursement of investment and other expenses incurred by the licensee in developing a market for the said products: Provided, however, That in case of disagreement, the amount of compensation or reimbursement shall be determined by the court where the licensee is domiciled or has its principal office who shall require the applicant to file a bond in such amount as, in its opinion, is sufficient for this purpose.