Point of Law

The following articles were written by Francisco Ed. Lim and also published in The Philippine Daily Inquirer.

May 26, 2016

A specter commonly experienced by the banking industry in congressional investigations is the compulsion of our congressmen and senators to disclose information relating to bank accounts.   Without dealing into specifics such as whether the secrecy of bank deposits covers instances where a bank account is alleged to be fictitious (an issue that only our courts of law can decide... Read More

May 12, 2016

In an advisory dated March 31, 2016, the Securities and Exchange Commission (SEC) limited the term of independent directors to a maximum of nine years.   The original rule under SEC Memorandum Circular No. 9, series of 2011, prescribed a 10-year term limit. This old rule, more popularly known as the “5-2-5” rule, provided that an independent director shall have an initial term... Read More

April 28, 2016

Since declaring his candidacy for the presidency, Davao Mayor Rodrigo Duterte has been enjoying an extraordinary rise in poll surveys. He even recently jumped to lead, leaving behind Senator Grace Poe by a wide margin. What makes him so special? Why the clamor for him? Duterte is not your typical politician. His views on national issues such as federalism, the West Philippine Sea... Read More

April 07, 2016

Not too long ago, I was  a keynote speaker in an investment conference where I was asked to speak about how prepared the Philippine stock market was for the Association of Southeast Asian Nations (Asean) integration. As I was preparing my speech, I realized that our Congress has already done a lot in this area. In 2008, Congress passed a law permanently exempting from the... Read More

March 10, 2016

The common understanding is that the 60/40 percent nationality restriction on ownership by corporations of private land is constitutional  in nature. But is it really constitutional that an amendment to the Constitution is needed to lift or liberalize the restriction?  Or can it be done through an act of Congress? As background, the 1987 Constitution provides that “[s]ave  in... Read More

February 11, 2016

Is the concept of merger and acquisition in corporate law the same under the Philippine Competition Act (PCA)? In corporation law, merger is the absorption of one or more corporations by another existing corporation, which retains its identity and takes over the rights, privileges, franchises, properties, claims, liabilities and obligations of the absorbed corporation(s). The absorbing... Read More

January 28, 2016

A few weeks ago, ANC’s business program, Business Nightly, interviewed me when China activated the circuit breaker system for its stock market. Believe it or not, China’s circuit breaker system was activated immediately after it was put in place last Jan. 4. To make matters worse, the circuit breaker was activated twice within a span of three trading days—the first on Jan. 4, when the market... Read More

January 07, 2016

In my July 9, 2015 column, I pointed out that one of the features of the recently enacted Philippine Competition Act (PCA) is the inclusion in it of merger control provisions. The new law prohibits mergers or acquisitions that substantially prevent, restrict or lessen competition.  To help ensure there is no violation of this prohibition, the law requires that where the merger or... Read More

December 17, 2015

In my Oct. 15, 2015 column, I discussed a fairly recent trend where our Supreme Court is now trying to strike the right balance in rehabilitation law. It is trying to do it by enforcing provisions of the Financial Rehabilitation and Insolvency Act (FRIA) and the Financial Rehabilitation Rules of Procedure (FR Rules) requiring that a petition for rehabilitation must include material financial... Read More

December 03, 2015

A program that was launched in the recently-concluded Asia-Pacific Economic Cooperation (Apec) conference in Manila was the Financial Infrastructure Development Network (FIDN). The FIDN is the brainchild of the Philippines, the host country for the 2015 Apec conference. It is a roadmap to make financial growth inclusive in the Apec region. In his introductory remarks during the... Read More