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Point of Law

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

September 04, 2014

Questions on the validity of corporate layering as a means of structuring the ownership of companies have been raised following a spate of Supreme Court decisions relating to companies where minimum Filipino ownership is required by our Constitution and laws. Applying the control test, the Supreme Court recently recognized corporate layering in the case of Narra Nickel Mining and Development... Read More

August 21, 2014

Section 28 of the Securities Regulation Code (SRC) provides that “[n]o person shall engage in the business of buying or selling securities in the Philippines as a broker or dealer, or act as a salesman, or an associated person of any broker or dealer unless registered as such with the Commission.” What is a “salesman” of securities for purposes of the SRC’s registration requirement? This was... Read More

August 07, 2014

On July 21, 2014, President Benigno Simeon Aquino III signed into law Republic Act No. 10641,  which amended Republic Act No. 7721, to further liberalize the entry of foreign banks in the Philippines. The law became effective on July 31, 2014 following its publication in the Official Gazette on July 15, 2014. The new law, in its Section 6, now allows foreign banks to bid and take part in... Read More

July 10, 2014

On December 17, the Department of Finance (DOF) and Bureau of Internal Revenue (BIR) issued Revenue Regulation No. 1-2014 which took effect last Jan. 1. RR 1-2014  is supposed to simply amend a 15-year-old regulation (RR 2-98). So why is there a  brouhaha over its issuance? The regulation requires withholding agents to submit an alphabetical list (alphalist) of all employees/payees... Read More

June 26, 2014

Last June 18, the Shareholders’ Association of the Philippines (SharePHIL), a young organization devoted to minority shareholder protection, held its first summit at the Dusit Hotel in Makati City. To our surprise, the success of the summit—from the number of sponsors to the number of participants—was beyond our expectations. We exceeded our target audience of 150 participants by more than 50... Read More

June 12, 2014

On Tuesday, June 18, 2014, at the Dusit Hotel in Makati City, the Shareholders’ Association of the Philippines (SharePHIL) will hold the SharePHIL Summit 2014 with  the theme “The Philippines: Your Investment Destination.” The summit will feature, as main speakers, Ambassador Asif Ahman of the United Kingdom, Christopher Cheong of the Securities Investors Association of Singapore (SIAS), Dr... Read More

May 29, 2014

In this column published on Nov. 13, 2013, I talked about the 30-notch quantum leap in the overall rating of the Philippines in the 2014 Doing Business Report. The Report is an annual project of the World Bank and International Finance Corp. and attracts much attention around the world. The latest edition received nearly 6,000 media citations within two weeks of its publication. The coverage... Read More

May 15, 2014

On Oct. 22, 2013, the Financial Rehabilitation Rules of Procedure went into effect. The FR rules were approved by the Supreme Court on Aug. 27, 2013, to implement the provisions on rehabilitation contained in RA 10142, or “The Financial Rehabilitation and Insolvency Act of 2010” (FRIA). The FR rules introduce drastic changes to the old rules on rehabilitation, one of which relates to... Read More

May 01, 2014

Social networking has become part of our daily life with 93 percent of Filipino Internet users having their own Facebook account. On the whole, this is an excellent social phenomenon. But there is also a bad part of it. Consider, for example, a Facebook post by Mr. Y that reads: “Senator X is a crook. He stole millions of taxpayers’ money from the PDAF. He is a certified thief. He deserves all... Read More

April 10, 2014

On Oct. 22, 2013, the Financial Rehabilitation (FR) rules of procedure went into effect. The FR rules were promulgated by the Supreme Court to implement the Financial Rehabilitation and Insolvency Act of 2010 (Fria). Fria replaced our more than century-old Insolvency Act of 1909. Not known to many, the Fria and FR rules contain several provisions that are envisioned to help develop our... Read More

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