Point of Law

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

September 17, 2015

MORE than four years ago, President Aquino signed into law “The GOCC Governance Act of 2011,” principally authored by Senate President Franklin Drilon. The law was envisioned to be a game-changer: one that would not only stop the abuses within government-owned and -controlled corporations (GOCCs) but more importantly, to develop the potential of these GOCCs to be “significant tools for... Read More

September 03, 2015

After public consultations for approximately five years, the Securities and Exchange Commission (SEC) has approved certain amendments to the implementing rules and regulations of the Securities Regulation Code (SRC Rules). There are several amendments, but this column will focus on provisions seen to enhance the ability of companies to raise funds from the domestic market. The amendments are... Read More

August 20, 2015

The spate of Congressional investigations like those relating to the Napoles and Binay cases has once again brought to the fore the relevance of immunity statutes. Immunity statutes are generally classified into two. The first is “use or derivative use immunity” while the other is “transactional immunity.” Use or derivative use immunity prohibits the use of the testimony of the witness... Read More

July 23, 2015

(Third of 3 parts) The new Competition Law adopts voluntary compliance (vs the tedious litigation process) as its main implementing mechanism. It seeks to do this by making available non-adversarial administrative remedies before the PCC. An example is a request for a binding ruling where an entity that is in doubt whether its contemplated act is in compliance or violation of the law... Read More

July 09, 2015

(Second of 3 parts) Violations of the Philippine Competition Act may either be per se or non-per se violations.  But unlike many antitrust laws, the PCA limits per se violations to two categories only. The first category is price fixing between or among competitors, which is not limited to fixing the price of goods or services but fixing other terms of trade (e.g., agreement not to... Read More

June 25, 2015

(First of 3 parts) Before Congress went into recess about two weeks ago, the Senate and the House of Representatives ratified the bicameral conference committee version of a new antitrust law, to be officially known as the Philippine Competition Act (PCA), for the country.   The bill is expected to be signed by President Aquino before his State of the Nation Address (Sona) in July... Read More

June 15, 2015

On April 15, 2015, the Department of Finance issued Order No. 054-2015 (DO), prescribing a fit-and-proper rule for independent directors of publicly listed and insurance companies. The DO sets an ideal term limit for independent directors, based on the “5-2-5” rule. This rule provides for a term limit of five years, followed by a cooling period of two years, and a final term of another five... Read More

May 28, 2015

More than three weeks ago, Evangeline “Vangie” Escobillo, who served as Insurance Commissioner from 2005 to 2007, was killed in a vehicular accident together with her husband, Retired Major General Nestor Sadiarin. I don’t profess to know Vangie personally and her personal life was none of my business. My dealings with her were purely professional. I first had the opportunity to work with her... Read More

April 24, 2015

Right after the Holy Week, 20 banks filed a petition with the Regional Trial Court of Makati to declare null and void Revenue Regulation 4-2011 (RR). The RR mandates, among others, the allocation of common expenses incurred by a bank’s regular banking unit among its tax-exempt income, tax-paid income and income subject to ordinary income tax. Deductibility of these expenses is determined by the... Read More

April 17, 2015

Do self-regulatory organizations like the Philippine Stock Exchange and Philippine Dealing Exchange Corp. have the power to impose monetary damages (like actual, punitive or damages) on entities or persons under their regulatory jurisdiction? A self-regulatory organization (SRO) is an organization or association registered under the Securities Regulation Code that is empowered to make and... Read More