Control test in corporations

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A corporation shall be considered a Filipino corporation if there is no doubt regarding Filipino ownership of its capital stock with at least 60% and no doubt regarding its 60-40 Filipino-alien equity ownership. Therefore, its shareholdings in another corporation shall be considered to be of Filipino nationality when computing the percentage of Filipino equity of that second corporation. (SEC Opinion dated 6 November 1989; DOJ Opinion No. 18, s. 1989; SEC Opinion dated 23 November 1993)