Ownership requirement (corporations)

Section 1. Covered corporations: All corporations engaged in identified areas of activities or enterprises specifically reserved, wholly or partly, to Philippine Nationals by the Constitution, the FIA and other existing laws, amendments thereto and IRRs of said laws except as may otherwise be provided therein.

Section 2. All covered corporations shall, at all times, observe the constitutional or statutory ownership requirement. For purposes of determining compliance therewith, the required percentage of Filipino ownership shall be applied to BOTH:

[1] The total number of outstanding shares of stock entitled to vote in the election of directors; AND

[2] The total number of outstanding shares of stock, whether or not entitled to vote in the election of directors. (SEC Memorandum Circular No. 8 dated 20 May 2013)