The "grandfather rule" is a method of determining the nationality of a to vote is wholly owned and held by citizes of the

corporation which is owned in part by another corporation by breaking down

Philippines
the equity structure of the shareholder corporation. This method can be useful
when a corporation's economic activity is strictly limited by law to Filipino 4. A trustee of funds for pension or employee retirement
citizens, such as certain types of retail trading and mass media. ,where the trustee is a Philippine national and at least
60% of the fund will accrue to the benefit if the Philippine
On the other hand "control test" is much more liberal. Under this method, the nationals.
corporation shall be considered a Filipino corporation if the Filipino ownership
of its capital stock is at least 60% and where the60%-40% Filipino-alien equity
ownership is not in doubt. It is applied for corporations a corporation and its non-filipino stockholders own
intending to engage in commerce where 60%-40% equity ratio is allowed by stocks of a SEC-registered enterprise, at least 60%
law. of the CSO&ETV of both corporation and at least
60% of the members of the BOD of both corpo must
be citizens of the Philippines
Under the Foreign Investment Act and its amended implementing
rules and regulations, the term "Philippine national" includes a
"corporation organized under the laws of the Philippines of which at
least sixty percent (60%)
of the capital state outstanding and entitled to vote is owned and held
by citizens of the Philippines." Such a corporation is qualified to own
land in the Philippines, or to acquire the entire capital of a Philippine
corporation which owns lands in the Philippines. (SEC Opinion No.
09-09, April 28, 2009.)

a corporation organized abroad and registered as doing business in the

Philippines under the Corporation Code, of which 100% of the capital stock
outstanding
and entitled to vote is wholly owned by Filipinos may be considered a "Philippine
National" under the Foreign Investments Act of 1991. (infra.) This situtation is the
only
exception to the place of incorporation test. (SEC Opinion No. 04-14, March 3,
2004.)

PHILPPINE NATIONAL:
1. Citizen of the Philippines
2. Dompship or assoc wholly owned by citizens of the
philipines
3. Corporations organized under the laws of the philippines
of which 60% of the capital stock outstanding and entitled