QuestionsQuestions (Commonwealth Act No. 108)
It penalizes acts of evasion of constitutional or legal provisions on nationalization—i.e., when Philippine or U.S. citizenship is required to exercise or enjoy certain rights, franchises, or privileges, or when corporations must have a minimum percentage of capital owned by citizens.
Any Filipino or U.S. citizen who allows his name or citizenship to be used to evade the requirement, and any alien or foreigner who profits thereby.
Imprisonment of not less than two nor more than ten years, and a fine of not less than Two Thousand pesos nor more than Ten Thousand pesos.
A constitutional or legal provision must require Philippine or U.S. citizenship as a requisite for the exercise or enjoyment of a specific right, franchise, or privilege.
If the charged Filipino/U.S. citizen had no real or personal property, credit, or other assets at least equivalent in value to the holdings at the time of acquisition, this fact is admissible as circumstantial evidence of violation.
Section 1 targets evasion of individual citizenship requirements by using someone’s name/citizenship; Section 2 targets evasion of corporate ownership requirements by falsely simulating the existence of the required minimum percentage of citizen-owned stock/capital.
It prohibits falsely simulating that the corporation/association has the required minimum percentage of capital/stock owned by Philippine or U.S. citizens to evade nationalization provisions.
The president or managers, and the directors or trustees of corporations or associations convicted of violating Section 2.
Imprisonment of not less than two nor more than ten years, and a fine of not less than Two Thousand pesos nor more than Ten Thousand pesos.
Upon proper court proceedings, it shall be dissolved.
Dissolution requires “proper court proceedings.”
It focuses on evasion. Liability attaches when a citizen allows his name/citizenship to be used to evade the requirement (Section 1) or when the corporate ownership minimum is falsely simulated for evasion (Section 2).
An alien or foreigner who profits from the evasion by using a Filipino/U.S. citizen’s name/citizenship, as contemplated in Section 1.
It provides the time-of-acquisition reference for assessing whether the charged citizen had assets at least equivalent in value to those holdings, which—if lacking—supports circumstantial evidence of a violation.
Section 3 states the corporation violating the provisions shall be dissolved upon proper court proceedings. Therefore, dissolution depends on court proceedings, not automatic dissolution.
Upon its approval.
Section 1 concerns use of a person’s name/citizenship to evade individual citizenship prerequisites for rights/franchises/privileges; Section 2 concerns falsification of the required minimum citizen-owned share/capital in a corporation or association.