Question & AnswerQ&A (Commonwealth Act No. 108)
The main purpose of Commonwealth Act No. 108 is to punish acts of evasion of laws concerning the nationalization of certain rights, franchises, or privileges requiring Philippine or United States citizenship or ownership.
Any citizen of the Philippines or the United States who allows his name or citizenship to be used to evade citizenship requirements, and any alien or foreigner profiting from such evasion, can be punished.
The penalties include imprisonment for not less than two nor more than ten years, and a fine of not less than two thousand nor more than ten thousand pesos.
If the citizen charged had no real or personal property, credit, or other assets equivalent in value to their holdings at the time of acquisition, this fact is admissible as circumstantial evidence of a violation.
Section 2 prohibits falsely simulating the ownership of the required minimum capital stock by Philippine or United States citizens in corporations or associations to evade constitutional or legal provisions.
The president, managers, directors, or trustees of corporations or associations convicted under this provision are liable.
They face imprisonment for not less than two nor more than ten years, and a fine ranging from two thousand to ten thousand pesos.
Upon proper court proceedings, any corporation or association violating the Act shall be dissolved.
The Act took effect upon its approval, which was on October 30, 1936.
Citizenship of the Philippines or the United States is required as a requisite for the exercise or enjoyment of certain rights, franchises, or privileges.