Penalties for Increase of Foreign Equity without Prior Compliance with the Foreign Investments Act

August 10, 1998 SEC MEMORANDUM CIRCULAR NO. 08-98 PENALTIES FOR INCREASE OF FOREIGN EQUITY WITHOUT PRIOR COMPLIANCE WITH THE FOREIGN INVESTMENTS A C T Pursuant to RA No. 7042, as amended and PD No. 902-A, as amended, the following penalties shall be imposed on corporations and partnerships which increased the percentage of their foreign equity without first complying with the provisions of the Foreign Investments Act of 1991, as amended, in cases where registration with the SEC of foreign investment is required. Penalty of an amount equivalent to the following: First Violation 1/10% of the paid-in capital but not less than P5,000.00 Second Violation 1/5 of 1% of the paid-in capital but not less than P10,000.00 Third Violation 1/2 of 1% of the paid-in capital but not more than P5,000,000.00 This Circular shall take effect fifteen (15) days after publication in a newspaper of general circulation. (SGD.) FE ELOISA C. GLORIA Associate Commissioner Officer-In-Charge