Mr. A.S. Tantoco, Jr.

August 1, 1996 Mr. A.S. Tantoco, Jr. A.S. Tantoco and Associates Rm. 318 Calvo Building Escolta, Manila S i r : This refers to your letter dated July 24, 1996 requesting opinion on the effect of the change in the required nationality ratio brought about by the death of a Filipino wife who owns shares in a domestic corporation where the alien husband already owns shares in the same corporation to the maximum extent allowed by law. While under the Corporation Code there is no prohibition of foreign ownership of shares of stock in a domestic corporation, there are some business areas where ownership thereof is reserved, wholly or partially, in favor of Filipino citizens by virtue of the Constitution and various special laws. Thus, if after the legal settlement of the estate of the deceased wife, the situation would result in the alteration of the required equity ratio mandated by law, the corporation should, because of the disqualification by operation of law ,take steps necessary to comply with the required nationality ratio. LexLib Very truly yours, (SGD.) FE ELOISA C. GLORIA Associate Commissioner