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Mr. Elmer O. Datuin

SEC Opinion • Securities and Exchange Commission • Opinions • Sep 21, 1993

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September 21, 1993 Mr. Elmer O. Datuin Dizon Farinas Datuin Law Offices Suite 403 Mt. Crest Bldg. Legarda Rd.,Baguio City S i r : This refers to your letter of September 10, 1993 inquiring whether or not "The National Director of Alexander Interfaith Ministries Philippines, Inc." a corporation sole with an American Citizen as incorporator, is qualified to acquire land in the Philippines. In the case entitled: Register of Deeds of Rizal vs. Ung Siu Si Temple, G.R. No. L-6776, May 21, 1955, 97 Phils. 58, it was held that the provisions of Act No. 271 of the Philippine Commission which allow all religious associations, of whatever sect or denomination, whether incorporated in the Philippines or other countries, to hold land in the Philippines for religious purposes, are deemed repealed by the absolute terms of Article XIII, Section 5, of the Constitution (old) * which limits the acquisition of land in the Philippines to citizens or to corporations or associations at least 60% of the capital of which is owned by such citizens. (SEC Opinion dtd. Dec. 6, 1983 addressed to Atty. Ricardo J. Hilado, citing Pena, Land Titles and Deeds, p. 122) In the case of the Roman Catholic Apostolic Administration of Davao Inc. v. Land Registration Commission and Register of Deeds of Davao City, G.R. No. L-8451, Dec. 20, 1957, it was held that a "corporation sole", despite the fact that its head then was a Canadian citizen, can purchase private lands in the Philippines, taking into consideration that the "corporation sole" is merely the administrator of the church properties that come to his possession, and which he held in trust for the church he represents and the ownership thereof logically falls and devolves upon the church or congregation acquiring the same. In the case of the above-mentioned corporation sole, records on file with the Commission do not show that the members of the Church or religious denomination represented by it constitute at least 60% Filipinos. Neither did the documents filed in connection with its registration mention about membership qualification and citizenship requirement in the religious denomination which he represents. Records further show that the incumbent head, who is an American Citizen, appointed himself as the Corporation Sole, and that in case of vacancy, the same shall be filled personally by him, and in the event of his death or incapacity, the appointment shall be made by the Alexander Foundation, Inc. the principal office of which is located at R.R. 2, Box 81 City of Fremont County of Saunders, State of Nebraska, U.S.A..It cannot be shown therefore that the Church or religious denomination, which the corporation sole represents, is controlled by Filipinos. llcd In view thereof, the Commission cannot, on the basis of the records on file with the Commission determine whether or not subject Corporation Sole is qualified to acquire land in Philippine jurisdiction. Please be advised accordingly. Very truly yours, (SGD.) ROSARIO N. LOPEZ Chairman * Copied verbatim from documents obtained directly from the Securities and Exchange Commission .

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