Atty. Leonardo S. Gayao

August 8, 1994 Atty. Leonardo S. Gayao No. 28 N. Domingo St., Near Corner Valencia St., Quezon City S i r : This refers to your letter of August 5, 1994 requesting opinion whether the Regional Director-Worldwide Church of God, Inc., a corporation sole duly registered with the Commission, wherein its present Regional Director who is at the same time the Presiding Officer is an Australian citizen, can acquire land in the Philippines, either by purchase or donation made in its behalf. 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 only held in trust for the church he represents and the ownership thereof logically falls and devolves upon the church or congregation acquiring the same. This ruling however is subject to the statutory 60% Filipino citizenship requirement for ownership of land. 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incorporated in the Philippines or other countries, to hold land in the Philippines for religious purposes, are deemed repealed by the absolute terms of Article XIII, Section 5, of the old Constitution which limits the acquisition of land in the Philippines to citizens or corporations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 Pea, Land Titles and Deeds, p. 122) As to what should be the basis of determining the 60% citizenship requirement in the case of non-stock, non-profit corporation (whether it should be based on the capital contribution or on the number of membership), is not for this Commission to determine. It is however suggested, that this issue be addressed to the Land Registration Authority for a definite ruling. The SEC, on the basis of the records on file with the Commission, cannot determine the nationality of the corporation, either on the basis of capital contribution or number of members. Records of the corporation on file do not show whether the members of the Church or religious denomination represented by the Corporation Sole constitute at least 60% Filipinos. Neither do they show the percentage of Filipino capital contribution. The determination as to the nationality of subject corporation requires evidence and is subject to examination and verification. Very truly yours, (SGD.) FE ELOISA C. GLORIA Associate Commissioner