Mr. Khaled Al-Mohdar

June 27, 1988 Mr. Khaled Al-Mohdar 608 Quirino Ave., Tambo Paraaque, Metro Manila Sir : This refers to your letter, dated June 11, 1988, inquiring on the maximum equity ratio that a foreign national is allowed to invest under Philippine laws. Specifically, you are referring to People Manpower Corporation, wherein you are allegedly a holder of 40% of its equity. llcd A perusal of the amended articles of incorporation of People Manpower Corporation on file in this Commission shows the following as the primary purpose thereof: "To carry on and engage in the business of a private free-charging employment agency, and to perform acts of recruitment and placement such as but not limited to canvassing, enlisting, contracting, transporting, utilizing, hiring or procuring including referrals, contract services, promising employment or advertising for employment of persons, workers, professionals, employees, immigrant and contract workers, and seamen in the Philippines, or abroad ; to assist in securing employment and to locate personnel for public or private entities, to offer advice to persons, firms, institutions, corporations requiring the services of an employment agency and to print, publish, issue brochures, and other publications in connection with the operation of an employment agency. The capital stock of People Manpower Corporation P1,000,000.00 divided into 10,000 shares with a par value of P100.00 per share. It is, therefore, evident that, each share of stock thereof is equal in all respects to every other share. Its subscribed capital stock amounts to P1,000,000.00. In pursuance to P.D. 1412, 75% of voting stock of a corporation, engaged in the recruitment and placement of workers locally or overseas, must be owned by Filipino citizens. Considering that People Manpower Corporation is engaged in the recruitment and placement of workers here and abroad, the allowable maximum equity ratio of foreign investment therein is 25% of its subscribed and outstanding capital stock. cdll Please be advised accordingly. Very truly yours, (SGD.) JULIO A. SULIT, JR. Chairman