Re: Effect of citizenship re-acquisition under RA 9225 on shareholdings

July 6, 2004 SEC OPINION NO. 38-04 Re: Effect of citizenship re-acquisition under RA9225 on shareholdings Bayani Consulting Network Suite 505, 106 Perea Street Legaspi Village 1229 Makati City Attention: Manuel D. Cantor, Corporate Secretary S i r : This refers to your query on the issues raised in your letter dated 22 June 2004 regarding the shareholdings of former Filipino citizens who became citizens of foreign countries but who subsequently re-acquired Philippine citizenship. It appears that your brother, a natural-born Filipino citizen, became a naturalized American. On 9 October 2002, your brother and four Filipinos established Bayani Consulting Network Inc. whose primary purpose is to provide consultancy service regarding immigration of health professionals to the USA and Canada. Since your brother is an American, he is classified as foreign investor as indicated in the Articles of Incorporation. cHAaCE On 29 August 2003, Republic Act No. 9225 otherwise known as " Citizenship Retention and Re-acquisition Act of 2003 " was approved. Section 3 thereof provides that natural born citizens by reason of their naturalization as citizens of a foreign country are deemed to have re-acquired Philippine citizenship upon taking the oath of allegiance to the Republic of the Philippines. As expressly provided in the aforesaid provision, natural-born Filipino citizens, like your brother, by reason of their naturalization as citizens of a foreign country, shall be deemed to have re-acquired Philippine citizenship upon taking the oath of allegiance to the Republic of the Philippines. In our view, the shareholdings of those who re-acquired Philippine citizenship shall likewise be considered as Filipino investment as legal consequence of the reacquisition of Philippine citizenship of the owner. AHDacC Please be informed that the Bureau of Immigration is the implementing agency of RA 9225 and said office has issued Memorandum Circular No. AFF-04-01 for such purpose. We therefore advise you to address your query regarding the procedure for re-acquisition of Philippine citizenship by virtue of RA 9225 to said agency. CcaDHT For your information and guidance. Very truly yours, (SGD.) VERNETTE G. UMALI-PACO General Counsel