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A
collection of Philippine laws, statutes and codes
not
included or cited in the
main indices
of
the Chan Robles Virtual Law Library.
This page features the full text of
Republic Act No. 8366.
REPUBLIC
ACT NO. 8366
AN ACT LIBERALIZING
THE
PHILIPPINE INVESTMENT HOUSE INDUSTRY, AMENDING CERTAIN SECTIONS OF
PRESIDENTIAL
DECREE NO. 129, AS AMENDED, OTHERWISE KNOWN AS THE INVESTMENT HOUSES
LAW.
Section 1. Declaration
of policy. — It is the policy of the State to expand and strengthen
the capital base of the economy in order to ensure sustained economic
growth
and development. Toward this end, the Philippine investment house
industry
is hereby liberalized, increasing foreign equity participation and
raising
the minimum capitalization of investment houses to enable them to meet
the present and future demands of the market.
Sec. 2. Sec. 5 of
Presidential Decree No. 129, as amended, otherwise known as the
Investment
Houses Law, is hereby further amended, to read as follows:
"Sec. 5. Citizenship
requirements. — At least forty percent (40%) of the voting stock of
any Investment House shall be owned by citizens of the Philippines. In
determining the percentage of foreign-owned voting stocks in Investment
Houses, the basis for the computation shall be the citizenship of each
stockholder, and, if the stockholder is a corporation, the citizenship
of the individual stockholders holding voting shares in that
corporation.
In approving foreign equity applications in Investment Houses, the
Securities
and Exchange Commission shall approve such applications only if the
same
or similar rights are enjoyed by Philippine nationals in the
applicant's
country.
"Foreign nationals
may
become
members of the board of directors to the extent of the foreign
participation
in the equity of said enterprise."
Sec. 3. Sec. 8 of the
same Decree is hereby amended to read as follows:
"Sec. 8. Capital
requirements.
— In the case of newly-organized Investment Houses, the minimum paid-in
capital shall be Three hundred million pesos (P300,000,000). The
minimum
paid-in capital of the existing Investment Houses shall be Three
hundred
million pesos (P300,000,000) to be built up in two (2) years after the
effectivity of this Act in the following manner: Two hundred million
pesos
(P200,000,000) after the effectivity of this Act and an additional
Fifty
million pesos (P50,000,000) for every year thereafter until the minimum
capitalization is attained. The Monetary Board may prescribe a higher
minimum
capitalization in order to promote and ensure the stability of the
Philippine
capital market and the competitiveness of the investment house industry
in line with the national economic goals. The Monetary Board shall,
within
six (6) months, prescribe a risk assets to capital ratio and other
capital
adequacy ratios in order to provide broader protection to the investing
public."
Sec. 4. This Act shall take
effect fifteen (15) days from its publication in a newspaper of general
circulation.
Approved:
October 21, 1997
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