POWER TO DECLARE DIVIDENDS NOT PRESENT FOR JOINT VENTURE

PARTNERSHIP
SEC has confirmed that Concepcion-Carrier Airconditioning Company (CCAC), being a joint
venture partnership, is not governed by Section 43 of the Corporation Code of the Philippines on
the power to declare dividends since it only applies to stock corporations. Accordingly, its
business affairs including the power to declare dividends are governed by the Civil Code on
Partnerships. [SEC OFFICE OF THE GENERAL COUNSEL OPINION NO. 17-13,
NOVEMBER 3, 2017]

INTERNATION FREIGHT FORWARDERS CAN BE 100% OWNED BY FOREIGNERS

SEC has confirmed that MOL Logistics, a domestic corporation engaged in the business of
international freight forwarding, can increase its foreign equity to more than 40% and may be
owned by 100% foreigners without violating the 1987 Constitution and Anti-Dummy Law.
Accordingly, utility firms such as international freight forwarders engaged exclusively in
international commerce are beyond the Constitutional prohibition. [SEC OFFICE OF THE
GENERAL COUNSEL OPINION NO. 17-14, NOVEMBER 17, 2014]