Last Updated January 28, 2017

Investment Law

By Atty. Mary Ann Ll. Reyes

Course Description: A study of the various laws that directly promote

investments, in particular the Omnibus Investments Code, the Foreign
Investments Act, and others.

Grading System: 30% midterm exams, 40% class requirements; 30% final
exams

OUTLINE

Session One

1) Introduction
2) Modes of Entry in the Philippines by Foreign Corporations; Forms of
Business Organizations

Session Two

1) Quiz
2) The Omnibus Investments Code (Articles 1-31)

Session Three

1) Quiz
2) Art. 32-43, OIC

Session Four

1) Quiz
2) Art. 58-75, OIC

a) What are regional or area headquarters

b) What are regional operating HQs
c) Qualifying services from which ROHQs may derive income
d) Incentives and tax liabilities of RHQs, ROHQs
e) The Special Investors Resident Visa

3) EO 758 (2008), Special Visa for Employment Generation

Session Five
 1) Group Reports: Sole Proprietorships (Group I), Partnerships (Group II)
creation, tax liabilities

Session Six

1) Group Report: Corporations (Group III)

2) Group Report: Investment Priorities Plan and availment of incentives
from the BOI (Group IV)

Session Seven

1) Group Report: Incentives Available to Developers of/Enterprises

within special economic or freeport zones under RA 7916 or The
Special Economic Zone Act of 1995 (Group V)
2) Group Report: RA 7227 or the Bases Conversion and
Development Act; incentives available in Subic and Clark
economic zones (Group VI)

Session Eight

1) Group Report: Other economic zones/agencies providing incentives

(Group VII)

a) Aurora Pacific Economic Zone and Freeport Authority

b) Authority of the Freeport Area of Bataan
c) Cagayan Economic Zone Authority
d) Phividec Industrial Authority
e) Zamboanga City Special Economic Zone Authority
f) Philippine Retirement Authority
g) Tourism Infrastructure and Enterprise Zone Authority (TIEZA)
h) Regional BOI for ARMM under EO 458

Session Nine

1) Quiz
2) The Foreign Investments Act (Sec. 1-18), as amended by RA 8179;
Read:
Gamboa v. Teves GR 176579, June 28, 2011; Heirs of Wilson Gamboa v.
Teves, Oct. 9, 2012
In the Matter of the Corporate Rehabilitation of Bayan Telecom GR
175418-20, Dec. 5, 2012
3) Group Report: Foreign Investments Negative List (Group VIII)

Session Ten

1) What constitutes doing business in the Philippines (Sec. 3, FIA); See

Implementing Rules, Foreign Investments Act; what is not included in
the term doing business
2) What is a Foreign Corporation (Sec. 123, Corporation Code)
3) Grandfather Rule v. Control Test
 Read:
Narra Nickel Mining v. Redmont, GR 195580, Jan. 28, 2015
4) Appointment of Resident Agent (Rule 14, Sec. 12, Rules of Court)
5) Effect of Failure to Secure SEC License (Arts. 133-134, 144, Corporation
Code, RA 337 Sec. 14)
6) Group Report: Cases on Doing Business (Group IX)

Avon Insurance v. CA, GR 974642, Aug. 29, 1997

Communications Materials and Design v. CA, GR 102223,
Aug. 22, 1996
Garcia v. Executive Secretary, GR 100884, Dec. 2, 1991
Eriks Pte v. CA, GR 118843, Feb. 6, 1997
Far East Intl v. Nankai Kogyo, GR L-13525, Nov. 30, 1962
La Chemise Lacoste v. Fernandez, GR L-63796-97, May 2,
1984
Merrill Lynch Futures v. CA, GR 97816, July 24, 1992
Top Weld Mfg v. ECED, GR L-44944, Aug. 9, 1985
Mentholatum Co. v. Mangaliman, GR 47701, June 27, 1941
Bulakhidas v. Navarro, GR L-49695, April 17, 1986
Steelcase Inc. v. Design International Selections, GR 171995,
April 18, 2012

Session Eleven

1) Commonwealth Act no. 108, Anti-Dummy Law, as amended by RA 134,

RA 6084, and PD 715
2) Nationalized versus partially nationalized activities
3) Exceptions to ban on alien employment

Read:
King v. Hernaez, 4 SCRA 792
Universal Corn Products v. Rice and Corn Board, 20 SCRA 108
Luzon Stevedoring v. Anti-Dummy Board, 46 SCRA 474 (1972)
Pua v. Court of Appeals, GR 134992, Nov. 20, 2000

http://www.sec.gov.ph/wp-content/uploads/2015/11en-bance-case-no.-
11-12-272.pdf

http://www.philstar.com/headlines/2014/11/14/1391588/ca-allows-anti-
dummy-case-vs-piatco-exec

4) Quiz

Session Twelve

1) Group Report: Other Investment Laws (Group Ten)

RA 8762, Retail Trade Liberalization Act

RA 7652, Investors Lease Act
RA 7844, Export Development Act of 1994
 RA 6957, BOT Law as amended by RA 7718 (discuss the different
modes)

Cases:
Tatad v. Garcia, 243 SCRA 436 (1995)
Asia Emerging Dragons v. DOTC, GR 169914, April 7, 2009
AEDC v. DOTC, GR 169914, April 18, 2008
Agan v. Piatco, 407 SCRA 612 (2003)
RP v. Gingoyon, GR 166429, Dec. 19, 2005

Session Thirteen

1) Quiz
2) RA 8791, The General Banking Law of 2000
3) Minimum capital level requirement for Philippine banks
4) RA 10641, allowing full entry of foreign banks; amending RA 7721 or
the Foreign Bank Liberalization Act
5) RA 7653, The New Central Bank Act
6) RA 10846, amending the Deposit Insurance Law
7) RA 10574, allowing infusion of foreign equity in the capital of rural
banks; amending RA 7353
8) Islamic banking and finance in the Philippines
(http://www.bsp.gov.ph/publications/speeches.asp?id=456)

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