Flashcards Studio
Practice bar questions and get clear AI feedback on every answer.
Question
Solstice Ocean Explorations, Inc., a Philippine-registered corporation, has 61% Filipino-owned capital and 39% foreign-owned capital. It signs a concession contract with the State to explore and develop offshore oil deposits within the Philippine Exclusive Economic Zone (EEZ). The government approves the concession. After eight months, a Filipino minority investor challenges the concession, arguing that Solstice's ownership structure does not satisfy the constitutional requirement for private participation in exploration, development, and utilization of natural resources. (a) Identify the controlling constitutional doctrine governing exploration, development, and utilization of natural resources and the ownership requirement. (b) Apply the rule to Solstice's ownership structure and determine whether the concession complies with the constitutional requirement. (c) If the Filipino ownership is nominal and foreigners exercise real control through a trust or nominee arrangement, discuss how the courts would evaluate compliance and what consequences could follow.