May a Foreigner be elected as President in a Corporation?

May a Foreigner be elected as President in a Corporation?

The answer would depend on what business the corporation is engaged. If the corporation is engaged in an activity where foreign ownership is restricted under Philippine laws, a foreigner cannot be a President of the corporation.

The Sec. 2-A of Commonwealth Act No. 108, as amended, bans foreigners from being elected or appointed to management positions as president, vice-president, treasurer, secretary, etc. in business activities where there is a constitutional or statutory provision imposing a specific nationality requirement as a requisite for exercise or enjoyment of a right, franchise or privilege. (SEC Opinion No 11-37)

In the opinion of the Department of Justice it states: A reading of Section 2-A readily reveals the legislative intent to complement our nationalization laws by closing any avenue whereby aliens may defeat their purpose (King v. Hernaez, 4SCRA 792). It penalizes the employment of aliens in any position pertaining to management, operation, administration and control, whether as an officer, employee, or labor therein, which means that the employment of a person who is not a Filipino citizen even in a minor or clerical or non-control position is prohibited.

In arriving at this conclusion, I am guided by the underlying intent behind the nationalization of employment provided for in Anti-Dummy Law, which is to eradicate the shackles of foreign economic control and domination in the country (Universal Corn Products, Inc. v. Rice and Corn Board, 20 SCRA 1048)

Therefore, when this circumstance arises, it is advised to check the Negative List to see if the business of the corporation is included in the restricted business, otherwise,  there is no prohibition for an alien to be President.

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