Scribd Logo
Hochladen

Welcome to Scribd!

  • 20 views

    Republic v. Asset Privatization Trust: For Brevity) in A Shipyard Business Named PHILSECO, With A Shareholding

    Uploaded by

    Benedick Ledesma
    The Republic brought a case against the Asset Privatization Trust challenging its decision to allow Kawasaki Heavy Industries, as part of a joint venture with the National Investment and Development Corporation, to choose the winning bidder for a shipyard company. The shipyard constituted a public utility under the Constitution, which limits foreign ownership. The Supreme Court held that the Asset Privatization Trust's actions violated the joint venture agreement and the Constitution by effectively allowing Kawasaki to increase its ownership stake beyond the agreed-upon 40% limit.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content

    Republic v. Asset Privatization Trust: For Brevity) in A Shipyard Business Named PHILSECO, With A Shareholding

    Uploaded by

    Benedick Ledesma
    20 views1 page
    The Republic brought a case against the Asset Privatization Trust challenging its decision to allow Kawasaki Heavy Industries, as part of a joint venture with the National Investment and Development Corporation, to choose the winning bidder for a shipyard company. The shipyard constituted a public utility under the Constitution, which limits foreign ownership. The Supreme Court held that the Asset Privatization Trust's actions violated the joint venture agreement and the Constitution by effectively allowing Kawasaki to increase its ownership stake beyond the agreed-upon 40% limit.

    Original Description:

    Original Title

    case 3.docx

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The Republic brought a case against the Asset Privatization Trust challenging its decision to allow Kawasaki Heavy Industries, as part of a joint venture with the National Investment and Development Corporation, to choose the winning bidder for a shipyard company. The shipyard constituted a public utility under the Constitution, which limits foreign ownership. The Supreme Court held that the Asset Privatization Trust's actions violated the joint venture agreement and the Constitution by effectively allowing Kawasaki to increase its ownership stake beyond the agreed-upon 40% limit.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    20 views1 page

    Republic v. Asset Privatization Trust: For Brevity) in A Shipyard Business Named PHILSECO, With A Shareholding

    Uploaded by

    Benedick Ledesma
    The Republic brought a case against the Asset Privatization Trust challenging its decision to allow Kawasaki Heavy Industries, as part of a joint venture with the National Investment and Development Corporation, to choose the winning bidder for a shipyard company. The shipyard constituted a public utility under the Constitution, which limits foreign ownership. The Supreme Court held that the Asset Privatization Trust's actions violated the joint venture agreement and the Constitution by effectively allowing Kawasaki to increase its ownership stake beyond the agreed-upon 40% limit.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 1

    REPUBLIC

    v.

    ASSET PRIVATIZATION TRUST

    FACTS:

    National Investment and Development Corporation (NIDC for brevity) and


    Kawasaki Heavy Industries entered into a Joint Venture Agreement (JVA
    for brevity) in a shipyard business named PHILSECO, with a shareholding
    of 60-40 respectively. NIDC’s interest was later transferred to the National
    Government. Pursuant to President Aquino’s Proclamation No.5, which
    established the Committee on Privatization and Asset Privatization Trust
    (Respondent for brevity) which allowed for the disposition of the
    government’s non-performing assets, Respondent allowed Kawasaki
    Heavy Industries to choose a company to which it has stockholdings in
    order to top the winning bid of JG Summit Holdings over PHILSECO. JG
    Summit protested alleging that such act would effectively increase
    Kawasaki’s interest in PHILSECO—a shipyard is a public utility--and thus,
    violation of the Constitution.

    ISSUE:

    Whether or not Respondents’ act is valid.

    HELD:

    A shipyard such as PHILSECO being a public utility as provided by law,


    Section 11 Article XII of the Constitution applies. Notably, JVA accorded
    the parties the right of first refusal “under the same terms.” This phrase
    implies that when either party exercises the right of first refusal, they can
    only do so to the extent allowed them by the JVA or under the proportion
    of 60%-40% of the shares of stock. Thus, should the NIDC opt to sell its
    shares of stock to a third party, Kawasaki could only exercise its right of
    first refusal to the extent that its total shares of stock would not exceed 40%
    of the entire shares of stock of SNS or PHILSECO. NIDC, on the other
    hand, may purchase even beyond 60% of the total shares. As a government
    corporation and necessarily a 100% Filipino-owned corporation, there is
    nothing to prevent its purchase of stocks even beyond 60% of the
    capitalization as the Constitution clearly limits only foreign capitalization.

    You might also like