30/06/2020 C.A. No. 108 • An Act to Punish Acts of Evasion of the Laws on the Nationalization of Certain Rights, Franchises or Privileges • The Corpus Juris SECTION 1. Penalty.— In all cases in which any constitutional or legal provisions requires Philippine or any other speci c citizenship as a requisite for the exercise or enjoyment of a right, franchise or privilege, any citizen of the Philippines or of any other speci c country who allows his name or citizenship to be used for the purpose of evading such provision, and any alien or foreigner pro ting thereby, shall be punished by imprisonment for not less than ve nor more than fteen years, and by a ne of not less than the value of the right franchise or privilege, which is enjoyed or acquired in violation of the provisions hereof but in no case less than ve thousand pesos. The fact that the citizen of the Philippines or of any speci c country charged with a violation of this Act had, at the time of the acquisition of his holdings in the corporations or associations referred to in section two of this Act, no real or personal property, credit or other assets the value of which shall at least be equivalent to said holdings, shall be evidence of a violation of this Act. SECTION 2. Simulation of minimum capital stock. In all cases in which a constitutional or legal provision requires that, in order that a corporation or association may exercise or enjoy a right, franchise or privilege, not less than a certain per centum of its capital must be owned by citizens of the Philippines or of any other speci c country, it shall be unlawful to falsely simulate the existence of such minimum stock or capital as owned by such citizens, for the purpose of evading said provision. The president or managers and directors or trustees of corporations or associations convicted of a violation of this section shall be punished by imprisonment of not less than ve nor more than fteen years, and by a ne not less than the value of the right, franchise or privilege, enjoyed or acquired in violation of the provisions hereof but in no case less than ve thousand pesos. SECTION 2-A. Unlawful use, Exploitation or enjoyment. Any person, corporation, or association which, having in its name or under its control, a right, franchise, privilege, property or business, the exercise or enjoyment of which is expressly reserved by the Constitution or the laws to citizens of the Philippines or of any other speci c country, or to corporations or associations at least sixty per centum of the capital of which is owned by such citizens, permits or allows the use, exploitation or enjoyment thereof by a person, corporation or association not possessing the requisites prescribed by a the Constitution or the laws of the Philippines; or leases, or in any other way, transfers or conveys said right, franchise, privilege, property or business to a person, corporation or association not otherwise quali ed under the Constitution, or the provisions of the existing laws; or in any manner permits or allows any person, not possessing the quali cations required by the Constitution, or existing laws to acquire, use, exploit or enjoy a right, franchise, privilege, property or business, the exercise and enjoyment of which are expressly reserved by the Constitution or existing laws to citizens of the Philippines or of any other speci c country, to intervene in the management, operation, administration or control thereof, whether as an o cer, employee or laborer therein with or without remuneration except technical personnel whose employment may be speci cally authorized by the Secretary of Justice, and any person who knowingly aids, assists or abets in the planning consummation or perpetration of any of the acts herein above enumerated shall be punished by imprisonment https://thecorpusjuris.com/legislative/commonwealth-acts/ca-no-108.php 2/4