Commercial Law, 2011 Bar — Question 82

MULTIPLE CHOICE

A group of Malaysians wanted to invest in the Philippines‘ insurance business. After negotiations, they agreed to organize “FIMA Insurance Corp." with a group of Filipino businessmen. FIMA would have a PhP50 Million paid up capital, PhP40 Million of which would come from the Filipino group. All corporate officers would be Filipinos and 8 out of its 10-member Board of Directors would be Filipinos. Can FIMA operate an insurance business in the Philippines? A) No, since an insurance company must have at least PhP75 Million paid-up capital. B) Yes, since there is substantial compliance with our nationalization laws respecting paid-up capital and Filipino dominated Board of Directors. C) Yes, since FIMA’s paid up capital more than meets the country's nationalization laws. D) No, since an insurance company should be 100% owned by Filipinos.

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