Commonwealth Act No.108: The Anti-Dummy Law

The Anti-Dummy Law punishes evasion of the laws on the nationalization of certain rights, franchises or privileges. Any citizen of the Philippines or of any other specific country who allows his name or citizenship to be used for the purpose of evading any constitutional or legal provisions that requires Philippine citizenship as a requisite for the exercise or enjoyment of a right, franchise or privilege, and any alien or foreigner profiting thereby (Section 1, Commonwealth Act No. 108, as amended).

What are the acts penalized under the Anti-Dummy Law?

  1. Simulation of minimum capital stock – Falsely simulating the minimum stock or capital requirement provided in the constitution or any other laws, which specifies the minimum percentage ownership of Filipinos, for the purpose of evading said laws.
  2.  Unlawful use, Exploitation or enjoyment РThe following acts of 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 specific country, or to corporations or associations at least 60% of the capital of which is owned by such citizens, are violative of the Anti-Dummy Law and punishable by law:

a.
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;

b.
leases, or in any other way, transfers or conveys said right, franchise, privilege, property or business to a person, corporation or association not otherwise qualified under the Constitution, or the provisions of the existing laws;

c.
permits or allows any person, not possessing the qualifications 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;

d.
to intervene in the management, operation, administration or control thereof, whether as an officer, employee or laborer therein with or without remuneration except technical personnel whose employment may be specifically authorized by the Secretary of Justice;

e.
any person who knowingly aids, assists or abets in the planning consummation or perpetration of any of the acts herein above enumerated.