Determination of Nationality of Shares

In Gamboa v. Teves, 652 SCRA 690 [2011], Supreme Court ruled that the term “capital” in Section 11, Article XII of the 1987 Philippine Constitution refers only to shares of stock entitled to vote in the election of directors.  The Decision held that non-voting preferred shares are not considered in determining compliance with the nationality requirement in respect of a company which was granted a legislative franchise to engage in the telecommunications business.