The case of Wilson P. Gamboa vs. Finance Secretary Margarito Teves (G.R. No. 176579) promulgated on June 28, 2011 involves the determination of the correct meaning of the word “capital” in Section 11, Article XII (National Economy and Patrimony) of the 1987 Constitution, which provides:
Section 11. No franchise . . . for the operation of a public utility shall be granted except to . . . corporations or associations organized under the laws of the Philippines, at least sixty per centum of whose capital is owned by such citizens; . . . The participation of foreign investors in the governing body of any public utility enterprise shall be limited to their proportionate share in its capital, and all the executive and managing officers of such corporation or association must be citizens of the Philippines.
