The need to regulate cross-shareholdings in the Philippines

By Euney Marie Mata-Perez

Jun 08, 2023 12:16 am

There is no provision of law or regulation in the Philippines which prohibits two or more companies from holding shares in each other, or so-called cross-shareholding or reciprocal shareholding. Thus, a subsidiary can acquire and hold shares of its parent company, and be able to exercise all rights of a shareholder in its parent company just like any other shareholder.

Not being prohibited, cross-shareholdings are present in many Philippine companies, including listed companies. However, there have been calls for the SEC to regulate or restrict cross-shareholding, and such calls are for valid reasons.

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