Section 15Sec./Art. 15

Nontransferability of Franchise. The grantee shall not lease, transfer, grant the usufruct of, sell nor assign this franchise or the rights and privileges acquired thereunder to any person, firm, company, corporation or other commercial or legal entity, nor merge with any other corporation or entity, nor shall the controlling interest of the grantee be transferred, whether as a whole or in parts and whether simultaneously or contemporaneously, to any such person, firm, company, corporation or entity without the prior approval of the Congress of the Philippines: Provided, That the foregoing limitations shall not apply to:

(a) Any transfer or issuance of shares of stock in the implementation of the requirement for the dispersal of the grantees ownership pursuant to Section 16 of this Act;

(b) Any transfer or sale of shares of stock to a foreign investor or investors;

(c) Any issuance of shares to any foreign or local investors pursuant to or in connection with any increase in the grantees authorized capital stock which shall result in the dilution of the stockholdings of the grantees then existing stockholders; and

(d) Any combination thereof where such transfer, sale or issuance is effected in order to enable the grantee to raise the necessary capital or financing for the provision of any of the services authorized by this Act and/or to carry out any of the purposes for which the grantee has been incorporated or organized: Provided, further, That any such transfer, sale or issuance is in accordance with any applicable constitutional limitations. Any person or entity to which this franchise is validly sold, transferred or assigned shall be subject to all the same conditions, terms, restrictions and limitations of this Act.