Section 14Sec./Art. 14

Sale, Lease, Transfer, Usufruct, or Assignment of Franchise. -The grantee shall not sell, lease, transfer, grant the usufruct of, or assign this franchise or the rights and privileges acquired thereunder to any person, firm, company, corporation or other commercial or legal entity, or merge with any other corporation or entity, or shall transfer the controlling interest of the grantee, 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 except when the person or entity to which this franchise is sold, transferred or assigned is a subsidiary or affiliate of the grantee and that at least sixty percent (60%) of the outstanding capital stock entitled to vote of such subsidiary or affiliate is owned and held by Filipino citizens: Provided, That Congress shall be informed of any sale, lease, transfer, grant of usufruct, or assignment of franchise or the rights and privileges acquired thereunder, or of the merger, or transfer of controlling interest of the grantee, within sixty (60) days after the completion of said transaction: Provided, further, That failure to report to Congress such change of ownership shall render the franchise ipso facto revoked: Provided, finally, That any person or entity to which this franchise is sold, transferred or assigned, shall be subject to the same conditions, terms, restrictions and limitations of this Act.

A subsidiary or affiliate of the grantee refers to a person that, upon the effectivity of this Act, directly or indirectly, through one (1) or more intermediary corporations, owns more than thirty percent (30%) of the outstanding capital stock of the grantee.