Section 9Sec./Art. 9

Establishment of Branch Campuses. FHEIs may establish branch campuses in the Philippines through a local partner, at least sixty percent (60%) of which is owned by Filipino citizens, and duly registered with the SEC or the DTI, as the case may be. The FHEI may maintain its name, offer the education programs through the branch, and award the degree or credit. The local branch shall be managed and administered jointly by the parties, subject to the provisions of the Constitution on control and administration of educational institutions. The local partner shall be accountable for assuring the quality of the programs offered.

The FHEI may also incorporate a Philippine company to operate its branch campus: Provided, That at least sixty percent (60%) of its voting stocks are reserved for Filipino citizens: Provided, further, That the FHEI shall first secure the approval of the SEC by filing its incorporation papers, together with authenticated copies of its foreign charter and bylaws: Provided, finally, That the FHEI shall be required to post a bond in an amount to be determined by the SEC, to guarantee the fulfillment of future obligations and liabilities.

Foreign citizens may constitute up to eighty percent (80%) of the faculty and academic personnel and up to forty percent (40%) of the administrative personnel and staff members in any of the local branches. However, foreign students may not comprise more than one-third (1⁄3) of enrollment.