In February 2016, the 51 EITI members, including the Philippines, agreed to new rules, requiring that companies that apply for or hold a participating interest in an oil, gas, or mining license or contract in their country disclose their beneficial owners. The EITI Standard also requires public officials – also known as Politically Exposed Persons (PEPs) – to be transparent about their ownership in extractives companies. The government must also make this information publicly available and accessible through published EITI Reports and/or public registries. The publication of the identity of those who are accorded the rights to exploit resources helps prevent conflicts of interest.
Categories of Beneficial Ownership
Natural person(s) owning, directly or indirectly or through a chain of ownership, at least twenty-five percent (25%) of the voting rights, voting shares or capital of the reporting corporation.
Natural person(s) who exercise control over the reporting corporation, alone or together with others, through any contract, understanding, relationship, intermediary or tiered entity.
Natural person(s) having the ability to elect a majority of the board of directors/trustees, or any similar body, of the corporation.
Natural person(s) having the ability to exert a dominant influence over the management or policies of the corporation.
Natural person(s) whose directions, instructions, or wishes in conducting the affairs of the corporation are carried out by majority of the members of the board of directors of such corporation who are accustomed or under an obligation to act in accordance with such person’s directions, instructions or wishes.
Natural person(s) acting as stewards of the properties of corporations, where such properties are under the care or administration of said natural person(s).
Natural person(s) who actually own or control the reporting corporation through nominee shareholders or nominee directors acting for or on behalf of such natural persons.
Natural person(s) ultimately owning or controlling or exercising ultimate effective control over the corporation through other means not falling under any of the foregoing categories.
Natural person(s) exercising control through positions held within a corporation (i.e., responsible for strategic decisions that fundamentally affect the business practices or general direction of the corporation such as the members of the board of directors or trustees or similar body within the corporation; or exercising executive control over the daily or regular affairs of the corporation through a senior management position). This category is only applicable in exceptional cases where no natural person is identifiable who ultimately owns or exerts control over the corporation, the reporting corporation having exhausted all reasonable means of identification and provided there are no grounds for suspicion.
The Registry
Participation rate
A government-led, multi-stakeholder initiative implementing EITI, the global standard that promotes the open, accountable management, and good governance of oil, gas, and mineral resources. PH-EITI was created on 26 November 2013 through EO No. 147, s. of 2013. It is a government commitment first announced through EO No. 79, s. of 2012.