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Question
Aurora Agro, Inc., a domestic corporation, had Filipino ownership of 64% as of the grandfather date, December 31, 2017. On June 1, 2024, a foreign investor purchased 20% of Aurora's outstanding capital from Filipino stockholders, reducing Filipino ownership to 44% and increasing foreign ownership to 56%. (a) Identify the doctrine at issue and state the controlling rule of the Grandfather Rule as it applies to corporate nationality. (b) Apply the rule to Aurora's facts and determine whether Aurora retains Filipino nationality after the transaction. Explain your reasoning and any conditions that could change the result. (c) If the grandfather date had instead been December 31, 2018 with 66% Filipino ownership, would your answer differ? Explain briefly.