Philippine Granite Resources Corporation (PGRC) operates a granite quarrying business, a nationalized activity in which foreign equity is limited to 40% under Philippine law. PGRC's shares are held as follows: 60% by Maharlika Holdings, Inc. (MHI), a Filipino corporation, and 40% by Steinbach GmbH, a German company. MHI's own shareholding structure consists of 40% Filipino individuals and 60% Steinbach GmbH. The Foreign Investments Inter-Agency Committee (FIAC) conducted a nationality audit of PGRC and concluded that it did not comply with the 40% foreign equity cap after applying the Grandfather Rule. PGRC challenged the audit, invoking the Control Test and arguing that because 60% of its shares are held by MHI, which is a Filipino corporation, PGRC is a 60% Filipino-owned corporation and therefore compliant. Is PGRC compliant with the 40% foreign equity limitation? (Bar 2026 Syllabus)