Who may be eligible for concessions.
Section 39
SEC. 39. Who may be eligible for concessions.—Concessions for the fishing for, collecting or gathering of sponges in any of the territorial waters of the Philippine Islands may be granted by the Secretary of Agriculture and Natural Resources to any citizen of the Philippine Islands or of the United States, or to associations or corporations that are duly registered or incorporated under the laws of the Philippine Islands or of the United States or of any State hereof and authorized to transact business in the Philippine Islands, and at least sixty-one per cent of whose capital stock or interest in said capital stock is owned wholly by citizens of the Philippine Islands or of the United States, or to citizens of countries the laws of which grant similar rights to citizens of the Philippine Islands: Provided, however, That all foreign persons, associations and corporations holding at the time this law goes into effect concessions or the provisions of Act Numbered Twenty-five hundred eighty-four, as amended by Act Numbered Thirty-seven hundred and thirty-five, to fish for, collect or gather sponges in Philippine waters, may be granted renewals of such concessions so long as they have not been guilty of any violation of this Act, Act Numbered Twenty-five hundred and eighty-four, as amended, or the customs laws, or the regulations promulgated thereunder: Provided, also, That no individual, association or corporation granted a concession to fish for, collect their sponges shall be authorized to transfer or assign its or his interest or sell its or his stock directly or indirectly to persons, associations or corporations not qualified under the terms of this Act to fish for, collect or gather sponges, under penalty of cancellation or forfeiture of its or his concession: Provided, further, That a transfer made by a stockholder or member of an association or corporation of his stock or interest in violation of the provisions hereof shall not be cause of the forfeiture of the license of such association or corporation, but said transfer shall be null and void and shall not be registered in the books of such association or corporation.