DOJ Opinion No. 066, s. 1995

DOJ OPINION NO. 066 , s. 1995 July 17, 1995 Chairman Rosario N. Lopez Securities & Exchange Commission SEC Bldg., EDSA Greenhills Mandaluyong City M a d a m : This refers to your request for a "definite ruling" on whether the proposed corporate name of "People's Credit and Finance Corporation" planned under Administrative Order (A.O.) No. 148 of the President dated September 8, 1994, may still be appropriated and registered with the Securities and Exchange Commission (SEC) despite the existence of a corporate bearing the similar name of "People's Credit and Loan, Inc." which was registered with the Commission on July 2, 1992 or long before the issuance of said A.O. No. 148. prcd The query, it appears, is prompted by the request of the General Counsel of the Land Bank of the Philippines to register the "People's Credit and Finance Corporation" as an exemption from the policy of the Commission prohibiting the use of the name or similar name of corporations already registered. The justification given is that the creation of the corporation bearing the name "People's Credit and Finance Corporation" is mandated by A.O. No. 148 which has the force and effect of law. You state that the policy of the Commission to disallow the use of proposed corporate name which appears to be confusingly similar to that of the registered name of an existing entity already protected by law is based on Section 18 of the Corporation Code of the Philippines which provides: "Sec. 18. Corporate name . No corporate name may be allowed by the Securities and Exchange Commission if the proposed name is identical or deceptively or confusingly similar to that of any existing corporation or to any other name already protected by law or is patently deceptive, confusing or contrary to existing laws. When a change in the corporate name is approved, the Commission shall issue an amended certificate of incorporation under the amended name." (Emphasis supplied) It is the view of the Commission that it may refuse the registration of the proposed corporate name "People's Credit and Finance Corporation" on that ground that "it is confusingly similar to that of an existing SEC registered corporation (People's Credit and Loan, Inc.) already protected by law." Hence, the instant request. With regret, we have to decline rendition of the opinion requested. It is noted that the corporate name, "People's Credit and Finance Corporation," is mandated by the aforementioned A.O. No. 148. By established precedents, this Department has consistently refrained from passing upon a presidential issuance, directive, proclamation, executive order or official act of the Office of the President which should be valid or legal and is binding upon all offices and bureaus under the executive branch (Secretary of Justice Ops. Nos. 147 and 164, s. 1990; No. 47, s. 1987; No. 22, s. 1984). Very truly yours, (SGD.) TEOFISTO T. GUINGONA, JR. Secretary