Mr. Bansen S. Bangibang

April 28, 1993 Mr. Bansen S. Bangibang Bulanao Rural Water Works, Inc. Purok 4, Bulanao, Tabuk Kalinga-Apayao S i r : This refers to your letter of February 5, and April 18, 1993 relative to the alleged use of the word "Cooperative" by Bulanao Rural Waterworks, Inc. as part of its corporate name without complying with the provisions of the pertinent laws on cooperatives, and subsequently dropping the same after knowing that the use of such word is unauthorized. Your query is, whether or not the above-named Corporation could just drop the word "Cooperative" in its Official Receipts and Letter head and retain its corporate name under SEC Registration No. 000668. Under R.A. 6938, otherwise known as the Cooperative Code of the Philippines and RA 6939 otherwise known as the Cooperative Development Authority no corporation or association can make use of the word "Cooperative" as part of its corporate name unless it is duly registered as a cooperative pursuant to said Laws. Likewise, under Section 16 of the Corporation Code of the Philippines, any change of corporate name requires an amendment of the articles of incorporation which shall be effective only upon approval by the Commission. Inasmuch as the use of the word "Cooperative" as part of the corporate name of the above mentioned corporation is unauthorized, it is imperative that the same should be stricken out. The corporation should transact business under its corporate name as approved by the Securities and Exchange Commission. Be informed further that under Executive Order No. 124 dated January 30, 1987, "rural waterworks associations" are now under the jurisdiction and direct supervision of the Local Water Utilities Administration (formerly the Rural Waterworks Development Corporation under Executive Order No. 577 dated January 12, 1980). It is thus suggested that you inquire from said Office whether or not the above-mentioned corporation shall be required to register anew pursuant to said Executive Order. LexLib Please be advised accordingly. Very truly yours, (SGD.) ROSARIO N. LOPEZ Chairman