Mr. P.A. Leoncio, Jr.

July 8, 1981 Mr. P.A. Leoncio, Jr. Executive Officer, Philippine Contractors Accreditation Board Ministry of Industry, Makati Metro Manila Sir : In reply to your letter of 6 July 1981, please be informed that the Vitas Magsaysay Village Neighborhood Council Inc. is a non-stock, non-profit corporation duly registered with this Commission, and as such is not authorized to engage in a profitable business venture like construction contracting. While its amended articles of incorporation approved by this Commission on April 29, 1976, allows it to "engage in such enterprise or business as painting, clean up and janitorial, carpentry, electrical repair, mechanical repair, tinsmithing, excavation, plumbing and repacking jobs in order to provide employment for its members as well as the residents of the neighborhood, and to allocate and/or allot all the proceeds of the business to member-organizations for funding community development projects," this purpose is no longer allowed of non-stock corporations under Section 14(2) of the Corporation Code of the Philippines. This section provides that a non-stock corporation may not include a purpose which would change or contradict its nature as such. Hence, under Section 148 of the same Code, the corporation has two years within which to comply with this requirement by amending its articles of incorporation deleting said purpose. cdlex Please be guided accordingly. Very truly yours, (SGD.) ROSARIO N. LOPEZ Director Corporate and Legal Department