Ms. Leonora Vasquez-De Jesus

August 4, 1993 Ms. Leonora Vasquez-De Jesus Office of the Presiden Malacaang Manila M a d a m : This refers to your letter of June 21, 1993 requesting the SEC to extend necessary assistance to the Philippine Confederation of Community Development Economic and Cultural Foundations (PHILCOCODEC) in sourcing funds for their livelihood projects. Please be advised that the jurisdiction of SEC which is that of registration, supervision and control of corporations does not include the power to grant financial assistance to corporations registered with it. On the matter of fund raising activities, it is well-settled that a corporation has only such powers as are expressly granted in its charter or in the statutes under which it is created or such powers as are necessary for the purpose of carrying out its express powers. (13 Am. Jur. Sec. 739) Only such powers as are reasonably necessary to enable corporations to carry out the express powers granted and the purposes of the creation are to be implied as are to be deemed incidental. (Am. Jur. Sec. 740) Powers merely convenient or useful are not implied if they are not essential, having in view the nature and object of incorporation. (Ibid, citing Planters Bank v. Sharp, 6 How (vs) 301, 12L, ed. 447) Thus, if "fund raising activity" is not among the corporation's authorized purposes embodied in the articles of incorporation or is neither necessary or incidental in the furtherance of corporate objectives, the same cannot be legally undertaken by a corporation. However, in the absence of an existing authority in the articles of incorporation, a non-stock corporation desiring to undertake fund raising activities may amend its articles of incorporation in accordance with Section 16 of the Corporation Code to include the same in its purposes. Moreover, fund solicitation from the public is subject to the provisions of Act No. 4075 , otherwise known as the Solicitation Permit Law, as amended by P.D. 1564 and the Rules and Regulations of the Department of Social Welfare and Development . Finally, please be advised that the Commission, to serve the best interest of the public, is very much willing to render full assistance and cooperation on matters within its power and jurisdiction when needed. Very truly yours, (SGD.) ROSARIO N. LOPEZ Chairman