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Mr. Antonio L. Gapud

SEC Opinion • Securities and Exchange Commission • Opinions • Sep 10, 1985

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September 10, 1985 Mr. Antonio L. Gapud c/o Western Visayas Public School Teachers Association (WVPSTA) La Paz, Iloilo City Sir : This refers to your letter, dated July 8, 1985, requesting the opinion of this Commission on the queries posed therein. LexLib Anent thereto, please be informed that on May 16, 1979, L.O.I. 860 was issued by the President, directing the Minister of Education and Culture to immediately take over the management and control of the Philippine Public School Teachers' Association (PPSTA), and institute reforms therein, as well as to take such actions as may be necessary to insure the stability and continued operation of the Association . The government's power to regulate corporations is sanctioned by the police power of the state. Thus, police power is no longer limited to measures designed to protect life, safety, health, and morals of the citizens but extends to measures designed to promote the public convenience and general prosperity. (14 Fletcher, Cyc. Corp. (1975 Rev. Vol.), sec. 667, at 9, citing Max Factor & Co., v. Kunsman, 5 Cal 2d 446, 55 P2d 777.) Undoubtedly, with the promulgation of L.O.I. 860, matters affecting PPSTA fall within the jurisdiction of the Minister of Education, Culture and Sports. The scope of regulation of said Association is largely a matter left to the sound discretion of the Minister in order to carry out the objectives of said L.O.I. The same policy affecting PPSTA was adopted by this Commission even during the time of the former Minister O.D. Corpuz. In line therefore with L.O.I. 860, the Commission, in its letter to Minister Laya, dated February 27, 1985, opined that the Minister may so formalize such changes in the by-laws of PPSTA, by consolidating all the provisions of the 1971 and 1979 amended by-laws of the Association into new or amended by-laws thereof. The Commission did not issue the corresponding certificate of filing of amended by-laws of PPSTA, as amended by Minister Laya on January 2, 1985, and merely requested for a copy of the same in order to update our record, for we submit that PPSTA is under the jurisdiction of the Minister of Education, Culture and Sports, until L.O.I. 860 is repealed or annulled. Please be advised accordingly. Very truly yours, (SGD.) MANUEL G. ABELLO Chairman

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