Asian Association of Convention

March 5, 1986 Asian Association of Convention and Visitors Bureaus c/o Ms. Elizabeth P. de la Fuente Asian Institute of Tourism Don Mariano Marcos Avenue, Diliman, Quezon City Gentlemen: This refers to your letter dated February 11, 1986 relative to your application for registration with the SEC of the Asian Association of Convention and Visitors Bureaus (AACVB),a recognized professional association of national tourism organizations, conventions and visitors bureaus, and registered tourism business enterprises in the Asian region. prcd The AACVB has chosen the Philippines to be its headquarters and Data Bank for the initial years, giving recognition to the country's major role in the Asian Tourism and convention industry. Registration thereof, however, was denied by the Commission for the reason that the majority of its directors are not residents of the Philippines. In view of the unregistered status, AACVB cannot issue official receipts for membership dues and registration fees collected to cover annual general meetings and other association projects. This has led other members to question the practice of the Secretariat because of its failure to issue official receipts for such payments. Thus, you would like to request for reconsideration of your application for registration. LexLib In connection therewith, please be advised that the Commission, taking cognizance of requests of associations similarly situated as you, proposed a bill with the Batasang Pambansa entitled: "An Act Amending Sections Ten and Twenty Three of Batas Pambansa Bilang 68 otherwise known as the Corporation Code of the Philippines." Under said bill, residency requirement for incorporators and directors shall not apply to non-profit foreign international organization formed or organized for purposes of international or regional trade, industry, agriculture and like chambers composed of members representing various countries including the Philippines . The Commission proposed the foregoing amendments to the Corporation Code, considering the beneficial effects it will bear to the nation. However, pending approval thereof into a law, the Commission cannot register your organization in view of the present provision of the Corporation Code requiring that a majority of the incorporators and directors/trustees of all corporations organized under the Code must be residents of the Philippines . It is worth mentioning, that an unregistered association can keep books of accounts and records as a measure of expediency. However, it cannot issue receipts without registering the same with the Bureau of Internal Revenue . (SEC Opinion dated November 9, 1982). Please be advised accordingly. prcd Very truly yours, (SGD.) JULIO A. SULIT, JR. Associate Commissioner