Atty. Milnar T. Lammawin
SEC Opinion • Securities and Exchange Commission • Opinions • May 16, 1989
Full text
May 16, 1989 Atty. Milnar T. Lammawin Omengan Construction and Development Corporation BSBT Center, Tabora Park Baguio City Sir : This refers to your letter, dated February 28, 1989, inquiring whether Omengan Construction and Development Corporation is authorized to engage in hauling services pursuant to the provisions of its articles of incorporation. 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).Thus, there should be a specification of the corporation's purposes with sufficient clarity and elucidation to define with more certainty the scope of the business. An examination of the articles of incorporation of subject corporation shows that the aforementioned business activity does not fall within the scope of the primary and secondary purposes enumerated therein. In view thereof, it is advised that, should the company desire to engage in said line of business, it should amend its articles of incorporation in accordance with Section 16 of the Corporation Code to include the desired business activity among its secondary purposes. Please be advised accordingly. Very truly yours, (SGD.) ROSARIO N. LOPEZ Chairman
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