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Magallanes Bowling Association, Inc.

SEC Opinion • Securities and Exchange Commission • Opinions • Nov 22, 1985

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November 22, 1985 Magallanes Bowling Association, Inc. Astrobowl Lanes, Magallanes Commercial Center Makati, Metro Manila Attention : Mr . Antonio C . Reyes President Sir : This has reference to your letter dated November 20, 1985, requesting for the opinion of this Commission on the legal interpretation of the word "active member" and a "member in good standing" as embodied in article III and V of your approved by-laws on file with this Commission. It appears therein that the annual elections of the Magallanes Bowling Association, Inc. shall be held on December 1, 1985 and you wish to be informed as to who will be entitled to vote in the elections pursuant to said Articles III and V. Said Articles III and V are hereunder quoted: "ARTICLE III. Members Members of the Association shall be of two kinds, namely: A) the charter members are those who are original organizers of the association; B) Regular members are those who come from different clubs and/or associations, and voluntarily filed their application for membership and duly accepted by the association. Only active members have the right to vote on matters requiring the concurrence of the members or officers of the association;" "ARTICLE V. Board of Directors There shall be nine (9) members of the Board of Directors. At each annual meeting of the Association, an election of the nine (9) members of the Board of Directors shall be held. The Board Members shall be elected by plurality in a single casting of votes. In case of a tie for the ninth Board Members, a re-voting will determine the elected member. Voting will be done by secret ballot and only qualified members in good standing will be entitled to vote." An examination of your approved By-Laws shows that it is silent on the definition of what an "active member" is, and a "member in good standing." Consequently, we shall have to define the same based on previous rulings of this Commission. Insofar as the definition of an "active member" is concerned, this Commission has ruled that "Full payment of all arrears in fees, dues or assessment by a delinquent member shall restore him to the status of an active member. ( Ltr. to Mr. Clemente Benedicto dated January 24, 1976 )". A member who fails to pay his annual dues merely becomes an inactive member and he can re-acquire active status upon payment of his back dues." ( Ltr. to Mr. Jaime V. Garong dtd. May 2, 1974 ) As regards "member in good standing", it has been ruled that "member in good standing are those who are up-to-date in their required monthly regular contribution and installments on loans previously granted." ( Ltr. to Demetrio Garcia, dtd. Feb. 11, 1982 ) "Every member is obliged to pay all national and local annual dues to be considered in good standing." ( Ltr. to Phil. Medical Association, Inc. dtd. Oct. 1, 1984 ). From the above-quoted rulings, it is clear that those who are entitled to vote are those members who are up-to-date in their required dues or fees. Please be advised accordingly. llcd Very truly yours, (SGD.) MANUEL G. ABELLO Chairman

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