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Zamora Soller Baluyut & Mendoza Law Offices

SEC Opinion • Securities and Exchange Commission • Opinions • Nov 12, 1986

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November 12, 1986 Zamora Soller Baluyut & Mendoza Law Offices 2nd Floor, Singapore Airlines Bldg. H. V. de la Costa St., Salcedo Village Makati, Metro Manila Gentlemen: This relates to your letter, dated October 29, 1986, requesting reconsideration of our opinion of October 10, 1985, addressed to Manila Polo Club, Inc., wherein we opined that the board of directors of the Club may legally impose a different monthly usage fee from the members. cdll Article VII (g) of the articles of incorporation of Manila Polo Club, Inc. provides thus: "Proprietary members as well as other memberships established in the By-laws shall be subject to the payment of monthly dues called Club dues as may be prescribed in the by-laws or by the Board of Directors, in order to meet the expenses for the general operations of the Club and for the maintenance and improvement of its premises and facilities." You maintain that grant of authority to the board specifically relates to regular monthly dues, and that this authority should not be expanded so as to include levy on membership for special and extraordinary assessments for minimum usage charge. Anent thereto, the following cases are cited, shedding light on the meaning of the term "dues", to wit: "The term "dues" refers to obligations into which members of a club enter to pay a sum, to be fixed usually by by-laws, at recurring intervals for the maintenance of the organizations". (Thompson v. Wyandanch Club, 127 N.Y.S. 195, 200, 70 Misc. 299, cited in Words & Phrases, Vol. 13A, permanent edition, p. 389). "Dues with reference to membership corporations means obligation into which members enter to pay sum to be fixed, usually by by-laws, at recurring intervals for maintenance of organization." (Associated General Contractors of America, New York State Chapter, Inc. v. Lopardo Bros. Excavating Contractors, Inc., 252 N.Y.S. 2d, 486, 488, 43 Misc. 2d. 825, cited in Words & Phrases, Supra.)" "Assessment always implies burden imposed in invictum, and a single act, as distinguished from recurring act , while word "dues" means obligation into which members enter to pay sum to be fixed, usually by by-laws, at recurring intervals for maintenance of organization", (Fresh Meadow Country Club v. U.S., D.C. N.Y., 17 F. Supp. 400, 401, cited in words & Phrases, Supra). Thus, the Board of Directors of Manila Polo Club, Inc., having been authorized under the charter to prescribe club dues on its members, may through a resolution thereof, legally impose a different monthly usage fee from the members. We, therefore, regret to deny your request for a reconsideration of our previous opinion. Very truly yours, (SGD.) JULIO A. SULIT, JR. Chairman

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