SPO2 Alejandro S. Pascua

January 7, 1996 SPO2 Alejandro S. Pascua Aurora Municipal Police Station 3316 Aurora, Isabela S i r : This refers to your letter dated December 14, 1995 inquiring on the legality of the existence of a Parents Teachers Community Association in every school. The right to form a association for purposes not contrary to law is a basic right granted under the Philippine Constitution. However, membership in a particular association depends on the qualifications set by the association and may be acquired in the manner or mode of acquiring membership prescribed by the association. An association which is not engaged in a business for profit and is not desirous of acquiring a juridical personality distinct and separate from the member need not be registered with the Securities and Exchange Commission The Corporation Code does not require a non-profit association to be registered as a corporation, but it may do so in order to acquired a legal personality. It is only thru incorporation, registration under the Corporation Code that it can acquire a juridical personality to enable it to exercise corporate powers, rights and privileges expressly granted under the Corporation Code to registered corporation. However, even if not registered, the members of an association, by agreements, may perform acts not contrary to law, morals, goods customs, public order or public policy, and in order to carry out its purpose, it may collect membership fees or contribution for as long as the amount has been voluntarily agreed upon by the members. However, since the status of unregistered association is only that of an ordinary organization which has no juridical personality, the members themselves may be held personality liable for their acts not the association. Thus, should a "parents teacher community association" desire to have a distinct and separate legal personality from that of the members, the same should be incorporated/registered as a non-stock corporation with the Commission in accordance with provisions of the Corporation Code. Attached herewith is a list of requirements for registration of a non-stock corporation. Once an association is registered with the SEC, the same would now be subject to the provisions of the Corporation Code and SEC rules and regulations governing corporations. Any member of a SEC registered association who may have a cause of action against any of its directors or officers, may file a verified complaint with the Securities Investigation and Clearing Department of the Commission pursuant to PD 902-A, as amended and the Revised Rules and Procedure in the SEC , or should one find that a registered association violates any provision of the Corporation Code or SEC Rules and Regulations, he may file a formal complaint with the Prosecution and Enforcement Department of this Commission so that the violation will be properly investigated. The question of whether or not the Department of Education Culture and Sports (DECS) requires the formation of the above-mentioned association in every school and whether DECS provides for their funding should be addressed to that agency. Very truly yours, (SGD.) FE ELOISA C. GLORIA Associate Commissioner