TGN Realty Corporation

June 30, 1982 TGN Realty Corporation 717 Aurora Boulevard Quezon City Attention : Ms . Flora N . Mapua Board Secretary Madam : This has reference to your letter dated June 2, 1982, seeking opinion from this Commission on the query posed therein. llcd From your letter it appears therein that the minors, Robert Gerard, Peter Joseph and Reyland, all surnamed Nepomuceno, are owners of shares of stocks of TGN Realty Corporation by virtue of donations made in their favor by their parents Peter G. Nepomuceno and/or Monina Blanco Nepomuceno. Furthermore, it appears that these minors are not represented by a legal guardian hence, their parents as their trustees are without authority to act on matters affecting their shares. You therefore, wish to be informed as to what steps you could take in order to rectify the situation. Articles 320 and 326 of the Civil Code provides, and we quote: "ARTICLE 320. The father, or in his absence, the mother, is the legal administrator of the property pertaining to the child under parental authority. If the property is worth more than two thousand pesos, the father or mother shall give a bond subject to the approval of the court of First Instance." "ARTICLE 326. When the property of the child is worth more than two thousand pesos, the father or mother shall be considered a guardian of the child's property, subject to the duties and obligations of guardians under the Rules of Court." Under the aforequoted provisions, and applying the same to the instant case, the stock certificates owned by the minors should be issued in the name of the father, Peter Nepomuceno or in his absence, in the name of the mother, Monina Blanco Nepomuceno, in trust for the minors. He/She may represent and vote for his/her minor child in the stockholders' meeting inasmuch as said acts are embraced in the administration of the property pertaining to the minor child. He/She, however, does not have the power to dispose or encumber the property of the latter, as such power is granted by law only to a judicial guardian of the ward's property, and even then only with the court's prior approval secured in accordance with the proceedings set forth by the Rules of Court. Please be guided accordingly. Very truly yours, (SGD.) JULIO A. SULIT, JR. Associate Commissioner