Mr. Ramon G. Santillan

January 18, 1984 Mr. Ramon G. Santillan St. Anthony Parish Residents' Association 177 Tolentino Street, San Francisco del Monte Quezon City Dear Mr. Santillan: This is in reply to your letter dated November 11, 1983, wherein you requested for clarification of the interpretation of Section 1, Article VII of the St. Anthony Parish Residents' Association, Inc. The provision states: "Article VII, Section 1. The employees and agents of the association shall be an Executive Secretary, an Auditor and such other personnel as the Association may deem necessary in the performance of its activities. These employees and agents shall be appointed by the President subject to the confirmation by the Board of Directors. The employees and agents shall be under the direct supervision of the President and of the Board of Directors who shall determine their compensation. Any of the employees and agents may be dismissed by the President for cause upon confirmation by the Board of Directors." In connection therewith, you posed the following questions: 1. Is the appointment of an employee or agent under the aforequoted provision co-terminus with the term of office of the President who appointed him and the Board of Directors which confirmed his appointment? 2. Does such employee or agent have to tender his courtesy resignation everytime a new President is elected or a new Board of Directors is installed? 3. If an employee or an agent is a volunteer worker with no salary but only a retainer's fee, does he fall under the provision above-quoted? The first two questions are answered in the negative. This is based on the theory that employees and agents are deemed to be agents of the corporation rather than of the appointing power. In such case therefore, the authority of an employee is not abrogated by a change in the President and Directors. However, as expressly provided in the aforequoted provision, an employee or agent may be dismissed anytime, subject however to the provisions of the Labor Code on the matter. We believe that Article VII, Section 1 also applies to volunteer workers. Our answer therefore to question number three is in the affirmative. Very truly yours, (SGD.) MANUEL G. ABELLO Chairman