Mr. Christopher B. Maldia

January 17, 1995 Mr. Christopher B. Maldia Avalon Condominium Corporation 95 Xavier St. corner Ortigas Ave. Greenhills, 1500 San Juan, Metro Manila S i r : This refers to your letter of January 5, 1995 requesting opinion on whether it is within the corporate powers of a condominium corporation to conduct fund raising activities to augment its corporate funds, such as bingo socials, movie premiers, bazaars, raffles, etc. llcd It is well-settled that a corporation has only such powers as are expressly granted in its charter or in the statutes under which it is created or such powers as are necessary for the purpose of carrying out its express powers .(13 Am. Jur. Sec. 739) Only such powers as are reasonably necessary to enable corporations to carry out the express powers granted and the purposes of the creation are to be implied as are to be deemed incidental. (Am. Jur. Sec. 740) Powers merely convenient or useful are not implied if they are not essential, having in view the nature and object of incorporation. (Ibid, citing Planters Bank v. Sharp. 6 How (vs) 301, 12L, ed. 447) The principle that only such necessary powers are to be deemed implied or incidental is emphasized under Section 36 (11) of the Corporation Code which provides: "SECTION 36. Corporate powers and capacity . Every corporation incorporated under this Code has the power and capacity: xxx xxx xxx. (11) To exercise such other powers as may be essential or necessary to carry out its purpose or purposes as stated in the articles of incorporation. (Emphasis supplied) Thus, if "fund raising activity" is not embodied among the corporation's authorized purposes in the articles of incorporation or is neither necessary nor incidental in the furtherance of corporate objectives, the same cannot be legally undertaken by a corporation. However, in the absence of an existing authority in the articles of incorporation, a non-stock corporation desiring to undertake fund raising activities to augment its corporate funds may amend its articles of incorporation in accordance with Section 16 of the Corporation Code to include the same in its purposes. Moreover, fund solicitation from the public is subject to the provision of Act No. 4075 , otherwise known as the Solicitation Permit Law, as amended by P.D. 1564, and the Rules and Regulations of the Department of Social Welfare and Development . LibLex Very truly yours, (SGD.) FE ELOISA C. GLORIA Associate Commissioner