Mr. Abundancio L. Calatrava

April 10, 1985 Mr. Abundancio L. Calatrava 27 E. Quirino Avenue Davao City Sir : This refers to your letter dated November 21, 1984 addressed to President Ferdinand E. Marcos which was referred to the Securities and Exchange Commission for action by Mr. Donato Rocamora of the Office of the Presidential Executive Assistant, Malacaang. cdlex It appears therein that you are interested in organizing an association, "The Non-Professional Boholanos of Davao-Mindanao, Inc." with no other purpose than to support the entire KBL candidates especially the President . In connection therewith, Presidential Decree No. 1296, otherwise known as the Election Code of 1978, provides as follows: "SECTION 35. Election campaign or partisan political activity outside campaign period . It shall be unlawful for any person, whether or not a voter or candidate, or for any party, group, aggrupation or association of persons, to engage in an election campaign or partisan activity except during the campaign period or, in special cases, during the period fixed by the Commission:" ...(Emphasis supplied) The term "election campaign" which is prohibited in the above cited provision is defined under Sec. 34 of said P.D. as follows: "(b) The term " election campaign " or "partisan political activity" refers to an act designed to have a candidate elected or not or to promote the candidacy of a person or persons to a public office which shall include: 1. Forming organizations ,association, clubs, committees or other groups of persons for the purpose of soliciting votes and/or undertaking any campaign or propaganda for or against a candidat e." (Emphasis supplied) Your proposal is therefore prohibited under the Election Code of 1978. Likewise, the Corporation Code of the Philippines provides: "SECTION 88. Purposes . Non-stock corporations may be formed or organized for charitable, religious, educational, professional, cultural, fraternal, literary, scientific, social, civic service, or similar purposes, like trade, industry, agricultural and like chambers, or any combination thereof, subject to the special provisions of this Title governing particular classes of non-stock corporation." The aforecited provision enumerates the purposes for which non-stock corporations may be organized. In the above enumeration, "political" purpose is not specifically included. It is to be noted that the Securities and Exchange Commission may reject the articles of incorporation if the purpose or purposes of the corporation are patently unlawful. The Corporation Code provides, thus: "SECTION 17. Grounds when articles of incorporation or amendment may be rejected or disapproved . ... 2. That the purpose or purposes of the corporation are patently unconstitutional, illegal ,immoral or contrary to the government rules and regulations ." (Emphasis supplied) In view thereof, your proposed association cannot be registered under the Corporation Code of the Philippines. Please be advised accordingly. LibLex Very truly yours, (SGD.) MANUEL G. ABELLO Chairman