Datu Pangagda Bayanban
SEC Opinion • Securities and Exchange Commission • Opinions • Sep 14, 1987
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September 14, 1987 Datu Pangagda Bayanban Malaybalay, Bukidnon Sir : This refers to your telegrams addressed to the Office of the President requesting that Office to instruct the Securities and Exchange Commission not to allow registration with the Commission any association/foundation in your place without consulting the by-laws of the Datus League and United Cultural Communities of Bukidnon, Inc. (DALUCCB) to prevent-overlapping operations, objectives and principles. LibLex In connection therewith, it is worth mentioning that under the Philippine Constitution, every citizen has the right to form associations not contrary to law. The Bill of Rights, particularly Article III, Section 8 of the 1987 Philippine Constitution provides, thus: "SECTION 8. The right of the people including those employed in the public and private sectors, to form unions, associations, or societies for purposes not contrary to law shall not be abridged." Likewise, the Corporation Code provides: "SECTION 17. Grounds when the articles of incorporation or amendment may be rejected or disapproved . The Securities and Exchange Commission may reject the articles of incorporation or disapprove any amendment thereto if the same is not in compliance with the requirements of this Code: . . . . The following are grounds for such rejection or disapproval : 1. That the articles of incorporation or any amendment thereto is not substantially in accordance with the form prescribed herein; 2. That the purpose or purposes of the corporation are patently unconstitutional, illegal, immoral, or contrary to government rules and regulations; xxx xxx xxx." Thus, when the objectives of any proposed association are not contrary to law and the application for registration of such association is in accordance with the Corporation Code of the Philippines and other pertinent existing laws, the Commission will have no other alternative but to approve the same. However, if you have any objection to the registration of a particular association, a formal written opposition relative thereto may be filed and a corresponding investigation may be conducted by the Commission. Please be advised accordingly. Very truly yours, (SGD.) JULIO A. SULIT, JR. Chairman
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