Mr. Edilberto A. Castillo

June 4, 1986 Mr. Edilberto A. Castillo 74 San Pedro Bautista St., Barangay Damayan, San Francisco del Monte Quezon City, Metro Manila Sir : This has reference to your letter dated May 5, 1986, requesting the opinion of this Commission on the queries stated therein. llcd In connection with your first two (2) questions, the first is answered in the affirmative. The Rolling Hills Neighborhood Association, Inc.,a non-stock corporation with principal office at Quezon City, Metro Manila, was issued its certificate of incorporation on May 9, 1980 under Registry No. 92807. Relative to your third query, a distinction should be made whether the associate undertakes the activities you mentioned, namely: making parcellary lot surveys and involving itself in road projects, with the end in view of making profits for distribution to members, because a non-stock corporation may not lawfully engage in any business activity for profit as it would run counter to its very nature as a non-profit entity (Secs. 14 (2) and 88, CCP). In other words, if such activities are pursued by the association purely for social and civic purposes and without any motivation of making profits, the above-mentioned corporation can do so under its purpose, to wit: "1. To foster, promote and preserve democratic processes, maintain community social, material and cultural development and progress of the members thereof; and to help and assist the citizenry of the Philippines in the promotion of economic and social well-being and to enhance the general welfare and amelioration of the Filipino community ".(Emphasis ours) Anent your last query, the government agency that has jurisdiction over road projects must be the Ministry of Public Works. Please be advised accordingly. LexLib Very truly yours, (SGD.) JULIO A. SULIT, JR. Chairman