Mr. Jose L. Oliva

December 17, 1987 Mr. Jose L. Oliva PATS School of Aeronautics Domestic Airport Road Pasay City Sir : This refers to your letter dated December 9, 1987, requesting opinion on the query posed therein. It appears therein that the PATS Faculty Association, Inc.,a non-stock corporation, has sufficient funds coming from the membership fees, dues, contributions and interest from the bank .In the spirit of Christmas season and considering the prevailing economic crisis, the present board of directors are planning to pass a resolution to give some benefits to the active members, among others, in the form of grocery items and the like. Your query is, whether the Board can legally pass a resolution to this effect it appearing that this will be the first time that the association will give the aforesaid benefits. Anent thereto, the Corporation Code, provides: "SECTION 87. Definition . For the purposes of this Code, a non-stock corporation is one where no part of its income is distributable as dividends to its members, trustees, or officers subject to the provisions of this Code on dissolution: Provided, That any profit which a non-stock corporation may obtain as an incident to its operations shall, whenever necessary or proper, be used for the furtherance of the purpose or purposes for which the corporation was organized ,subject to the provisions of this Title. (emphasis supplied) Corollary thereto, the articles of incorporation of PATS Faculty Association, Inc. provides: "Eight. ... However, it is hereby specifically provided that the corporation is organized and be operated exclusively for the cultural, social welfare, and charitable purposes as herein stated. No dividend shall be declared and no part of its income or profit, if any, which may be derived from its activities, undertakings and/or pursuits shall inure or be paid to the benefit of any individual member .(emphasis supplied) Considering that PATS Faculty Association, Inc. is a non-stock corporation and its articles of incorporation expressly prohibits the distribution of its income to the individual members, your query is answered in the negative. llcd Please be advised accordingly. Very truly yours, (SGD.) ROSARIO N. LOPEZ Associate Commissioner