Engr. Emigdio N. Enjambre
SEC Opinion • Securities and Exchange Commission • Opinions • Jul 5, 2002
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July 5, 2002 SEC OPINION Engr. Emigdio N. Enjambre President Federation of Senior Citizens Caloocan North, Inc. Bgy. Hall, Bagong Silang, Caloocan City S i r : This has reference to your letter dated 24 June 2002 seeking the advice of the Commission on the queries posed therein. 1. The Federation of Senior Citizens Caloocan North, Inc. by virtue of its incorporation is a juridical person with personality distinct and separate from its members. The Office of Senior Citizen Affairs (OSCA),Caloocan City represented by Ms. Jane Bello or any similarly situated government entity for that matter has no authority to interfere with the affairs of the Federation particularly on election of its officers if it can be shown that said office or government entity has no previous agreement or is not covered by any ordinance or law authorizing such interference. Thus, it has no control or supervision in its corporate governance. 2. The City Councilor (Manuel A. Rayos) has no authority per se in calling an election of officers and intervene in the internal affairs of the Federation under the same premise as stated above. The Corporation Code of the Philippines and the by-laws of the association shall govern the affairs of the federation unless by its own actions, said Federation has limited its rights to govern i.e. by entering into Memorandum of Agreements and other similar relationships. 3. The Federation can legally ask for an audit of its finances that are handled by a government employee and if the same are in the possession or control of the City Finance Officer he should render an immediate accounting so as to determine the transactions for the year 2001-2002 as requested. Hence, the corporate treasurer may demand the turnover of the books of account and other pertinent records as in fact, it is the duty of said Treasurer to have custody of said funds under pertinent laws and regulations. 4. As a general rule, the Commission will not comment on issues which are hypothetical and therefore no reply is hereby made on the fourth query. Very truly yours, (SGD.) JESUS ENRIQUE G. MARTINEZ Commissioner
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