Mr. Hadji Kamar H. Muksin
SEC Opinion • Securities and Exchange Commission • Opinions • Dec 7, 1994
Full text
December 7, 1994 Mr. Hadji Kamar H. Muksin Lupa Pula, Tawi-Tawi S i r : This refers to your letter of October 13, 1994 questioning the summary revocation by the Municipal Government of Mapun of the business permit granted to Cagayan De Tawi-Tawi Arrastre and Stevedoring Association, Inc. and the issuance of a new one in favor of Mini Arrastre and Stevedoring claiming that the registration of the latter entity with the Department of Trade and Industry should not have been made as the basis for the issuance of the new business permit in its favor, as there is already an existing corporation, the former one, engaged in the same line of business with prior authority from the government. While upon registration with the Commission, a corporation acquires the rights, powers and attributes expressly authorized by law or incident to its existence, such registration does not automatically entitle a corporation the privilege to engage in the business for which it was organized if under the law the operation thereof still requires a separate permit or license from other government agencies. The registration of a corporation with the Commission only constitutes a grant by the government of a legal personality of the entity to act as a corporation but does not preclude other government agencies from exercising its police power over such corporation whenever public interest demands it. The issuance of a separate permit or license necessary for a corporation to engage in a particular business is not always within the authority of the Commission but of other government agencies or political subdivisions and in the issuance thereof, the proper government agency is empowered to enforce the law, rules and regulations applicable on the business to be undertaken. Regarding your claim that a new permit should not have been given to Mini Arrastre & Stevedoring for the reason above stated, please be advised that several entities with similar purposes may be allowed to be registered as a corporation, partnership or single proprietorship, provided they shall bear different names, and each shall have a personality separate from that of the others, and it is up for the proper government agency to determine which entity should be given the permit or license to operate in a certain place. Any question on the legality or proprietary of an issuance of permit or license by a Municipal Government to a business entity should be addressed to the appropriate office in the Department of theInterior and Local Government or the Regular Court. Very truly yours, (SGD.) FE ELOISA C. GLORIA Associate Commissioner
Ask what this means for your situation
The assistant quotes the passage it relies on and links the source, so you can check every figure it gives you.