Roberto T. Gimeno

March 14, 2002 SEC OPINION Roberto T. Gimeno Greater Lagro Senior Citizens Association, Inc.,Lot 37, Block 48 Lagro Subdivision, Quezon City S i r : This is in response to your letter dated October 17, 2001 requesting for an opinion on whether or not membership per se, by one of your members in another sensor association, albeit unregistered has the effect of causing his removal from the association. Please be advised that an association has the power to admit and remove members, but such action must be in accordance with the provisions of the association's by-laws, rules and regulations and suppletorily it must also be accordance with the provisions outlined in the Corporation Code of the Philippines for termination of membership. An examination of the association's by-laws is advised in order to determine the validity of such action on the part of the Board of Trustees of the Association. It must be pointed out however, that one cannot legally claim membership of an association which does not exist in law. Although there might exist in fact, an association of persons, they cannot acquire juridical personality and consequently the juridical capacity to act unless they are registered with the Securities and Exchange Commission. But if membership even in an unregistered association is a ground for removal from the subject association in accordance with its by-laws or internal rules, there is no alternative except to observe the procedure for removal stated in the by-laws. In the final analysis, the Commission wishes to inform you that it could not render an appropriate opinion based on facts alleged in your letter since the same is a matter of evidence and therefore a justiciable issue which could only be clarified and determined in a proper court proceeding. Like in letter-queries of similar nature, the Securities and Exchange Commission has adopted the policy of not taking any action that will prejudice the outcome of the case, if it will be eventually litigated in the future. Very truly yours, (SGD.) BENITO A. CATARAN Director Company Registration and Monitoring Department