Pyramid Super Paluwagan Ng Bayan Association
SEC Opinion • Securities and Exchange Commission • Opinions • Jul 18, 1988
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July 18, 1988 Pyramid Super Paluwagan Ng Bayan Association No. 85 Ilocos Norte Street Barangay Olivia, Bago-Bantay Quezon City Gentlemen : Returned to you herewith are the copies of the Articles of Incorporation and by-laws of that Association which were presented to this Commission for registration. A perusal of the "Modus Operandi" of that Association which explained the manner or way of its operation disclosed that the corporation intends to undertake certain pyramid schemes. In this connection, pleased be inform that pyramid schemes are illegal schemes in which a large number of people at the bottom of the pyramid pay certain amount of money to the people at the top. ( SEC letter to Carpio Villaroza Baiza & Cruz, dated February 21, 1984 ). In pursuance of the provisions of Section 17 of the Corporation Code of the Philippines, the Securities and Exchange Commission may reject the registration of the articles of incorporation of a company if its purpose or purposes are patently unconstitutional, illegal, immoral or contrary to government rules and regulations. Thus, we regret that we cannot register your articles of incorporation in view of the modus operandi which explained how your association intend to carry out your purposes. Very truly yours, (SGD.) JULIO A. SULIT, JR. Chairman
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