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Mr. C. G. Briones

SEC Opinion • Securities and Exchange Commission • Opinions • Jul 31, 1992

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July 31, 1992 Mr. C. G. Briones Northeastern College, Inc. Santiago, Isabela S i r : This refers to your letter of July 18, 1992, requesting opinion relative to the alleged continuing deadlock in the election of "President" of Northeastern College, Inc. prcd The pertinent provision of the Corporation Code provides: "SECTION 47. Content of by-laws . Subject to the provisions of the Constitution, this Code, other special laws , and the articles of incorporation, a private corporation may provide in its by-laws for: xxx xxx xxx (5) The qualifications, duties and compensation of directors or trustees, officers and employees; . . ." (Emphasis supplied) The Corporation, therefore, may inquire into the required qualifications of corporate officers imposed by the Department of Education, Culture and Sports pursuant to the provision of Batas Pambansa Blg. 232, otherwise known as the "Education Act of 1982, a special law governing "educational institution". Said Law provides: "SECTION 54. Declaration of Policy . The administration of the education system and pursuant to the provisions of the Constitution, the supervision and regulation of educational institutions are hereby vested in the Ministry of Education, Culture and Sports , without prejudice to the provisions of the charter of any state college and university." (Emphasis supplied) "SECTION 57. Functions and Powers of the Ministry . The Ministry shall: xxx xxx xxx (3) Promulgate rules and regulations necessary for the administration, supervision and regulation of the educational system in accordance with declared policy. . . ." (Emphasis supplied) Accordingly, since no agreement can be reached and inasmuch as the by-laws of the Corporation is silent on the matter, the Revised Manual of Regulations for Private Schools, series of 1992, of the Department of Education, Culture and Sports may be resorted to in resolving the deadlock. Said Rules provides: "SECTION 79. Qualifications of School Heads and Other School Administrators . The minimum educational qualifications and relevant experience of the school head. . . of every school shall be: a. President /Director. The school President/Director must (1) be a Filipino citizen, (2) possess at least a Master's degree, (3) have adequate teaching experience in school management system or a background of demonstrated service and competence in his previous field of endeavor, and (4) be of good moral character and reputation to provide the vital leadership role towards the efficient and effective management of the school. (Emphasis supplied) cdlex If both nominees are qualified, we believe that the Department of Education, Culture and Sports is in a better position to determine as to who of the two nominees is best qualified to act as President. Please be advised accordingly. Very truly yours, (SGD.) ROSARIO N. LOPEZ Chairman

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