Mr. Danilo D. Dizon, Sr.

October 18, 1982 Mr. Danilo D. Dizon, Sr. 232 Sta. Monica Street Bo. Pineda, Pasig, Metro Manila Sir : This is to acknowledge receipt of your letter dated September 27, 1982 inquiring as to the legal status of the "Pambansang Samahang Lingkod Bayan, Inc." and the legality of the collections made by the corporation aside from membership and ID fees. A verification made on the records of the corporation on file with this Office disclosed that subject corporation is still existing. However, it failed to submit the reportorial requirements of this Commission for the years 1981 and 1982, respectively. In this connection, please be assured that the Commission will direct the corporation to update its corporate records thru the submission of the necessary reportorial requirements and the imposition of the corresponding penalties for failure to comply with S.E.C. Rules and Regulations. As to the legality of the collection made by the corporation from the members thereof, aside from the membership and ID fees, Section 36 of the Corporation Code of the Philippines provides: "SECTION 36. Corporate powers and capacity . Every corporation incorporated under this Code has the power and capacity: xxx xxx xxx 11. To exercise such other powers as may be essential or necessary to carry its purpose or purposes as stated in the articles of incorporation." (emphasis supplied). Section 1 of Article IX of its by-laws likewise provides, thus: "SECTION 1. The funds of the federation shall emanate from among its members' fee, service fee and other incidental fee ." (emphasis supplied) In view thereof, the association may collect from its members, reasonable fees/contributions other than membership and ID fees, which are necessary to accomplish the purposes and objectives for which the corporation was organized and this does not require prior approval by the Commission. Please be advised accordingly. Very truly yours, (SGD.) JULIO A. SULIT, JR. Associate Commissioner