Mr. Segundo B. Abordo

May 25, 1982 Mr. Segundo B. Abordo Libertad Community School Ormoc City West District Ormoc City Sir : This refers to your letter dated April 2, 1982, posing the following queries: 1. Is a teacher's Organization consisting of no less than 150 members considered legal if not registered in the Securities and Exchange Commission? In reply thereto, please be informed that an unregistered teacher's organization has no legal personality separate and distinct from its member and hence, is denied the rights and privileges which are incident only to incorporation. It cannot sue or be sued, it cannot enter into contracts in the same of the association and neither can it acquire properties under its common name. However, it may, by agreement of its members, perform acts not contrary to law, morals, good customs, public order or public policy. cdll 2. Is it lawful for this organization to collect from its member any amount from P5.00 up every month, without adopting a constitution and by-laws of the association? In reply thereto, please be informed that even without adopting its By-Laws, any organization may collect from its members any amount as long as said amount has been voluntarily agreed upon said members. 3. Is it right for a member of the organization to stop to become a member and/or refuse to give any contribution for which the said organization has no official receipt? It is a constitutional rights of a member of a voluntary organization to terminate his membership therein. He may refuse to give any contribution subject however to whatever action the association may take against him. 4. Is it right for a teacher to stop from being a member of Teacher's Organization for these reason: a. The organization has no constitution and by-laws. b. It issues no receipts. Should treasurer be bonded? In reply thereto, any member may terminate his membership in any organization for any reason, considering that his membership therein is voluntary. As regards, issuance of official receipts, any association cannot do the same without registering the same with the Bureau of Internal Revenue. As to whether or not Treasurer should be bonded, it is the policy of the SEC to require registered non stock corporation to state in its By-Laws that "the Treasurer shall post a bond to insure the faithful performance of his duties". Considering that your organization is not registered with this Commission, said requirement may be dispensed with. Please be guided accordingly. Very truly yours, (SGD.) JULIO A. SULIT, JR. Associate Commissioner