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Philippine Travel Agencies Association, Inc.

SEC Opinion • Securities and Exchange Commission • Opinions • Apr 20, 1983

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April 20, 1983 Philippine Travel Agencies Association, Inc. 2nd Floor, NBT Building P. Gil cor. A. Mabini Manila, Philippines Attention : Ms . Letty Echaus Capps Gentlemen: This refers to your letter dated April 11, 1983 requesting the opinion of this Commission on the query posed therein. According your letter, the Philippine Travel Agencies Association, Inc. (PTAA) holds an annual general meeting of its members to elect a 15-man board of trustees which body, in turn elects from among themselves a President, First Vice-President, a Second Vice-President, a Third Vice-President, a Treasurer and an Assistant Treasurer. Other trade bodies, both local and overseas, by virtue of their own by-laws or charters specifically name the President of the PTAA as a member of their respective Boards of Directors or Trustees. As member of the said Boards, the PTAA President is required to appoint an alternate representative to these various Boards. Your query then is should the alternate representative of the PTAA President to these other trade bodies be any one of his own choice, or should the provisions of the PTAA By-Laws be made to apply so that the alternate representative is the First Vice-President? Article V, Section 2 of the PTAA By-Laws which provides for the powers of the President reads in part: "SECTION 2. President . The President shall: a) . . . b) . . . c) . . . d) . . . e) Represent the association in dealings with and before government entities the public, other industries and trade bodies both locally and overseas." Likewise, Article V, Section 3 provides for the takeover by the First Vice President in case of " . . . absence, incapacity or death . . ." of the President. llcd It is evident that the PTAA President assumes his office as member of the different Boards by virtue of his office. He is therefore bound by the By-Laws of the PTAA regarding his alternate representative. Article V, Section 3 of the PTAA By-Laws clearly answers your question since the need for an alternate representative would only arise in case of the inability of the PTAA President to perform his duties as a member of the different Boards or his incapacity to do so. In view of the foregoing, our answer to your letter query is that the alternate representative of the President of the PTAA should be chosen in accordance with the By-Laws of the PTAA so that the alternative representative is the First Vice President. Please be guided accordingly. LibLex Very truly yours, (SGD.) JESUS J. VALDES Associate Commissioner

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