Director Gia Marie C. Andres

December 17, 1999 Director Gia Marie C. Andres Consumer Manufactures Department Board of Investments Industry & Investments Building 385 Gil J. Puyat Avenue Makati City M a d a m: This refers to your letter dated November 25, 1999 requesting opinion on whether or not ILIOS JEWELLERS SUBIC, INC., on the basis of its articles of incorporation, is qualified to engage in jewelry essaying and refining activities . The articles of incorporation of the above-mentioned corporation provides: "Second: A. That the primary purpose of this corporation is to engage in the business of manufacturing goods such as JEWELRY and to trade the same on wholesale." (Emphasis supplied) Please be advised that a purpose clause can be reasonably stretched or construed to cover matters or objects which could not have been explicitly mentioned at the time of incorporation but is closely related to the expressed corporate purpose or impliedly included therein. The underlined words in the aforecited purpose clause make it encompassing and may cover jewelry essaying and refining activities. This construction is clearly supported by the definition of the term "jewelry enterprise" under the RULES AND REGULATIONS IMPLEMENTING R.A. NO. 8502 , OTHERWISE KNOWN AS THE JEWELRY INDUSTRY DEVELOPMENT ACT OF 1998, quoted in part hereunder: "(e) " Jewelry Enterprise ", means an enterprise engaged in any aspect involved in the manufacture of jewelry and in particular though not exclusively: xxx xxx xxx h) activities in support of jewelry enterprise such: electroplating gemstones appraisal and certification; essaying and refining ; and import consolidator" (Emphasis supplied) Accordingly, the commission, in its meeting of December 16, 1999, resolved to opine that the corporation is qualified to engage in jewelry essaying and refining activities. Very truly yours, (SGD.) FE ELOISA C. GLORIA Associate Commissioner