Dr. Renato M. Sison
SEC Opinion No. 10-03 • Securities and Exchange Commission • Opinions • Mar 24, 2003
Full text
March 24, 2003 SEC OPINION NO. 10-03 Dr. Renato M. Sison Past President Philippine Dental Association S i r : This refers to your letter dated February 5, 2002, which our office received only on March 17, 2003. You present the following queries: 1) Is it legal for PDA leadership to collect the amount of P3,000P5,000.00 during the PDA Annual Convention where the PDA Officers are elected, instead of the mandated amount of only P300.00 to qualify as a member in good standing and to be allowed to "vote and be voted upon?" 2) Assuming, but not admitting, that only 15% of the gross income will go to the coffers (not of PDA) but to the questionable "Asia Pacific Dental Federation," can the PDA members who wish to exercise their right "to vote and be voted upon" be denied access to the convention because they refuse to pay the required but illegal fee of P3,000.00P5,000.00 which is not provided in the PDA Constitution and By-Laws? 3) The fact that the amount of P3,000.00P5,000.00 was unilaterally decided by the PDA leadership to show its "cooperation" with the Asia Pacific Dental Federation, whose legal personality remains to be questionable, can the PDA deprive its members the right to participate in the PDA Annual Convention and the right to vote for PDA officers especially since the PDA, through the proddings of some PDA officers and ex-officers, insist on holding the PDA Convention to coincide with the Asia Pacific Dental Congress? 4) Likewise, is it legal to hold the PDA Annual Convention in April when the By-Laws specifically mandate that it should be held only in May, unless inevitable circumstances prevail, but that the same shall be held on the succeeding business day? Section 4 on Duties of the Special Committees of Article XX of the Amended By-Laws of the PDA, which was approved by at least two-thirds of the members and majority of the Board of Trustees on November 29, 1998, states: "b) Committee on Complaint and Grievances 1. To accept, evaluate and verify complaints and grievances from members, individuals and other agencies directed to the Association or its constituents. 2. To recommend to the Council of Presidents measures to resolve these complaints and grievances." Hence, the queries you have presented may properly be ventilated before, and are in fact within the jurisdiction and competence of your association's Committee on Complaints and Grievances. Moreover, the Commission does not, as a matter of settled policy, render opinions on queries or transactions, which may eventually develop into a case to be litigated before the regular courts. The opinion which may be rendered thereon would not be binding upon private parties who would in all probability, if the opinion happens to be adverse to their interest, take issue therewith and contest it before the proper forum. The Commission, therefore, has to refrain from giving categorical answers to your queries so that it will not be estopped on the instance that the queries are brought for resolution in a proper proceeding before the courts ( SEC Opinion dated June 9, 1994, Atty. Rachel E. Fidelino ), or elevated to a Committee on Complaints and Grievances as in the instant case. Therefore, you are primarily encouraged to take advantage of the processes your association has set in place to entertain complaints from members. In the unfortunate event that matters are not settled using internal procedures of your association on conflict management, there are other remedies available under the law which you can well exhaust. HcDSaT Please be guided accordingly. Very truly yours, (SGD.) VERNETTE UMALI-PACO General Counsel
Ask what this means for your situation
The assistant quotes the passage it relies on and links the source, so you can check every figure it gives you.