ASSOCIATIONS

Limbago, Mario
Sejane, Chelsea

Dayag, Angelo Jade

What is an
Association?

A body of persons organized for

the prosecution of some purpose,
having no charter from state, but
having the general form and
mode
of
procedure
of
a
corporation.
(International
Webster
Dictionary)

O Anygroupofpeoplewhohavejoine

dtogether
for
a
particularpurpose,ranging
from
social to business, and usually
meant
to
be
a
continuing
organization.
O It

canbeformal,

withrulesand/orbylaws,membershiprequirementsan
dothertrappingsofanorganization,
oritcan beacollectionofpeople
withoutstructure.

General Rule
O Non-stock, non-profit corporation
O Among

other
requirements,
accredited non-stock, non-profit
corporations must be organized
exclusively for one or more of the
following
purposes:
religious,
charitable, scientific, athletic, social
welfare, or cultural purposes, or the
rehabilitation of veterans (Revenue
Regulation No.13-98 Section 1a).

Article 1775
Associations and Societies, whose
articles are kept secret among
members, and wherein any one of the
members may contract in his own
name with third persons, shall have no
juridical personality, and shall be
governed by the provisions relating to
co-ownership.

NON-STOCK
CORPORATION

Power to make Profit and Engage in

Business
Section 87
O Incidental Profit
O Profit Obtained from investment of
accumulated funds
-May subscribed to the capital stock
-Invest in Commercial Paper
-Articles of Incorporation

Formation

Registration
Corporation

of

Non-Stock

O Name Verification Slip

O Articles of Incorporation and by laws
O Affidavit of an incorporator or director undertaking

to change Corporate Name

O List of Members, Certified by the corporate
secretary
O List of Contributors and amount contributed
certified

Members, Trustees
and Officers

O Section 89 (Right to Vote)

O Section 90

(Non-transferability of membership)
O Section 91
(Termination of membership)
O Section 92
(Election and term of trustees)
O Section 93 (Place of meetings)

Dissolution

Section 94 (Rules for distribution)

1. All liabilities and obligations of the
corporation shall be paid, satisfied and
discharged, or adequate provision shall
be made therefore;
2. Assets held by the corporation upon a
condition requiring return, transfer or
conveyance, and which condition occurs
by reason of the dissolution, shall be
returned, transferred or conveyed in
accordance with such requirements;

3. Assets received and held by the

corporation subject to limitations
permitting
their
use
only
for
charitable,
religious,
benevolent,
educational or similar purposes, but
not held upon a condition requiring
return, transfer or conveyance by
reason of the dissolution, shall be
transferred or conveyed to one or
more
corporations,
societies
or
organizations engaged in activities in
the Philippines substantially similar to
those of the dissolving corporation
according to a plan of distribution
adopted pursuant to this Chapter;

4. Assets other than those mentioned in

the preceding paragraphs, if any, shall
be distributed in accordance with the
provisions of the articles of incorporation
or the by-laws, to the extent that the
articles of incorporation or the by-laws,
determine the distributive rights of
members, or any class or classes of
members, or provide for distribution;
and
5. In any other case, assets may be
distributed to such persons, societies,
organizations or corporations, whether
or not organized for profit, as may be
specified in a plan of distribution
adopted pursuant to this Chapter. (n)

Section 95 (Plan of distribution of

assets)

The board of trustees shall, by majority vote,

adopt a resolution recommending a plan of
distribution and directing the submission
thereof to a vote at a regular or special
meeting of members having voting rights.
Written notice setting forth the proposed plan
of distribution or a summary thereof and the
date, time and place of such meeting shall be
given to each member entitled to vote, within
the time and in the manner provided in this
Code for the giving of notice of meetings to
members. Such plan of distribution shall be
adopted upon approval of at least two-thirds
(2/3) of the members having voting rights
present or represented by proxy at such
meeting.

ADDITIONAL
REQUIREMENTS
Other Non-Stock Corporation

Registration of a Non-Stock Corporation

O Name Verification Slip
O Articles of Incorporation and by laws
O Affidavit of an incorporator or director
undertaking to change Corporate Name
O List of Members, Certified by the
corporate secretary
O List
of
Contributors
and
amount
contributed certified
*those mentioned above need not to be
submitted if present in the articles of
Incorporation

FOUNDATION
Notarized Certificate of Bank
Deposit of the Contribution of not
less than P1M.
O Statement of Willingness to allow
commission to conduct an audit
O Modus
Operandi or Plan of
Operation
O

SEC Memorandum Circular

No. 1
Series of 2004
Section 3
The corporation name shall contain the word
Foundation
Section 4
Statement of Funds Application executed
under oath by the President of the foundation,
setting forth in detail the sources and amount of
funds established, the name of the beneficiaries
and corresponding amount of funds granted or
endowed thereto by the foundation.

Section 5
Upon application by an interested
party , the Commission may grant
exceptions to those guidelines on a
case to case basis for meritorious and
justifiable reasons established by the
applicant and under such terms and
conditions as the Condition may
impose.

Section 6
All other circulars, rules, orders, and
issuances, or part thereof inconsistent
with the Memorandum Circular are
hereby
repealed
or
modified
accordingly.
Section 7
The guidelines shall take effect
immediately after publication I a
newspaper of general circulation.

RELIGIOUS
O

Affidavit of Affirmation or
verification by the chief priest,
rabbi, minister, or presiding elder.

FEDERATIONS
O Federations- Certified list of

members- association by
corporate secretary or president
O Republic Act No. 2640
AN ACT TO CREATE A PUBLIC
CORPORATION TO
BE
KNOWN AS THE
VETERANS FEDERATION OF THE
PHILIPPINES, DEFINING ITS POWERS, AND
FOR OTHER PURPOSES

CONDOMINIUM
Association Master Deed with
primary entry of the Register of
Deeds and certification that there
is no existing similar condominium
project.
O Republic Act No. 4726
O

AN ACT TO DEFINE CONDOMINIUM,

ESTABLISH
REQUIREMENTS FOR ITS
CREATION AND GOVERN ITS INCIDENTS

NEIGHBORHOOD
O Certificate from the Housing and

Use Regulatory Board (HLURB)

that there is no existing
homeowners or similar
association in the community
where association is to be
established
O Republic Act 9904

THE END
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