SEC Op.doc

October 17, 1989 Ms. C. A. Reyes Santos Assistant Director  Bureau of Trade Reguation and Consu!er "rotection De#art!ent of Trade $ %ndustry &'1 Sen. (i "uyat A)e. A)e. Ma*ati, Metro Mania Mada!e+ Tis as reference to your etter dated Se#te!ber ', 1989 re-uesting te o#inion of tis Co!!ission on te  #ro#osed #artnersi# beteen a certain Mr. S!it of Surrey, /ngand and a 0ii#ino. cd#i %t a##ears tat te #artnersi# sa ad)ertise in te oca ne s#a#ers and !againes for 0ii#ino o!en interested in riting to and e)entuay !eeting /ngis gente!en of teir coice. Atoug not e2#icity stated, te #artnersi# intends to estabis te so3caed 4!ai3to3order brides4 ser)ice recenty ad)ertised in nes#a#ers. Different ci)ic organiations a)e aready )oiced teir concern and ob5ection to tis 4business4 since it !erey turns te 4brides4 into do!estic e#ers, not to !ention its ad)erse effect to te i!age of 0ii#ino o!en. 6ie te #ur#ose of te #artnersi# !ay see! innocuous, its !odus o#erandi and actua ob5ecti)e !ay be dee!ed i!!ora. Moreo)er, so!e -uarters cai! tat si!iar businesses are o#erated to circu!)ent abor as on o)erseas recruit!ent. ence, tis Co!!ission is of te )ie tat te registration of te #ro#o sed business soud be denied on te fooing grounds+ a %f tey tey sa sa for! for! a #artne #artners rsi#, i#, it sa sa be a )ioa )ioatio tion n of Artic Artice e 177 177 of of te te Ci)i Ci)i Code Code ic ic #ro)i #ro)ides des as foos+ 4A #artnersi# #artnersi# !ust a)e a afu ob5ect or #ur#ose and !ust be estabised for co!!on benefit or interest of te #artners4. Cd#r   b %f a cor#oration, Sec. 17 of te Cor#oration Code soud be co!#ied it ic incudes te fooing  #ro)ision as one of te grounds for disa##ro)a of Artices Artices of %ncor#oration+ :. 4Tat 4Tat te te #ur# #ur#ose ose or #ur# #ur#ose osess of te cor#or cor#orati ation on are are #ate #atent nty y uncon unconsti stitut tution iona, a, ieg iega, a, i!!ora i!!ora or contrary to go)ern!ent rues and reguations.4 %ncidentay, !ay !ay e suggest tat #ro#er )erification ) erification be !ade on eter Mr. S!it !ay a)e aready aunced is #ro#osed acti)ities ere in te "ii##ines considering tat tere are infor!ation tat certain entities are  #resenty engaged in tis acti)ity. acti)ity. "ease be ad)ised accordingy. cda ;ery truy yours, consortiu! for te #ur#ose of -uaifying in ter!s of ca#itaiation and e-ui#!ent in arge3scae #ro5ects of te Ministry of "ubic igays troug co!#etiti)e bidding. Tis Co!!ission ereby reiterates its #re)ious o#inions tat te eigt of autority is to te effect tat a cor#oration cannot ordinariy enter into a contract of #artnersi# it anoter cor#oration or indi)idua, to it+

4According to te #re)aiing )ie, a cor#oration as no i!#ied #oer to beco!e a #artner it an indi)idua or anoter cor#oration. Tis i!itation is based on #ubic #oicy, since in a #artnersi# te cor#oration oud be  bound by te acts of #ersons o are not duy a##ointed and autoried agents and officers, ic oud be entirey inconsistent it te #oicy of te a tat te cor#oration sa !anage its on affairs, se#aratey and e2cusi)ey4. 1 of 1 of te #artnersi#s ca#ita but not ess tan "1. or !ore tan "@,.. Moreo)er, to or !ore cor#orations !ay enter into a 5oint )enture>consortiu! if te nature of te )enture is in ine it te business autoried by its carter troug a contract or )ountary agree!ent beteen te said  #arties. "ease note tat no inde#endent ega entity is borne out of it and te sa!e need not be registered it te Co!!ission. oe)er en te 5oint )enture>consortiu! oud resut in te for!ation of a cor#oration or  #artnersi#, te sa!e as to be registered it te Co!!ission and te conditions and re-uire!ents abo)e3 !entioned soud be co!#ied it. "ease be ad)ised accordingy. ;ery truy yours, docu!ents re-uired to be sub!ittedG Te abo)e -ueries are ansered in te order tey are #ro#ounded+

1. Te Co!!ission in its #re)ious o#inions rued tat te eigt of autority is to te effect tat a cor#oration cannot beco!e a #artner in a #artnersi#, citing te fooing ega 5uris#rudence on te !atter+ 4According to te #re)aiing )ie a cor#oration as no i!#ied #oer to beco!e a #artner it an indi)idua or  anoter #erson. Tis i!itation is based on #ubic #oicy, since in a #artnersi# te cor#oration oud be bound  by te acts of #erson o are not its duy a##ointed and autoried agents and officers, ic oud be entirey inconsistent it te #oicy of te a tat te cor#oration sa !anage its on affairs se#aratey and e2cusi)ey.4 <1& A!. ?un., #ar. 8:&. 4%t is fairy e setted tat cor#orations cannot ordinariy enter into #artnersi# it oter cor#orations or it indi)iduas, for, in entering into a #artnersi# te identity of te cor#oration is ost or !erged it tat of anoter and te direction of te affairs is #aced in oter ands tan tose #ro)ided by te a of its creation. A cor#oration can act ony troug its duy autoried agents and is not bound by te acts of anyone ese, ie in a #artnersi# eac !e!ber binds te fir! en acting itin te sco#e of te #artnersi#.4 <' 0etcer :@:. %t oud tus a##ear fro! te foregoing -uotations tat te genera rue is tat a cor#oration can not ordinariy enter into #artnersi# it oter cor#orations or it indi)iduas. Tis genera rue, oe)er, as been iberaied in tat a cor#oration !ay no ordinariy enter into #artnersi# it anoter #erson, #ro)ided it is autoried to do so by statute or carter.
g. "roof tat te 0ii#ino #artner as te financia ca#abiity to in)est te a!ount contributed to te  #artnersi#. 0or te fiing fees te fooing soud be #aid to te Co!!ission+ Artices of "artnersi# H 1>1 of 1 of  te ca#ita of te #artnersi# Misceaneous 0ees+ S/C Buetin "1. =ega Researc 0ee 1 of te fiing fee 0or furter #articuars, you !ay co!!unicate it te Board of %n)est!ents
 #artnersi#, and conse-uenty, te artices of #artnersi# !ust sti#uate tat a te #artners are and sa be  5ointy and se)eray iabe for a te obigations of te #artnersi# 4%n a soidary or 5oint and se)era obigations, te reationsi# beteen te acti)e and #assi)e sub5ects is so cose tat eac of te for!er or of te atter !ay de!and te fufi!ent of or !ust co!#y it te oe obigations.4 <"aras, Ci)i Code of te "ii##ines Annotated, citing 8 Manresa 19F &. Te foreign cor#oration !ust obtain a icense to transact business in te country in accordance it te Cor#oration Code of te "ii##ines and te 0oreign %n)est!ents Act. cd Tus, for as ong as te foregoing conditions are !et, te abo)e3!entioned #ro#osed artices of #artnersi# !ay  be registered. ;ery truy yours,
To borro or use !oney for te use and benefit of te #artnersi# To buy, se, !anufacture, e2#ort, i!#ort, et or ire and dea in and it a *inds of artices and tings ic !ay be re-uired for te #ur#oses of any said business S/cADa To do any and a oter tings necessary, suitabe or incidenta in furterance of any or a of te #ur#oses set fort erein.4 0urter, Sec. 1, Art. %, Artices of "artnersi# of (rou# & Design Studio #ro)ides+ 4Te #ur#ose of ic tis "artnersi# is for!ed sa be te genera #ractice of arcitecture and oter aied ser)ices.4 ence, (oudie Associates Mania =td. Co. !ay engage in te b usiness of consutancy ser)ices reated and  #ursuant to te business of interior design and oter #ur#oses !entioned in its Artices of "artnersi#. =i*eise, (rou# & Design Studio !ay aso engage in te business of consutancy in)o)ing te genera #ractice of arcitecture and oter aied ser)ices, as stated in its Artices of "artnersi#. TAac/ ;ery truy yours, & of te outstanding ca#ita stoc* . . . .4 %t is terefore our )ie tat #anso#s organied as cor#orations and #artnersi#s !ay be aoed te anciary acti)ity of directy #urcasing or seing goods and artices. Cd#r  ;ery truy yours,
SIB?/CT + (uideines and "rocedures on te Ise of Cor#orate and "artnersi# a!es To *ee# abreast it de)eo#!ents in business and infor!ation tecnoogy in te country, te Co!!ission is ado#ting te fooing guideines and #rocedures in te registration of cor#orate and #artnersi# na!es+ c%TCS 1. a Te cor#orate na!e sa contain te ord 4Cor#oration4 or 4%ncor#orated4, or te abbre)iations 4Cor#.4 or 4%nc.,4 res#ecti)ey  b Te #artnersi# na!e sa bear te ord 4Co!#any4 or 4Co.4 and if it is a i!ited #artnersi#, te ord 4=i!ited4 or 4=td.4 A #rofessiona #artnersi# na!e !ay bear te ord 4Co!#any4, 4Associates4, or 4"artners4, or oter si!iar descri#tions c Te cor#orate na!e of a foundation sa use te ord 40oundation4. :. A ter! tat describes te business of a cor#oration in its na!e soud refer to its #ri!ary #ur#ose. %f tere are to suc ter!s, te first soud refer to te #ri!ary #ur#ose and te second to te secondary #ur#ose. ADCS/ &. a Te na!e sa not be identica, !iseading or confusingy si!iar to a cor#orate or #artnersi# na!e registered it te Co!!ission, or it te De#art!ent of Trade and %ndustry, in te case of soe  #ro#rietorsi#s  b %f te na!e a##ied for is si!iar to tat of a registered cor#oration or #artnersi#, te a##icant sa add one or !ore distincti)e ords to te #ro#osed n a!e to re!o)e te si!iarity or differentiate it fro! te registered na!e oe)er, te addition of one or !ore distincti)e ords sa not be aoed if te registered na!e is coined or uni-ue uness te board of directors or !a5ority of te #artners of te sub5ect c or#oration or  #artnersi# gi)es its consent to te a##ied na!e c "unctuation !ar*s, s#aces, signs, sy!bos and oter si!iar caracters, regardess of teir for! or arrange!ent, sa not be acce#tabe as distinguising ords for #ur#oses of differentiating a #ro#osed na!e fro! a registered na!e. A/CacT d A na!e tat consists soey of s#ecia sy!bos, #unctuation !ar*s or s#eciay designed caracters sa not be registered. F. Ony one business or trade na!e !ay be registered for eac cor#orate or #artnersi# na!e. @. A tradena!e or trade!ar* registered it te %nteectua "ro#erty Office !ay be used as #art of te cor#orate or #artnersi# na!e of a #arty oter tan its oner if te atter gi)es its consent to suc use. '. a Te fu na!e or surna!e of #erson !ay be used in a cor#orate or #artnersi# na!e if e or se is a stoc*oder, !e!ber or #artner of te said entity and as consented to suc use if te #erson is aready deceased, te consent sa be gi)en by is or er estate  b Te Co!!ission !ay re-uire a registrant to e2#ain to its satisfaction te reason for te use of a #ersons na!e DTA%a c Te !eaning of initias used in a na!e sa be stated by te registrant in te Artices of %ncor#oration, Artices of "artnersi# or in a se#arate docu!ent signed b y an incor#orator, director or #artner, as te case !ay  be. 7. Te na!e of an internationay *non foreign cor#oration, or so!eting si!iar to it, cannot be used by a do!estic cor#oration uness it is its subsidiary and te #arent cor#oration as consented to suc use oe)er, a na!e ritten in a foreign anguage, e)en if registered in anoter country, sa be not registered if te na!e )ioates good !oras, #ubic order o r #ubic #oicy, or as an offensi)e or indecorous !eaning in any of te countrys officia anguages or !a5or diaects. 8. A subsidiary or affiiate of a foreign cor#oration tat a##ies for te registration of a or substantiay a of te na!e of its #arent co!#any sa use te ord 4"ii##ines4 as #art of its na !e ic sa be ritten as 4<"ii##ines4 or 4<"i.4 after te na!e. ScT%A 9. Te na!e of a oca geogra#ica unit, site or ocation cannot be used as a cor#orate or #artnersi# na!e uness it is acco!#anied by a descri#ti)e ord or #rase, e.g., "asay 0ood Store, %nc. 1. "ursuant to e2isting as, te fooing ords and #rases can be used as cor#orate or #artnersi# na!e ony in te !anner enu!erated beo+ a 40inance Co!#any4, 40inancing Co!#any4, 40inance and =easing Co!#any4 and 4=easing Co!#any4 4%n)est!ent Co!#any4, 4%n)est!ent ouse4 H by entities engaged in te financing or in)est!ent ouse

 business %n)est!ent>0und>0inancia Manage!ent4, or 4Asset>%n)est!ent>0und>0inancia Ad)iser4, or any si!iar ords or #rases H by entities organied as in)est!ent co!#any ad)iser or oders of in)est!ent !anage!ent acti)ities <%MA icense fro! te Bang*o Sentra ng "ii#inas Tc/A% c 4ationa4, 4Bureau4, 4Co!!ission4, 4State4, and oter ords, acrony!s, abbre)iations tat a)e gained ide acce#tance in te "ii##ines H by entities tat #erfor! go)ern!enta functions d 4Association4 and 4Organiation4 or si!iar ords ic #ertain to non3stoc* cor#orations H by entities #ri!ariy engaged in non3#rofit acti)ities e 4Stoc* /2cange>0utures /2cange>Deri)ati)es /2cange4, 4Stoc* Bro*er>Securities Bro*er>Deri)ati)es Bro*er4, 4Co!!odity>0inancia 0utures Mercant>Bro*er4, 4Securities Cearing Agency>Stoc* Cearing Agency4, 4"ans4 or any si!iar ords or #rases H by entities organied as an e2cange, bro*er deaer, co!!odity futures bro*er, cearing agency, or #re3need co!#any under te Securities Reguation Code
 #artners in te for! #rescribed by te Co!!ission. Tis affida)it sa not be re-uired if te underta*ing is aready incuded as one of te #ro)isions of te Artices of %ncor#oration or "artnersi# of te registrant %CacT %n te case of a!end!ent of te cor#orate na!e of an e2isting co!#any or #artnersi#, te affida)it sa be signed by any of te directors or #artners. 18. Tis Me!orandu! Circuar sa a!end a issuances, orders, rues and reguations of te Co!!ission tat !ay be inconsistent it it, and sa ta*e effect on August 9, :8. ?uy 17, :8, Mandauyong City, "ii##ines. /SCTaA
October 19, 198F Atty. Renato ?. Santiago Counse for te ua (ua Ciong Ini!ited R!. &': 6eington Bdg., "aa =oreno Rui, Binondo, Mania Sir+ Tis as reference to your etter dated ?uy :F, 198F re-uesting for reconsideration of our etter dated ?une @, 198F, denying registration of your cients #artnersi# na!e ua (ua Ciong Ini!ited. cdtai Lou aeged tat tere is no a #roibiting or restricting registration of a afu genera #artnersi# na!e itout te acco!#anying ord 4Co!#any4. Tat te ony s#ecific i!itation in te registration of #artnersi# na!e is found in Artice 18FF of te Ci)i Code, -uoted ereund er+ 4ART%C=/ 18FF. To or !ore #ersons desiring to for! i!ited #artnersi# sa+ 1. Sign and sorn to a certificate ic sa state+ a. Te na!e of te #artnersi# adding tereto te ord 4=%M%T/D.4 0urter!ore, you aeged tat te use of te na!e 4ua (ua Ciong Ini!ited4 itout te ord 4Co!#any4  but it te added ord Ini!ited is distincti)e as a genera #artnersi#. Lou i*eise aeged tat te said #artnersi# is aso engaged in te #ractice of #rofession as one of its !ain  #ur#oses, as son in #aragra# : of its artices of #artnersi#. 0urter, you beie)e tat te #oicy of te Co!!ission tat aos registration to oter #artnersi# itout te ord 4Co!#any4 and disao registration to oter, runs counter to te tenets of te Constitution as it is discri!inatory in nature and tends to encourage 4cass grou#ing.4 Te second #aragra# of our (uideines in te A##ro)a of Cor#orate and "artnersi# na!es, issued by tis Co!!ission on Se#te!ber 7, 1977, reads tus+ 4%n ine it te #oicy of te Co!!ission to safeguard #ubic interest and to a)oid future conficts as to cor#orate and #artnersi# na!es, te fooing guideines are ereby ado#ted+ a. Te Cor#orate na!e soud contain te ord 4Cor#oration4 or 4%ncor#orated4, ie te #artnersi# na!e soud contain te ord 4Co!#any4.
%nsofar as te ord 4Ini!ited4 is concerned, tere is no #ro)ision of a ic aos te incusion of said ord in any #artnersi# na!e. "ease be ad)ised accordingy. cdasia ;ery truy yours, o Mrs. Car!en (. =oot &: S. /strada St. Tierra Bea Subd. Dii!an, ueon City (ente!en+ %n connection it te artices of #artnersi# of te #ro#osed Miton Cristo#er Co. =td., #ease be infor!ed tat te sa!e cannot be gi)en due course in )ie of te #roibition of incusion of surna!e of a i!ited #artner in te #artnersi# na!e under Artice 18F' of te Ci)i Code of te "ii##ines, ic #ro)ides, as foos+

cda 4ART%C=/ 18F'. Te surna!e of a i!ited #artner sa not a##ear in te #artnersi# na!e uness <1 %t is aso te surna!e of a genera #artner, or  <: "rior to te ti!e en te i!ited #artner beca!e suc, te business ad been carried on under a na!e in ic is surna!e a##eared. A i!ited #artner ose surna!e a##ears in a #artnersi# na!e contrary to te #ro)isions of te first #aragra# is iabe as a genera #artner to #artnersi# creditors o e2tend credit to te #artnersi# itout actua *noedge tat e is not a genera #artner.4