Law Summary
Interpretation of Rules
- The rules are liberally construed to align with the objectives of R.A. 580, Executive Orders No. 535 and 90, the Corporation Code, and related laws.
Requirements for Registration
- Submission of signed Articles of Incorporation by 5 to 15 incorporators with a filing fee.
- Submission of By-Laws signed by incorporators together with the Articles of Incorporation.
- Written undertakings to change corporate name if needed and to comply with HIGC rules.
- Submission of Information Sheet.
- Certification of the existence of an association within the community.
Registration Process
- Incorporation papers are submitted to HIGC's principal office or designated office.
- Filing fees for Articles and By-Laws must be paid.
- HIGC records the application details in the registry.
- After compliance verification, HIGC issues a Certificate of Incorporation.
- Certificate is released with additional registry entries (certificate number, release date, recipient).
- Certificate of Filing of By-Laws issued simultaneously.
- Applications may be denied for non-compliance or grounds under Section 1, Rule VIII.
- Registration grants the HOA a distinct corporate personality.
Amendments to Articles of Incorporation and By-Laws
- Amendments require submission of amended documents with directors' certificate under oath and filing fee.
- Written undertaking necessary for any corporate name change.
Reporting Requirements and Penalties
- HOAs must submit:
- Annual report with financial statement within 120 days after fiscal year-end.
- Association books (membership, cash, minutes, ledger, journal) within 30 days after incorporation.
- Information Sheet within 30 days post-annual meeting.
- Minutes of annual members and board meetings within 30 days.
- Notice of postponement or affidavit of non-holding of annual meeting within prescribed periods.
- Board resolution of non-operation if applicable.
- HIGC may impose penalties for late or non-filing of reports.
Management of Association Funds
- Contributions or fees beyond those in By-Laws require resolutions specifying purpose and use of funds.
- Official receipts must be issued for all funds received, registered with BIR.
- Treasurer must be adequately bonded as determined by the Board.
Grounds for Dissolution
- Dissolution may be:
- By shortening corporate term with required legal steps and publication.
- Voluntary, effected by members’ resolution; requires publication and notification.
- By petition filed with HIGC if creditors are affected, including publication and hearing.
- Involuntary, initiated by the Office of the Solicitor General, after notice and hearing.
Suspension or Revocation of Certificate of Registration
- Grounds include:
- Fraud or misrepresentation.
- Serious misrepresentation on association activities.
- Defiance of lawful HIGC orders.
- Misuse of corporate rights or franchises.
- Acts amounting to surrender of corporate rights.
- Violation of these rules or Corporation Code.
- Continuous inactivity for five years.
- Failure to file required reports timely.
Regulatory Powers of HIGC
- Imposing fines and penalties for rule violations.
- Approving or denying registration applications contrary to law or policy.
- Suspending or revoking certificates on valid grounds.
Incidental Powers of HIGC
- Enlisting aid of government enforcement agencies.
- Exercising implied or necessary powers to fulfill objectives.
Supervisory Powers
- Conducting inspections, audits, and investigations of HOAs.
- Monitoring report submissions and imposing penalties.
- Acting as observer during elections upon request.
- Supervising general or special elections; calling special elections if necessary.
- Issuing and enforcing guidelines and policies related to HOA management.
Fees and Penalties
- A schedule of fees and penalties is set forth in an annex to the rules.
Amendments to Rules
- Rules may be amended or modified by HIGC as needed.
Effectivity
- The rules take effect upon approval and publication in a newspaper of general circulation, whichever occurs first.