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    DOJ Opinion No. 146 S. 1975

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    marites ongtengco
    The document is a letter from the Secretary of Justice providing an opinion on whether a state university, Central Mindanao University, could lease a portion of its titled land to a private corporation, the Philippine Packing Corporation, for the purpose of rice and corn production and to provide partial financial support to the university. The Secretary of Justice concludes that the proposed lease would be allowed under the university's charter powers as the land is not currently being used by the university and leasing it could reasonably support the university's corporate ends through additional income in a substantial way.

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    DOJ Opinion No. 146 S. 1975

    Uploaded by

    marites ongtengco
    44 views2 pages
    The document is a letter from the Secretary of Justice providing an opinion on whether a state university, Central Mindanao University, could lease a portion of its titled land to a private corporation, the Philippine Packing Corporation, for the purpose of rice and corn production and to provide partial financial support to the university. The Secretary of Justice concludes that the proposed lease would be allowed under the university's charter powers as the land is not currently being used by the university and leasing it could reasonably support the university's corporate ends through additional income in a substantial way.

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    DOJ Opinion No. 146 s. 1975

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    The document is a letter from the Secretary of Justice providing an opinion on whether a state university, Central Mindanao University, could lease a portion of its titled land to a private corporation, the Philippine Packing Corporation, for the purpose of rice and corn production and to provide partial financial support to the university. The Secretary of Justice concludes that the proposed lease would be allowed under the university's charter powers as the land is not currently being used by the university and leasing it could reasonably support the university's corporate ends through additional income in a substantial way.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    44 views2 pages

    DOJ Opinion No. 146 S. 1975

    Uploaded by

    marites ongtengco
    The document is a letter from the Secretary of Justice providing an opinion on whether a state university, Central Mindanao University, could lease a portion of its titled land to a private corporation, the Philippine Packing Corporation, for the purpose of rice and corn production and to provide partial financial support to the university. The Secretary of Justice concludes that the proposed lease would be allowed under the university's charter powers as the land is not currently being used by the university and leasing it could reasonably support the university's corporate ends through additional income in a substantial way.

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    DOJ OPINION NO. 146 , s.

    1975
    August 18, 1975

    The President
    Central Mindanao University
    Musuan, Bukidnon

    Sir :
    This is in reply to your request for opinion as to "whether Central Mindanao
    University, a state institution existing by virtue of R.A. No. 4498, could lease a portion of
    its titled property to the Philippine Packing Corporation, a subsidiary of Del Monte, for
    partial support of the university". You state that the Philippine Packing Corporation is
    leasing a portion of university land for the purpose of rice and corn production as
    required by General Order No. 47.
    By Section 3 of R.A. No. 4498, the charter of the Central Mindanao University, the
    university is granted the general powers set forth in section 13 of Act No. 1459, as
    amended, otherwise known as the Corporation Law. The exercise of its corporate
    powers are vested exclusively in the Board of Regents and the President of the
    University insofar as he is authorized by the Board.
    I take it that by titled lands you are referring to private lands titled in the name of
    the university, e.g., those donated to it [see Sec. 5 (i), R.A. No. 4498], and which are held
    for the bene t of the university, and that the question raised here is whether the
    proposed lease would be intra vires in the light of the charter powers of the university.
    Among the corporate powers granted to Central Mindanao University, is the
    power to "purchase, hold, convey, sell, lease, let, mortgage, encumber and otherwise
    deal with such real and personal property as the purposes for which the corporation
    was formed may permit, and the transaction of the lawful business of the corporation
    may reasonably and necessarily require". [Sec. 13(5), Act 1459, in relation to Sec. 3, R.A.
    No. 4498.] Consistent with the purposes for which the corporation was created, an
    educational corporation, or any other kind of corporation, which owns lands and
    buildings for use in conducting its business, may lease the same or any portion thereof,
    when it is not necessary for the purposes of its business. [Vol. VII, Fletcher Cyc.
    Corporations, pp. 2-4.] It appears also that the university, as the successor of the
    Mindanao Agricultural College, operates farms and conducts farming activities, the
    income from which constitutes a revolving fund administered by the board for the
    bene t of the school. [See Sec. 5-A, R.A. No. 807, as inserted by R.A. No. 2273, and
    incorporated in R.A. No. 4498 (See 17).] LexLib

    It is my opinion that the leasing of lands titled in the name of the university, not
    presently being utilized for purposes of its business, and which would otherwise remain
    idle, for the purpose of augmenting the income for partial support of the university, is
    an activity "reasonably tributary to the promotion of the (corporate) ends" of the
    university in a substantial sense, and may fairly be considered within charter powers.
    [See Montelibano vs. Bacolod-Murcia Milling Co., Inc. 5 SCRA, 36 (1962).]
    The query is answered af rmatively. Needless to add, this conclusion does not
    preclude compliance with applicable restrictive covenants attaching to the land titles, if
    CD Technologies Asia, Inc. © 2016 cdasiaonline.com
    any.

    Very truly yours,

    (SGD.) VICENTE ABAD SANTOS


    Secretary of Justice

    CD Technologies Asia, Inc. © 2016 cdasiaonline.com

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