Article 163Labor and Agrarian Laws and Social Legislation, p. 163

LABOR LAWS AND SOCIAL LEGISLATION SPECIAL LAWS AND IMPLEMENTING RULES AND REGULATIONS

(i) Impose or collect reasonable fees for the use of

open spaces, facilities, and services of the association to

defray necessary operational expenses, subject to the

limitations and conditions imposed under the law, the

regulations of the board and the association’s bylaws;

(j)

Cause

compliance

with

regard

to

height

regulations, easements, use of homes, buildings, edifices,

or structures that may be built within the subdivision, in

accordance with the National Building Code, zoning laws,

HLURB rules and regulations, existing local ordinances,

and existing deeds of restriction;

(k) Subject to consultation and with the approval of a

simple majority of the association members, allow the

establishment of certain institutions such as, but not

limited to, schools, hospitals, markets, grocery stores and

other similar establishments that will necessarily affect

the character of the subdivision/village in terms of traffic

generation, and/or opening the area to outsiders which

may result in the loss of privacy, security, safety, and

tranquility

to

its

residents,

in

accordance

with

the

National

Building

Code,

zoning

laws,

existing

local

ordinances, HLURB rules and regulations, and existing

jurisprudence: Provided, That such prior approval shall

not be necessary for the establishment of sari - sari stores,

home

industries

and

similar

small

-

scale business

enterprises within the subdivision/village classified as

socialized housing;

(l)

Suspend

privileges

of

and services to and/or

impose sanctions upon its members for violations and/or

noncompliance with the association's bylaws, and rules

and regulations;

(m) Petition for the creation of a separate barangay,

independently or together with neighboring subdivisions:

Provided,

That

all

the

requirements

of

the

Local

Government Code of 1991 are met; and

(n) Exercise any other powers conferred by the bylaws

and

the

HLURB

necessary

for

the governance and

operation of the association.

Section 11. Board of Directors or Trustees. - The

bylaws

of

the

association

shall

provide

for

the

qualifications and number of the directors or trustees

that will comprise the board.

Section 12. Duties and Responsibilities of the Board.

In addition to the duties and responsibilities stated in the

bylaws of the association, the board shall have the

following duties and responsibilities:

(a) Regularly maintain an accounting system using

generally

accepted

accounting

principles,

and

keep

books of accounts, which shall be open for inspection to

any homeowner and duly authorized representatives of

government agencies upon request, during reasonable

hours, on business days;

(b) Collect the fees, dues and assessments that may

be provided for in the bylaws and approved by a majority

of the members;

(c) Collect reasonable charges for assessments, and

after due notice and hearing by the board in accordance

with the procedures as provided in the bylaws, and rules

and regulations adopted by the board, charge reasonable

fines for late payments and for violation of the bylaws,

rules, and regulations of the association, in accordance

with a previously established schedule adopted by the

board and furnished to the homeowners;

(d)

Propose

measures

to

raise

funds

and

the

utilization

of

such

funds

and submit the same for

consideration of the members of the association;

(e) Undergo a free orientation by the HLURB or any

other competent agency deputized by it on how to

conduct meetings, preparation of minutes, handling of

accounts, laws and pertinent rules and regulations within

thirty (30) days after election or appointment;

(f) Discharge the duties and responsibilities provided

for in the association’s bylaws; and

(g) Exercise such other powers as may be necessary

and proper in accordance with this Act and for the

accomplishment

of

the

purposes

for

which

the

association was organized.

The board shall act in all instances on behalf of the

association, except to amend the articles of incorporation,

to dissolve the association, to elect members of the board

or to determine the qualifications, powers and duties, or

terms of office of the board, and other instances that

require the vote or approval of the members themselves.

In the performance of their duties, the officers and

members of the board shall exercise the degree of care

and loyalty required by such position.

Section

13. Removal of a Director or Trustee. -

Through a signed petition of a simple majority of the

association members in good standing, subject to a

verification

and

validation

by

the

HLURB,

a

director/trustee may be removed for causes provided in

the bylaws of the association: Provided, That if a majority

of the members of the board is removed, it shall be

considered a dissolution of the entire board, in which

case, Section 14 hereof shall govern.

Within sixty (60) days after the removal of a director

or trustee, an election shall be called by the remainder of

the board for the purpose of determining who shall hold

office

for

the

unexpired

term

of

the

removed

director/trustee.

Section 14. Dissolution of the Board. - Through a

signed petition of two - thirds (2/3) of the association

members subject to a verification and validation by the

HLURB, the board of the association may be dissolved for

causes provided in the bylaws of the association.

Within sixty (60) days from the above dissolution, an

election for a new board shall be called and conducted by

the HLURB for the purpose of determining who shall hold

office for the unexpired term of the dissolved board.

Until

the

new

board members shall have been

elected and qualified, the HLURB shall designate an

interim

board:

Provided,

That

such

board

shall

be

composed of association members in good standing:

Provided, further, That such interim board members shall

not be eligible to run in the election called for the

purpose of replacing the members of the dissolved board.

Section 15. Association Bylaws. - The bylaws of the

association shall be adopted by a simple majority of the

members

of

the

association.

Consistent

with

the

provisions of this Act, it shall provide for:

(a) The rights, duties and obligations of members;

(b) The circumstances under which membership is

acquired, maintained, and lost;

(c) The schedule, venue, and manner of conducting

the regular, special, and emergency meetings of the

general

membership,

the

required

quorum,

and

allowable proxies in such meetings;

(d) The number, qualifications, powers and duties,

terms of office, manner of electing and removing the

board and the filling of vacancies in the board: Provided,

That the term of office of the members of the board shall

not exceed two (2) years;

(e) The qualifications, positions, duties, election or

appointment, and compensation of other officers and

employees of the association: Provided, That the term of

office of the other officers shall not exceed two (2) years:

Provided,

further,

That

no officer of the association

holding a rank of director or trustee shall likewise be

entitled to any compensation;

(f) The schedule, venue, and manner of conducting

the regular, special, and emergency meetings of the

board, the required quorum, and allowable proxies in

such meetings;

(g) Such powers that the board may delegate to a

managing agent, if any, or to other persons;

© Compiled By RGL

163 of 169