March 19, 2019
SEC-OGC OPINION NO. 12-19
RE: HOLD-OVER PRINCIPLE AS APPLIED TO CONDOMINIUM CORPORATIONS
Atty. Jowel T. Cloma
Head Legal Counsel
MOLDEX LAND, INC.
Moldex Building
Ligaya Street cor. West Avenue
Quezon City
Dear Atty. Cloma :
This refers to your letter dated 12 December 2017 requesting an opinion for a Condominium Corporation (CondoCor), a non-stock, non-profit corporation, on:
Whether the incumbent Board of Directors may continuously function in a "hold-over" capacity until a new set of members of the Board of Directors are elected and qualified, with limited authority only to handle the corporation's daily operations such as payment of utilities, salaries, the management of personnel and other issues/problems that requires immediate attention.
You mentioned that the election of the new members of the Board of Directors of the CondoCor has been nullified due to a.) lack of quorum and b.) disqualification of the nominee-directors of the developer for the position. Consequently, it caused the nullification of the subsequent organizational meeting and election of officers. To ensure that the day-to-day operations are unhampered, the old or incumbent Board of Directors and corporate officers of...
