Cited Laws
Accordingly, there was no quorum during the July 21,2012 meeting considering that only 29 of the 108 unit buyers were present. As there was no quorum, any resolution passed during the July 21, 2012 annual membership meeting was null and void and, therefore, not binding upon the corporation or its members. The meeting being null and void, the resolution and disposition of other legal issues emanating from the null and void July 21, 2012 membership meeting has been rendered unnecessary. To serve as a guide for the bench and the bar, however, the Court opts to discuss and resolve the same. Moldex is a member of Condocor Matters involving a condominium are governed by Republic Act No. 4726 (Condominium Act). Said law sanctions the creation of a condominium corporation which is especially formed for the purpose of holding title to the common areas, including the land, or the appurtenant interests in such areas, in which the holders of separate interest shall automatically be members or shareholders, to the exclusion of others, in proportion to the appurtenant interest of their respective units in the common areas. [34] In relation thereto, Section 10 of the same law clearly provides that the condominium corporation shall constitute the management body of the project. Membership in a condominium corporation is limited only to the unit owners of the condominium project. This is provided in Section 10 of the Condominium Act which reads: Membership in a condominium corporation, regardless of whether it is a stock or non-stock corporation, shall not be transferable separately from the condominium unit of which it is an appurtenance. When a member or stockholder ceases to own a unit in the project in which the condominium corporation owns or holds the common areas, he shall automatically cease to be a member or stockholder of the condominium corporation . [35] [Emphases supplied] Although the Condominium Act provides for the minimum requirement for membership in a condominium corporation, a corporation's articles of incorporation or by-laws may provide for other terms of membership, so long as they are not inconsistent with the provisions of the law, the enabling or master deed, or the declaration of restrictions of the condominium project. In this case, Lim argued that Moldex cannot be a member of Condocor. She insisted that a condominium corporation is an association of homeowners for the purpose of managing the condominium project, among others. Thus, it must be composed of actual unit buyers or residents of the condominium project. [36] Lim further averred that the ownership contemplated by law must result from a sale transaction between the owner developer and the purchaser. She advanced the view that the ownership of Moldex was only in the nature of an owner-developer and only for the sole purpose of selling the units. [37] In justifying her arguments, Lim cited Section 30 of Presidential Decreee No. 957, known as The Subdivision and Condominium Buye