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4-Year Term for Trustees Allowed
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The SEC, in its SEC-OGC Opinion No. 06-31, explained that amendments in the by-laws of a non-stock corporation fixing the term of office of its board of trustees for a period of four (4) years and providing that the regular election of said trustees shall be conducted every four (4) years are valid. What is prohibited under the law is a lifetime or unlimited term of the board of trustees since this will deprive the other stockholders of the opportunity to become officers of the corporation. However, the aforesaid ruling should not be construed as a means to deprive the members of the corporation of their annual membership meeting. The SEC further ruled that the by-laws may be amended to stipulate that the regular meeting of the Board of Trustees will be held every four (4) months, instead of every month.
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