Professional Documents
Culture Documents
104 - Powers V Marshall
104 - Powers V Marshall
Facts:
Marshall, president of the BOT of the International School, Inc., addressed to the parents a program to
construct new buildings and remodel existing ones to accommodate the increasing enrollment in the
school, and that it was necessary to raise P35Million for this purpose. The BOT intended to raise the funds
primarily through subscriptions to capital notes and prepayment certificates, and any deficiency would be
covered by collecting a so-called "development fee" for 12 school years.
The school superintendent, Snyder, acting under instructions from the BOT, wrote a letter to the parents
of returning students, enclosing an Application for Admission which specifically advised that the payment
of the development fee was a pre-requisite for re-enrollment.
The plaintiffs, who are associate members of the school, protested against the imposition of the
development fee. They requested the BOT to suspend the implementation of the requirement as a pre-
requisite to final enrollment or re-enrollment for the school year 1975-1976. They filed a complaint for
injunction against the school.
Issue:
Whether or not the BOT was authorized to adopt the imposition of a development fee against the students
Held:
Yes. Section 2 of Article 3 of the By-Laws grants the BOT the to do such acts as may be lawfully exercised
or performed by the corporation, subject to applicable laws. On the other hand, P.D. No. 732 granting
certain rights to the school, expressly authorized the BOT upon consultation with the Secretary of
Education and Culture, to determine the amount of fees which may be reasonably imposed upon its
students, to maintain or conform to the school standard of education.
Here, such consultation had been made with the Secretary who expressed his conformity with the
reasonableness of the assessment to carry out its development program. The expansion of the school
facilities, is an ordinary business transaction well within competence of the BOT to act upon. Being directly
related to the purpose of elevating its standard, which is ordained by P.D. No. 732, the expansion cannot
result in any fundamental change in the kind of activity being conducted by the school that might require
the consent of the members composing it. Since the collection of the development fee had been approved
by the BOT, it was a valid exercise of corporate power, and said assessment was binding upon all the
members of the corporation.