Yes. An organization in the Philippines may declare a member “not in good standing” if its law, articles of incorporation, bylaws, constitution, rules, or governing documents allow it. But the declaration cannot be arbitrary, secret, retaliatory, or based on vague accusations. Because the status can affect voting rights, eligibility to run for office, access to facilities, professional or community privileges, and sometimes property interests, the organization must follow the rules and observe due process.
What “Not in Good Standing” Means
A member “in good standing” is usually a member who:
- has paid required dues, fees, assessments, or subscriptions;
- has no pending disqualifying violation under the bylaws;
- is not suspended, expelled, delinquent, or otherwise restricted;
- may vote, run for office, attend meetings, inspect records, or enjoy member privileges; and
- complies with the duties imposed by the organization’s rules.
A member “not in good standing” is usually someone whose rights or privileges are suspended or limited because of unpaid dues, violation of bylaws, disciplinary sanctions, or failure to meet membership qualifications.
But the exact meaning depends on the organization. A homeowners’ association, cooperative, non-stock corporation, labor union, professional association, country club, religious society, civic group, alumni association, sports club, or condominium/community association may each define “good standing” differently.
The important point is this: the organization must be able to point to a legal or bylaw basis for the declaration. It is not enough for officers to say, “Ayaw na namin sa kanya,” “against siya sa board,” or “problematic siya.”
The Legal Basis in Philippine Law
The right to form associations also carries internal governance rules
The 1987 Philippine Constitution protects the right of people, including workers in the public and private sectors, to form unions, associations, or societies for lawful purposes. That right allows organizations to create rules for admission, dues, discipline, voting, officers, and internal order. (Lawphil)
But the same freedom does not give an organization unlimited power over its members. When an organization accepts members, collects dues, grants voting rights, gives access to facilities, or creates property-linked privileges, its officers must follow the governing documents and act in good faith.
Bylaws and membership rules are treated seriously
For SEC-registered corporations, especially non-stock corporations, the Revised Corporation Code of the Philippines, Republic Act No. 11232, recognizes the importance of bylaws. Bylaws may state how meetings are called, how members are notified, how voting is done, what penalties apply for violations, and other matters necessary for good governance. (Supreme Court E-Library)
For non-stock corporations, the law specifically says that the right of members to vote may be limited, broadened, or denied if stated in the articles of incorporation or bylaws. If not limited, each member generally has one vote. Membership and rights arising from it are also personal and non-transferable unless the articles or bylaws provide otherwise. Termination of membership must follow the causes and manner stated in the articles or bylaws. (Supreme Court E-Library)
In simple terms: for most associations, the first documents to read are the articles of incorporation, bylaws, membership agreement, house rules, code of conduct, and board resolutions.
Civil Code principles apply
Membership rules often work like a contract between the member and the organization. Under Article 1159 of the Civil Code, obligations arising from contracts have the force of law between the parties and must be complied with in good faith. (Lawphil)
The Civil Code also requires every person, in exercising rights and performing duties, to act with justice, give everyone his due, and observe honesty and good faith. A person who willfully or negligently causes damage contrary to law, or causes injury in a manner contrary to morals, good customs, or public policy, may be liable for damages under Articles 19, 20, and 21. (Supreme Court E-Library)
This matters because even if a board has disciplinary power, it must use that power fairly. A technically correct procedure may still be questioned if it is used in bad faith, as retaliation, or in a way that causes unnecessary damage.
When an Organization May Validly Declare a Member Not in Good Standing
A declaration is more likely to be valid when all of these are present:
There is a written rule. The bylaws, constitution, membership agreement, or valid board-approved rules define what counts as delinquency, misconduct, or loss of good standing.
The rule is lawful and reasonable. The rule should not violate law, public policy, constitutional protections, or statutory rights.
There is a factual basis. For example, unpaid dues are supported by a statement of account, official receipts, assessment notices, ledgers, or treasurer’s reports. Alleged misconduct is supported by incident reports, written complaints, minutes, photos, videos, emails, or witness statements.
The member received notice. The member must be told what rule was violated, what facts are being relied on, what sanction may be imposed, and when and how to respond.
The member was given a fair chance to answer. This may be through a written explanation, hearing, meeting, or appeal, depending on the bylaws and the nature of the organization.
The proper body made the decision. The board, grievance committee, disciplinary committee, general assembly, or other authorized body must act within its power.
The decision was documented. There should be minutes, a resolution, written findings, or a notice of decision.
The sanction is proportionate. A minor delay in payment should not automatically justify expulsion unless the rules clearly provide it and due process was observed.
What Due Process Requires
“Due process” means fair procedure. It does not always require a full-blown court trial, but it does require basic fairness.
In Philippine administrative law, the famous case of Ang Tibay v. Court of Industrial Relations identified core fairness requirements, including the right to a hearing, the right to present evidence, the duty of the deciding body to consider the evidence, and the need for a decision supported by substantial evidence. (Lawphil)
For organizations, due process usually means:
- written notice of the charge or delinquency;
- clear statement of the rule allegedly violated;
- access to the basis of the accusation, such as account statements or complaint records;
- reasonable time to respond;
- hearing or opportunity to explain, if required or if the sanction is serious;
- impartial decision-maker;
- written decision or board resolution;
- notice of the decision; and
- appeal or motion for reconsideration, if the governing rules allow it.
A board should avoid deciding based only on rumors, personal dislike, political rivalry, online posts, or pressure from other members.
Special Rules for Common Types of Organizations
Homeowners’ associations
Homeowners’ associations have one of the clearest Philippine rules on this issue. Under Republic Act No. 9904, the Magna Carta for Homeowners and Homeowners’ Associations, the bylaws must provide guidelines and procedures for determining who is a delinquent member or a member not in good standing, and due process must be observed when administrative sanctions are imposed. (Lawphil)
DHSUD rules also recognize that a delinquent member or member not in good standing is one formally declared as such after due notice and hearing. (HUD)
The 2024 DHSUD revised rules and model bylaw provisions commonly follow this process:
| Step | Typical HOA requirement |
|---|---|
| Preliminary review | Board or committee checks whether a ground exists under the bylaws or rules |
| Written notice | Member is notified of the violation |
| Time to explain | Member is usually given 15 days from receipt of notice to explain |
| Grace period for unpaid dues | For non-payment, the notice may include a 60-day grace period to pay arrears |
| Hearing | Board or committee conducts hearing or deliberation |
| Board resolution | Board may declare the member delinquent or not in good standing by required vote |
| Notice of decision | Member receives the decision and board resolution |
| Reconsideration | Member may file a motion for reconsideration within 10 days; the board resolves it within 5 days |
| Reinstatement | Membership may be reinstated after proof of payment or satisfaction of sanctions |
These timelines come up often in subdivision and village disputes because members are sometimes barred from voting, running for office, using amenities, or participating in association matters. However, even a delinquent HOA member usually should not be stripped of rights beyond what the law and bylaws allow.
Cooperatives
For cooperatives, Republic Act No. 9520, the Philippine Cooperative Code of 2008, provides specific rules on membership termination. A cooperative member may be terminated for grounds such as failure to patronize cooperative services for an unreasonable period, continuous failure to comply with obligations, violation of bylaws or rules, or acts prejudicial to the cooperative. But the member must be informed in writing and given an opportunity to be heard before the board decides. (CDA)
The board’s decision must be in writing and communicated personally or by registered mail. The member may appeal within 30 days from receipt to the general assembly, whose decision is final. If the cooperative has an appeal and grievance committee, that committee has 30 days to decide; failure to decide within the period is deemed favorable to the member. Pending the decision, membership remains in force. (CDA)
Cooperative disputes may also involve internal mediation, conciliation, arbitration, or CDA processes. The Cooperative Development Authority Charter, Republic Act No. 11364, gives the CDA authority to adopt dispute-resolution mechanisms for conflicts among cooperative members, officers, directors, and cooperatives. (Supreme Court E-Library)
SEC-registered non-stock corporations, clubs, foundations, and associations
Many civic groups, professional organizations, foundations, clubs, and societies are organized as non-stock corporations under the Revised Corporation Code.
For these organizations:
- check the articles of incorporation;
- check the bylaws;
- check whether there is a disciplinary committee;
- verify quorum and voting requirements;
- check if penalties are clearly stated;
- check whether termination, suspension, or loss of good standing is authorized; and
- check whether the member has property-linked rights, such as club shares or transferable membership rights.
The Supreme Court has treated membership in a non-stock corporation as involving property rights in certain cases. In Valley Golf and Country Club, Inc. v. Reyes, the Court emphasized that termination of membership in a non-stock corporation must comply with substantial justice, especially when membership is linked to property rights over a golf share. The Court invalidated termination where notice of delinquency was not sufficiently proven. (Supreme Court E-Library)
This is important for country clubs, golf clubs, proprietary clubs, and organizations where membership is tied to a share, deposit, entrance fee, or valuable privilege. The more serious the consequence, the stronger the need for clear notice and fair procedure.
Labor unions
For labor organizations, the Labor Code provides rights and conditions of membership. These include protection against arbitrary or excessive fees, rights to reports on financial transactions, and the right to elect officers. The law also recognizes membership in good standing as a qualification that may be relevant to candidacy for union office. (Department of Labor and Employment)
Union discipline must follow the union constitution and bylaws, the Labor Code, and DOLE/BLR rules. A union cannot use “not in good standing” status merely to silence dissent, block a lawful candidate, or punish a member for asking about union funds.
Step-by-Step Process an Organization Should Follow
1. Identify the exact rule violated
The board or committee should not start with the conclusion. It should first identify the rule.
Examples:
- “failure to pay three cumulative monthly dues despite demand”;
- “failure to comply with an approved assessment”;
- “gross violation of house rules”;
- “conduct prejudicial to the organization”;
- “loss of membership qualification”; or
- “non-compliance with continuing professional or membership requirements.”
A vague statement like “conduct unbecoming” may be risky if the bylaws do not define it or if the member is not told what specific act is being charged.
2. Verify the evidence
Before issuing a notice, the organization should check:
- membership records;
- statement of account;
- official receipts;
- prior demand letters;
- proof of delivery;
- minutes of meetings;
- incident reports;
- complaint affidavits;
- CCTV or photos, if available;
- applicable board resolutions; and
- whether the member was previously warned.
For unpaid dues, mistakes are common. Payments may have been made through bank transfer, GCash, remittance, or a caretaker but not properly posted. For overseas Filipinos and foreigners, delays often happen because notices are sent only to the Philippine property address, even if the association knows the member lives abroad.
3. Send a proper written notice
A good notice should include:
- the member’s full name;
- membership number or property/unit details, if applicable;
- the specific rule allegedly violated;
- the facts relied on;
- amount due, if money is involved;
- documents or records supporting the charge;
- possible consequence, such as loss of voting rights or suspension of privileges;
- deadline to submit an explanation;
- date, time, and place or platform of hearing, if already scheduled;
- person or office receiving the explanation; and
- statement that failure to respond may allow the board to decide based on available records.
For serious sanctions, sending notice by registered mail, courier, personal service with acknowledgment, and email is safer than relying on verbal notice or posting on a bulletin board.
4. Give the member a real chance to respond
The member should be allowed to submit:
- written explanation;
- proof of payment;
- screenshots of bank or online transfers;
- receipts;
- medical or travel reasons for non-attendance;
- witness statements;
- request for computation;
- request for copies of rules; or
- proposal to settle arrears if allowed.
A hearing does not need to be overly formal. But it should not be a sham hearing where the decision was already made before the member arrived.
5. Decide through the proper body
The decision should be made by the body authorized under the bylaws.
Common mistakes include:
- president alone declaring a member not in good standing when board action is required;
- security guards or property managers enforcing discipline without board resolution;
- committee imposing final sanctions when it only has recommendatory power;
- board acting without quorum;
- conflicted directors voting despite personal involvement; and
- imposing a penalty not listed in the rules.
6. Issue a written decision or resolution
The decision should state:
- what facts were found;
- what rule was violated;
- what evidence was considered;
- what sanction is imposed;
- when the sanction starts;
- how the member may regain good standing;
- whether appeal or reconsideration is available; and
- who voted, if minutes or board records require this.
A simple “you are not in good standing effective immediately” is often inadequate if the member later challenges the decision.
7. Serve the decision properly
The organization should keep proof of service. This matters because appeal periods usually start from receipt.
Useful proof includes:
- signed acknowledgment;
- registry return card;
- courier tracking;
- email delivery and read receipt;
- screenshot of official portal notice;
- affidavit of service; or
- minutes showing personal receipt.
In Valley Golf, the Supreme Court did not lightly presume receipt of a delinquency notice when the proof was incomplete and unauthenticated. (Supreme Court E-Library)
8. Allow reinstatement when the ground is cured
For unpaid dues, reinstatement should usually follow payment of arrears, penalties, and charges lawfully imposed. For conduct violations, reinstatement may depend on completion of sanctions, apology, compliance, or expiration of suspension.
Organizations should avoid using “not in good standing” status indefinitely if the rules provide a way to cure the violation.
What a Member Can Do if Declared Not in Good Standing
A member who receives a notice or decision should act calmly and in writing.
1. Ask for the documents
Request copies of:
- articles of incorporation;
- bylaws;
- membership rules;
- house rules or code of conduct;
- statement of account;
- board resolution;
- minutes of the meeting where the decision was made;
- evidence used against the member;
- proof of prior notices or demands; and
- appeal or reconsideration procedure.
For corporations, members generally have rights to inspect certain corporate records. The Revised Corporation Code requires corporations to keep records and recognizes member rights to request financial statements; refusal to allow proper inspection may have consequences under the Code. (Supreme Court E-Library)
2. Check if the ground actually exists
Ask:
- Was there really an unpaid balance?
- Were the dues validly approved?
- Was the assessment imposed according to the bylaws?
- Was the rule already effective when the alleged violation happened?
- Was the member notified before penalties accumulated?
- Was the rule applied equally to other members?
- Is the sanction proportionate?
- Was the decision made by the proper body?
3. Submit a written explanation before the deadline
Even if the notice seems unfair, it is usually better to answer on time. A short written answer preserves the member’s position.
The answer may say:
- “I deny the violation because…”
- “The account is already paid; attached are receipts.”
- “I request a detailed computation.”
- “I was not notified of the assessment.”
- “The alleged rule is not in the bylaws.”
- “The board has no authority to impose this penalty.”
- “I request a hearing and copies of the evidence.”
- “I am willing to settle the undisputed amount under protest.”
4. File reconsideration or appeal
Follow the internal appeal route first if the bylaws provide one. In cooperatives, the Cooperative Code gives a 30-day appeal period to the general assembly in membership termination cases. (CDA)
For homeowners’ associations, DHSUD rules commonly provide a motion for reconsideration within 10 days from receipt of the board resolution, with the board resolving it within 5 days. (Dasmariñas Village Official)
For clubs and non-stock corporations, the appeal period depends on the bylaws. If there is no internal appeal, the member may need to consider the proper external forum.
Where to Challenge an Invalid Declaration
The correct forum depends on the type of organization and the nature of the dispute.
| Organization or dispute | Usual forum or route |
|---|---|
| SEC-registered non-stock corporation, club, foundation, association | Internal remedies first; if intra-corporate, Regional Trial Court designated as Special Commercial Court |
| Dispute involving implementation of articles/bylaws with arbitration clause | Arbitration may apply under Section 181 of the Revised Corporation Code |
| Homeowners’ association | Internal remedy, then DHSUD regional office or proper adjudicatory process depending on issue |
| Cooperative | Internal grievance/appeal, cooperative mediation/conciliation/arbitration, CDA processes |
| Labor union | Union remedies, then DOLE/BLR route depending on the issue |
| Pure collection of unpaid dues | Demand, internal remedies, small claims or civil action depending on amount and parties |
| Defamatory public accusations | Civil, criminal, or data privacy remedies depending on facts |
Under Philippine jurisprudence, intra-corporate controversies generally involve disputes between the corporation or association and its stockholders, members, or officers, especially when the issue concerns rights and obligations under corporate law or internal rules. (Supreme Court E-Library)
The Interim Rules of Procedure for Intra-Corporate Controversies provide that covered actions are filed in the Regional Trial Court with jurisdiction over the principal office of the corporation, partnership, or association. (Competitive Org)
The Revised Corporation Code also allows arbitration clauses in articles of incorporation or bylaws. If such an arbitration agreement exists, disputes between the corporation and its members arising from the articles, bylaws, or intra-corporate relations are generally referred to arbitration, except disputes involving criminal offenses or third-party interests. (Supreme Court E-Library)
Common Illegal or Risky Practices
Declaring a member not in good standing without notice
This is one of the most common defects. Even if the member owes money, a formal declaration usually requires notice and a chance to cure or explain.
Using the status to block an election opponent
Boards sometimes declare critics “not in good standing” shortly before elections. This is risky if the timing suggests political retaliation, the dues computation is unclear, or other similarly situated members were not disciplined.
Posting names publicly without necessity
Some organizations post lists of delinquent members on gates, bulletin boards, Facebook groups, Viber chats, or websites. Posting may be allowed if narrowly authorized and necessary under the rules, but it can create privacy and defamation risks.
The Data Privacy Act of 2012, Republic Act No. 10173, applies to personal information processed by private and government sectors and is enforced by the National Privacy Commission. The law and its IRR require legitimate purpose, transparency, and proportionality in personal data processing. (National Privacy Commission)
If a post goes beyond a neutral membership notice and accuses someone of dishonesty, fraud, theft, or immoral conduct, it may also raise libel or cyberlibel concerns. Article 353 of the Revised Penal Code defines libel as a public and malicious imputation tending to dishonor, discredit, or cause contempt against a person. (Supreme Court E-Library)
Imposing penalties not found in the bylaws
If the bylaws only allow suspension of voting rights, the board should be careful about adding extra penalties such as banning entry, disconnecting services, refusing gate passes, or publicly shaming the member.
Refusing to accept payment
If the issue is unpaid dues, the organization should not unreasonably refuse payment just to keep the member disqualified. Refusal to accept payment may support an argument of bad faith.
Confusing “delinquent” with “expelled”
Being delinquent or not in good standing is not always the same as being expelled. Expulsion or termination is more serious and usually requires stricter compliance with the governing rules.
Practical Documents to Prepare
For the organization
| Document | Why it matters |
|---|---|
| Articles of incorporation or constitution | Shows legal personality and basic governance |
| Bylaws | Main source of disciplinary authority |
| Membership application/agreement | Shows member’s consent to rules |
| Approved dues and assessment records | Proves validity of charges |
| Statement of account | Supports non-payment grounds |
| Demand letters and notices | Proves due process |
| Proof of service | Shows the member received notice |
| Complaint or incident report | Supports misconduct grounds |
| Minutes and board resolution | Shows proper authority and vote |
| Notice of decision | Starts appeal or compliance period |
For the member
| Document | Why it matters |
|---|---|
| Receipts and bank proofs | Refute unpaid dues |
| Copies of notices received | Check deadlines and defects |
| Written explanation | Preserves defenses |
| Request for documents | Shows effort to verify basis |
| Screenshots or messages | Useful if notice was informal or defamatory |
| Prior communications | Shows waiver, payment arrangement, or inconsistent treatment |
| Proxy or SPA | Useful if member is abroad |
| Proof of residence abroad | Explains missed notices or meetings |
Special Considerations for OFWs and Foreign Members
For Filipinos abroad, dual citizens, and foreigners with Philippine memberships or property interests, practical problems often arise because notices are sent to a Philippine address even if the organization knows the member is overseas.
A member abroad should keep an updated email address, foreign mailing address, Philippine representative, and phone number on file. If someone in the Philippines will respond, vote, attend hearings, inspect records, or receive documents, the organization may require a written authority or Special Power of Attorney.
For documents executed abroad, Philippine consulates may notarize private documents such as affidavits and special powers of attorney, and the notarized document can be used in the Philippines. (Philippine Embassy)
Where apostille is needed, the DFA Apostille system allows document authentication for official use, and applications may be filed by the document owner or an authorized representative. (DFA Appointment System)
Foreigners should also remember that membership rights are not always the same as ownership rights. Some memberships are personal privileges. Others are tied to property, shares, condominium units, leases, or village rights. Philippine constitutional and statutory restrictions on land ownership, condominium ownership, and regulated industries may affect what a foreign member can own, transfer, or inherit, but they do not automatically remove the need for due process in internal membership discipline.
Frequently Asked Questions
Can an organization declare me not in good standing without a hearing?
Usually, no if the declaration carries a penalty or affects important rights. At minimum, you should receive notice and a fair chance to explain. For homeowners’ associations and cooperatives, the law specifically requires notice and opportunity to be heard in relevant membership discipline situations. (Lawphil)
Is unpaid membership dues enough to lose good standing?
It can be, if the bylaws or governing rules say so and the dues were validly imposed. But the organization should still prove the amount, show prior notice or demand if required, and allow the member to pay or explain where the rules require it.
Can the president alone declare a member not in good standing?
Only if the bylaws clearly give the president that power. In many organizations, discipline requires board action, committee proceedings, or general assembly action. A unilateral declaration by the president is vulnerable if the governing rules require a board resolution.
Can a member not in good standing still inspect records?
Often, yes, depending on the type of organization and the records requested. For homeowners’ associations, DHSUD rules commonly preserve the right to inspect association books and records even when other privileges are suspended. For corporations, inspection rights depend on the Revised Corporation Code, the member’s status, good faith, and legitimate purpose. (Studocu)
Can a delinquent member vote in an election?
It depends on the law and bylaws. In non-stock corporations, voting rights may be limited, broadened, or denied in the articles or bylaws. In homeowners’ associations, being declared not in good standing commonly affects voting rights. But the declaration itself must be validly made. (Supreme Court E-Library)
Can the organization publish my name as delinquent?
It should be very careful. Internal notice may be allowed if authorized, necessary, and proportionate. Public shaming, excessive disclosure, or accusations beyond the facts may create Data Privacy Act, Civil Code, libel, or cyberlibel issues. (Supreme Court E-Library)
What if I paid but the treasurer did not record it?
Submit proof of payment immediately and ask for correction of the ledger. If the organization still proceeds, include the payment proof in your written explanation or appeal. If payment was made through a caretaker, agent, bank transfer, remittance, or online wallet, attach screenshots, transaction reference numbers, deposit slips, and written confirmations.
Can a member be expelled immediately for criticizing the board?
Criticism alone should not automatically justify loss of good standing unless it violates a lawful and clearly defined rule, such as harassment, threats, defamation, or misconduct, and due process is observed. A sanction imposed mainly to silence dissent may be challenged as bad faith or abuse of rights.
Is barangay mediation required before going to court?
Not always. Many membership disputes involving corporations, associations, cooperatives, or homeowners’ associations follow special internal, administrative, arbitration, or court procedures. Barangay conciliation may help with neighborhood-level personal conflicts, but it is not a substitute for the required corporate, HOA, cooperative, labor, or court process when the dispute concerns formal membership rights.
What is the best evidence that a declaration is invalid?
The strongest evidence usually includes lack of notice, lack of authority under the bylaws, wrong computation of dues, no board resolution, no quorum, unequal treatment, refusal to accept payment, failure to allow explanation, or proof that the sanction was imposed for retaliation rather than a valid rule violation.
Key Takeaways
- An organization can declare a member not in good standing only if a valid rule allows it.
- Due process is essential: notice, chance to explain, fair decision-maker, evidence, and written decision.
- Bylaws matter. For SEC-registered non-stock corporations, membership termination and voting restrictions must follow the articles and bylaws.
- Homeowners’ associations have specific due-process requirements under RA 9904 and DHSUD rules.
- Cooperative members have statutory protections, including written notice, hearing, written decision, and appeal rights under RA 9520.
- A declaration made to block critics, election opponents, or dissenting members may be vulnerable to challenge.
- Publicly posting delinquent members can create privacy, Civil Code, libel, or cyberlibel risks if excessive or malicious.
- Members abroad should keep contact details updated and may need a notarized or consularized SPA for a Philippine representative.
- The proper remedy depends on the organization: internal appeal, DHSUD, CDA, DOLE/BLR, arbitration, or the RTC Special Commercial Court.