Yes, AB Memorial Foundation can use the funds donated to it by its members for purchase of food and medicine for distribution to the victims of the Pinatubo eruption if the amount is reasonable by virtue of (the) express power(s) granted under the Revised Corporation Code. 

The Revised Corporation Code provides allows Corporations to make reasonable donations for those public welfare or charitable purposes. (expressly provides that Corporations are allowed to make reasonable donations, including those for the public welfare or for charitable, or similar purposes.)

The attendant facts show that AB Memorial will be using a reasonable amount of donation to distribute food and medicine for the victims of Pinatubo which is a public welfare or charitable purpose.

Hence, AB Memorial can donate the funds to the victims of Mount Pinatubo Eruption.

To determine an intra-corporate controversy, two test(s) must concur which are: (1) the relationship test, and (2) the nature of the controversy test. In the relationship test, the controversy must arise from the between the corporation and its stockholder. In the nature of the controversy test, the controversy must be rooted in the existence of an intra-corporate relationship and must pertain to the enforcement of the parties’ correlative rights and obligations under the Revised Corporation Code.

Applying the foregoing tests, the relationship test is present when (since) there is a relationship between Mr. Y as (a) stockholder against (and) Z company as a corporation. Likewise, the nature of controversy test is also present from the fact that (Mr. Y's subscribed share) the same subscribed share of Mr. Y  was  likewise  corporation’s other stockholder (offered to another stockholder from the corporation, which) is an issue which (that) pertains to Mr. Y correlative right as shareholder of the corporation.

Having passed the relationship test and nature of controversy test, Mr. Y’s case filed against Z Company is an intra-corporate controversy.