ust golden notes - law on public corporations

12/15/2015 UST Golden Notes Law on Public Corporations

https://www.scribd.com/doc/186655313/USTGoldenNotesLawonPublicCorporations 1/3

UST G OLDEN N OTES 2011

182 POLITICAL LAW TEAM: ADVISER: ATTY. EDWIN REY SANDOVAL; SUBJECT HEAD: RACHEL MARIE L. FELICES; ASST. SUBJECT HEADS: WIVINO E. BRACERO II & HERAZEUS CHRISTINE Y. UY; MEMBERS: LAWRENCE PAULO H. AQUINO, LEANDRO RODEL V. ATIENZA, MARINETH EASTER AN D. AYOS, CARLO R. BALA, WILFREDO T. BONILLA, JR., KEEL ACHERNAR R. DINOY, APRIL V. ENRILE, KENNETH JAMES CARLO C. HIZON, JOSE MARIA

G. MENDOZA, ROGER CHRISTOPHER R. REYES, ROMILINDA C. SIBAL, JASMIN M. SISON, ZARAH PATRICIA T. SUAREZ, RALPH JULIOUS L. VILLAMOR.

L. LOCAL GOVERNMENTS

a. PUBLIC CORPORATIONS

Q: What is a public corporation?

A: It is one created by the State either by general or special act for purposes of administration of local government or rendering service in the

public interest. (Rodriguez, p. 2, LGC 5th Edition)

Q: Distinguish public corporation from private corporation.

A: PUBLIC

CORPORATION PRIVATE CORPORATION

Purpose

Administration of local government Private purpose

Who creates

By the state either by general or special act

By incorporators with recognizance of the state

How created

By legislation By agreement of members

Q: What is the criterion to determine whether a corporation is a public corporation?

A: By the relationship of the corporation to the state; if created by the State as its own agency to help it in carrying out its governmental functions, it is public, otherwise, it is private.

Q: What are the dual characteristics of a public corporation?

A: 1. Public or governmental – acts as an

agent of the State for the government of the territory and its inhabitants.

2. Private or proprietary – acts as an agent of the community in the administration of local affairs. As such, it acts as separate entity for its own purposes, and not a subdivision of the State. (Bara Lidasan vs. COMELEC G.R. No. L‐28089, October 25, 1967 citing McQuillin, Municipal Corporations, 3d ed., pp. 456‐464)

Note: Every LGU created or recognized under this code is a body politic and corporate endowed with powers to be exercised by it in conformity with law. As such, it shall exercise powers as a political subdivision of the national government and has a corporate entity representing the inhabitants of its

territory (Sec.15, LGC)

Q: What are the classes of corporations?

A: 1. Quasi ‐ public corporations – public

corporations created as agencies of the State for narrow and limited purposes without the powers and liabilities of self ‐governing corporations.

2. Municipal corporations – body politic and corporate constituted by the incorporation of inhabitants for purposes of local government. It is established by law partly as an agency of the State to assist in the civil government of the country, but chiefly to regulate and administer the local or internal affairs of the city, town or district which is incorporated. (Dillon, Municipal Corporations, Vol.2, pp. 58‐59.)

Q: What is a Government Owned and Controlled Corporation (GOCC)?

A: any agency organized as a stock or non ‐stock corporation vested with functions relating to public needs whether governmental or proprietary in nature, and owned by the government directly or indirectly through its instrumentalities either wholly, or where applicable as in the case of stock corporations to the extent of at least 51% of its capital stock. (Section 2 (13) of Executive Order No. 292 ( Administrative Code of 1987)

Q: What

are

the

requisites

of a GOCC?

A: 1. Any agency organized as a stock or non ‐

stock corporation 2. Vested with functions relating to public

needs whether governmental or proprietary in nature

3. Owned by the Government directly or through its instrumentalities either wholly, or, where applicable as in the



L OCAL G OVERNMENTS

case of stock corporations, to the extent of at least fifty‐one (51) of its capital stock. (Leyson, Jr. v. Office of the Ombudsman, G.R. No. 134990, April 27, 2000)

Q: What laws may govern GOCCs and how do you determine which will govern?

A: Government corporations may be created by special charters or by incorporation under the general corporation law. Those created by special charters are governed by the Civil Service Law while those incorporated under the general corporation law are governed by the Labor Code. (Blaquera vs. Alcala, G.R. No. G.R. No. 109406. September 11, 1998)

Q: Distinguish public corporation from a GOCC.

A: PUBLIC

CORPORATION GOCCs

Purpose

Administration of local government

Performance of functions

relating to public needs

whether Governmental or Proprietary in nature

Who creates

By the state either by general or special act

By Congress or by incorporators

How created

By legislation (1) Original charters or

special laws or (2) general corporation law as a stock or non ‐stock corporation

b. MUNICIPAL CORPORATIONS

Q: What are the essential elements of a municipal corporation?

A: 1. Legal creation 2. Corporate name 3. Inhabitants constituting the population

who are vested with political and corporate powers

and municipalities, upon the recommendation of the sangguniang concerned provided that the same shall be effective only upon ratification in a plebiscite conducted for the purpose in the political unit

directly affected. (R.A. 7160, Sec. 13)

Q: What is the nature and function of a

municipal corporation?

A: It is body politic and corporate constituted by the incorporation of inhabitants for purposes of local government. It is established by law partly as an agency of the State to assist in the civil government of the country, but chiefly to regulate and administer the local or internal affairs of the city, town or district which is incorporated. (Dillon, Mun. Corp., Vol.2, pp. 58‐59.)

Q: What are the different types of municipal corporations?

A: 1. De jure municipal corporations –

created or recognized by operation of



183U N I V E R S I T Y O F S A N T O T O M A S F a c u l t a d d e D e r e c h o i v i l

ACADEMICS CHAIR: LESTER JAY ALAN E. FLORES II VICE CHAIRS FOR ACADEMICS: KAREN JOY G. SABUGO & JOHN HENRY C. MENDOZA VICE CHAIR FOR ADMINISTRATION AND FINANCE: JEANELLE C. LEE

VICE CHAIRS FOR LAY‐OUT AND DESIGN: EARL LOUIE M. MASACAYAN & THEENA C. MARTINEZ

corporate powers 4. Territory (Rodriguez, p.4, LGC 5th

Edition)

Note: The sangguniang panlalawigan may, in consultation with the Philippine Historical Commission change the name of component cities

ust golden notes - law on public corporations

Documents