[topic 8] PUBLIC CORPORATIONS

Classifications of Corporations

1. public(municipal)

2. private

3. 'quasi public corporations

1. public corporation

1. organized for the government of a portion of a state, such as a local government unit. It is created for public use.

2. private corporation

formed by some private purpose, benefit, aim, or end formed and organized under a general law on corporation.. [ Corporation Code or RA 11232 ]

3. Quasi- Corporations

• Private corporations that render public service or supply public wants, such as utility companies. It combines the elements of both public and private.

• organized for type of service the former renders to the public: if it performs a public service, then it becomes a quasi-public corporation.

GOCC

Government Owned and Controlled Corporations

Distinguish, Public, Private, GOCC

Elements of municipal corporation [4]

1. Legal Corporation/Incorporation;

2. Corporate Name;

3. Inhabitants;

4. Territory.

Political and Corporate Nature of Local Government Units

• Every local government unit created or recognized under this Code is a body politic and corporate endowed with powers to be exercised by it in conformity with law.

  • political subdivision of the national government

  • as a corporate entity representing the inhabitants of its territory

municipal corporation has twin functions

• governmental (public or political)

• proprietary (private, patrimonial or corporate).

SEC 10, ARTICLE X, CONSTITUTION

• No province, city, municipality, or barangay may be created, divided, merged, abolished, or its boundary substantially altered, except in accordance with the criteria established in the local government code and subject to approval by a majority of the votes cast in a plebiscite in the political unit directly affected.

  • of boundary of local government units, i.e., of provinces, cities, municipalities, and barangays, are covered by the Article on Local Government.

C.D.M.A.SA

• created,

• divided,

• merged,

• abolished,

• boundary substantially altered

9. LAW OR ORDINANCE

• Authority to Create Local Government Units. - A local government unit may be created, divided, merged, abolished, or its boundaries substantially altered either by:

  • law enacted by Congress

    • province, city, municipality, or any other political subdivision,

  • by ordinance passed by the [1]sangguniang panlalawigan or [2]sangguniang panlungsod

    • concerned in the case of a barangay located within its territorial jurisdiction, subject to such limitations and requirements prescribed in this Code.

PLEBISCITE

direct vote by the people on an important public question

• No creation, division, merger, abolition, or substantial alteration of boundaries of local government units shall take effect unless approved by a majority of the votes cast in a plebiscite called for the purpose in the political unit or units directly affected. [SEC 10, LGC: Local Government Code]

CREATION AND CONVERSION [IPL]

• general rule, the [1]creation of a local government unit or [2] its conversion from one level to another level shall be based on verifiable indicators of viability and projected capacity to provide services, to wit:

  • Income

  • Population

  • Land Area

1. Income.

1. It must be sufficient, based on acceptable standards, to provide for all essential government facilities and services and special functions commensurate with the size of its population, as expected of the local government unit concerned;

2. Population.

• It shall be determined as the total number of inhabitants within the territorial jurisdiction of the local government unit concerned;

3. Land Area.

• - It must be contiguous, unless it comprises two or more islands or is separated by a local government unit independent of the others; properly identified by metes and bounds with technical descriptions; and sufficient to provide for such basic services and facilities to meet the requirements of its populace.

Power and DUTY TO DECLARE HIGHLY URBANIZED STATUS

• it shall be the duty of the President to declare a city as highly urbanized

DUTY TO DECLARE HIGHLY URBANIZED STATUS

• It shall be the duty of the President to declare a city as highly urbanized within thirty (30) days after it shall have met the minimum requirements prescribed in the immediately preceding Section, upon proper application therefor and ratification in a plebiscite by the qualified voters therein.