Liban v.

Gordon
G.R. No. 175352
July 15, 2009
Facts:
This is a petition to declare Senator Richard J. Gordon (respondent) as having
forfeited his seat in the Senate. During respondents incumbency as a member of
the Senate of the Philippines, [1] he was elected Chairman of the PNRC. Petitioners
allege that by accepting the chairmanship of the PNRC Board of Governors,
respondent has violated the constitutional prohibition on incompatible offices.
Respondent insists that the PNRC is not a government-owned or controlled
corporation and that the prohibition under Section 13, Article VI of the Constitution
does not apply in the present case since volunteer service to the PNRC is neither an
office nor an employment.
Issue:
WON the office of the PNRC Chairman is a government office or an office in a
government-owned or controlled corporation for purposes of the prohibition in
Section 13, Article VI of the Constitution.
Held:
No. PNRC is a Private Organization Performing Public Functions
The PNRC is a non-profit, donor-funded, voluntary, humanitarian organization,
whose mission is to bring timely, effective, and compassionate humanitarian
assistance for the most vulnerable without consideration of nationality, race,
religion, gender, social status, or political affiliation.
To ensure and maintain its autonomy, neutrality, and independence, the PNRC
cannot be owned or controlled by the government. Indeed, the Philippine
government does not own the PNRC. The PNRC does not have government assets
and does not receive any appropriation from the Philippine Congress. [13] The PNRC
is financed primarily by contributions from private individuals and private entities
obtained through solicitation campaigns organized by its Board of Governors. ,
The PNRC Charter is Violative of the Constitutional Proscription against
the Creation of Private Corporations by Special Law
The Constitution recognizes two classes of corporations. The first refers to
private corporations created under a general law. The second refers to governmentowned or controlled corporations created by special charters.

The Constitution emphatically prohibits the creation of private corporations

except by general law applicable to all citizens. The purpose of this constitutional
provision is to ban private corporations created by special charters, which
historically gave certain individuals, families or groups special privileges denied to
other citizens.
In short, Congress cannot enact a law creating a private corporation
with a special charter. Such legislation would be unconstitutional. Private
corporations may exist only under a general law. If the corporation is
private, it must necessarily exist under a general law. Stated differently, only
corporations created under a general law can qualify as private corporations. Under
existing laws, the general law is the Corporation Code, except that the Cooperative
Code governs the incorporation of cooperatives.

In sum, we hold that the office of the PNRC Chairman is not a government
office or an office in a government-owned or controlled corporation for purposes of
the prohibition in Section 13, Article VI of the 1987 Constitution. However, since the
PNRC Charter is void insofar as it creates the PNRC as a private corporation, the
PNRC should incorporate under the Corporation Code and register with the
Securities and Exchange Commission if it wants to be a private corporate.

Liban v. Gordon
January 18, 2011
RESOLUTION
Facts:
Nag-file c Gordon ug Motion for Clarification and/or for Reconsideration. Mao
ra. Haha. Katung case above, gi-dismiss tu due to lack of standing of
petitioners pero ng-decide2x pa ang court sa PNRC Charter.
Respondent argues that the validity of R.A. No. 95 was a non-issue; therefore, it was
unnecessary for the Court to decide on that question and that the pronouncement
of the Court on the validity of R.A. No. 95 (PNRC Charter) should be
considered obiter.
Issue:

WON PNRC is a private corporation and must incorporate under the Corporation
Code and register with the SEC
Held:
No. PNRC is a class of its own.
A closer look at the nature of the PNRC would show that there is none
like it not just in terms of structure, but also in terms of history, public service and
official status accorded to it by the State and the international community. There is
merit in PNRCs contention that its structure is sui generis.
National Societies such as the PNRC act as auxiliaries to the public
authorities of their own countries in the humanitarian field and provide a range of
services including disaster relief and health and social programmes. A National
Society partakes of a sui generis character.
National societies are
organizations that are directly regulated by international humanitarian
law, in contrast to other ordinary private entities, including NGOs.
The auxiliary status of [a] Red Cross Society means that it is at one and
the same time a private institution and a public service organization
because the very nature of its work implies cooperation with the
authorities, a link with the State.
By requiring the PNRC to organize under the Corporation Code just like any
other private corporation, the Decision of July 15, 2009 lost sight of the PNRCs
special status under international humanitarian law and as an auxiliary of the State,
designated to assist it in discharging its obligations under the Geneva
Conventions. Although it is neither a subdivision, agency, or instrumentality of the
government, nor a government-owned or -controlled corporation or a subsidiary
thereof, as succinctly explained in the Decision of July 15, 2009, so much so that
respondent, under the Decision, was correctly allowed to hold his position as
Chairman thereof concurrently while he served as a Senator, such a conclusion
does not ipso facto imply that the PNRC is a private corporation within the
contemplation of the provision of the Constitution, that must be organized under the
Corporation Code. As correctly mentioned by Justice Roberto A. Abad, the sui
generis character of PNRC requires us to approach controversies involving the PNRC
on a case-to-case basis.
In sum, the PNRC enjoys a special status as an important ally and auxiliary of
the government in the humanitarian field in accordance with its commitments under
international law. This Court cannot all of a sudden refuse to recognize its
existence, especially since the issue of the constitutionality of the PNRC Charter was
never raised by the parties.

So, gi-modify and decision earlier. The sections of PNRC that were previously
declared void were said to be valid na! Mu-donate na lagi ko ug dugo